ASML Announces 2010 Second Quarter Results

July 15, 2010 By Leave a Comment

Sales set for new high amid increasing semiconductor fab spend
VELDHOVEN, Netherlands–(Business Wire)–
ASML Holding NV (ASML) today announces 2010 second quarter results according to
US GAAP as follows:

* Q2 2010 net sales of EUR 1,069 million versus Q1 2010 net sales of EUR 742
million (Q2 2009 net sales of EUR 277 million).
* Q2 2010 net income of EUR 239 million, or 22.4 percent of net sales, versus a
Q1 2010 net income of EUR 107 million or 14.5 percent of net sales (Q2 2009 net
loss of EUR 104 million or 37.6 percent of net sales).
* Q2 2010 net bookings valued at EUR 1,179 million with 59 systems including 48
new and 11 used systems, leading to a systems backlog valued at EUR 2,401
million as of June 27, 2010.

“Our second quarter sales came in at EUR 1.069 billion, confirming the continued
strong demand in the semiconductor industry for our leading edge lithography
systems,” said Eric Meurice, President and Chief Executive Officer of ASML. “Our
NXT:1950i is now enabling volume production of the most advanced and
cost-efficient semiconductor nodes, with close to 20 systems shipped and half a
million silicon wafers already exposed. The excellent overlay and imaging
performance of our NXTs is further enhanced by our unique suite of Holistic
Lithography products which optimize manufacturing tolerances and provide a
faster start to chip production. All ASML`s leading edge NXT scanners sold
include one or more holistic lithography components. Regarding next generation
products, to be used beyond 20 nanometers (nm), we are in the process of final
integration test of our Extreme Ultraviolet (EUV) production systems and
delivery of six of these EUV systems will happen over the course of the next 12
months,” Meurice added.

Operations Update

In Q2 2010, ASML`s net sales of EUR 1,069 million included 35 new and 8 used
systems, totaling net system sales of EUR 923 million, and net service and field
options sales of EUR 146 million. Net system sales for Q1 2010 included the
shipment of 23 new and 11 used machines, totaling EUR 632 million, and net
service and field options sales of EUR 110 million.

The Q2 2010 average selling price for a new system was EUR 25.6 million,
compared with the Q1 2010 average selling price for a new system of EUR 25.8
million. The Q2 2010 average selling price for all ASML systems sold was EUR
21.5 million, compared with the Q1 2010 average selling price of EUR 18.6
million.

Q2 2010 net bookings totaled 59 systems valued at EUR 1,179 million, including
advanced immersion systems for critical layers as well as KrF systems for less
critical layers for capacity additions, with a total average selling price of
EUR 20.0 million.

ASML`s systems backlog as of June 27, 2010 was EUR 2,401 million, totaling 101
systems with an average selling price of EUR 23.8 million, reflecting a mix of
systems for all chip layers. ASML`s backlog as of March 28, 2010 was valued at
EUR 2,170 million, totaling 85 systems with an average selling price of EUR 25.5
million.

In Q2 2010, ASML generated net income of EUR 239 million, or EUR 0.55 per
ordinary share as compared with net income in Q1 2010 of EUR 107 million or EUR
0.25 per ordinary share.

The company`s Q2 2010 gross margin was 43.0 percent compared with the Q1 2010
gross margin of 40.3 percent.

Q2 2010 research and development (R&D) costs were EUR 125 million including
credits, compared with Q1 2010 R&D costs of EUR 120 million including credits.

Selling, general and administrative (SG&A) costs were EUR 42 million in Q2 2010,
compared with SG&A costs of EUR 41 million in Q1 2010.

Net cash from operations was EUR 193 million in Q2 2010. ASML ended Q2 2010 with
EUR 1,189 million in cash and cash equivalents, compared with EUR 1,087 million
at the end of Q1 2010.

Outlook

“We booked EUR 1,179 million worth of systems in the second quarter of 2010 and
we anticipate bookings levels of around EUR 1.3 billion in the third quarter; we
now expect full year 2010 sales to grow 10 to 15 percent above our historical
peak sales of EUR 3.8 billion,” Eric Meurice said. “This level of sales is
expected to continue into 2011, barring a major macro-economic downturn, as it
is supported by a number of fundamental growth drivers, including:

* The more than doubling, between 2009 and 2010, of the average number of
immersion layer exposures due to the growing sub-50nm nodes mix, with a
continued upward trend into 2011.
* The memory makers` upgrades to more advanced nodes with second tier DRAM
manufacturers now transferring to 40nm nodes while leading DRAM vendors are
preparing for 30nm node manufacturing, and NAND Flash manufacturers migrating to
sub-30nm chip production.
* Foundries` and Integrated Device Manufacturers` (IDMs) continued catch-up on
under-investments of the past two to three years; this structural addition in
current 65nm and new 40nm technology capacity, is necessary to service the
richer technology mix and the increased load of IDM-driven demand at foundries,
following IDMs` retirement of obsolete capacity.

In order to support this strong structural demand we will add flexible
manufacturing capacity; we will also increase our research and development (R&D)
investments in order to strengthen our leadership further,” Meurice said.

ASML expects Q3 2010 net sales of around EUR 1.1 billion, and gross margin in Q3
2010 of about 43 percent. R&D expenditures are expected to be at EUR 137 million
including credits and SG&A costs are expected at EUR 50 million due to a higher
sales level including workforce recruitment costs.

About ASML

ASML is the world’s leading provider of lithography systems for the
semiconductor industry, manufacturing complex machines that are critical to the
production of integrated circuits or chips. Headquartered in Veldhoven, the
Netherlands, ASML is traded on Euronext Amsterdam and NASDAQ under the symbol
ASML. ASML has more than 6,600 employees (expressed in full time equivalents),
serving chip manufacturers in more than 60 locations in 15 countries. More
information about our company, our products and technology, and career
opportunities is available on our website: www.asml.com

Investor and Media Conference Call

A conference call for investors and media will be hosted by CEO Eric Meurice and
CFO Peter Wennink at 15:00 PM Central European Time / 09:00 AM Eastern U.S.
time. Dial-in numbers are: in the Netherlands +31 10 29 44 271 and the US +1 718
247 0888 (US participants will have to quote the following confirmation code
when dialing into the conference: 9234869). To listen to the conference call,
access is also available via www.asml.com

A replay of the Investor and Media Call will be available on www.asml.com

IFRS Financial Reporting

ASML’s primary accounting standard for quarterly earnings releases and annual
reports is US GAAP, the accounting standard generally accepted in the United
States. Quarterly US GAAP consolidated statements of operations, consolidated
statements of cash flows and consolidated balance sheets, and a reconciliation
of net income/(loss) and equity from US GAAP to IFRS are available on
www.asml.com

In addition to reporting financial figures in accordance with US GAAP, ASML also
reports financial figures in accordance with IFRS for statutory purposes. The
most significant differences between US GAAP and IFRS that affect ASML concern
the capitalization of certain product development costs, the accounting of
share-based payment plans, the accounting of income taxes and the accounting of
reversal of inventory write-downs. ASML`s quarterly IFRS consolidated income
statement, consolidated statement of cash flows, consolidated statements of
financial position and a reconciliations of net income/(loss) and equity from US
GAAP to IFRS are available on www.asml.com

Today, July 14, 2010, ASML will also publish its Statutory Interim Report for
the six months period ended June 27, 2010. This report is in accordance with the
requirements of the EU Transparency Directive as implemented in the Netherlands,
will include consolidated condensed interim financial statements prepared in
accordance with IAS 34, “Interim Financial Reporting”, an Interim Management
Board Report and a Managing Directors’ Statement and will be available on
www.asml.com.

The consolidated balance sheets of ASML Holding N.V. as of June 27, 2010, the
related consolidated statements of operations and consolidated statements of
cash flows for the quarter ended June 27, 2010 as presented in this press
release are unaudited.

Regulated Information

This press release, the US GAAP consolidated financial statements and the IFRS
consolidated financial statements published on www.asml.com comprise regulated
information within the meaning of the Dutch Financial Markets Supervision Act
(Wet op het financieel toezicht).

Forward Looking Statements

“Safe Harbor” Statement under the US Private Securities Litigation Reform Act of
1995: the matters discussed in this document may include forward-looking
statements, including statements made about our outlook, realization of backlog,
IC unit demand, financial results, average selling price, gross margin and
expenses. These forward looking statements are subject to risks and
uncertainties including, but not limited to: economic conditions, product demand
and semiconductor equipment industry capacity, worldwide demand and
manufacturing capacity utilization for semiconductors (the principal product of
our customer base), including the impact of general economic conditions on
consumer confidence and demand for our customers` products, competitive products
and pricing, the impact of manufacturing efficiencies and capacity constraints,
the pace of new product development and customer acceptance of new products, our
ability to enforce patents and protect intellectual property rights, the risk of
intellectual property litigation, availability of raw materials and critical
manufacturing equipment, trade environment, changes in exchange rates and other
risks indicated in the risk factors included in ASML`s Annual Report on Form
20-F and other filings with the US Securities and Exchange Commission.

