Varian Semiconductor Equipment Associates Reports Fiscal 2005 Third Quarter Results
Thursday July 28, 4:25 pm ET
GLOUCESTER, Mass.--(BUSINESS WIRE)--July 28, 2005--Varian Semiconductor Equipment Associates, Inc. ("Varian Semiconductor") (Nasdaq: VSEA - News) today announced results for its fiscal 2005 third quarter ended July 1, 2005.
Revenue for the third quarter of fiscal 2005 totaled $166.7 million, compared to revenue of $146.1 million for the same period a year ago. Varian Semiconductor recorded net income of $19.3 million, or $0.51 per diluted share during the third quarter of fiscal 2005, compared to net income of $19.3 million, or $0.52 per diluted share for the same period a year ago.
Gary E. Dickerson, Varian Semiconductor's chief executive officer, said, "We continue to gain traction in Japan as evidenced by high current tool orders recently received from a major Japanese semiconductor manufacturer. Our production-proven tools generate higher device yields and higher fab productivity. These benefits, combined with our many years of experience developing single-wafer tools, are creating significant demand for our VIISta HC high current ion implanter."
Robert J. Halliday, chief financial officer, provided forward guidance. "We currently expect revenue for the fourth quarter of fiscal 2005 to be between $138 and $148 million and gross margin as a percentage of revenue to be in the low 40's. Earnings per share is anticipated to range from $0.29 to $0.37 per diluted share."
Halliday further added, "We continue to heavily invest in our high current and other product development initiatives. The drivers for this spending are the rapidly increasing customer base for these tools and support for upcoming product introductions in response to expanding market opportunities."
Varian Semiconductor will hold a conference call, broadcast over the Internet, at 5:30 p.m. eastern time today to discuss Varian Semiconductor's operating results and outlook. Access to the call is available through the investor relations page on Varian Semiconductor's website at www.vsea.com. Replays will be available via the website for two weeks after the call.
About Varian Semiconductor Equipment Associates, Inc.
Varian Semiconductor is the leading producer of ion implantation equipment used in the manufacture of semiconductors. Varian Semiconductor is headquartered in Gloucester, Massachusetts, and operates worldwide. Varian Semiconductor maintains a website at www.vsea.com. The information contained in Varian Semiconductor's website is not incorporated by reference into this release, and the website address is included in this release as an inactive textual reference only.
Note: This press release contains forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. For this purpose, statements concerning the industry outlook, Varian Semiconductor's guidance for fourth quarter fiscal 2005 revenue, gross margin and earnings per share, market share, competitive position, expected fourth quarter fiscal 2005 product shipments, and any statements using the terms "believes," "anticipates," "will," "expects," "plans" or similar expressions, are forward-looking statements. The forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: volatility in the semiconductor equipment industry; intense competition in the semiconductor equipment industry; Varian Semiconductor's dependence on a small number of customers; fluctuations in Varian Semiconductor's quarterly operating results; Varian Semiconductor's transition to new products; Varian Semiconductor's exposure to risks of operating internationally; uncertain protection of Varian Semiconductor's patent and other proprietary rights; Varian Semiconductor's reliance on a limited group of suppliers; potential environmental liabilities; Varian Semiconductor's ability to manage potential growth, decline and strategic transactions; Varian Semiconductor's reliance on one primary manufacturing facility; Varian Semiconductor's dependence on certain key personnel; and the risk of substantial indemnification obligations under the agreements governing the spin-off of Varian Semiconductor from Varian Associates, Inc. on April 2, 1999. These and other important risk factors that may affect actual results are discussed in detail under the caption "Risk Factors" in Varian Semiconductor's Annual Report on Form 10-K and in other reports filed by Varian Semiconductor with the Securities and Exchange Commission. Varian Semiconductor cannot guarantee any future results, levels of activity, performance or achievement. Varian Semiconductor undertakes no obligation to update any of the forward-looking statements after the date of this release.
VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
Fiscal Three Fiscal Nine
Months Ended Months Ended
July 1, July 2, July 1, July 2,
2005 2004 2005 2004
---------- --------- --------- ---------
Revenue
Product $ 144,227 $ 127,059 $ 367,359 $ 322,866
Service 19,902 16,727 60,584 46,297
Royalty 2,561 2,349 26,269 6,141
---------- --------- --------- ---------
Total revenue 166,690 146,135 454,212 375,304
Cost of revenue 96,233 79,185 249,348 208,277
---------- --------- --------- ---------
Gross profit 70,457 66,950 204,864 167,027
---------- --------- --------- ---------
Operating expenses
Research and development 19,351 17,497 57,081 50,720
Marketing, general &
administrative 26,243 21,737 77,953 62,556
Restructuring - - 914 -
---------- --------- --------- ---------
Total operating expenses 45,594 39,234 135,948 113,276
---------- --------- --------- ---------
Operating income 24,863 27,716 68,916 53,751
Interest income, net 2,926 1,010 12,935 2,770
Other income (expense), net 17 (386) 2,754 (498)
---------- --------- --------- ---------
Income before income taxes 27,806 28,340 84,605 56,023
Provision for income taxes 8,506 9,069 26,227 17,927
---------- --------- --------- ---------
Net income $ 19,300 $ 19,271 $ 58,378 $ 38,096
========== ========= ========= =========
Weighted average shares
outstanding - basic 36,798 36,314 36,619 35,984
Weighted average shares
outstanding - diluted 37,597 37,054 37,376 36,963
Net income per share -
basic $ 0.52 $ 0.53 $ 1.59 $ 1.06
Net income per share -
diluted $ 0.51 $ 0.52 $ 1.56 $ 1.03
VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
July 1, October 1,
2005 2004
--------- ----------
ASSETS
Current assets
Cash and cash equivalents $ 189,272 $ 218,578
Short-term investments 247,121 173,891
Accounts receivable, net 134,140 123,749
Inventories 140,280 104,900
Deferred income taxes 28,177 27,691
Other current assets 23,084 32,938
--------- ----------
Total current assets 762,074 681,747
Property, plant and equipment, net 60,418 52,344
Other assets 15,321 15,405
--------- ----------
Total assets $ 837,813 $ 749,496
========= ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Notes payable and current portion of long-term
debt $ 416 $ 4,016
Accounts payable 38,241 34,134
Accrued expenses 53,019 53,234
Product warranty 8,722 7,841
Deferred revenue 64,482 54,509
--------- ----------
Total current liabilities 164,880 153,734
Long-term accrued expenses 10,622 10,905
Deferred income taxes 6,216 4,615
Long-term debt 3,846 4,162
--------- ----------
Total liabilities 185,564 173,416
--------- ----------
Stockholders' equity
Common stock 371 364
Capital in excess of par value 352,511 331,701
Retained earnings 302,698 244,320
Deferred compensation (3,066) (149)
Accumulated other comprehensive loss (265) (156)
--------- ----------
Total stockholders' equity 652,249 576,080
--------- ----------
Total liabilities and stockholders' equity $ 837,813 $ 749,496
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Source: Varian Semiconductor Equipment Associates, Inc. |
