Semiconductor equipment manufacturer ASML Holding NV reported third-quarter net income of €680.4 million, or €1.60 per share, in the third quarter, up from €557.1 million, or €1.29 per share, in the same quarter last year.

Net sales rose to €2.78 billion from €2.45 billion in the year-ago quarter. Net bookings totaled €2.20 billion, up from €2.15 billion on a yearly basis.

Gross margin came in slightly above expectations, improving to 48.1% in the quarter from 42.9% in the prior-year quarter. The company said the improvement reflects the strength of its deep ultraviolet and applications businesses and progress in extreme ultraviolet profitability.

For the nine months ended Sept. 30, net income totaled €1.80 billion, or €4.22 per share, up from €1.48 billion, or €3.41 per share, in the nine months ended Oct. 1, 2017.

ASML expects net sales of about €3.0 billion and a gross margin of around 48% for the fourth quarter.