Here's Dow Jones' take on things. I understand increased R & D
(a good thing, imo) impacting earnings, but why a 1st Q revenue
decline with that large backlog?
... Cymer Inc. late Thursday reported that
fourth-quarter net income more than doubled, beating Wall Street
forecasts, as revenue also more than doubled. However, the company,
citing anticipated spending increases, as well as troubles in Asia and
supply/demand imbalances, warned that its first-quarter results will
fall below fourth-quarter levels.
Separately, the company announced that its board authorized a $50
million stock-buyback plan.
Cymer (CYMI), which makes lasers used to manufacture semiconductors,
said net income rose to $7.2 million, or 24 cents a diluted share, from
$3.5 million, or 12 cents a diluted share the previous year. Analysts
surveyed by First Call were looking for earnings of 22 cents a diluted
share in the latest quarter. Revenue climbed to $59.1 million from $27.6
million.
The company said gross margins on product sales reached 40% during
the fourth quarter, contributing to gross margins of 38.5% for the year.
As of Dec. 31, 1997, backlog was $108.7 million. Cash, cash equivalents
and short-term investments, meanwhile, totaled $132.3 million.
Cymer said net income for the first quarter of 1998 will be 10 cents
to 15 cents a share lower than fourth-quarter 1997 results. It cited an
"aggressive" research and development and manufacturing program, and
further expansion of its service and support network to support its
growing installed base of deep ultraviolet (DUV) lasers in production.
Five analysts surveyed by First Call have a mean estimate of 22 cents
a share for Cymer's first quarter.
Cymer also said it expects a first-quarter revenue decline of 10% to
15% from fourth-quarter 1997 levels. The current Asian economic
condition, coupled with the ongoing dynamic random access memory, or
DRAM, supply/demand imbalance, is hurting demand for the lithography
equipment that relies on Cymer lasers, the company said.
Cymer said many lithography suppliers who are its customers are now
indicating that their earlier forecasts are under revision as a result
of changing market conditions. Cymer also said it is seeing shifts in
market share among the suppliers themselves.
In other news, Cymer said its board authorized the company to
repurchase up to $50 million of the company's common stock. The
purchases will be made from time to time on the open market or in
privately negotiated transactions, Cymer said. Shares repurchased will
be used in part to fund the company's stock plans.
The announcements came after the close of U.S. markets Thursday.
Cymer's Nasdaq-listed shares closed at $15.25, up 12.5 cents, or 0.8%,
on volume of 1.2 million share, compared with average daily volume of
723,865. |
