.29
cymer.com
CYMER REPORTS RECORD REVENUE,
NET INCOME FOR FOURTH QUARTER 1999
Total Year-end Revenues, Net Income and Earnings Per Share Rise
Significantly Over 1998
SAN DIEGO, Calif. - January 31, 2000 - Cymer Inc. (Nasdaq NM: CYMI), the
world's leading supplier of excimer laser illumination sources essential for deep
ultraviolet (DUV) photolithography, today reported record quarterly revenues
and earnings for the fourth quarter ended December 31, 1999, and a significant
increase in revenues and earnings for the full year compared to 1998 year-end
results.
Fourth quarter net income rose to $8,910,000, or $0.29 per share (diluted),
versus a loss of $3,322,000, or $0.12 per share (diluted) in the fourth quarter of
1998. Total revenues for the fourth quarter of 1999 increased to $78,015,000,
up 105 percent over the $37,992,000 posted during the same period of the prior
year. On a sequential basis, fourth quarter net income increased 158 percent
over the $3,450,000, or $0.12 per share (diluted), reported in the third quarter
of 1999, while total revenues rose 32 percent over third quarter revenues of
$58,934,000.
For the year ended December 31, 1999, the Company's net income grew 240
percent to $8,573,000, or $0.29 per share (diluted), from $2,523,000, or $0.09
per share (diluted), posted in 1998. Total revenues were $220,450,000, up 19
percent from $185,141,000 one year ago.
Robert Akins, Cymer's president and chief executive officer, commented, "The
strong improvement in Cymer's financial performance is a reflection of the
semiconductor industry's continued recovery and the growing acceptance of
our products and services. Our newest product, the ELS-6000? 2 kHz krypton
fluoride (KrF) laser, is achieving wide acceptance among our direct customers
and chipmakers, accounting for 50.7 percent of fourth quarter system revenue
compared to 24.4 percent in the prior quarter. Due primarily to the robust sales
of the ELS-6000, customer order bookings in the fourth quarter grew to
$97,930,000, a 21 percent sequential increase over the prior quarter."
Akins continued, "The true significance behind these numbers becomes
increasingly apparent when coupled with the more than 90 percent utilization
rate of advanced DUV lithography tools at chipmakers' fabs today. These
extremely high utilization rates have caused chipmakers to view overall
equipment effectiveness, including cost of operation, product reliability and
service quality as the measure of a tool's performance. This new expanded view
plays to Cymer's strengths, especially our product uptime and our expanding
field service capabilities."
Turning to the Company's financial results, William Angus, senior vice president
and chief financial officer, noted, "Revenue growth resulted from increased
system sales with higher average selling prices, as well as increased sales of
spare parts and service. In fact, revenues from spares, service, and upgrade
kits accounted for 31.6 percent of total revenues for the fourth quarter.
Operating income for the fourth quarter doubled from $4,714,000 in the third
quarter of 1999 to $9,557,000. Backlog at December 31, 1999, including both
new systems and spare parts, totaled $102,747,000 compared to $81,672,000
at the end of the previous quarter."
Angus went on to say that gross margins on product sales improved on an
annual basis to 35 percent from 32 percent in 1998. However, gross margins
declined sequentially to 36 percent in the fourth quarter of 1999 from 37
percent in the third quarter, due entirely to a write off of $3,000,000 in
inventory for spare parts. Angus explained, "We wrote off $1,300,000 of
excess spare parts now in the pipeline because field usage data proved that we
didn't need as high an inventory of certain replacement parts with our product
reliability and uptime at well above 99 percent, and rising. The remaining
$1,700,000 of the write-off resulted from a spares inventory buy-back from
one of our key customers. This buy-back is the result of our recently signed
agreement with this leading lithography tool manufacturer for Cymer to sell
spares and provide service directly to its chipmaker customer base."
Cash and cash equivalents, and short- and long-term investments totaled
$193,089,000 as of December 31, 1999, while working capital totaled
$213,121,000. Capital spending and depreciation for the fourth quarter were
approximately $7,095,000 and $4,023,000 respectively, compared with
$5,605,000 and $4,228,000, respectively for the third quarter of 1999.
