7/25....CYMI...Record Net Income and Revenue for Second Quarter 2000; Margins and Operating Income Also Reach Record Levels
SAN DIEGO, July 25 /PRNewswire/ -- Cymer, Inc. (Nasdaq: CYMI - news), the world's leading supplier of excimer laser illumination sources essential for deep ultraviolet (DUV) photolithography, today announced record net income and revenue for the second quarter and first six months ended June 30, 2000.
Second quarter net income rose sharply to $15,275,000 or $0.50 per share (diluted), compared to a net loss of $1,489,000 or $0.05 per share (diluted), for the second quarter of 1999. Total revenue for the second quarter of 2000 advanced to $86,251,000, a 99 percent increase over total revenue of $43,409,000 in the second quarter of the prior year.
On a sequential basis, second quarter net income increased 50 percent over the $10,174,000, or $0.33 per share (diluted), recorded for the first quarter of the year, while second quarter total revenue grew seven percent over total revenue of $80,617,000 recorded in the prior quarter.
For the first six months of 2000, Cymer achieved net income of $25,450,000 or $0.82 per share (diluted), versus a net loss of $3,787,000 or $0.14 per share (diluted), in the same period of 1999. Total revenue in the first half of 2000 grew substantially to $166,867,000, a 100 percent increase over the $83,501,000 total revenue posted in last year's first six months.
Bob Akins, Cymer's chairman and chief executive officer, said, ``Cymer's sharply higher second quarter results are attributable to a favorable product mix, growth in our installed base, ongoing cost management efforts, and improving manufacturing efficiencies driven by our business process initiatives. Sales of our ELS-6000(TM) Series Krypton Fluoride (KrF) lightsources, which are powering today's most advanced production scanners, continued to grow and accounted for 75 percent of system shipments in the second quarter. Manufacturing efficiencies created by our newly implemented process initiatives are having an earlier than planned impact on our financial results. In addition to the strategic payback we've been experiencing, we are now receiving a financial return as well on the investment in our worldwide service and support infrastructure.''
Commenting on Cymer's financial performance, Bill Angus, senior vice president and chief financial officer, noted, ``Product sales increased, with sales of spare parts, service and upgrade kits accounting for 32 percent of second quarter total revenue. Gross margins improved to 49 percent in the second quarter from 43 percent in the first quarter. Operating income grew to $22,506,000 in the second quarter from $15,330,000 in the first quarter of this year, while quarterly bookings rose to $95,630,000 in the second quarter, and backlog increased 11 percent to $125,066,000 at June 30, 2000 from $112,568,000 at March 31, 2000.''
Akins continued, ``This quarter was not without its challenges. First, the ongoing difficulty of identifying and hiring qualified personnel in the current economic growth cycle, with its attendant low unemployment rate, left our actual headcount below plan. We are addressing this situation aggressively, and are making some progress in key areas. Another persistent challenge we face with our suppliers is their ability to continue to meet our demand for components. Our supply chain management teams are working with our suppliers to help them find better ways to meet our needs.''
Angus concluded, ``Looking forward, with information we have available at this time, we believe our revenue can grow approximately 60 percent this year over 1999. Contingent upon that revenue growth, operating income has the potential of improving to 27 percent to 28 percent of revenue for the fourth quarter while remaining approximately flat as a percentage of revenue in the third quarter. This is due to costs and inefficiencies associated with the turn-on of our new enterprise resource planning (ERP) system at the end of this month and our current facilities expansion here in San Diego. For the year 2001, based on our current DUV lithography forecast, we expect revenue growth of 45 percent to 50 percent over this year, with gross margin targets between 50 percent and 54 percent.''
Cash and cash equivalents and short- and long-term investments totaled $201,825,000 as of June 30, 2000. Capital spending and depreciation for the second quarter were approximately $12,278,000 and $3,899,000 respectively, compared with the company's actual expenditure of $12,148,000 and $4,784,000, respectively, for the first quarter of 2000.
Quarterly Highlights
In April, the company announced the signing of a comprehensive agreement with ASM Lithography (The Netherlands) to provide service and support directly to that company's customers worldwide. Cymer also announced in April its purchase of the minority shareholder's interest in Cymer Southeast Asia Ltd., the company's Southeast Asian subsidiary.
In preparation to meet the challenges accompanying the rapid growth Cymer anticipates during 2000 and 2001, Pascal Didier was promoted to the position of president and chief operating officer from senior vice president of worldwide customer operations in May.
In June, Cymer announced the shipment of its first fluorine (F2) laser lightsource to Ultratech Stepper for use in next generation lithography process development, and a follow-on order for additional units. Cymer also received additional funding from Sematech for research at 193nm and at 157nm on the characterization of optical materials essential to successful commercialization of these technologies.
