For the first time since I have been a member of SI, I can say without reservation that I am giving up on the AMAT thread. I am interested in AMAT and what the future holds; not in someone's opinion of why we should nuke the mideast. If I want that type of blather, I can turn on talk radio.
Regards,
Brian
BTW, CYMI reported tonight:
Cymer Reports Results for Third Quarter 2001
SAN DIEGO, Oct. 23 /PRNewswire/ -- Cymer, Inc. (Nasdaq: CYMI - news), the world's leading supplier of excimer light sources used in semiconductor manufacturing, today announced operating results for the third quarter ended September 30, 2001.
The net loss for the quarter was $2,782,000, equal to $0.09 per share (diluted), compared to net income of $18,089,000, or $0.58 per share (diluted), in the third quarter of 2000. Total revenue for the third quarter of 2001 was $53,035,000 compared to total revenue of $98,427,000 in the third quarter of the prior year.
On a sequential basis, the third quarter net loss compared to net income of $4,835,000, or $0.15 per share (diluted), in the second quarter of 2001, while third quarter total revenue decreased 25 percent from the $70,411,000 posted in this year's second quarter.
For the first nine months of 2001, net income was $10,352,000, equal to $0.33 per share (diluted), compared to net income of $43,539,000, or $1.40 per share (diluted), in the first nine months of 2000. Total revenue for the first nine months of the current year was $214,643,000 versus total revenue of $265,294,000 in the first nine months of 2000.
Commenting on the company's third quarter performance, Bob Akins, Cymer's chairman and chief executive officer, noted, ``This quarter's results were in line with our most recent guidance and we believe the streamlining measures taken since the beginning of the year coupled with the continuing improvement in business processes had a positive effect on our performance relative to the last downturn. As anticipated, our product mix continued to shift toward our newer technology. Our argon fluoride (ArF) light sources, including the NanoLith(TM) 7000-the industry's first 4 kHz light source for production-accounted for 31 percent of third quarter revenue shipments, while the ELS-6010(TM) krypton fluoride (KrF) light source accounted for 27 percent of revenue shipments.''
Akins continued, ``We recognized revenue on 62 new systems in the third quarter of 2001 compared to 90 systems in the prior quarter. Cymer installed 80 light sources at chipmakers and other end users in the third quarter, and as of September 30, 2001, the number of Cymer light sources installed at end users had risen to 1,633. The success of our effort to help our direct customers manage their inventory of Cymer light sources, and work that inventory down, is demonstrated in our installations exceeding our shipments in the third quarter.''
Bill Angus, senior vice president and chief financial officer, stated, ``Driven by the continuing shift toward our newer technology, on a currency adjusted basis, system average selling prices (ASPs) increased to $587,000 in the third quarter from $575,000 in the second quarter of 2001. ASPs are expected to continue this upward trend and could exceed $640,000 during the fourth quarter of this year because of the anticipated shipment of a growing number of ELS-6010 systems as well as ArF systems, which carry higher selling prices. Non-systems product revenue, which consists of upgrades, consumables and service, represented 32 percent of third quarter revenue.
``Gross margins declined to 38 percent during the third quarter compared to 45 percent in the prior quarter, primarily because of the effects of lower product sales on higher relatively fixed manufacturing facility costs as well as the worldwide field support infrastructure,'' Angus continued. ``Our investment in research and development (R&D) rose to 26 percent of revenue in the third quarter, and is necessary at these levels if we are to continue to invest in the higher value-add, next-generation products that will be critical to Cymer's success during the next upturn. The company posted an operating loss of $2,278,000, or four percent of revenue, in the third quarter compared to operating income of $5,413,000, or eight percent of revenue, in the second quarter of this year. The book-to-bill ratio showed a modest improvement, rising to 0.78 in the third quarter from 0.73 in the second quarter.''
Cymer's operating activities generated $13,594,000 in cash during the quarter, primarily due to cash payments received on customers' outstanding account balances and ongoing inventory reduction efforts. Cash and cash equivalents and short- and long-term investments totaled $193,280,000 as of September 30, 2001. Capital spending for the third quarter of 2001 totaled $6,096,000 compared to $13,036,000 in the second quarter, and depreciation and amortization for the third quarter totaled $6,293,000 compared with $6,696,000 for the second quarter of 2001.
