Cymer Reports First Quarter 2009 Operating Results
PR Newswire - Tuesday 04/21/2009 4:27 PM ET
SAN DIEGO, April 21 /PRNewswire-FirstCall/ -- Cymer, Inc. (Nasdaq: CYMI), the world's leading supplier of light sources used by chipmakers to create advanced semiconductor chips, today announced operating results for the first quarter ended March 31, 2009.
For the first quarter of 2009:
-- net loss totaled $11,487,000, equal to a loss of $0.39 per share
(diluted), compared to net income of $12,892,000, equal to $0.41 per
share (diluted) in the first quarter of 2008 and net income of
$3,984,000, equal to $0.13 per share (diluted) in the fourth quarter of
2008.
-- revenue totaled $56,499,000 compared to revenue of $123,952,000 in the
first quarter of 2008, and revenue of $100,448,000 in the fourth quarter
of 2008.
Commenting on first quarter results, Bob Akins, Cymer's chief executive officer, said, "The difficult global business environment continued throughout the first quarter of 2009. Cymer has differentiated itself during this period through swift and decisive actions that have significantly reduced our cost structure and improved our market position. We are particularly pleased with customer adoption of the XLR series and our advancement in argon fluoride (ArF) immersion technology which is strengthened by the recent introduction of the XLR600ix. Our Installed Base Products, led by OnPulse, are supporting chipmaker productivity and helping to reduce their cost of operations. We believe this portion of our business is stabilizing and it is positioned for near-term growth. We continued to make significant progress in our laser produced plasma EUV source development and commercialization."
In the first quarter of 2009, the company shipped nine light sources of which seven were XLRs, resulting in an average selling price (ASP) of approximately $1.7 million. Installed Base Products revenue totaled $40.9 million. During the quarter, the company installed 20 light sources at chipmaker locations, of which nine were XLRs. The company reported gross profit of $21.5 million for the first quarter of 2009, yielding a 38.1 percent gross margin. First quarter 2009 cost of revenues included approximately $3.2 million of idle capacity charges associated with unabsorbed manufacturing costs which resulted primarily from the decline in light source demand and reduced production levels. Operating expenses of $38.1 million for the first quarter of 2009 included $8.4 million of costs associated with reductions in workforce which were announced in January and March. In the 2009 first quarter, the operating loss totaled $16.5 million and the effective tax rate was approximately 35%. A foreign currency exchange loss of $1.9 million was incurred primarily associated with volatility in the Korean Won against the U.S. Dollar.
As of March 31, 2009, cash and investments totaled $139.3 million. During the quarter, the company repaid its $140.7 million convertible notes outstanding. Inventories declined $11.1 million in the first quarter as the company reduced manufacturing inventory levels in response to declining light source demand and field inventory was more closely aligned with chipmaker utilization.
Deep ultraviolet (DUV) bookings for the first quarter of 2009 totaled $48.3 million, resulting in a book-to-bill ratio of 0.85. All of the light source systems bookings in the first quarter were ArF immersion light sources. The company ended the quarter with a DUV backlog of approximately $25.5 million, with ArF immersion light sources comprising approximately 84 percent of the value of systems in backlog.
Corporate Outlook
Commenting on the outlook, Akins stated, "We are well positioned to capture a greater share of the overall ArF immersion light source market in 2009. We expect that light source shipments will be lower in the second quarter as direct customers absorb their work in process light source inventory and chipmakers modify the timing of their investments. However, we anticipate that increased chipmaker utilization will result in our Installed Base Product revenue offsetting the decline in light source revenue. Our strong product portfolio and a significantly reduced cost structure position Cymer for improved financial performance."
Based on information available at this time, Cymer is currently providing the following guidance for the second quarter of 2009, and anticipates:
-- Revenue to be approximately equivalent to the revenue reported for the
first quarter 2009.
-- Foreign currency adjusted ASP to be approximately $1.9 million.
-- Gross margin to be approximately 43 percent.
-- R&D expenses to be in the range of $15.0 to $15.5 million.
-- SG&A expenses to be in the range of $11.0 to $11.5 million.
-- Our estimated second quarter effective tax rate to be zero percent.
This rate assumes an estimated first half 2009 effective tax rate of
approximately 33%. This rate may vary significantly depending on the
actual extent of the profit or loss before tax.
Cymer's management will hold a conference call at 2:00 pm (PDT) today, April 21, 2009, to discuss first quarter 2009 operating results and provide second quarter 2009 guidance. This press release, the conference call and accompanying slides may be accessed on the investor relations page of the company's Web site at www.cymer.com. |