ASML – Summary U.S. GAAP Consolidated Statements of Operations 1,2

Three months ended, Six months ended,
Jun 28, 2009 Jun 27, 2010 Jun 28, 2009 Jun 27, 2010
(in millions EUR, except per share data)

Net system sales 183.3 923.0 284.4 1,554.6
Net service and field option sales 93.3 145.7 175.8 255.9
Total net sales 276.6 1,068.7 460.2 1,810.5

Cost of sales 242.2 609.3 413.4 1,052.5
Gross profit on sales 34.4 459.4 46.8 758.0

Research and development costs 117.9 125.3 236.2 245.6
Selling, general and administrative costs 3 40.3 41.7 80.7 83.1
Income (loss) from operations (123.8 ) 292.4 (270.1 ) 429.3

Interest expense 3 (0.9 ) (2.7 ) (2.6 ) (5.5 )
Income (loss) from operations before income taxes (124.7 ) 289.7 (272.7 ) 423.8

(Provision for) benefit from income taxes 20.7 (50.5 ) 51.5 (77.3 )
Net income (loss) (104.0 ) 239.2 (221.2 ) 346.5

Basic net income (loss) per ordinary share (0.24 ) 0.55 (0.51 ) 0.80
Diluted net income (loss) per ordinary share 4 (0.24 ) 0.54 (0.51 ) 0.79

Number of ordinary shares used in computing per share amounts (in millions):
Basic 432.5 435.1 432.3 434.6
Diluted 4 432.5 438.9 432.3 438.3

ASML – Ratios and Other Data 1,2

Three months ended, Six months ended,
Jun 28, 2009 Jun 27, 2010 Jun 28, 2009 Jun 27, 2010

Gross profit as a % of net sales 12.5 43.0 10.2 41.9
Income (loss) from operations as a % of net sales 3 (44.7 ) 27.4 (58.7 ) 23.7
Net income (loss) as a % of net sales (37.6 ) 22.4 (48.1 ) 19.1
Shareholders` equity as a % of total assets 3 47.2 42.7 47.2 42.7
Income taxes as a % of income before income taxes (16.6 ) (17.4 ) (18.9 ) (18.3 )
Sales of systems (in units) 10 43 21 77
ASP of systems sales (EUR million) 18.3 21.5 13.5 20.2
Value of systems backlog (EUR million) 1,064 2,401 1,064 2,401
Systems backlog (in units) 43 101 43 101
ASP of systems backlog (EUR million) 24.7 23.8 24.7 23.8
Value of booked systems (EUR million) 394 1,179 601 2,183
Net bookings (in units) 15 59 23 109
ASP of booked systems (EUR million) 26.3 20.0 26.1 20.0
Number of payroll employees in FTEs 6,597 6,691 6,597 6,691
Number of temporary employees in FTEs 868 1,500 868 1,500

ASML – Summary U.S. GAAP Consolidated Balance Sheets 1,2

Dec 31, 2009 Jun 27, 2010
(in millions EUR)

ASSETS
Cash and cash equivalents 1,037.1 1,188.6
Accounts receivable, net 377.4 811.5
Finance receivables, net 21.6 –
Current tax assets 11.3 74.7
Inventories, net 963.4 1,309.3
Deferred tax assets 119.4 100.7
Other assets 218.7 248.7
Total current assets 2,748.9 3,733.5

Deferred tax assets 133.3 126.4
Other assets 77.0 94.4
Goodwill 131.5 153.2
Other intangible assets, net 18.1 16.4
Property, plant and equipment, net 3 655.4 742.8
Total non-current assets 1,015.3 1,133.2

Total assets 3,764.2 4,866.7

LIABILITIES AND SHAREHOLDERS` EQUITY
Current liabilities 1,044.2 1,782.7

Accrued liabilities and other liabilities 44.3 57.3
Deferred and other tax liabilities 188.4 205.0
Provisions 12.7 13.8
Long-term debt 3 699.8 728.6
Total non-current liabilities 945.2 1,004.7

Total liabilities 1,989.4 2,787.4

Shareholders` equity 1,774.8 2,079.3
Total liabilities and shareholders` equity 3,764.2 4,866.7

ASML – Summary U.S. GAAP Consolidated Statements of Cash Flows 1,2

Three months ended, Six months ended,
Jun 28, 2009 Jun 27, 2010 Jun 28, 2009 Jun 27, 2010
(in millions EUR)

CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) (104.0 ) 239.2 (221.2 ) 346.5

Depreciation and amortization 3 35.1 36.2 73.8 70.9
Impairment 4.4 0.7 7.0 1.5
Loss on disposals of property, plant and equipment (0.4 ) 1.0 2.2 1.6
Share-based payments 2.6 2.4 6.1 5.2
Allowance for doubtful debts 1.1 – 1.1 0.2
Allowance for obsolete inventory 43.9 21.2 66.0 35.0
Deferred income taxes (31.2 ) 6.1 (58.2 ) 29.8
Change in assets and liabilities 110.7 (113.8 ) 268.0 (256.6 )
Net cash provided by operating activities 62.2 193.0 144.8 234.1

CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment (39.9 ) (18.0 ) (83.8 ) (25.2 )
Proceeds from sale of property, plant and equipment 5.7 – 6.9 –
Net cash used in investing activities (34.2 ) (18.0 ) (76.9 ) (25.2 )

CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid (86.5 ) (87.0 ) (86.5 ) (87.0 )
Net proceeds from issuance of shares and stock options 0.4 7.8 0.5 18.2
Excess tax benefits from stock options 0.5 – 0.3 –
Net proceeds from other long-term debt 0.1 – 0.1 –
Redemption and/or repayment of debt 3 (0.4 ) (0.3 ) (0.8 ) (0.7 )
Net cash used in financing activities (85.9 ) (79.5 ) (86.4 ) (69.5 )

Net cash flows (57.9 ) 95.5 (18.5 ) 139.4

Effect of changes in exchange rates on cash (0.4 ) 5.8 2.0 12.1
Net increase (decrease) in cash & cash equivalents (58.3 ) 101.3 (16.5 ) 151.5

ASML – Quarterly Summary U.S. GAAP Consolidated Statements of Operations 1,2

Three months ended,

Jun 28, Sep 27, Dec 31, Mar 28, Jun 27,
2009 2009 2009 2010 2010
(in millions EUR, except per share data)

Net system sales 183.3 458.7 431.8 631.6 923.0
Net service and field option sales 93.3 96.6 148.8 110.2 145.7
Total net sales 276.6 555.3 580.6 741.8 1,068.7

Cost of sales 242.2 364.0 360.3 443.2 609.3
Gross profit on sales 34.4 191.3 220.3 298.6 459.4

Research and development costs 117.9 115.2 115.4 120.3 125.3
Selling, general and administrative costs 3 40.3 37.5 36.5 41.4 41.7
Income (loss) from operations (123.8) 38.6 68.4 136.9 292.4

Interest expense 3 (0.9) (2.4) (3.5) (2.8) (2.7)
Income (loss) from operations before income taxes (124.7) 36.2 64.9 134.1 289.7

(Provision for) benefit from income taxes 20.7 (16.4) (14.4) (26.8) (50.5)
Net income (loss) (104.0) 19.8 50.5 107.3 239.2

Basic net income (loss) per ordinary share (0.24) 0.05 0.12 0.25 0.55
Diluted net income (loss) per ordinary share 4 (0.24) 0.05 0.12 0.25 0.54

Number of ordinary shares used in computing per share amounts (in millions):
Basic 432.5 432.7 433.2 434.0 435.1
Diluted 4 432.5 435.0 437.0 437.9 438.9

ASML – Quarterly Summary Ratios and other data 1,2

Three months ended,

Jun 28, Sep 27, Dec 31, Mar 28, Jun 27,
2009 2009 2009 2010 2010

Gross profit as a % of net sales 12.5 34.4 38.0 40.3 43.0
Income (loss) from operations as a % of net sales 3 (44.7) 6.9 11.8 18.5 27.4
Net income (loss) as a % of net sales (37.6) 3.6 8.7 14.5 22.4
Shareholders` equity as a % of total assets 3 47.2 47.3 47.1 41.2 42.7
Income taxes as a % of income before income taxes (16.6) (45.4) (22.2) (20.0) (17.4)
Sales of systems (in units) 10 24 25 34 43
ASP of system sales (EUR million) 18.3 19.1 17.3 18.6 21.5
Value of systems backlog (EUR million) 1,064 1,353 1,853 2,170 2,401
Systems backlog (in units) 43 54 69 85 101
ASP of systems backlog (EUR million) 24.7 25.1 26.8 25.5 23.8
Value of booked systems (EUR million) 394 777 956 1,004 1,179
Net bookings (in units) 15 35 40 50 59
ASP of booked systems (EUR million) 26.3 22.2 23.9 20.1 20.0
Number of payroll employees in FTEs 6,597 6,529 6,548 6,591 6,691
Number of temporary employees in FTEs 868 917 1,137 1,331 1,500

