ASML Holding, a key supplier to chip makers, said its revenues were €5.43 billion in Q2 2022 against 4 billion euros in the same quarter of 2021.
ASML Holding, the Dutch company, reported net profit of €1.41 billion euros ($1.44 billion) for the three months ended June 30, up from profit of €1.04 billion a year earlier.

ASML said margins were affected by higher inflation costs, and earnings were hit by delayed recognition of revenue for some systems it was rushing out to customers before they had been fully tested in the Netherlands.

ASML dominates the market for lithography systems, giant machines that use light beams to create the circuitry of computer chips. Customers of ASML include all major chipmakers, with TSMC, Samsung and Intel the biggest.

“Some customers are indicating signs of slowing demand in certain consumer-driven market segments, yet we still see strong demand for our systems,” ASML Holding Chief Executive Officer Peter Wennink said.

Net bookings in the quarter were €8.46 billion, a record.

ASML’s most advanced systems cost about $160 million each and take 18 months to build. It has been operating at full capacity for several years.

The company said it expected to update markets later this year on the feasibility of significantly expanding its production by 2025.

ASML Holding said it expected about €1.8 billion worth of 2022 sales would be pushed out to 2023 due to the fast shipment program, which means sales growth in 2022 would be about 10 percent down from an earlier estimate of 20 percent.

ASML expects third-quarter net sales between €5.1 billion and €5.4 billion with a gross margin between 49 percent and 50 percent. ASML expects R&D costs of around €810 million and SG&A costs of around €235 million.

For the full year, ASML expects a revenue growth of around 10 percent. This growth is lower than previously guided due to an increase in the number of fast shipments expected in the remainder of 2022, the revenue for which will be delayed into 2023 at an amount of around €2.8 billion.

“With the combination of this delayed revenue recognition, the extra costs related to the increase in capacity and certain inflationary trends, we expect the full year 2022 gross margin to be between 49 percent and 50 percent,” Peter Wennink said.