Dutch chip equipment maker ASML today reported a worse-than-expected second-quarter net loss on sharply lower sales and said it would cut a further 11 per cent of its staff.
The world's largest maker of lithography machines, which are essential tools in the production of semiconductors, is struggling with the industry's worst-ever downturn. But it managed to generate euro215 million of cash and increase its gross margin to 22 per cent from the first quarter's 17 percent as a result of lower costs.
The firm said it would cut 550 jobs, including around 400 in Europe, to lower its break-even point even further. Its former plan was to break even at 40 new units sold per quarter, a goal it expected to achieve later this year.
ASML shares were up 2.5 per cent at euro11.41 at the open, and up 13 per cent this week after a series of broker upgrades on hopes the recovery will start in the next half year.
The shares have risen 44 per cent this month. The company itself, however, issued no earnings forecast for 2003, claiming market conditions remained uncertain.