ASML – Quarterly Summary U.S. GAAP Consolidated Balance Sheets 1,2

Jun 28, Sep 27, Dec 31, Mar 28, Jun 27,
2009 2009 2009 2010 2010
(in millions EUR)

ASSETS
Cash and cash equivalents 1,092.7 1,018.0 1,037.1 1,087.3 1,188.6
Accounts receivable, net 213.5 382.1 377.4 629.8 811.5
Finance receivables, net 0.1 21.1 21.6 23.3 –
Current tax assets – – 11.3 37.5 74.7
Inventories, net 926.1 882.4 963.4 1,155.5 1,309.3
Deferred tax assets 70.5 69.0 119.4 107.5 100.7
Other assets 220.2 224.2 218.7 247.3 248.7
Total current assets 2,523.1 2,596.8 2,748.9 3,288.2 3,733.5

Finance receivables, net 20.6 – – – –
Deferred tax assets 198.9 193.5 133.3 127.9 126.4
Other assets 53.8 68.1 77.0 99.1 94.4
Goodwill 134.5 128.6 131.5 141.1 153.2
Other intangible assets, net 22.3 19.0 18.1 17.8 16.4
Property, plant and equipment, net 3 629.3 598.7 655.4 720.7 742.8
Total non-current assets 1,059.4 1,007.9 1,015.3 1,106.6 1,133.2

Total assets 3,582.5 3,604.7 3,764.2 4,394.8 4,866.7

LIABILITIES AND SHAREHOLDERS` EQUITY
Current liabilities 940.9 949.3 1,044.2 1,613.0 1,782.7

Accrued liabilities and other liabilities 45.6 44.7 44.3 45.9 57.3
Deferred and other tax liabilities 200.6 193.7 188.4 200.1 205.0
Provisions 14.8 13.5 12.7 13.0 13.8
Long-term debt 3 689.3 697.2 699.8 711.8 728.6
Total non-current liabilities 950.3 949.1 945.2 970.8 1,004.7

Total liabilities 1,891.2 1,898.4 1,989.4 2,583.8 2,787.4

Shareholders` equity 1,691.3 1,706.3 1,774.8 1,811.0 2,079.3
Total liabilities and shareholders` equity 3,582.5 3,604.7 3,764.2 4,394.8 4,866.7

ASML – Quarterly Summary U.S. GAAP Consolidated Statements of Cash Flows 1,2

Three months ended,

Jun 28, Sep 27, Dec 31, Mar 28, Jun 27,
2009 2009 2009 2010 2010
(in millions EUR)

CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) (104.0) 19.8 50.5 107.3 239.2

Depreciation and amortization 3 35.1 33.8 34.0 34.7 36.2
Impairment 4.4 8.6 0.3 0.8 0.7
Loss (gain) on disposals of property, plant and equipment (0.4) 0.9 1.0 0.6 1.0
Share-based payments 2.6 2.8 4.5 2.8 2.4
Allowance for doubtful debts 1.1 0.7 0.1 0.2 –
Allowance for obsolete inventory 43.9 13.2 7.4 13.8 21.2
Deferred income taxes (31.2) (4.5) 13.3 23.7 6.1
Change in assets and liabilities 110.7 (140.3) (91.7) (142.8) (113.8)
Net cash provided by (used in) operating activities 62.2 (65.0) 19.4 41.1 193.0

CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment (39.9) (13.5) (7.7) (7.2) (18.0)
Proceeds from sale of property, plant and equipment 5.7 – – – –
Net cash used in investing activities (34.2) (13.5) (7.7) (7.2) (18.0)

CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid (86.5) – – – (87.0)
Net proceeds from issuance of shares and stock options 0.4 4.2 6.4 10.4 7.8
Excess tax benefits from stock options 0.5 0.7 1.0 – –
Net proceeds from other long-term debt 0.1 – – – –
Redemption and/or repayment of debt 3 (0.4) (0.4) (0.4) (0.4) (0.3)
Net cash provided by (used in) financing activities (85.9) 4.5 7.0 10.0 (79.5)

Net cash flows (57.9) (74.0) 18.7 43.9 95.5

Effect of changes in exchange rates on cash (0.4) (0.7) 0.4 6.3 5.8
Net increase (decrease) in cash & cash equivalents (58.3) (74.7) 19.1 50.2 101.3

ASML – Notes to the Summary U.S. GAAP Consolidated Financial Statements

Basis of Presentation

ASML follows accounting principles generally accepted in the United States of
America (“U.S. GAAP”). Further disclosures, as required under U.S. GAAP in
annual reports, are not included in the summary consolidated financial
statements. Unless stated otherwise, the accompanying consolidated financial
statements are stated in thousands of euros (`EUR`).

Principles of consolidation

The consolidated financial statements include the accounts of ASML Holding N.V.
and all of its majority-owned subsidiaries. Subsidiaries are all entities over
which ASML has the power to govern the financial and operating policies
generally accompanying a shareholding of more than one half of the voting
rights. All intercompany profits, balances and transactions have been eliminated
in the consolidation.

Use of estimates

The preparation of ASML`s consolidated financial statements in conformity with
U.S. GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, the disclosure of contingent assets
and liabilities on the balance sheet dates and the reported amounts of revenue
and expense during the reported periods. Actual results could differ from those
estimates.

Recognition of revenues

ASML recognizes revenue when all four revenue recognition criteria are met:
persuasive evidence of an arrangement exists; delivery has occurred or services
have been rendered; seller`s price to buyer is fixed or determinable; and
collectability is reasonably assured. At ASML, this policy generally results in
revenue recognition from the sale of a system upon shipment. The revenue from
the installation of a system is generally recognized upon completion of that
installation at the customer site. Each system undergoes, prior to shipment, a
“Factory Acceptance Test” in ASML’s cleanroom facilities, effectively
replicating the operating conditions that will be present on the customer’s
site, in order to verify whether the system will meet its standard
specifications and any additional technical and performance criteria agreed with
the customer, if any. A system is shipped, and revenue is recognized, only after
all specifications are met and customer sign-off is received or waived. Where
not all specifications are met and the remaining performance obligation is not
essential to the functionality of the system but substantive rather than
inconsequential or perfunctory a portion of the sales price is deferred.
Although each system’s performance is re-tested upon installation at the
customer’s site, ASML has never failed to successfully complete installation of
a system at a customer`s premises.

For arrangements containing multiple elements, the revenue relating to the
undelivered elements is deferred at estimated fair value until delivery of those
elements. Revenue from installation services and service contracts provided to
our customers is initially deferred and is recognized when the installation is
completed and, in case of service contracts, over the life of those contracts.
Revenue from extended and enhanced warranties is recognized in income on a
straight-line basis over the contract period. The costs of providing services
under extended and enhanced warranties are recognized when they occur.

Foreign currency risk management

The Company uses the euro as its invoicing currency in order to limit exposure
to foreign currency movements. Exceptions may occur on a customer by customer
basis. To the extent that invoicing is done in a currency other than the euro,
the Company is exposed to foreign currency risk.

It is the Company`s policy to hedge material transaction exposures, such as
sales transactions and forecasted purchase transactions. The Company hedges
these exposures through the use of currency contracts.

It is the Company`s policy to hedge material remeasurement exposures. The net
exposures from certain monetary assets and liabilities in non-functional
currencies are hedged with forward contracts.

As of June 27, 2010, equity includes EUR 88.2 million loss (net of taxes: EUR
65.7; December 31, 2009 EUR 41.8 million loss) representing the total
anticipated loss to be charged to sales, and EUR 12.6 million gain (net of
taxes: EUR 9.4 million gain; December 31, 2009 EUR 0.5 million gain) to be
released to cost of sales, which will offset the higher EUR equivalent of
foreign currency denominated forecasted sales and purchase transactions.

