Cymer Reports First Quarter 2010 Operating Results
4:25 PM ET 4/22/10 | PR Newswire
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, 2010.
For the first quarter of 2010:
net income totaled $16,005,000 equal to $0.53 per share (diluted), compared to net loss of $11,487,000, equal to a loss of $0.39 per share (diluted) in the first quarter of 2009 and net income of $12,153,000, equal to $0.40 per share (diluted), in the fourth quarter of 2009.
revenue totaled $113,781,000 compared to revenue of $56,499,000 in the first quarter of 2009, and revenue of $96,404,000 in the fourth quarter of 2009.
Commenting on first quarter results, Bob Akins, Cymer's chief executive officer, said, "We are off to a solid start in 2010. Semiconductor fabs are operating at significantly higher utilization levels as compared to this time last year, and investment in argon fluoride (ArF) immersion lithography is being driven by technology transition buys in all three chipmaking sectors. First quarter revenue exceeded our January guidance increasing approximately 18 percent over fourth quarter 2009 as we responded to customer requests to accelerate deliveries of ArF immersion units from the second quarter. We also delivered a higher level of gross margin as we continued to realize the benefits of our 2008 and 2009 sustainable operating improvements."
In the first quarter of 2010, the company shipped 24 light sources, of which 16 were ArF immersion, 7 were krypton fluoride (KrF), and 1 was ArF dry. The company installed 18 light sources at chipmaker locations during the quarter. The company reported gross profit of $56.8 million for the first quarter of 2010, yielding a 50 percent gross margin. Total operating expenses, which include research and development and selling and administrative expenses, were $34.2 million. Increased investments in extreme ultraviolet (EUV) source development and TCZ development and market penetration, as well as the reinstatement of various variable compensation programs drove a higher level of operating expense. Total operating income was $22.6 million or approximately 20 percent of revenue. The first quarter effective tax rate was 30 percent. As of March 31, 2010, cash and investments totaled $172 million.
Deep ultraviolet (DUV) bookings for the first quarter of 2010 totaled $111.6 million, resulting in a book-to-bill ratio of 0.98. Seventy five percent of the light source bookings in the first quarter were ArF immersion and 25 percent were KrF. The company ended the quarter with a DUV backlog of approximately $43.8 million, with ArF immersion light sources comprising approximately 92 percent of the value of sources in backlog.
Corporate Outlook
Commenting on the outlook, Akins stated, "For Cymer, 2010 represents a year of growth and continued investment in promising new light source and display manufacturing technologies. We anticipate that ArF immersion will continue to represent the majority of our second quarter light source shipments and we expect to ship several KrF sources. We also anticipate that Installed Base Products revenue will increase driven by installed base growth, higher pulse utilization, and a more favorable mix of ArF immersion pulses. We believe our investment in EUV commercialization and TCZ market penetration positions us strategically for future growth and market leadership."
Based on information available at this time, Cymer is providing the following guidance for the second quarter of 2010:
Revenue to be in the range of $115 to $120 million.
Gross margin to be approximately 50 percent.
Research and development expenses to be approximately $21 million.
Sales, marketing, general and administrative expenses to be approximately $15 million.
The second quarter effective tax rate to be approximately 31 percent.
Cymer's management will hold a conference call at 2:00 pm (PDT) today, April 22, 2010, to discuss first quarter 2010 operating results and second quarter 2010 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. |
