Cymer Announces Second Quarter and Six Months Results for 1999
SAN DIEGO, CALIF. - July 26, 1999 - Cymer Inc. (Nasdaq NM: CYMI), the world's leading supplier of excimer laser illumination sources for deep ultraviolet (DUV) photolithography, today reported financial results for the three month and six month periods ended June 30, 1999.
Second quarter revenues increased 8 percent to $43,409,000 as compared to first quarter 1999 revenues of $40,092,000. Net loss for the second quarter declined to $1,489,000, or $0.05 per share (diluted), compared to the first quarter 1999 net loss of $2,298,000, or $0.08 per share (diluted). When compared to revenues of $53,022,000 for the quarter ended June 30, 1998, current quarter revenues decreased 18 percent. The current quarter net loss compares to a net income for the second quarter of 1998 of $1,689,000, or $0.06 per share (diluted).
For the first six months of 1999, Cymer recorded a net loss of $3,787,000, or $0.14 per share (diluted) on revenues of $83,501,000 compared to net income of $4,392,000, or $0.14 per share (diluted) on revenues of $102,701,000 in the first six months of 1998.
"While we continued to see a higher mix of systems revenue attributable to our ELS-5010 krypton fluoride laser (KrF) and our ELS-6000 2Khz KrF laser, as anticipated, overall unit shipments were down for the quarter," said Robert Akins, president and chief executive officer of Cymer. "Offsetting the impact of this was non-systems revenue, that is revenues from the sale of spare parts, service and system upgrade kits which comprised 39 percent of total revenue during the quarter. The growth in non-systems revenue was mainly attributable to growing utilization of our lasers at chipmakers."
According to William Angus, senior vice president and chief financial officer, "Gross margins increased from 29 percent to 35 percent on a sequential basis, while total expenses for research and development, sales and marketing, and general and administrative decreased slightly on a percentage basis. The gross margin increase was primarily attributable to higher sales volumes as well as product mix."
"The strengthening of the industry has given us better visibility and an increase in bookings from our customers," added Angus. "Backlog at June 30, 1999, including both new systems and spare parts was $58,893,000 as compared to March 31, 1999 backlog of $50,155,000. Therefore, based on information currently available to us, we expect total system shipments for the third quarter of 1999 to increase 60 to 65 percent on a sequential basis resulting in a net overall revenue increase of 28 to 32 percent. This is expected to result in net income for the third quarter of 1999 of between $0.04 and $0.08 per share."
Cash and cash equivalents, and short and long-term investments at June 30, 1999 totaled $164,821,000. Working capital at that date totaled $201,085,000, while capital spending and depreciation for the second quarter were approximately $3,690,000 and $4,248,000, respectively compared to $5,748,000 and $4,152,000, respectively for the first quarter of 1999.
Forward Looking Statements
Statements in this press release regarding anticipated system shipments in the third quarter and the projected revenue increase and net income per share for the third quarter are forward looking statements, are based on current information and expectations and involve a number of risks and uncertainties. Actual results may differ materially from those projected in such statements due to various factors, including: delays or cancellations by customers of their orders; inability by the Company to meet its production schedules; failure by the Company to manage its expense levels and unanticipated expenses; the rate at which semiconductor manufacturers take delivery of photolithography tools from the Company's customers; the demand for semiconductors in general, and, in particular, for leading-edge devices with smaller geometries; and new and enhanced product offerings by competitors.
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 which has allowed the semiconductor industry to meet the exact specifications and manufacturing requirements for volume production of today's 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.
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