ASML – Reconciliation U.S. GAAP – IFRS 1,2

Net income Three months ended, Six months ended,
Jun 28, 2009 Jun 27, 2010 Jun 28, 2009 Jun 27, 2010
(in thousands EUR)
Net income (loss) under U.S. GAAP (104.0) 239.2 (221.2) 346.5
Share-based payments (see Note 1) 1.4 0.1 0.9 0.2
Development costs (see Note 2) 21.8 10.1 33.3 12.1
Reversal of write-downs (see Note 3) – 3.5 – 0.2
Income taxes (see Note 4) (0.4) (0.3) (2.0) (5.1)
Net income (loss) under IFRS (81.2) 252.6 (189.0) 353.9

Shareholders` equity Jun 28, Sep 27, Dec 31, Mar 28, Jun 27,
2009 2009 2009 2010 2010
(in thousands EUR)
Shareholders` equity under U.S. GAAP 1,691.3 1,706.3 1,774.8 1,811.0 2,079.3
Share-based payments (see Note 1) (4.9) (0.5) 2.4 3.5 0.5
Development costs (see Note 2) 235.9 259.7 251.5 255.8 269.1
Reversal of write-downs (see Note 3) – 28.5 17.1 13.8 17.3
Income taxes (see Note 4) 2.8 1.4 5.0 0.8 1.2
Shareholders` equity under IFRS 1,925.1 1,995.4 2,050.8 2,084.9 2,367.4

Notes to the reconciliation from U.S. GAAP to IFRS

Note 1 Share-based Payments

Under IFRS, ASML applies IFRS 2, “Share-based Payments” beginning from January
1, 2004. In accordance with IFRS 2, ASML records as an expense the fair value of
its share-based payments with respect to stock options and stock granted to its
employees after November 7, 2002. Under IFRS, at period end a deferred tax asset
is computed on the basis of the tax deduction for the share-based payments under
the applicable tax law and is recognized to the extent it is probable that
future taxable profit will be available against which these deductible temporary
differences will be utilized. Therefore, changes in the Company`s share price do
affect the deferred tax asset at period-end and result in adjustments to the
deferred tax asset.

As of January 1, 2006, ASML applies ASC 718 “Compensation- Stock Compensation”
which requires companies to recognize the cost of employee services received in
exchange for awards of equity instruments based upon the grant-date fair value
of those instruments. ASC 718`s general principle is that a deferred tax asset
is established as the Company recognizes compensation costs for commercial
purposes for awards that are expected to result in a tax deduction under
existing tax law. Under U.S. GAAP, the deferred tax recorded on share-based
compensation is computed on the basis of the expense recognized in the financial
statements. Therefore, changes in the Company`s share price do not affect the
deferred tax asset recorded in the Company`s financial statements.

Note 2 Development costs

Under IFRS, ASML applies IAS 38, “Intangible Assets”. In accordance with IAS 38,
ASML capitalizes certain development expenditures that are amortized over the
expected useful life of the related product generally ranging between one and
three years. Amortization starts when the developed product is ready for volume
production.

Under U.S. GAAP, ASML applies ASC 730, “Research and Development”. In accordance
with ASC 730, ASML charges costs relating to research and development to
operating expense as incurred.

Note 3 Reversal of write-downs

Under IFRS, ASML applies IAS 2 (revised), “Inventories”. In accordance with IAS
2, reversal of a prior period write-down as a result of a subsequent increase in
value of inventory should be recognized in the period in which the value
increase occurs.

Under U.S. GAAP, ASML applies ASC 330 Inventory. In accordance with ASC 330
reversal of a write-down is prohibited as a write-down creates a new cost basis.

Note 4 Income taxes

Under IFRS, ASML applies IAS 12, “Income Taxes” beginning from January 1, 2005.
In accordance with IAS 12 unrealized net income resulting from intercompany
transactions that are eliminated from the carrying amount of assets in
consolidation give rise to a temporary difference for which deferred taxes must
be recognized in consolidation. The deferred taxes are calculated based on the
tax rate applicable in the purchaser`s tax jurisdiction.

Under U.S. GAAP, the elimination of unrealized net income from intercompany
transactions that are eliminated from the carrying amount of assets in
consolidation give rise to a temporary difference for which prepaid taxes must
be recognized in consolidation. Contrary to IFRS, the prepaid taxes under U.S.
GAAP are calculated based on the tax rate applicable in the seller`s rather than
the purchaser`s tax jurisdiction.

“Safe Harbor” Statement under the US Private Securities Litigation Reform Act of
1995: the matters discussed in this document may include forward-looking
statements, including statements made about our outlook, realization of backlog,
IC unit demand, financial results, average selling price, gross margin and
expenses. These forward looking statements are subject to risks and
uncertainties including, but not limited to: economic conditions, product demand
and semiconductor equipment industry capacity, worldwide demand and
manufacturing capacity utilization for semiconductors (the principal product of
our customer base), including the impact of general economic conditions on
consumer confidence and demand for our customers` products, competitive products
and pricing, the impact of manufacturing efficiencies and capacity constraints,
the pace of new product development and customer acceptance of new products, our
ability to enforce patents and protect intellectual property rights, the risk of
intellectual property litigation, availability of raw materials and critical
manufacturing equipment, trade environment, changes in exchange rates and other
risks indicated in the risk factors included in ASML`s Annual Report on Form
20-F and other filings with the US Securities and Exchange Commission.

1 This press release is unaudited.

2 Numbers have been rounded.

3 As of January 1, 2010 ASML adopted ASC 810 “Amendments to FIN 46(R)” which
resulted in the consolidation of the Variable Interest Entity which owns ASML’s
headquarters located in The Netherlands. The comparative figures have been
adjusted to reflect this change in accounting policy. As of January 1, 2010 the
total impact on Property, plant and equipment and Long-term debt amounts to EUR
36.7 million.

4 The calculation of diluted net income per ordinary share assumes the exercise
of options issued under ASML stock option plans for periods in which exercise
would have a dilutive effect. The calculation of diluted net income per ordinary
share does not assume exercise of such options when such exercise would be
antidilutive.

Media Relations:
Corporate Communications
Lucas van Grinsven, +31 40 268 3949
Veldhoven, the Netherlands
or
Investor Relations:
Craig DeYoung, +1 480 383 4005
Tempe, Arizona, USA
or
Franki D`Hoore, +31 40 268 6494
Veldhoven, the Netherlands

Copyright Business Wire 2010

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Molecules that behave like robots created

May 14, 2010 By Leave a Comment

London, May 14 (ANI): In a breakthrough study, researchers have created and programmed robots the size of single molecule that can move independently across a nano-scale track.

The development, by Researchers from Columbia University, Arizona State University, the University of Michigan and the California Institute of Technology (Caltech), marks an important advancement in the nascent fields of molecular computing and robotics.

And the feat could someday lead to molecular robots that can fix individual cells or assemble nanotechnology products.

Led by Milan N. Stojanovic, the project involved reprogramming DNA molecules to perform in specific ways.

“Can you instruct a biomolecule to move and function in a certain way–researchers at the interface of computer science, chemistry, biology and engineering are attempting to do just that,” Nature quoted Mitra Basu as saying.

Recent molecular robotics work has produced so-called DNA walkers, or strings of reprogrammed DNA with ”legs” that enabled them to briefly walk.

Now the researchers has shown these molecular robotic spiders can in fact move autonomously through a specially-created, two-dimensional landscape.

The spiders acted in rudimentary robotic ways, showing they are capable of starting motion, walking for awhile, turning, and stopping.

In addition to be incredibly small–about 4 nanometers in diameter–the walkers are also move slowly, covering 100 nanometers in times ranging 30 minutes to a full hour by taking approximately 100 steps.

This is a significant improvement over previous DNA walkers that were capable of only about three steps.

While the field of molecular robotics is still emerging, it is possible that these tiny creations may someday have important medical applications.

“This work one day may lead to effective control of chronic diseases such as diabetes or cancer,” said Basu.

The study was published in the latest edition of the journal Nature. (ANI)

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Soon, prescription tattoos to monitor glucose levels

May 8, 2010 By Leave a Comment

Washington, May 8 (ANI): Medical tattoos would soon replace needle sticks needed to monitor glucose levels, say scientists.

Scientists from Microsoft and The Draper Laboratory are developing medical tattoos that would stop hackers from messing with pacemakers and would do away with needle sticks to measure glucose levels.

Medical tattoos could also be adapted to monitor any number of other medically important molecules.

“We can follow the same trends as a finger stick glucometer,” Discovery News quoted Heather Clark, a scientist at the Draper Laboratory near Boston as saying.

Her study describes the team”s glucose monitoring tattoo, which isn”t a true tattoo.

A typical tattoo involves repeatedly sticking a patient with a solid needle that penetrates deep into the skin to permanently stain the tissue with dark colours.

However, Clark”s prototype medical tattoo would use a single stick from a hollow needle to stain the first few layers of skin yellowish orange for about a week.

The yellow-orange dye contains tiny nanosensors, little balls about 100 nanometers across.

Glucose is drawn into the heart of the sensors, where it changes the colour of a tiny pigment molecule.

As the amount of glucose rises, the colour of the tattoo would become lighter. As glucose levels fall, the tattoo would get darker.

While the change in colour would be almost unnoticeable to the human eye, the difference is enormous if viewed from a special handheld camera.

In the study, the researchers successfully tracked glucose levels in mice as they rose and fell with their camera.

To ensure their readings were accurate, they also measured the amount of glucose in the blood at the same time.

The blood glucose levels matched the glucose levels in the skin, which was measured by Clark”s tattoo.

Tracking a rising or falling glucose level through the skin is an accomplishment, but without detailed readings the use will be limited for diabetics.

