Dutch semiconductor equipment maker ASML reported on Wednesday that its first-quarter net income fell to €1.22 billion ($1.3 billion) from last year's €1.96 billion.
Sales for the quarter came in at €5.29 billion, down from €7.24 billion.
ASML attributed the declines to a cyclical downturn in the broader semiconductor industry. The company does not produce the critical chips themselves, but rather the cutting-edge lithography systems that are necessary to make them.
"Our outlook for the full year 2024 is unchanged, with the second half of the year expected to be stronger than the first half, in line with the industry's continued recovery from the downturn," chief executive Peter Wennink said in a statement.
Wennink called 2024 a "transition year" for the company and said ASML would be "ready for the turn in the cycle."
Earnings per share in the first quarter were €3.11, down from €4.95 a year earlier. Income before income taxes declined to €1.42 billion from €2.22 billion a year ago.
Looking ahead for the second quarter, ASML expects total net sales between €5.7 billion and €6.2 billion, and a gross margin between 50% and 51%.
For fiscal 2024, the company continues to expect revenue to be similar to 2023.