ASML Holding, a key supplier to major computer chip makers, on Wednesday reported first-quarter earnings ahead of expectations, and said it expects a strong second quarter.
Net profit for the quarter was 198 million euros ($225 million), down from 292 million euros in the fourth quarter of 2015, on revenues of 1.33 billion euros.
Analysts polled for Reuters had put net profit at 184 million euros.
ASML sells systems that use highly focused beams of energy to map out the circuitry of semiconductors
Second-quarter net sales were expected to increase substantially from the first quarter as customers began to ramp up fabrication plants for the latest generation of computer chips, the company's CEO Peter Wennink said in a statement.
ASML's biggest logic chip customers are Intel and Samsung, which each own a stake in Netherlands-based ASML.
The company forecast revenues of 1.7 billion euros in the second quarter, including 110 million euros of revenues recognised for sales of two of its newest EUV, or extreme ultraviolet, systems.
ASML said its goal of 10 billion euros in annual revenues by 2020 depends on the eventual widespread adoption of EUV technology, but inclusion of the sales in the second quarter sales would hurt margins.
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