Cymer Reports Results for Fourth Quarter and Fiscal 2001
SAN DIEGO, Feb. 5 /PRNewswire-FirstCall/ -- Cymer, Inc. (Nasdaq: CYMI), the world's leading supplier
of excimer light sources used in semiconductor
manufacturing, today announced operating results for the
fourth quarter and fiscal year ended December 31, 2001.
The net loss for the fourth quarter was $1,867,000, equal
to $0.06 per share (diluted), compared to net income of
$20,233,000, equal to $0.68 per share (diluted), in the
fourth quarter of 2000. Total revenue for the fourth
quarter of 2001 was $54,801,000 compared to total revenue
of $102,166,000 in the final quarter of the prior year.
On a sequential basis, the fourth quarter 2001 net loss
compared to a net loss of $2,782,000, or $0.09 per share
(diluted), in the third quarter, while fourth quarter total
revenue increased 3 percent over the $53,035,000 posted in
the third quarter of 2001.
For 2001, Cymer posted net income of $8,485,000, equal to
$0.27 per share (diluted), compared to net income of
$63,772,000, equal to $2.07 per share (diluted), in 2000.
Total revenue for 2001 was $269,444,000 versus total
revenue of $367,460,000 in 2000.
Commenting on the company's fourth quarter performance, Bob
Akins, Cymer's chairman and chief executive officer,
noted, "Revenue for the quarter came in higher than we had
originally anticipated, primarily because the mix of
products shifted strongly to our advanced argon fluoride
(ArF) products. Additionally, our manufacturing flexibility
allowed us to ship, at customers' request, several ELS-6010
TM) light sources originally scheduled for shipment in the
first quarter of 2002."
Akins continued, "We recognized revenue on 55 light sources
in the fourth quarter of 2001 compared to 62 light sources
in the prior quarter. In the fourth quarter, ArF light
sources made up 45 percent of unit shipments, up from 31
percent of unit shipments the prior quarter, demonstrating
strong demand for, and rapid adoption of, these advanced
light sources for production of semiconductors with
critical dimensions at or below 130 nm. Cymer installed 67
light sources at chipmakers and other end users in the
fourth quarter, and as of December 31, 2001, the number of
Cymer light sources installed at end users had risen to
1,702."
Nancy Baker, senior vice president and chief financial
officer, stated, "In the fourth quarter, the fact that the
product mix was heavily weighted toward our newer products
drove system average selling prices (ASPs), on a currency
adjusted basis, to $680,000 for the quarter compared to
$587,000 in the third quarter of 2001. We expect the upward
trend of ASPs to continue in the first quarter of 2002 due
to the growing number of shipments of ArF systems, as well
as initial shipments of our recently introduced ELS-7000
KrF system, both of which carry higher selling prices.
Non-systems product revenue, which consists of upgrades,
consumables and service, represented 31 percent of fourth
quarter revenue compared to 32 percent of third quarter
revenue.
"Product gross margin increased to 40 percent during the
fourth quarter compared to 38 percent in the third quarter.
The gross margin improvement was due to tight cost controls
and improved performance in materials management for the
period," Baker continued. "Our investment in research and
development (R&D) remained at 26 percent of revenue in the
fourth quarter, and is necessary at this level in order to
maintain the aggressive schedule planned for introduction
of next generation, higher value-added products. The
company reported an operating loss of $1,315,000, or 2
percent of revenue, in the fourth quarter, compared to an
operating loss of $2,278,000, or 4 percent of revenue in
the third quarter of 2001. Total backlog rose 3 percent to
$97,108,000 in the fourth quarter from $94,510,000 in the
prior quarter, while the book-to-bill ratio rose to 1.05 in
the fourth quarter from 0.78 in the third quarter."
Cymer's operating activities generated $19,610,000 in cash
during the fourth quarter, and $58,384,000 for the full
year. Cash and cash equivalents and short- and long-term
investments totaled $217,198,000 as of December 31, 2001.
