Varian Semiconductor Equipment Associates Reports Fiscal 2007 First Quarter Results
Thursday January 25, 4:25 pm ET
GLOUCESTER, MA--(MARKET WIRE)--Jan 25, 2007 -- Varian Semiconductor Equipment Associates, Inc. ("Varian Semiconductor") (NASDAQ:VSEA - News) today announced results for its fiscal 2007 first quarter ended December 29, 2006.
Revenue for the first quarter of fiscal 2007 totaled $225.6 million, compared to revenue of $160.9 million for the same period a year ago. Varian Semiconductor recorded net income of $37.0 million, or $0.66 per diluted share during the first quarter of fiscal 2007, compared to net income of $22.3 million, or $0.39 per diluted share for the same period a year ago.
Gary Dickerson, Varian Semiconductor's chief executive officer, said, "The first quarter of fiscal 2007 exceeded our financial guidance. The first quarter of fiscal 2007 was even more compelling from a competitive perspective. In the quarter, we had extraordinary customer acceptance of our high current and medium current tools by logic manufacturers and very strong progress in qualifying our PLAD tools with memory manufacturers. Given our strength in the foundry, logic and memory segments, we expect to continue to gain more market share in 2007."
Robert Halliday, chief financial officer, provided forward guidance for the second quarter of fiscal 2007. "We currently expect revenue to be between $232 and $242 million. Earnings per share are anticipated to range from $0.62 to $0.68 per diluted share."
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 second quarter fiscal 2007 revenue and earnings per share, market share, competitive position, expected product shipments, and financial performance, market conditions, 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 Report on Form 10-K for the year ended September 29, 2006 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 Months Ended
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December 29, December 30,
2006 2005
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Revenue
Product $ 202,350 $ 138,726
Service 21,477 20,561
Royalty 1,796 1,629
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Total revenue 225,623 160,916
Cost of revenue 125,170 97,362
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Gross profit 100,453 63,554
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Operating expenses
Research and development 24,223 21,587
Marketing, general & administrative 30,469 28,380
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Total operating expenses 54,692 49,967
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Operating income 45,761 13,587
Interest income, net 5,625 5,431
Other income (expense), net 715 (41)
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Income before income taxes 52,101 18,977
Provision for (benefit from) income taxes 15,109 (3,301)
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Net income $ 36,992 $ 22,278
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Weighted average shares outstanding – basic 55,418 56,347
Weighted average shares outstanding – diluted 56,430 57,072
Net income per share – basic $ 0.67 $ 0.40
Net income per share – diluted $ 0.66 $ 0.39
VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 29, September 29,
2006 2006
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ASSETS
Current assets
Cash and cash equivalents $ 219,498 $ 258,891
Short-term investments 162,009 154,810
Accounts receivable, net 178,244 125,992
Inventories 151,532 133,929
Deferred income taxes 30,836 31,592
Other current assets 13,011 18,102
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Total current assets 755,130 723,316
Long-term investments 151,368 135,777
Property, plant and equipment, net 63,814 62,249
Other assets 17,087 17,024
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Total assets $ 987,399 $ 938,366
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt $ 476 $ 466
Accounts payable 66,665 45,937
Accrued expenses 57,227 54,070
Product warranty 9,691 8,934
Deferred revenue 56,077 49,840
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Total current liabilities 190,136 159,247
Long-term accrued expenses and other
liabilities 18,563 17,300
Deferred income taxes 3,722 3,722
Long-term debt 3,147 3,270
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Total liabilities 215,568 183,539
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Stockholders' equity
Common stock 599 593
Capital in excess of par value 476,638 453,229
Less: Cost of treasury stock (152,202) (108,910)
Retained earnings 448,006 411,014
Accumulated other comprehensive loss (1,210) (1,099)
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Total stockholders' equity 771,831 754,827
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Total liabilities and
stockholders'equity $ 987,399 $ 938,366
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Source: Varian Semiconductor |
