Earnings out for VSEA.. 209.238.58.46 positive quarter when negative expected. stock up 33% after last report Actual earnings: 0.07 versus expected: -0.03
Varian Semiconductor Equipment Associates' FY 1999 Annual and Fourth
Quarter Results Reflect Strong Demand
GLOUCESTER, Mass.--(BUSINESS WIRE)--Nov. 4, 1999--Varian Semiconductor Equipment Associates, Inc. (NASDAQ:
VSEA - news) today announced results for the fourth quarter and full year of fiscal 1999, ended October 1, 1999.
Fourth quarter revenues totaled $107.5 million, up 157 percent from $41.8 million in the previous year's same quarter. Included in fourth quarter revenues is
approximately $22 million ($0.43 per share after taxes) of nonrecurring royalty income. As previously disclosed, that nonrecurring royalty income is related to a
licensing agreement between Tokyo Electron Ltd. and Varian Semiconductor. Excluding that $22 million, revenue for the quarter rose 105 percent over last year's
fourth quarter. The quarter's net income of $16.1 million, or $0.50 per diluted share, compared with $0.49 per share net loss in the same quarter of the previous
fiscal year.
For the full fiscal year, revenues were $271.9 million, compared with $342.9 million in the previous fiscal year. The net loss for fiscal 1999 was $13.2 million, or
$0.43 per share, compared with earnings of $11.4 million, or $0.37 per diluted share in the previous fiscal year.
Richard A. Aurelio, Varian Semiconductor's president and chief executive, said ''We continued to see a significant rise in demand for our ion implantation
equipment during the quarter, and our results confirm industry forecasts that suggest continued improvement. Market trends, including interest in sub-0.18 micron,
300 millimeter and single-wafer advantages, are favorable for our new products. The VIISta 810, a 300-millimeter medium current implanter, which exceeds the
performance of our own industry-leading product, and the VIISta 80, the world's first 300-millimeter single-wafer, high current implanter, are performing well in
customers' production and development environments.''
Aurelio also explained, ''the company is making satisfactory progress toward increasing its gross margins, despite temporary increases in the cost of expediting
materials. We are also incurring additional expenses for hiring and training new employees to support business growth.''
''Continued recognition by our customers and the industry of both our winning customer satisfaction strategies and our commitment to technologically advance ion
implantation capabilities supports our expectations of strong growth in the coming year,'' Aurelio said.
Until April 2, 1999, the company operated as part of Varian Associates, Inc., which spun off 100 percent of Varian Semiconductor as a separate publicly traded
company. Varian Semiconductor is no longer affiliated with Varian Medical Systems (formerly, Varian Associates) or Varian Instruments, which was also spun out
of Varian Associates. The financial results of the fiscal year ended October 1, 1999 encompass the operations of the semiconductor equipment business of Varian
Associates and the company's stand-alone financial results since April 2, 1999. |