Capital spending for the fourth quarter of 2001 totaled
$3,588,000 compared to $6,096,000 in the third quarter, and
depreciation and amortization for the fourth quarter
totaled $7,046,000 compared with $6,293,000 in the third
quarter of 2001.
Summarizing the company's performance during the year,
Akins said, "2001 was a challenging and important year for
Cymer. We streamlined the company to strengthen our
competitiveness and improved operating efficiencies,
allowing us to get more done with fewer resources. We dealt
with 2001 more proactively and decisively than any previous
downturn year, and in fact, took advantage of the downturn
to best position ourselves for the next upturn. We finished
the year stronger, more competitive, and more efficient
than we began it."
Corporate Outlook
Commenting on the outlook, Akins concluded, "Visibility remains limited. We are convinced that any mild upward trend in our top line in the short term will not be a reflection of fundamental market growth, but rather, will be attributable to ongoing competitive wins by Cymer enabled by the successes of our new value-compelling products. As we speak, orders for light source consumables -- whose growth might indicate increasing chip manufacturing activity -- have not shown signs of picking up."
Based on information available at this time, Cymer is currently providing the following guidance for the first quarter of 2002:
-- Cymer currently estimates that total revenue in the first quarter of
2002 will increase between 4 percent and 7 percent over the total
revenue posted in the fourth quarter of 2001.
-- Cymer is forecasting ASPs to exceed $715,000 and gross margin in a
range of 36 percent to 39 percent resulting from the introduction of a
new product.
-- Cymer is targeting R&D spending in the first quarter at approximately
24 percent to 26 percent of revenue, and anticipates selling, general
and administrative expenses to be approximately 14 percent to
16 percent of revenue.
-- Under the new rules set forth in SFAS 142, which Cymer must adopt for
its 2002 fiscal year, the company will no longer amortize goodwill and
intangibles with indefinite lives associated with previous purchase
business combinations. Cymer is in the early stages of the evaluation
process, but at this time, there has been no identified impairment of
these intangible assets.
-- Cymer currently models net other income/expense as a $1,100,000 expense
per quarter prior to the inclusion of foreign exchange gains or losses,
and estimates the effective tax rate for 2002 to be 25 percent.
-- Cymer currently plans to issue a first quarter update during the week
of March 11, 2002.
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 demand 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, the strength of Cymer's competitive position 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 www.cymer.com or by contacting the company directly.
Cymer, Inc. Quarter ending December 31 Year ending December 31
2000 2001 2000 2001
Total revenues $102,166,000 $54,801,000 $367,460,000 $269,444,000
Amortization of
goodwill and
intangibles 36,000 894,000 108,000 3,148,000
Purchased in-process
research 0 0 0 5,050,000
Extraordinary gain
on debt
extinguishment 0 0 0 610,000
Cumulative change
in accounting
principle 0 0 0 (370,000)
Net income (loss) 20,233,000 (1,867,000) 63,772,000 8,485,000
Share earnings
(basic) $0.69 ($0.06) $2.19 $0.28
Share earnings
(diluted) $0.68 ($0.06) $2.07 $0.27
Weighted average
common and common
equivalent shares
outstanding
(diluted) 29,882,000 30,763,000 30,758,000 31,108,000
CYMER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share data)
For the three months For the twelve months
