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Strategies & Market Trends : Guidance and Visibility -- Ignore unavailable to you. Want to Upgrade?

To: SusieQ1065 who wrote (72251)	9/9/2002 8:32:22 AM
From: 2MAR$	Read Replies (1) \| Respond to of 208838

CYMI Expects Third-Quarter Results to Be In-Line with Most Recent Guidance SAN DIEGO, Calif., Sept. 9 /PRNewswire-FirstCall/ -- Cymer, Inc. (Nasdaq: CYMI), the world's leading supplier of excimer light sources used in semiconductor manufacturing, today announced that it expects third-quarter 2002 operating results to be generally in-line with the guidance provided in the company's earnings release and conference call on July 22, 2002. Bob Akins, Cymer's chairman and chief executive officer, noted, "At this time, third-quarter results are developing generally according to our expectations. We anticipate that total revenue in the third quarter of 2002 will be at the high end of, or slightly above, the previously anticipated 5- to 10-percent increase over the $73,669,000 in revenue posted in the second quarter of this year. As the result of a shift in our product mix, we expect our foreign currency adjusted average selling price to be approximately $680,000 in the third quarter and gross margin to be at the low end of the range of 45 to 47 percent. We also continue to expect research and development spending to be approximately 22 to 24 percent of revenue, and anticipate that selling, general and administrative expenses will be approximately 11 to 13 percent of revenue. We estimate the annual effective tax rate for 2002 will be 16 percent. The decrease in Cymer's estimated annual effective income tax rate to 16 percent from 27 percent is primarily attributable to anticipated tax benefits related to Cymer's non-U.S. sales. We will report results for the third quarter of 2002 at about 1:30 p.m. (Pacific Time) on Tuesday, October 22." Commenting on the outlook and general business conditions, Akins stated, "In our July 22 conference call, we said that utilization rates of our light sources had trended lower in the last month of the second quarter. This downward trend has continued in the third quarter, reflecting the overall slowing of the pace in semiconductor demand. At this time, our visibility has again contracted to less than one quarter, and we now expect our book-to-bill ratio to be less than one for the third quarter. With slowing semiconductor demand and reduced industry capital spending, we currently expect that revenue in the fourth quarter will be lower than the anticipated third-quarter level."