Thankfully the researchers have also developed nanosensors that give exact measurements of glucose levels in the body, which they plan to test next year.

Clark hopes patients would soon be picking up an EpiPen-like device from their local pharmacists and self-administering the tattoo once a week.

To read the tattoo, patients would need a cell-phone sized reader, or possible just a cell phone, said Clark.

All a diabetic would need to do is pull out their cell phone and take a picture of the tattoo.

The study has been published in the journal Analytical Chemistry. (ANI)

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”Coffee ring” may help biosensors detect disease

May 6, 2010 By Leave a Comment

Washington, May 6 (ANI): Ever noticed the spot that is left behind after spilled coffee on a table evaporates? Well, the next time it happens, try and observe that the spot has a darker ring around its perimeter that contains a much higher concentration of particles than the center.

Since this ”coffee ring” phenomenon occurs with many liquids after they have evaporated, scientists have suggested that such rings can be used for examining blood or other fluids for disease markers by using biosensing devices.

But a better understanding of how these rings behave at the micro- and nano-scale would probably be needed for practical bionsensors.

“Understanding micro- and nano-particle transportation within evaporating liquid droplets has great potential for several technological applications, including nanostructure self-assembly, lithography patterning, particle coating, and biomolecule concentration and separation,” said study”s lead author Chih-Ming Ho, the Ben Rich-Lockheed Martin Professor at the UCLA Henry Samueli School of Engineering and Applied Science and director of the UCLA Center for Cell Control.

“However, before we can engineer biosensing devices to do these applications, we need to know the definitive limits of this phenomenon. So our research turned to physical chemistry to find the lowest limits of coffee-ring formation.”

To determine the smallest droplet size that would still show a coffee ring after evaporation, the research team manufactured a special surface coated in a checkerboard pattern that featured alternating hydrophilic, or water-loving, material and hydrophobic, or water-repelling, material.

The group then placed latex particles, ranging in size from 100 nanometers to 20 nanometers, in water. The particles were similar in size to disease-marker proteins that biosensors would look for.

The group washed the new surface with the particle-infused water. The remaining water lined up as droplets on the hydrophilic spots, much like checkers on a checkerboard. The group repeated the experiments with smaller grid patterns until the coffee-ring phenomenon was no longer evident.

For the 100-nanometer sized particles, this occurred at a droplet diameter of approximately 10 micrometers, or about 10 times smaller than the width of a human hair. At this point, the water evaporated before the particles had enough time to move to the perimeter.

“Knowing the minimum size of this so-called coffee ring will guide us in making the smallest biosensors possible. This means that we can pack thousands, even millions, of small micro-biosensors onto a lab-on-a-chip, allowing one to perform a large number of medical diagnostics on a single chip. This may also open the doors to potentially detecting multiple diseases in one sitting,” Wong said.

The research appears in the current issue of the Journal of Physical Chemistry B and is available online. (ANI)

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Nanodots breakthrough could pave way for ‘a library on one chip’

April 29, 2010 By Leave a Comment

Washington, Apr 29 (ANI): A breakthrough in the use of nanodots, or nanoscale magnets, has resulted in the development of a computer chip that can store an unprecedented amount of data – enough to hold an entire library’s worth of information on a single chip.

Designed by a researcher at North Carolina State University, the new chip represents a significant advance in computer-memory technology.

“We have created magnetic nanodots that store one bit of information on each nanodot, allowing us to store over one billion pages of information in a chip that is one square inch,” said Dr. Jay Narayan, author of the research.

These nanodots are made of single, defect-free crystals, creating magnetic sensors that are integrated directly into a silicon electronic chip.

The nanodots, which can be made uniformly as small as six nanometers in diameter, are all precisely oriented in the same way – allowing programmers to reliably read and write data to the chips.

The chips themselves can be manufactured cost-effectively,

However, the next step is to develop magnetic packaging that will enable users to take advantage of the chips – using something, such as laser technology, that can effectively interact with the nanodots.

The research was presented as an invited talk at the 2011 Materials Research Society Spring Meeting in San Francisco. (ANI)

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Charging your iPod by running

April 26, 2010 By Leave a Comment

Washington, April 26 (ANI): If you””ve forgotten to charge your iPod and a power plug is nowhere in sight, a simple run could help you get out of the trouble – if new technology being developed is successful.

Every step you take can generate electricity. By packing 20,000 nanowires into three square centimeters, Georgia Tech scientists have developed the world””s first gadget powered solely by piezoelectric materials.

A piezoelectric material when pushed or pulled creates a mild electrical charge.

Within three to five years piezoeleectric nanowires, woven into a cotton shirt or placed in a shoe heel, could charge a cell phone or laptop battery after even a short walk.

“This is a key step to designing technology that will be useful in the near future,” Discovery News quoted Z.L. Wang, a professor at Georgia Tech and co-author of two new papers in Nature Nanotechnology and Advanced Materials, as saying.

Wang””s group says piezoelectrics can generate voltages up to 1.26 volts, and can produce even higher voltages.

The team used plentiful and easy-to-manipulate zinc oxide nanowires to come up with their nanogenerator.

An individual zinc oxide nanowire is invisible to the human eye, measuring anywhere between 50 and 200 nanometers across and about five microns in length.

Twenty thousand nanowires, placed side-by-side and end-to-end, cover three square centimeters, with two thin electrodes hanging off either end.

The arrangement maximizes the electricity the piezoelectric nanowires can generate.

The wires work in sync, amplifying the electrical charge to record levels as the single layer is pushed back and forth with the slightest nudge.

Pushing the arranged nanowires harder or faster would enhance the power output up to 30 times without damaging the device.

And if gallium nitride replaced the cheap zinc oxide nanowires the power output could increase almost 10 times.

Piezoelectric-powered devices could also help detect fires and collect weather data in areas that are not within the reach of traditional power grids. (ANI)

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Charging your iPod by running

April 24, 2010 By Leave a Comment

Washington, April 24 (ANI): If you”ve forgotten to charge your iPod and a power plug is nowhere in sight, a simple run could help you get out of the trouble – if new technology being developed is successful.

Every step you take can generate electricity. By packing 20,000 nanowires into three square centimeters, Georgia Tech scientists have developed the world”s first gadget powered solely by piezoelectric materials.

A piezoelectric material when pushed or pulled creates a mild electrical charge.

Within three to five years piezoeleectric nanowires, woven into a cotton shirt or placed in a shoe heel, could charge a cell phone or laptop battery after even a short walk.

“This is a key step to designing technology that will be useful in the near future,” Discovery News quoted Z.L. Wang, a professor at Georgia Tech and co-author of two new papers in Nature Nanotechnology and Advanced Materials, as saying.

Wang”s group says piezoelectrics can generate voltages up to 1.26 volts, and can produce even higher voltages.

The team used plentiful and easy-to-manipulate zinc oxide nanowires to come up with their nanogenerator.

An individual zinc oxide nanowire is invisible to the human eye, measuring anywhere between 50 and 200 nanometers across and about five microns in length.

Twenty thousand nanowires, placed side-by-side and end-to-end, cover three square centimeters, with two thin electrodes hanging off either end.

The arrangement maximizes the electricity the piezoelectric nanowires can generate.

The wires work in sync, amplifying the electrical charge to record levels as the single layer is pushed back and forth with the slightest nudge.

Pushing the arranged nanowires harder or faster would enhance the power output up to 30 times without damaging the device.

And if gallium nitride replaced the cheap zinc oxide nanowires the power output could increase almost 10 times.

Piezoelectric-powered devices could also help detect fires and collect weather data in areas that are not within the reach of traditional power grids. (ANI)

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World”s smallest superconductor discovered

March 30, 2010 By Leave a Comment

Washington, March 30 (ANI): Reports indicate that scientists have discovered the world”s smallest superconductor, which is a sheet of four pairs of molecules less than one nanometer wide.

The Ohio University-led study provides the first evidence that nanoscale molecular superconducting wires can be fabricated, which could be used for nanoscale electronic devices and energy applications.

“Researchers have said that it”s almost impossible to make nanoscale interconnects using metallic conductors because the resistance increases as the size of wire becomes smaller,” said lead author Saw-Wai Hla, an associate professor of physics and astronomy with Ohio University”s Nanoscale and Quantum Phenomena Institute.

“The nanowires become so hot that they can melt and destruct. That issue, Joule heating, has been a major barrier for making nanoscale devices a reality,” he added.

Superconducting materials have an electrical resistance of zero, and so can carry large electrical currents without power dissipation or heat generation.

Superconductivity was first discovered in 1911, and until recently, was considered a macroscopic phenomenon.

“The current finding suggests, however, that it exists at the molecular scale, which opens up a novel route for studying this phenomenon,” Hla said.

Superconductors currently are used in applications ranging from supercomputers to brain imaging devices.

In the new study, which was funded by the US Department of Energy, Hla”s team examined synthesized molecules of a type of organic salt, (BETS)2-GaCl4, placed on a surface of silver.

