ASML on Monday said first quarter profit beat expectations while sales missed forecasts, with the company sticking to its full-year outlook.

ASML’s net sales for the first quarter were reported at 5.29 billion euros ($5.62 billion), slightly below the expected 5.39 billion euros. Similarly, the net profit of 1.22 billion euros surpassed the expected 1.07 billion euros. However, despite the profit beat, both net sales and net income saw a decline compared to the previous year, with sales falling by 21.6% and income dropping by 37.4%.

CEO of ASML, Peter Wennink, expressed optimism for the future by maintaining the company’s full-year outlook. Wennink highlighted that the second half of 2024 is projected to be stronger than the first half, aligning with the industry’s steady recovery from the recent economic downturn. He emphasized the significance of 2024 as a transitional year, characterized by ongoing investments in capacity expansion and technological advancements to prepare for market dynamics.

President Joe Biden’s administration intends to exert pressure on the Netherlands to prevent ASML, a leading chipmaking equipment manufacturer, from servicing certain tools in China. This move is part of the U.S. government’s efforts to limit China’s technological development and influence. The scrutiny of ASML’s activities reflects the broader geopolitical tensions surrounding technology and trade between major global powers.

For more updates on ASML’s latest developments and financial performance, stay tuned for further news releases and analysis.