Forward Looking Statements
Statements in this press release regarding expected revenue growth in 2000, anticipated operating income in the third and fourth quarters and revenue growth and gross margin expectations for 2001 are forward looking statements, are based on current information and expectations and involve a number of risks and uncertainties. Actual results may differ materially from those projected in such statements due to various factors, including but not limited to: delays or cancellations by customers of their orders; the timing of customer orders, shipments and acceptances; inability by the company to meet its production and/or product development schedules; failure by the company to manage its expense levels and unanticipated expenses; the rate at which semiconductor manufacturers take delivery of photolithography tools from the company's customers; the demand for semiconductors in general, and, in particular, for leading-edge devices with smaller geometries; and new and enhanced product offerings by competitors. For other factors which may cause actual results to differ from those projected, please refer to the company's Form 10-K, Forms 10-Q and other filings with the Securities and Exchange Commission.
Corporate Profile
Cymer, Inc. is the world's leading supplier of excimer laser illumination sources, the essential light source for deep ultraviolet (DUV) photolithography systems. DUV lithography is a key enabling technology, which has allowed the semiconductor industry to meet the exact specifications and manufacturing requirements for volume production of today's advanced semiconductor chips. Further information on Cymer may be obtained from the Company's SEC filings, the Internet at cymer.com or by contacting the company directly.
Cymer, Inc. Quarter ending June 30 6 Months ending June 30
1999 2000 1999 2000
Revenues $43,409,000 $86,251,000 $83,501,000 $166,867,000
Net income (loss) (1,489,000) 15,275,000 (3,787,000) 25,450,000
Avg. diluted
shares 27,795,000 30,745,000 27,592,000 31,001,000
Share earnings
(basic):
Net income (loss) ($0.05) $0.53 ($0.14) $0.88
Share earnings
(diluted):
Net income (loss) ($0.05) $0.50 ($0.14) $0.82
CYMER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share data)
For the three months For the six months
ended June 30 ended June 30
1999 2000 1999 2000
REVENUES:
Product sales $43,378 $85,802 $83,202 $166,333
Other 31 449 299 534
Total revenues 43,409 86,251 83,501 166,867
COSTS AND EXPENSES:
Cost of product sales 28,395 43,645 56,511 89,796
Research and development 7,863 10,639 15,315 21,402
Sales and marketing 3,465 4,738 6,996 8,536
General and administrative 3,172 4,723 5,966 9,297
Total costs and expenses 42,895 63,745 84,788 129,031
OPERATING INCOME (LOSS) 514 22,506 (1,287) 37,836
OTHER INCOME (EXPENSE):
Foreign currency
exchange gain (loss) - net 161 (37) (74) (20)
Interest and other income 1,653 2,786 3,417 5,174
Interest and other expense (2,807) (3,255) (5,570) (6,163)
Total other income
(expense) - net (993) (506) (2,227) (1,009)
INCOME (LOSS) BEFORE INCOME
TAX PROVISION
(BENEFIT) AND MINORITY
INTEREST (479) 22,000 (3,514) 36,827
INCOME TAX PROVISION (BENEFIT) 758 6,600 0 11,048
MINORITY INTEREST (252) (125) (273) (329)
NET INCOME (LOSS) ($1,489) $15,275 ($3,787) $25,450
EARNINGS (LOSS) PER SHARE:
Basic:
Earnings (loss) per share ($0.05) $0.53 ($0.14) $0.88
Weighted average common
shares outstanding 27,795 29,065 27,592 28,888
Diluted:
Earnings (loss) per share ($0.05) $0.50 ($0.14) $0.82
Weighted average common
and common equivalent
shares outstanding 27,795 30,745 27,592 31,001
CYMER, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands, except share data)
December 31, June 30,
ASSETS 1999 2000
CURRENT ASSETS:
Cash and cash equivalents $75,765 $92,887
Short-term investments 97,564 105,430
Accounts receivable - net 69,251 77,660
Foreign exchange contracts receivable 21,706 28,644
Inventories 51,409 65,978
Deferred income taxes 16,360 16,353
Prepaid expenses and other 3,110 3,514
Total current assets 335,165 390,466
PROPERTY - net 56,921 72,234
LONG-TERM INVESTMENTS 19,760 3,508
DEFERRED TAXES - NON-CURRENT 8,562 7,508
OTHER ASSETS 6,413 6,344
TOTAL ASSETS $426,821 $480,060
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $20,599 $22,365
Accrued and other liabilities 52,292 61,281
Foreign exchange contracts payable 24,276 28,285
Income taxes payable 6,482 11,756
Revolving loan 18,395 17,718
Total current liabilities 122,044 141,405
LONG-TERM LIABILITIES:
Convertible subordinated notes 172,500 172,335
Other liabilities 3,271 3,191
MINORITY INTEREST 2,113 1,769
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock - authorized 5,000,000
shares; $.001 par value, no shares
issued or outstanding
Common stock - authorized 50,000,000
shares; $.001 par value, issued and
outstanding 28,435,000 and 29,141,000
shares 28 29
Paid-in capital 125,623 133,313
Treasury stock at cost
(2,000,000 common shares) (24,871) (24,871)
Accumulated other comprehensive loss (3,620) (2,110)
Retained earnings 29,733 54,999
Total stockholders' equity 126,893 161,360
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $426,821 $480,060
SOURCE: Cymer, Inc. |