Using scanning tunneling spectroscopy, the scientists observed superconductivity in molecular chains of various lengths.

For chains below 50 nanometers in length, superconductivity decreased as the chains became shorter.

However, the researchers were still able to observe the phenomenon in chains as small as four pairs of molecules, or 3.5 nanometers in length.

To observe superconductivity at this scale, the scientists needed to cool the molecules to a temperature of 10 Kelvin.

Warmer temperatures reduced the activity.

In future studies, scientists can test different types of materials that might be able to form nanoscale superconducting wires at higher temperatures, according to Hla.

“But we”ve opened up a new way to understand this phenomenon, which could lead to new materials that could be engineered to work at higher temperatures,” he said.

The study also is noteworthy for providing evidence that superconducting organic salts can grow on a substrate material.

“This is also vital if one wants to fabricate nanoscale electronic circuits using organic molecules,” Hla added. (ANI)

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Catalyst simulations for fuel cells may make clean cars a reality

September 19, 2009 By Leave a Comment

Washington, Sep 18 (ANI): University of Wisconsin-Madison researchers are working towards developing better catalyst for fuel cells in a bid to make clean cars a reality.

If successful, the researchers could make a car that runs on hydrogen from solar power, and produces water instead of carbon emissions.

Materials science and engineering assistant professor Dane Morgan and Ph.D. student Edward (Ted) Holby have developed a computational model that could optimise an important component of fuel cells, making it possible for the technology to have a more widespread use.

The researchers investigated how particle size is related to the overall stability of a material, and showed with their model that increasing the particle size of a fuel cell catalyst decreases degradation and therefore increases the useful lifetime of a fuel cell.

Fuel cells are electrochemical devices that facilitate a reaction between hydrogen and oxygen, producing electrical power and forming water.

In the type of fuel cells Morgan is researching, called proton exchange membrane fuel cells (PEMFCs), hydrogen is split into a proton and electron at one side of the fuel cell (the anode).

The proton moves through the device while the electron is forced to travel in an external circuit, where it can perform useful work, while at the other side of the fuel cell (the cathode), the protons, electrons and oxygen combine to form water, which is the only waste product.

One of the many hurdles to producing efficient fuel cells for widespread use is the catalyst added to aid the reaction between protons, electrons and oxygen at the cathode.

Current fuel cells use platinum and platinum alloys as a catalyst. While platinum can withstand the corrosive fuel cell environment, it is expensive and not very abundant.

Thus, to maximize platinum use, researchers use catalysts made with platinum particles as small as two nanometers, which are approximately 10 atoms across.

These tiny structures have a large surface area on which the fuel cell reaction occurs.

However, platinum catalysts this small degrade very quickly, which means that the fuel cell doesn’t last long.

The researchers have found a possible solution to the rapid degradation problem-when it comes to catalyst particle size, sometimes smaller isn’t better.

In their modelling work, they showed that if the particle size of a platinum catalyst is increased to four or five nanometers, which is approximately 20 atoms across, the level of degradation significantly decreases.

This means the catalyst and the fuel cell as a whole can continue to function for much longer than if the particle size was only two or three nanometers.

“Fuel cells are just one of many energy technologies – solar, battery, etc. – with enormous potential to reduce our dependence on oil and our carbon emissions. Computer simulation offers a powerful tool to understand and develop new materials at the heart of these energy technologies,” said Morgan. (ANI)

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Nanoparticles may have negative effects on environment and human health

September 14, 2009 By Leave a Comment

Washington, September 14 (ANI): A new analysis has indicated that the same properties of nanoparticles that make them so appealing to manufacturers may also have negative effects on the environment and human health.

The analysis was done by an international team of researchers from the Center for the Environmental Implications of NanoTechnology (CEINT), based at Duke University, US.

They have found that while many small particles are considered to be “nano,” these materials often do not meet full definition of having special properties that make them different from conventional materials.

The special properties of nanoparticles come from their high surface-area-to-volume ratio.

They also have a considerably higher percentage of atoms on their surface compared to bulk particles, which can make them more reactive.

These man-made materials can be found in a vast array of consumer products, including paints and sunscreens, as well as in water treatment plants and drug delivery systems.

For most of this decade, discussions of nanoparticles have tended to focus more on their size than their properties.

However, after reviewing the scientific literature, the Duke-led team believes that the old definition is not specific enough.

A definition that focuses on properties is critical, they say, to help scientists determine which particular nanoparticles are the most likely to represent a threat to the environment or human health.

Generally speaking, it is the very smallest particles (less than 30 nanometers) that should receive the most attention in studying the environmental and human health impacts of nanomaterials, according to Mark Wiesner, a Duke professor of civil and environmental engineering and director of the federally funded CEINT.

“A key question to be answered is whether or not a particular nanoparticle has toxic or hazardous properties that are truly different from identical particles in their bulk form,” Wiesner said.

“This question has not been answered. To do so, we need to be speaking the same language when assessing any unique properties of these novel materials,” he added.

“Many nanoparticles smaller than 30 nanometers undergo drastic changes in their crystalline structure that enhance how the atoms on their surface interact with the environment,” Wiesner said.

For example, because of the increased surface-area-to-volume ratio, nanoparticles can be highly reactive with other chemicals in the environment and can also disrupt certain activities within cells.

“While there have been reports of nanoparticle toxicity increasing as the size decreases, it is still uncertain whether this increase in reactivity is harmful to the environment or human safety,” Wiesner said. (ANI)

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Scientists develop electrical circuits that run entirely from power in trees

September 10, 2009 By Leave a Comment

Washington, September 9 (ANI): Scientists have developed electrical circuits that run entirely from power in trees.

According to results to be published in an upcoming issue of the Institute of Electrical and Electronics Engineers’ Transactions on Nanotechnology, there’s enough power in trees for University of Washington (UW) researchers to run an electronic circuit.

“As far as we know, this is the first peer-reviewed paper of someone powering something entirely by sticking electrodes into a tree,” said co-author Babak Parviz, a UW associate professor of electrical engineering.

A study last year from the Massachusetts Institute of Technology (MIT) found that plants generate a voltage of up to 200 millivolts when one electrode is placed in a plant and the other in the surrounding soil.

Those researchers have since started a company developing forest sensors that exploit this new power source.

The UW team sought to further academic research in the field of tree power by building circuits to run off that energy. They successfully ran a circuit solely off tree power for the first time.

Co-author Carlton Himes, a UW undergraduate student, spent last summer exploring likely sites.

Hooking nails to trees and connecting a voltmeter, he found that bigleaf maples, common on the UW campus, generate a steady voltage of up to a few hundred millivolts.

The UW team next built a device that could run on the available power.

Co-author Brian Otis, a UW assistant professor of electrical engineering, led the development of a boost converter, a device that takes a low incoming voltage and stores it to produce a greater output.

His team’s custom boost converter works for input voltages of as little as 20 millivolts (a millivolt is one-thousandth of a volt), an input voltage lower than any existing such device. It produces an output voltage of 1.1 volts, enough to run low-power sensors.

The UW circuit is built from parts measuring 130 nanometers and it consumes on average just 10 nanowatts of power during operation (a nanowatt is one billionth of a watt).

“Normal electronics are not going to run on the types of voltages and currents that we get out of a tree. But, the nanoscale is not just in size, but also in the energy and power consumption,” Parviz said.

The system could provide a low-cost option for powering tree sensors that might be used to detect environmental conditions or forest fires.

The electronic output could also be used to gauge a tree’s health. (ANI)

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Scientists create world’s smallest semiconductor laser

September 1, 2009 By Leave a Comment

Washington, August 31 (ANI): Researchers at the University of California (UC), Berkeley, have created the world’s smallest semiconductor laser, capable of generating visible light in a space smaller than a single protein molecule, an invention that breaks new ground in the field of optics.

The UC Berkeley team not only successfully squeezed light into such a tight space, but found a novel way to keep that light energy from dissipating as it moved along, thereby achieving laser action.

While it is traditionally accepted that an electromagnetic wave – including laser light – cannot be focused beyond the size of half its wavelength, research teams around the world have found a way to compress light down to dozens of nanometers by binding it to the electrons that oscillate collectively at the surface of metals.

This interaction between light and oscillating electrons is known as surface plasmons.

Scientists have been racing to construct surface plasmon lasers that can sustain and utilize these tiny optical excitations.

However, the resistance inherent in metals causes these surface plasmons to dissipate almost immediately after being generated, posing a critical challenge to achieving the buildup of the electromagnetic field necessary for lasing.

Zhang and his research team took a novel approach to stem the loss of light energy by pairing a cadmium sulfide nanowire – 1,000 times thinner than a human hair – with a silver surface separated by an insulating gap of only 5 nanometers, the size of a single protein molecule.

In this structure, the gap region stores light within an area 20 times smaller than its wavelength.