Angus concluded, "Looking forward with the information we have available at
this time, we believe our revenues can grow between 35 and 45 percent per
year over the next two years."
Quarterly Highlights
In December, Cymer's new product roadmap was validated at its annual lithography symposium,
co-hosted by Cymer's key manufacturing partner, Seiko Instruments Inc., and held in conjunction
with SEMICON Japan. A key outcome of the symposium was that both the chipmakers and
lithography tool manufacturers indicated a strong alignment between their future product
requirements and Cymer's technology roadmap.
In November, Cymer reached a major regional milestone with the installation of its 200th DUV
excimer laser in production at chipmaker fabs in Japan. Cymer now holds a greater than 80
percent market share in this key geographic region. Overall, Cymer maintains an installed base of
over 900 production DUV lasers, which equates to more than a 90 percent share of the total
excimer laser market. Also during November, Cymer received an order for its new ELX-6500F2
fluorine laser from Ultratech Stepper of San Jose, Calif. This new Cymer fluorine F2 laser is the
industry's first 157 nm light source offer a 1000Hz repetition rate, and enables the extension of
optical lithography for devices with feature sizes below 100 nm.
Forward Looking Statements
Statements in this press release regarding the projected revenue increase over the next two years is
a forward looking statement, based on current information and expectations and involves a
number of risks and uncertainties. Actual results may differ materially from those projected in
such statement due to various factors, including but not limited to: delays or cancellations by
customers of their orders; the timing of customer orders, shipments and acceptances; 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. For other factors which may cause actual results to differ from
those projected, please refer to the Company's Form 10-K, Forms 10-Q and other filings with the
Securities and Exchange Commission.
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.
Company Contact:
Terrence Slavin
Director, Corporate Communications & Investor Relations
Cymer, Inc.
858-385-5232
858-385-6090 (Fax)
Agency Contact:
Marie Labrie
Senior Account Manager
MCA
650-968-8900
650-968-8990 (Fax)
Cymer, Inc.
Quarter ending December 31
Year ending December 31
1998
1999
1998
1999
Revenues
$37,992,000
$78,015,000
$185,141,000
220,450,000
Net Income (loss)
($3,322,000)
8,910,000
$2,523,000
8,573,000
Avg. Diluted Shares
28,135,000
30,471,000
29,566,000
29,640,000
Share Earnings (basic):
Net Income (loss)
($0.12)
$0.31
$0.09
$0.31
Share Earnings (diluted):
Net Income (loss)
($0.12)
$0.29
$0.09
$0.29
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share data)
For the three months
ended December 31
For the twelve months
ended December 31
1998
1999
1998
1999
REVENUES:
Product sales
$37,886
$78,015
$184,828
$220,051
Other
106
0
313
399
Total revenues
37,992
78,015
185,141
220,450
COSTS AND EXPENSES:
Cost of product sales
32,118
49,791
125,713
143,105
Research and development
6,463
9,587
30,152
34,518
Sales and marketing
3,634
5,367
14,528
16,742
General and administrative
2,451
3,713
9,487
13,101
Total costs and expenses
44,666
68,458
179,880
207,466
OPERATING INCOME (LOSS)
(6,674)
9,557
5,261
12,984
OTHER INCOME (EXPENSE):
Foreign currency exchange gain (loss) - net
1,333
471
692
643
Interest and other income
1,763
2,101
7,384
7,327
Interest and other expense
(3,205)
(2,965)
(11,644)
(11,718)
Total other income (expense) - net
(109)
(393)
(3,568)
(3,748)
INCOME (LOSS) BEFORE PROVISION
FOR (BENEFIT FROM) INCOME TAXES AND
MINORITY INTEREST
(6,783)
9,164
1,693
9,236
PROVISION FOR (BENEFIT FROM) INCOME TAXES
3,772
0
1,250
0
MINORITY INTEREST
(311)
(254)
(420)
(663)
NET INCOME (LOSS)
($3,322)
$8,910
$2,523
$8,573
EARNINGS (LOSS) PER SHARE:
BASIC:
Earnings (loss) per share
($0.12)
|