Corporate Outlook
Commenting on the outlook, Akins concluded, ``Visibility continues to be limited to less than one quarter. Chip supply continues to exceed demand, and although the downward trend in fab utilization rates seems to have stabilized, chipmakers continue to implement temporary shut downs and, in some cases, permanent fab closures to stem losses. At this time, we believe the only viable course is to continue our currently stringent cost controls, our successful inventory management, and our positioning in preparation for the next growth cycle, including ongoing R&D investments to maintain our technology and product leadership.''
Based on information available at this time, Cymer is currently providing the following guidance for the fourth quarter of 2001, subject to future revision:
-- Cymer is currently estimating that total revenue in the fourth quarter
will be approximately flat with total revenue in the third quarter of
2001.
-- Cymer is forecasting gross margin in a range of 36 percent to
39 percent.
-- Cymer is targeting research and development spending in the fourth
quarter at approximately 26 percent to 28 percent of revenue, and
anticipates selling, general and administrative expenses to be
approximately 15 to 17 percent of revenue.
-- Cymer expects the amortization of goodwill and intangible assets to
total $894,000.
-- Cymer currently models net other income/expense at a negative
$800,000 per quarter prior to the inclusion of foreign exchange gains
or losses, and estimates the tax rate for the remainder of 2001 to be
25 percent.
-- Cymer currently plans to issue a fourth quarter update during the week
of December 10, 2001.
Forward-Looking Statements
Statements in this press release that are not strictly historical in nature are forward-looking statements. These statements include, but are not limited to, references to the continuing shift to our newer technology, the expectation that ASPs will continue to increase, the impact of continued R&D spending on Cymer's future success, and all of the statements under the caption ``Corporate Outlook'' above, including references to expected financial and operating results. These statements are only predictions based on current information and expectations and involve a number of risks and uncertainties. Actual events or results may differ materially from those projected in 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; the rate at which semiconductor manufacturers take delivery of photolithography tools from the company's customers; delays or cancellations by customers of their orders; new and enhanced product offerings by competitors; the timing of customer orders, shipments and acceptances; inability by the company to meet its production and/or product development schedules; inability of the company to secure adequate supplies of critical components for its advanced products; and failure by the company to manage its expense levels and unanticipated expenses. For a discussion of these and other factors, which may cause our actual events or results to differ from those projected, please refer to the company's most recent annual report on Form 10-K and quarterly reports on Form 10-Q, as well as other subsequent filings with the Securities and Exchange Commission.
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.
Cymer, Inc. Quarter ending Sept. 30 9 Months ending Sept. 30
2000 2001 2000 2001
Total revenues $98,427,000 $53,035,000 $265,294,000 $214,643,000
Amortization of
goodwill and
intangibles 36,000 894,000 72,000 2,253,000
Purchased in-process
research 0 0 0 5,050,000
Extraordinary gain
on debt extinguishment 0 70,000 0 610,000
Cumulative change in
accounting principle 0 0 0 (370,000)
Net income (loss) 18,089,000 (2,782,000) 43,539,000 10,352,000
Share earnings
(basic) $0.62 ($0.09) $1.50 $0.34
Share earnings
(diluted) $0.58 ($0.09) $1.40 $0.33
Weighted average
common and common