ended December 31 ended December 31
2000 2001 2000 2001
REVENUES:
Product sales $102,038 $54,351 $366,280 $267,003
Other 128 450 1,180 2,441
Total revenues 102,166 54,801 367,460 269,444
COSTS AND EXPENSES:
Cost of product sales 47,745 32,371 187,579 151,340
Research and
development 11,864 14,298 45,433 58,368
Sales and marketing 5,894 4,287 20,098 19,617
General and
administrative 7,315 4,266 22,510 18,990
Amoritization of
goodwill and
intangibles 36 894 108 3,148
Purchased in-process
research 0 0 0 5,050
Total costs and
expenses 72,854 56,116 275,728 256,513
OPERATING INCOME (LOSS) 29,312 (1,315) 91,732 12,931
OTHER INCOME (EXPENSE):
Foreign currency exchange
gain (loss) - net (974) (362) (1,379) 877
Interest and other
income 2,762 1,589 10,785 8,290
Interest and other
expense (2,528) (2,348) (10,636) (10,614)
Total other expense
- net (740) (1,121) (1,230) (1,447)
INCOME (LOSS) BEFORE INCOME
TAX PROVISION (BENEFIT)
AND MINORITY INTEREST 28,572 (2,436) 90,502 11,484
INCOME TAX PROVISION
(BENEFIT) 8,286 (609) 26,246 2,871
MINORITY INTEREST (53) (40) (484) (368)
INCOME (LOSS) BEFORE
EXTRAORDINARY ITEM AND
CUMULATIVE CHANGE IN
ACCOUNTING PRINCIPLE $20,233 ($1,867) $63,772 $8,245
Extraordinary gain on debt
extinguishment $0 $0 $0 $610
Cumulative change in
accounting principle $0 $0 $0 ($370)
NET INCOME (LOSS) $20,233 ($1,867) $63,772 $8,485
EARNINGS (LOSS) PER SHARE:
Basic earnings (loss)
per share:
Before extraordinary item
and cumulative change in
accounting principle $0.69 ($0.06) $2.19 $0.27
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 $0.69 ($0.06) $2.19 $0.28
Weighted average common
shares outstanding 29,443 30,763 29,113 30,474
Diluted earnings (loss)
per share:
Before extraordinary item
and cumulative change in
accounting principle $0.68 ($0.06) $2.07 $0.26
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 $0.68 ($0.06) $2.07 $0.27
Weighted average common
and common equivalent
shares outstanding 29,882 30,763 30,758 31,108
CYMER, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands, except share data)
December 31, December 31,
ASSETS 2000 2001
CURRENT ASSETS:
Cash and cash equivalents $79,678 $111,195
Short-term investments 117,017 82,988
Accounts receivable - net 85,569 50,056
Foreign currency forward exchange
contracts 2,664 3,197
Inventories 76,887 61,784
Deferred income taxes 23,503 16,935
Income taxes receivable 0 3,039
Prepaid expenses and other 4,571 3,308
Total current assets 389,889 332,502
PROPERTY - net 91,080 90,419
LONG-TERM INVESTMENTS 8,984 23,015
DEFERRED TAXES - NON-CURRENT 6,060 12,269
GOODWILL - net 0 9,791
INTANGIBLE ASSETS - net 0 10,633
OTHER ASSETS 5,549 4,717
TOTAL ASSETS $501,562 $483,346
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $23,471 $15,729
Accrued and other liabilities 67,853 51,270
Income taxes payable 11,274 0
Revolving loan 8,745 7,652
Total current liabilities 111,343 74,651
Convertible subordinated notes 172,335 147,335
Other liabilities 3,175 4,437
Total liabilities 286,853 226,423
MINORITY INTEREST 1,741 2,109
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 30,848,000 shares 29 31
Paid-in capital 145,996 184,794
Treasury stock at cost (2,000,000
common shares) (24,871) (24,871)
Unearned compensation 0 (3,468)
Accumulated other comprehensive loss (1,691) (3,662)
Retained earnings 93,505 101,990
Total stockholders' equity 212,968 254,814
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $501,562 $483,346
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SOURCE Cymer, Inc.
/CONTACT: investors, Terry Slavin, Director, Corp. Communications & IR of
Cymer, Inc., +1-858-385-5232, or fax, +1-858-385-6090; or Meggan Powers,
Associate of MCA, +1-650-968-8900, or fax, +1-650-968-8990, for Cymer, Inc./ |
