Cymer Announces Fourth Quarter and Year-End Results for 1998
SAN DIEGO, Feb. 1 /PRNewswire/ -- Cymer, Inc. (Nasdaq: CYMI), the world's
leading supplier of excimer laser illumination sources for deep ultraviolet
(DUV) photolithography, today reported fourth quarter and year-end results for
1998.
Revenues for the quarter declined 15 percent to $37,992,000, as compared
to third quarter revenues of $44,448,000. Net loss for the quarter was
$3,322,000 or $0.12 per share (diluted) as compared to third quarter net
income of $1,453,000, or $0.05 per share (diluted). For comparative purposes,
fourth quarter 1997 revenues and net income were $59,076,000 and $7,173,000,
or $0.24 per share (diluted), respectively.
For the twelve months ended December 31, 1998, Cymer recorded net income
of $2,523,000, or $0.09 per share (diluted) on revenues of $185,141,000
compared to net income of $26,058,000, or $0.86 per share (diluted) on
revenues of $203,647,000 for the year ended December 31, 1997.
"On a sequential basis total units shipped for the quarter declined by
26 percent," said William Angus, senior vice president and chief financial
officer. "However the average selling price of our lasers increased as
customer demand continued to shift to our newer model lasers resulting in an
overall revenue decline of 15 percent. Lower revenues combined with a
write-off of obsolete inventory of $5.8 million, again due to the more rapid
adoption of our ELS-5010 laser, resulted in a net operating loss for the
quarter of $6,674,000. Gross margins for the quarter and the year ended
December 31, 1998 declined to 15 percent and 32 percent respectively, compared
to 40 percent and 39 percent for the same periods in 1997, primarily due to
the inventory write-off as well as overall lower sales volumes."
Angus observed that the net loss for the quarter was lower than
anticipated, primarily due to net foreign currency gains resulting from
fluctuations in the yen and from tax credits and permanent differences between
taxable income and book income which resulted in a negative effective tax rate
for the year. "Going forward, we are increasing our operating breakeven point
from approximately $43,000,000 in revenues to approximately $46,000,000 per
quarter. In addition, we are currently projecting a modest increase in
revenues on a sequential basis for the first quarter of 1999. These two
factors combined, are expected to result in a net loss of $0.10 to $0.15 per
share for the first quarter of 1999."
Robert Akins, president and chief executive officer of Cymer explained,
"The increase in breakeven for 1999 is a calculated decision on our part to
increase sales and marketing staff to address integrator customers and
chipmaker requirements as well as competitive activity. We are also making
further investments in process infrastructure that we expect will improve our
financial performance through increased efficiency when the industry recovery
accelerates. While we remain cautious about the timing of the recovery, we
remain confident in Cymer's ability to help enable the industry's commitment
to continued geometry shrinks and enhanced productivity."
Backlog at December 31, 1998, including both new systems and spare parts
was $37,316,000 as compared to September 30, 1998 backlog of $43,655,000. Cash
and cash equivalents, and short and long-term investments totaled
$162,168,000. During the quarter, the Company purchased an additional 137,000
shares under its stock repurchase plan, bringing the total number of
repurchased shares to 2,000,000 as of December 31, 1998. Working capital
totaled $198,645,000, and capital spending was approximately $4,000,000 for
the quarter.
Forward Looking Statements
Statements in this press release regarding our anticipated operating
breakeven point, our intention to increase our sales and marketing staff and
our expectations for our operating results for the first quarter of 1999 and
for improved financial performance when the industry recovery accelerates are
forward looking statements, are based on current expectations and involve a
number of risks and uncertainties. Actual results may differ materially from
those projected in any 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; changing business and
economic conditions in various geographic regions, including Asia, and the
effect of these conditions on capital spending plans by the Company's
customers and end-users; the rate at which semiconductor manufacturers take
delivery of photolithography tools from the Company's customers, which in turn
may be affected by delays and cancellations of new factory construction; the
timing of customer orders, shipments, and acceptances; the effect of recent
price increases instituted by the Company on new orders for the Company's 5010
lasers; new and enhanced product offerings by competitors; the Company's
ability to meet its production goals; and failure by the Company to match
expense levels with revenue fluctuations.