equivalent shares
outstanding
(diluted) 30,974,000 30,657,000 31,021,000 31,085,000
CYMER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share data)
For the three months For the nine months
ended September 30 ended September 30
2000 2001 2000 2001
REVENUES:
Product sales $97,909 $52,521 $264,242 $212,652
Other 518 514 1,052 1,991
Total revenues 98,427 53,035 265,294 214,643
COSTS AND EXPENSES:
Cost of product sales 50,038 32,400 139,834 118,969
Research and development 12,167 13,790 33,569 44,070
Sales and marketing 5,668 3,989 14,204 15,330
General and administrative 5,934 4,240 15,195 14,725
Amoritization of goodwill
and intangibles 36 894 72 2,253
Purchased in-process
research 0 0 0 5,050
Total costs and
expenses 73,843 55,313 202,874 200,397
OPERATING INCOME (LOSS) 24,584 (2,278) 62,420 14,246
OTHER INCOME (EXPENSE):
Foreign currency exchange
gain (loss) - net (385) (358) (405) 1,239
Interest and other income 2,849 1,782 8,023 6,701
Interest and other
expense (1,945) (2,690) (8,108) (8,266)
Total other income
(expense) - net 519 (1,266) (490) (326)
INCOME (LOSS) BEFORE
INCOME TAX PROVISION
(BENEFIT) AND MINORITY
INTEREST 25,103 (3,544) 61,930 13,920
INCOME TAX PROVISION
(BENEFIT) 6,912 (886) 17,960 3,480
MINORITY INTEREST (102) (194) (431) (328)
INCOME (LOSS) BEFORE
EXTRAORDINARY ITEM AND
CUMULATIVE CHANGE IN
ACCOUNTING PRINCIPLE $18,089 ($2,852) $43,539 $10,112
Extraordinary gain on
debt extinguishment $0 $70 $0 $610
Cumulative change in
accounting principle $0 $0 $0 ($370)
NET INCOME (LOSS) $18,089 ($2,782) $43,539 $10,352
EARNINGS (LOSS) PER SHARE:
Basic earnings (loss)
per share:
Before extraordinary
item and cumulative
change in accounting
principle $0.62 ($0.09) $1.50 $0.33
Extraordinary gain on
debt extinguishment $0.00 $0.00 $0.00 $0.02
Cumulative change in
accounting principle $0.00 $0.00 $0.00 ($0.01)
Basic earnings (loss)
per share $0.62 ($0.09) $1.50 $0.34
Weighted average common
shares outstanding 29,226 30,657 29,002 30,377
Diluted earnings (loss)
per share:
Before extraordinary item
and cumulative change in
accounting principle $0.58 ($0.09) $1.40 $0.32
Extraordinary gain on debt
extinguishment $0.00 $0.00 $0.00 $0.02
Cumulative change in
accounting principle $0.00 $0.00 $0.00 ($0.01)
Diluted earnings (loss)
per share $0.58 ($0.09) $1.40 $0.33
Weighted average common
and common equivalent
shares outstanding 30,974 30,657 31,021 31,085
CYMER, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands, except share data)
December 31, September 30,
ASSETS 2000 2001
CURRENT ASSETS:
Cash and cash equivalents $79,678 $73,053
Short-term investments 117,017 108,143
Accounts receivable - net 85,569 58,603
Foreign currency forward exchange contracts 2,664 0
Inventories 76,887 59,712
Deferred income taxes 23,503 23,479
Income taxes receivable 0 1,363
Prepaid expenses and other 4,571 4,332
Total current assets 389,889 328,685
PROPERTY - net 91,080 92,512
LONG-TERM INVESTMENTS 8,984 12,084
DEFERRED TAXES - NON-CURRENT 6,060 8,113
GOODWILL - net 0 10,596
INTANGIBLE ASSETS - net 0 11,045
OTHER ASSETS 5,549 4,723
TOTAL ASSETS $501,562 $467,758
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $23,471 $13,300
Accrued and other liabilities 67,853 50,972
Income taxes payable 11,274 0
Foreign currency forward exchange contracts 0 204
Revolving loan 8,745 0
Total current liabilities 111,343 64,476
CONVERTIBLE SUBORDINATED NOTES 172,335 147,335
OTHER LIABILITIES 3,175 3,246
TOTAL LIABILITIES 286,853 215,057
MINORITY INTEREST 1,741 2,069
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
29,496,000 and 30,691,000 shares 29 31
Paid-in capital 145,996 180,021
Treasury stock at cost
(2,000,000 common shares) (24,871) (24,871)
Unearned compensation 0 (3,745)
Accumulated other comprehensive loss (1,691) (4,661)
Retained earnings 93,505 103,857
Total stockholders' equity 212,968 250,632
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $501,562 $467,758
SOURCE: Cymer, Inc. |