Because light energy is largely stored in this tiny non-metallic gap, loss is significantly diminished.

With the loss finally under control through this unique “hybrid” design, the researchers could then work on amplifying the light.

Trapping and sustaining light in radically tight quarters creates such extreme conditions that the very interaction of light and matter is strongly altered, the study authors explained.

“This work shatters traditional notions of laser limits, and makes a major advance toward applications in the biomedical, communications and computing fields,” said Xiang Zhang, professor of mechanical engineering and director of UC Berkeley’s Nanoscale Science and Engineering Center.

The achievement helps enable the development of such innovations as nanolasers that can probe, manipulate and characterize DNA molecules; optics-based telecommunications many times faster than current technology; and optical computing in which light replaces electronic circuitry with a corresponding leap in speed and processing power.

Scientists hope to eventually shrink light down to the size of an electron’s wavelength, which is about a nanometer. (ANI)

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Scientists create multipurpose Swiss Army knife for nanomedicine

July 29, 2009 By Leave a Comment

London, July 28 (ANI): By combining two nanoparticles in one tiny package, University of Washington researchers have created a Swiss Army knife of sorts for medical imaging and therapy.

The multipurpose nanotechnology tool could perform wide range of medical uses – imaging tumours, carrying drugs, delivering pulses of heat.

“This is the first time that a semiconductor and metal nanoparticles have been combined in a way that preserves the function of each individual component,” Nature magazine quoted lead author Xiaohu Gao, a UW assistant professor of bioengineering, as saying.

Apart from medical applications, the multifunctional nanoparticles could also be used in energy research, for example in solar cells.

Quantum dots are fluorescent balls of semiconductor material just a few nanometers across, and their unique optical properties cause them to emit light of different colours depending on their size.

The dots are being developed for medical imaging, solar cells and light-emitting diodes.

Glowing gold nanoparticles have recently been developed for delivering drugs, for treating arthritis and for a type of medical imaging that uses infrared light. Gold also reradiates infrared heat and so could be used in medical therapies to cook nearby cells.

But on combination, a quantum dot and a gold nanoparticle lose their individual effects.

The new study has described a manufacturing technique that uses proteins to surround a quantum dot core with a thin gold shell held at 3 nanometers distance, so the two components’ optical and electrical fields do not interfere with one another.

The quantum dot likely would be used for fluorescent imaging, while the gold sphere could be used for scattering-based imaging, which works better than fluorescence in some situations, as well as for delivering heat therapy.

The newly developed manufacturing technique is general and could apply to other nanoparticle combinations, said the researchers.

Incorporating gold provides a well-established binding site to attach biological molecules that target particular cells, such as tumour cells.

Gao has said that a gold shell could provide a durable non-toxic container for nanoparticles being used in the body.

The structure is described in a paper published online this week in the journal Nature Nanotechnology. (ANI)

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Tailor-made nanoparticles may be used as light sources for display screens

June 27, 2009 By Leave a Comment

Washington, June 27 (ANI): Scientists from the Max Planck Institute of Colloids and Interfaces have tailor-made nanoparticles that can be used as position lights on cell proteins and as light sources for display screens or for optical information technology in the future.

The researchers produced cadmium sulphide particles in microscopically small membrane bubbles.

Depending on which of the construction manuals they follow, the particles can be 4 or 50 nanometres in size.

Because the membrane bubbles have the same size as living cells, the scientists’ work also provides an indication as to how nanostructures could arise in nature.

The scientists form bubbles that are around 50 micrometres in size from lecithin membranes, which are similar to biological membranes.

Like cells, membrane bubbles, or vesicles as scientists refer to them, also provide a closed reaction container.

The scientists load the membrane bubbles with one of two reactants for the nanoparticles. From this point, the researchers have developed two different sets of protocols.

In one case, they produce bubbles loaded with one of the two reactants, sodium sulphide or cadmium chloride.

The scientists then bring the bubbles with the different loads together and fuse two vesicles to form a bigger vesicle. This is done by subjecting the bubble cocktail to a short but very strong electrical pulse.

The electric shock fuses the membranes of two adjacent bubbles.

“Because the reactants are only present to a limited extent in the fused bubbles, the particles only grow to a size of four nanometers,” explained Rumiana Dimova from the Max Planck Institute of Colloids and Interfaces.

The scientists were able to track the entire process directly under the microscope because they had added different fluorescent molecules to the membranes of the differently loaded vesicles.

The researchers were also able to see the nanoparticles forming as the particles shone like tiny lamps.

“With our method, we succeeded for the first time in producing particles with a certain diameter in vesicles whose size corresponds to that of cells,” said Dimova. (ANI)

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First step achieved in development of tiny biological fuel cells

June 20, 2009 By Leave a Comment

Washington, June 20 (ANI): Researchers at the University of Georgia (UGA), US, have achieved the first step in developing biological fuel cells that could power pacemakers, cochlear implants and prosthetic limbs.

The technique, which has been described as “a significant breakthrough for nanotechnology”, involved the development of a successful way to grow molecular wire brushes that conduct electrical charges.

UGA chemist Jason Locklin and graduate students Nicholas Marshall and Kyle Sontag grew polymer brushes, made up of chains of thiophene and benzene, aromatic molecules sometimes used as solvents, attached to metal surfaces as ultra-thin films.

“The molecular wires are actually polymer chains that have been grown from a metal surface at very high density,” said Locklin, who has a joint appointment in UGA’s Franklin College of Arts and Science and on the Faculty of Engineering.

“The structure of the film resembles a toothbrush, where the chains of conjugated polymers are like the bristles. We call these types of coatings polymer brushes. To get chains to pack tightly in extended conformations, they must be grown from the surface, a method we call the ‘grafting from’ approach,” he added.

Using this approach, the scientists laid down a single layer of thiophene as the film’s initial coating, then built up chains of thiophene or benzene using a controlled polymerization technique.

“The beauty of organic semiconductors is how their properties change, based on size and the number of repeating units,” said Locklin.

“Thiophene itself is an insulator, but by linking many thiophene molecules together in a controlled fashion, the polymers have conducting properties,” he added.

More importantly, he said, “this technique gives us the control to systematically vary polymer architecture, opening up the possibility for various uses in electronic devices such as sensors, transistors and diodes.”

The ultra-thin films are between 5 and 50 nanometers, which are too small to see, even under a high-powered optical microscope.

Locklin said it’s difficult to harness a fuel source in the body, such as glucose, for use in biofuel cells that could replace the need for batteries in an implanted device.
hile humans have enzymes in the body that do a good job of converting chemical energy into electrical energy, “they aren’t very useful in this application because they have natural protective insulating layers that prevent good electron transport from active site to electrode,” he said.

“Hopefully, our molecular wires will provide a better conduit for charges to flow,” he added. (ANI)

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Scientists develop microscope capable of ‘super-resolution’ video imaging

May 5, 2009 By Leave a Comment

Washington, May 5 (ANI): A team of scientists at the University of Georgia (UGA), US, has developed a microscope that is capable of live imaging at double the resolution of fluorescence microscopy using structured illumination.

The fluorescence microscope has allowed a generation of scientists to study the properties of proteins inside cells.

Yet, as human capacity for discovery has zoomed to the nanoscale, fluorescence microscopy has struggled to keep up.

The laws of physics have limited the resolution of fluorescence microscopy, whereby a fluorescent marker is used to distinguish specific proteins, to about 200 nanometers.

At this resolution significant detail is lost about the activity within a cell.

Now, the increased resolution by structured illumination is an engineering feat that will help scientists learn more about cell behavior and study mechanisms important for human disease.

“Our understanding of what is going on inside cells and our ability to manipulate them has advanced so much that it has become more and more important to see them at a better resolution,” said UGA engineer Peter Kner.

Kner built the structured illumination microscope with colleagues at the University of California, San Francisco.

This work follows on at least a decade of research building on the nearly fifty-year history of fluorescence microscopy.

The technology has been a multi-disciplinary springboard of optical engineering, chemistry and biology, in which the disciplines have all contributed to visualizing fluorescent dyes attached to proteins, advancing our understanding of cellular activity.

The importance of fluorescence microscopy was recently recognized with the 2008 Nobel Prize for Chemistry, which was awarded for the development of the green fluorescent protein (GFP), which has played a crucial role in our identification and understanding of proteins.

“What we’ve done is develop a much faster system that allows you to look at live cells expressing GFP, which is a very powerful tool for labeling inside the cell,” Kner explained.

“It would be difficult to overstate the importance of bio-imaging to ongoing research in human health,” said Dale Threadgill, director of the UGA Faculty of Engineering.

“The ability to shine a light on the leading-edge of scientific discovery will define the route to entirely new regimens of health management at the intersections of science and engineering, and Dr. Kner has joined a distinguished cadre at UGA to continue working at that interface,” he added. (ANI)

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Self-assembled nanowires can help make transistors smaller and faster

April 21, 2009 By Leave a Comment

Washington, April 21 (ANI): A team of scientists at the University of Illinois (U. of I.), US, has found a new way to make transistors smaller and faster, by using self-assembled, self-aligned, and defect-free nanowire channels made of gallium arsenide.

