(Associated Press via NewsEdge) ASML Holding, a key equipment supplier to many of the world's largest computer chip makers, reported flat fourth quarter earnings and issued a cautious outlook for 2008.
Its shares fell almost 7%.
Net profit was unchanged at 206 million euros ($303 million) for the quarter ended December 31, while sales fell to 973 million euros ($1.43 billion) from 1.07 billion euros ($2.5 billion).
More significantly for investors, the company stopped short of saying sales of its main product, lithography machines that map out the circuitry of semiconductors, would rise in the first quarter.
ASML is a supplier to Intel and Samsung Electronics and a competitor of Japan's Nikon and Canon.
'Although independent market researchers still expect a double-digit increase in demand for integrated circuit units in 2008, which should translate into lithography market expansion in 2008, we are awaiting confirmation of this potential growth through the exact level of Q1 and Q2 bookings,' said CEO Eric Meurice in a statement.
Those remarks closely echo those of Intel, which issued an outlook for 2008 Tuesday that fell short of analyst expectations.
ASML shares dropped 6.9% to 17.20 euros ($25.29) in trading in Amsterdam.
'Disappointingly, the company did not guide Q1 orders due to concerns on the economic backdrop. This will likely be read poorly by the market,' said analyst Scott Geels of Sanford Bernstein in a note on the earnings.
Geels said the fourth quarter earnings were better than forecast and repeated his firm's positive advice on the company's shares.
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