Cymer Reports Second Quarter 2009 Operating Results
PR Newswire - Wednesday 07/22/2009 4:30 PM ET
SAN DIEGO, July 22 /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 second quarter ended June 30, 2009.
For the second quarter of 2009:
-- net income totaled $525,000 equal to $0.02 per share (diluted), compared
to net income of $14,333,000, equal to $0.46 per share (diluted), in the
second quarter of 2008 and net loss of $11,487,000, equal to a loss of
$0.39 per share (diluted), in the first quarter of 2009.
-- revenue totaled $62,433,000 compared to revenue of $123,991,000 in the
second quarter of 2008, and revenue of $56,499,000 in the first quarter
of 2009.
Commenting on second quarter results, Bob Akins, Cymer's chief executive officer, said, "The actions that we took in late 2008 and during the first quarter of 2009 to reduce our cost structure enabled Cymer to quickly approach break-even operating performance and deliver positive cash flow ahead of expectations. During the second quarter of 2009, we shipped the XLR600ix, the industry's first field-selectable 60 watt to 90 watt immersion light source, which was recently installed at a large Asian chipmaker. We also continued to increase the number of installed base light sources that are covered under OnPulse. In the second quarter, we shipped the world's first laser-produced plasma extreme ultraviolet (EUV) lithography source and achieved a performance milestone of 75 watts of EUV lithography exposure power. This month, TCZ was extremely pleased to announce that they received their first order for a production tool for flat panel display fabrication."
In the second quarter of 2009, the company shipped four light sources all of which were XLRs. During the quarter, the company installed ten light sources at chipmaker locations, of which seven were argon fluoride (ArF) immersion. The company reported gross profit of $24.1 million for the second quarter of 2009, yielding a 38.6 percent gross margin. Second quarter cost of revenues was impacted by initial parts replacement costs associated with OnPulse, as well as higher than anticipated idle capacity charges. Total research and development and selling, general and administrative spending was $24.7 million which is approximately 17 percent lower than first quarter 2009 levels as the company adjusted spending on its DUV product portfolio while continuing its strategic investment in EUV and TCZ. The operating loss totaled $540,000 and the company recorded $783,000 associated with foreign currency exchange gains, interest income and interest expense for the second quarter of 2009. The first half 2009 effective tax rate was approximately 33 percent.
As of June 30, 2009, cash and investments totaled approximately $150 million. Cash and investments increased approximately $10 million from the first quarter of 2009 as the company continued to optimize inventory and reduce accounts receivable balances. Inventories declined approximately $7 million in the second quarter resulting in an $18 million reduction for the first half of 2009.
Deep ultraviolet (DUV) bookings for the second quarter of 2009 totaled $71.4 million, resulting in a book-to-bill ratio of 1.14. All of the light source systems bookings in the second quarter were ArF immersion light sources. The company ended the quarter with a DUV backlog of approximately $34.5 million, with ArF immersion light sources comprising approximately 90 percent of the value of systems in backlog.
Corporate Outlook
Commenting on the outlook, Akins stated, "In 2009, we believe we are well positioned to maintain our leading share of the overall ArF immersion light source market, and we look forward to continued progress on EUV and TCZ development and commercialization. We anticipate that third quarter light source shipments will be higher than second quarter levels driven by ArF immersion technology investment. We also expect that slightly higher chipmaker utilization will drive modestly higher Installed Base Products revenue in the third quarter. We believe our cost structure will continue to deliver improved shareholder returns and our balance sheet remains strong."
Based on information available at this time, Cymer is currently providing the following guidance for the third quarter of 2009, and anticipates:
-- Revenue to increase approximately 15 percent compared to the revenue
reported for the second quarter 2009.
-- Gross margin to be approximately 40 to 42 percent.
-- R&D expenses to be approximately $15.0 million dollars.
-- SG&A expenses to be approximately $11.0 million dollars.
-- For the nine months ended September 30, 2009 we estimate the effective
tax rate to be a benefit of approximately 27 to 29 percent. This rate
may vary significantly depending on the actual extent of the profit
before tax.
Cymer's management will hold a conference call at 2:00 pm (PDT) today, July 22, 2009, to discuss second quarter 2009 operating results and provide third 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.
Forward Looking Statements
Statements in this press release that are not strictly historical in nature are forward-looking statements. These statements include, but are not limited to the statements under the caption "Corporate Outlook" above. These statements are predictions based on current information and expectations and involve a number of risks and uncertainties. In addition, statements regarding backlog and book-to-bill ratios should not be read as predictions or projections of future performance. Actual events or results may differ materially from those projected in any of such statements due to various factors, including but not limited to: the demand for semiconductors in general, and, in particular, for leading-edge devices with smaller geometries; cyclicality in the market for semiconductor manufacturing equipment; the timing of customer orders, shipments and acceptances; delays or cancellations by customers of their orders, the performance and market acceptance of the company's new products or technologies; new and enhanced product offerings by competitors; the company's ability to meet its production and product development schedules; the rate at which semiconductor manufacturers adopt new technologies and purchase and take delivery of photolithography tools from the company's customers; the company's ability to secure adequate supplies of critical components for its advanced products; the company's ability to manage its expense levels and unanticipated expenses; the company's ability to achieve its forecasted gross margin which includes its ability to absorb manufacturing costs; the company's ability to achieve forecasted savings from its cost reduction actions; the company's ability to align its cost structure with forecasted business levels; the company's ability to manage its foreign currency exposure; the performance and conditions in the United States and world financial markets; the policies and actions of the United States and other governments; and general economic conditions. For a discussion of these and other factors which may cause our actual events or results to differ from those projected, please refer to the company's most recent annual report on Form 10-K and quarterly reports on Form 10-Q, as well as other subsequent filings with the Securities and Exchange Commission (SEC). You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and the company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.
About Cymer
Cymer, Inc. (Nasdaq: CYMI) is the market leader in developing light sources, used by chipmakers worldwide to pattern advanced semiconductor chips. Cymer's light sources have been widely adopted by the world's top chipmakers and the company's installed base comprises more than 3,300 systems. Continuing its legacy of leadership, Cymer is currently pioneering the industry's transition to EUV lithography, the next viable step on the technology roadmap for the creation of smaller, faster chips. The company is headquartered in San Diego, Calif., and supports its customers from numerous offices around the globe. Cymer maintains a Web site to which it regularly posts press releases, SEC filings, and additional information about Cymer. Interested persons can also subscribe to automated e-mail alerts or RSS feeds. Please visit www.cymer.com |