Nanowires are attractive building blocks for both electronics and photonics applications.

Compound semiconductor nanowires, such as gallium arsenide, are especially desirable because of their better transport properties and versatile heterojunctions.

However, a number of challenges – including integration with existing microelectronics – must first be overcome.

“Our new planar growth process creates self-aligned, defect-free gallium-arsenide nanowires that could readily be scaled up for manufacturing purposes,” said U. of I. electrical and computer engineering professor Xiuling Li

“It’s a non-lithographic process that can precisely control the nanowire dimension and orientation, yet is compatible with existing circuit design and fabrication technology,” Li added.

The gallium-arsenide nanowire channel used in the researchers’ demonstration transistor was grown by metal organic chemical vapor deposition using gold as a catalyst.

The rest of the transistor was made with conventional microfabrication techniques.

While the diameter of the transistor’s nanowire channel was approximately 200 nanometers, nanowires with diameters as small as 5 nanometers can be made with the gold-catalyzed growth technique, the researchers report.

The self-aligned orientation of the nanowires is determined by the crystal structure of the substrate and certain growth parameters.

In the current work, the researchers grew the gallium-arsenide nanowire channel in place, instead of transferring it.

In contrast to the common types of non-planar gallium arsenide nanowires, the researchers’ planar nanowire was free from twin defects, which are rotational defects in the crystal structure that decrease the mobility of the charge carriers.

“By replacing the standard channel in a metal-semiconductor field-effect transistor with one of our planar nanowires, we demonstrated that the defect-free nanowire’s electron mobility was indeed as high as the corresponding bulk value,” said U. of I. graduate research assistant Seth Fortuna.

“The high electron mobility nanowire channel could lead to smaller, better and faster devices,” he added.

Considering their planar, self-aligned and transferable nature, the nanowire channels could help create higher performance transistors for next-generation integrated circuit applications, according to Li.

The high quality planar nanowires can also be used in nano-injection lasers for use in optical communications. (ANI)

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Surface material that resists biofilm growth may pave way for improved medical implants

March 20, 2009 By Leave a Comment

Washington, March 20 (ANI): Two Syracuse University researchers in New York have created a new surface material that can resist the growth of biolfilm, a sticky build-up of bacteria, and thus may lead to better medical implants.

Yan-Yeung Luk, assistant professor of chemistry in SU’s College of Arts and Sciences, and Dacheng Ren, assistant professor of biomedical engineering in SU’s L.C. Smith College of Engineering and Computer Science, say that on the newly created surface material, they can manipulate and confine biofilm growth four times longer than current technologies.

The scientists have also revealed that manipulating the chemical makeup of the surface has enabled them to uncover how mammalian cells and bacteria adhere to surfaces.

Luk and Ren began collaborating about three years ago, when they discovered a common thread in their individual research efforts-the desire to chemically modify surfaces to prevent biofouling.

The researchers say that they went on to create a surface that seemed to repel both bacteria and mammalian cells when the molecule was chemically applied to a surface.

According to them, the surface used in the laboratory is a thin film of gold coated on a glass slide.

“You start with a glass surface (the land); apply a thin film of gold to that surface, about 20 nanometers or five atoms thick (the soil); then top the gold with the molecules we created in the laboratory (the trees). The goal is to see if the special molecules (trees) can resist or prevent protein from sticking to the overall surface. Put another way, do the trees provide an inhospitable environment for birds (the biofilm) and therefore prevent them from roosting en masse?” Luk says.

The researchers say that they were able to control the growth of the biofilm with the surface material, allowing the biofilm to form in some places and restricting its growth in others.

They also found that the biofilm, when confined in two dimensions, grew in a vertical direction.

The team say that another experiment showed them important differences in the way mammalian cells and bacteria attach to a surface.

“Our surfaces are able to reveal that mammalian cell adhesion requires the existence of an anchor, while bacteria can adhere to almost any sticky surface,” Luk says.

The researchers believe that their findings may lead to the development of improved medical implants and new ways to prevent biofouling.

“This level of surface control has never before been achieved. We hope that what we have learned in the laboratory will help answer other fundamental questions in surface materials research and lead to the production of new materials for use in medicine and industry,” Ren says.

The study has been reported in the online editions of the journals ChemComm and Langmuir. (ANI)

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Graphene’s qualities hold promise for future nanoelectronics applications

February 16, 2009 By Leave a Comment

Washington, Feb 16 (ANI): Researchers at the University of Illinois, US, have proven that graphene holds remarkable promise for future nanoelectronics applications, as it’s edge structure affects electronic properties.

Graphene consists of a hexagonal lattice of carbon atoms.

While scientists have predicted that the orientation of atoms along the edges of the lattice would affect the material’s electronic properties, the prediction had not been proven experimentally.

Now, researchers at the University of Illinois (U. of I.) say they have proof.

“Our experimental results show, without a doubt, that the crystallographic orientation of the graphene edges significantly influences the electronic properties,” said Joseph Lyding, a professor electrical and computer engineering at the U. of I.

“To utilize nanometer-size pieces of graphene in future nanoelectronics, atomically precise control of the geometry of these structures will be required,” he added.

To carry out their work, the researchers developed a method for cutting and depositing nanometer-size bits of graphene on atomically clean semiconductor surfaces like silicon.

Then they used a scanning tunneling microscope to probe the electronic structure of the graphene with atomic-scale resolution.

“From this emerged a clear picture that edges with so-called zigzag orientation exhibited a strong edge state, whereas edges with armchair orientation did not,” said Lyding.

“We found that pieces of graphene smaller than about 10 nanometers with predominately zigzag edges exhibited metallic behavior rather than the semi conducting behavior expected from size alone,” he added.

“This has major implications in that semiconducting behavior is mandatory for transistor fabrication,” he further added.

Unlike carbon nanotubes, graphene is a flat sheet, and therefore compatible with conventional fabrication processes used by today’s chipmakers.

But, based on the researchers’ experimental results, controlled engineering of the graphene edge structure will be required for obtaining uniform performance among graphene-based nanoelectronic devices.

“Even a tiny section of zigzag orientation on a 5-nanometer piece of graphene will change the material from a semiconductor into a metal,” Lyding said. (ANI)

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Synthetic ‘good cholesterol’ designed to keep heart problems at bay

January 10, 2009 By Leave a Comment

Washington, Jan 10 (ANI): Fearing that gorging on chocolate cake and juicy beef roast might send your blood cholesterol levels sky high? Well then here’s your ultimate saviour- synthetic high-density lipoprotein (HDL).

Scientists at Northwestern University have designed synthetic HDL, the “good” cholesterol, which could help fight chronically high cholesterol levels and the resulting deadly heart disease.

The researchers have shown that their nanoparticle version of the is a promising new weapon to bind cholesterol irreversibly.

The synthetic HDL, based on gold nanoparticles, is similar in size to HDL and mimics HDL’s general surface composition.

“We have designed and built a cholesterol sponge. The synthetic HDL features the basics of what a great cholesterol drug should be,” said Chad A. Mirkin, George B. Rathmann Professor of Chemistry in the Weinberg College of Arts and Sciences, who led the study with Shad Thaxton, M.D., assistant professor of urology in Northwestern’s Feinberg School of Medicine

He added: “Drugs that lower the bad cholesterol, LDL, are available, and you can lower LDL through your diet, but it is difficult to raise the good cholesterol, HDL. I’ve taken niacin to try and raise my HDL, but the side effects are bad so I stopped. We are hopeful that our synthetic HDL will one day help fill this gap in useful therapeutics.”

To create synthetic HDL the researchers started with a gold nanoparticle as the core, which was then layered on a lipid that attaches to the gold surface, followed by another lipid and last a protein, called APOA1.

APOA1 is the main protein component of naturally occurring HDL.

The final high-density lipoprotein nanoparticles are each about 18 nanometers in diameter, a size similar to natural HDL.

“Cholesterol is essential to our cells, but chronic excess can lead to dangerous plaque formation in our arteries. HDL transports cholesterol to the liver, which protects against atherosclerosis. Our hope is that, with further development, our synthetic form of HDL could be used to increase HDL levels and promote better health,” said Thaxton.

Mirkin said: “HDL is a natural nanoparticle, and we’ve successfully mimicked it. Gold is an ideal scaffolding material — it’s size and shape can be tailored, and it can be easily functionalized. Using gold nanoparticles, which are non-toxic, for synthetic HDL bodes well for the development of a new therapeutic.”

The scientists are now planning to further study the synthetic HDL in biologically relevant conditions and measure and evaluate the cholesterol-binding properties.

The study is published online by the Journal of the American Chemical Society (JACS). (ANI)

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