Corporate Profile
Cymer, Inc. is the world's leading supplier of excimer laser illumination
sources, the essential light source for deep ultraviolet (DUV)
photolithography systems. DUV lithography is a key enabling technology that
has allowed the semiconductor industry to meet the exact specifications and
manufacturing requirements for volume production of today's most advanced
semiconductor chips. Further information on Cymer may be obtained from the
Company's SEC filings, the Internet at cymer.com or by contacting
the Company directly.
Cymer, Inc. Quarter ending December 31 Year ending December31
1997 1998 1997 1998
Revenues $59,076,000 $37,992,000 $203,647,000 $185,141,000
Net income (loss) $7,173,000 ($3,322,000) $26,058,000 $2,523,000
Avg. diluted shares 30,042,000 28,135,000 30,267,000 29,566,000
Share earnings
(basic):
Net income (loss) $0.25 ($0.12) $0.92 $0.09
Share earnings (diluted):
Net income (loss) $0.24 ($0.12) $0.86 $0.09
CYMER, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per share data)
For the three months For the twelve months ended
December 31 ended December 31
1997 1998 1997 1998
REVENUES:
Product sales $58,653 $37,886 $201,191 $184,828
Other 423 106 2,456 313
Total revenues 59,076 37,992 203,647 185,141
COSTS AND EXPENSES:
Cost of product sales 35,181 32,118 123,654 125,713
Research and development 7,619 6,463 24,971 30,152
Sales and marketing 3,671 3,634 11,992 14,528
General and administrative 2,706 2,451 8,586 9,487
Total costs and expenses 49,177 44,666 169,203 179,880
OPERATING INCOME (LOSS) 9,899 (6,674) 34,444 5,261
OTHER INCOME (EXPENSE):
Foreign currency exchange
gain (loss) -- net 37 1,333 (359) 692
Interest and other income 2,435 1,763 5,318 7,384
Interest and other expense (2,829) (3,205) (4,847) (11,644)
Total other income
(expense) -- net (357) (109) 112 (3,568)
INCOME (LOSS) BEFORE PROVISION
FOR (BENEFIT FROM) INCOME
TAXES AND MINORITY INTEREST 9,542 (6,783) 34,556 1,693
Provision for (benefit from)
income taxes (2,386) 3,772 (8,639) 1,250
Minority interest 17 (311) 141 (420)
NET INCOME (LOSS) $7,173 ($3,322) $26,058 $2,523
EARNINGS (LOSS) PER SHARE:
Basic:
Earnings (loss) per share $0.25 ($0.12) $0.92 $0.09
Weighted average common shares
outstanding 28,643 27,135 28,212 28,226
Diluted:
Earnings (loss) per share $0.24 ($0.12) $0.86 $0.09
Weighted average common and
potential common shares
outstanding 30,042 28,135 30,267 29,566
CYMER, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands, except share data)
December 31,
1997 1998
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $51,903 $53,130
Short-term investments 80,387 85,558
Accounts receivable _ net 59,140 50,909
Foreign exchange contracts receivable 31,267 22,145
Inventories 47,502 50,786
Deferred income taxes 12,690 12,824
Prepaid expenses and other 2,847 3,706
Total current assets 285,736 279,058
PROPERTY _ net 48,031 51,937
LONG-TERM INVESTMENTS 42,667 23,480
OTHER ASSETS 8,446 8,897
TOTAL ASSETS $ 384,880 $ 363,372
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Revolving loan $11,609
Accounts payable $22,615 8,581
Accrued and other liabilities 26,860 33,204
Foreign exchange contracts payable 27,278 24,873
Income taxes payable 6,444 2,146
Total current liabilities 83,197 80,413
CONVERTIBLE SUBORDINATED NOTES 172,500 172,500
OTHER LIABILITIES 3,566 3,425
MINORITY INTEREST 1,077 1,450
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred Stock - authorized 5,000,000 shares;
.001 par value, no shares issued or outstanding
Common stock - authorized 50,000,000 shares; $.001
par value, issued and outstanding 28,724,000 and
27,174,000 shares 29 27
Paid-in capital 109,367 111,842
Retained earnings 18,637 21,159
Accumulated other comprehensive loss (3,493) (2,573)
Treasury stock at cost (2,000,000
common shares) (24,871)
Total stockholders' equity 124,540 105,584
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $384,880 $363,372
SOURCE Cymer, Inc.
CO: Cymer, Inc.
ST: California
IN: CPR
SU: ERN
02/01/99 16:30 EST prnewswire.com |
