EX-99.3 4 u09380exv99w3.htm EX-99.3 exv99w3
Exhibit 99.3
ASML — Summary U.S. GAAP Consolidated Statements of Operations 1,2
                                 
    Three months ended,     Six months ended,  
(in millions EUR, except per share data)   Jun 28, 2009     Jun 27, 2010     Jun 28, 2009     Jun 27, 2010  
 
 
                               
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 costs3
    40.3       41.7       80.7       83.1  
 
Income (loss) from operations
    (123.8 )     292.4       (270.1 )     429.3  
 
                               
Interest expense3
    (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 share4
    (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  
Diluted4
    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
                 
(in millions EUR)   Dec 31, 2009     Jun 27, 2010  
 
 
               
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 debt3
    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,  
(in millions EUR)   Jun 28, 2009     Jun 27, 2010     Jun 28, 2009     Jun 27, 2010  
 
 
                               
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,  
(in millions EUR, except per share data)   2009     2009     2009     2010     2010  
 
 
                                       
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 costs3
    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 expense3
    (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 share4
    (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  
Diluted4
    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 sales3
    (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 assets3
    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,  
(in millions EUR)   2009     2009     2009     2010     2010  
 
 
                                       
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,  
(in millions EUR)   2009     2009     2009     2010     2010  
 
 
                                       
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,  
(in thousands EUR)   Jun 28, 2009     Jun 27, 2010     Jun 28, 2009     Jun 27, 2010  
 
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,  
(in thousands EUR)   2009     2009     2009     2010     2010  
 
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.