To: Gersh Avery who wrote (4385 ) 12/8/2004 10:39:01 PM From: Lee Lichterman III Read Replies (2) | Respond to 16:31 ET Cymer sees Q4 revs and gross margin below expectations (CYMI) 31.99 -1.07: Co announced that it expects Q4 revenue and gross margin to be below the guidance ranges provided in the co's 10/19 press release. Co also indicated that R&D expenses are expected to be at the low end of the Oct guidance range, while SG&A expenses are expected to be within that range. Co states, "Current demand for new light sources remains at previously anticipated levels, although our fourth quarter demand schedule is heavily back-end loaded. Demand for consumables and service has continued to slow, and therefore we now expect fourth quarter revenue to decline 12-13% from third quarter 2004 revenue of $107.1 mln, compared to our original guidance of a 10% reduction. The significant decline we had noted in chipmaker utilization of our light sources early in the quarter has, over the past six weeks, translated into lower than anticipated demand for consumables and spare parts. This, in turn, leads us to expect that gross margin will be in the range of 34-36%, below our previous guidance range of 37-39%, due primarily to the lower level of factory loading in our factory to work down our consumables and spares inventory. At this time, our business has become more volatile and less predictable than it was a short time ago, and visibility remains limited to less than one quarter"
