Cymer Announces Record Fourth Quarter and Year-end
Results for 1997
1997 Net Income up 300 Percent on 213 Percent Revenue Rise
SAN DIEGO, CALIF. - January 29, 1998 - Cymer Inc. <NASDAQ: CYMI>, the
world's leading supplier of excimer laser illumination sources essential
for deep ultraviolet (DUV) photolithography, today reported record
fourth quarter and year-end results for 1997.
Net income for the fourth quarter doubled to $7,173,000, or $0.24 per
share (diluted), on revenues of $59,076,000 compared to net income of
$3,547,000, or $0.12 per share (diluted), on revenues of $27,567,000 for
the fourth quarter of 1996.
For the year, net income increased 300 percent to $26,058,000, or $0.86
per share (diluted), compared to $6,510,000, or $0.29 per share
(diluted), reported for 1996. Revenues climbed 213 percent for the year,
reaching $203,647,000, compared to $64,995,000 recorded for 1996.
FY '97 Business Highlights
Commenting on the results, Cymer President and Chief Executive Officer
Robert Akins noted that the company's rapid growth was driven by the
semiconductor industry's adoption of DUV lithography to create faster,
smaller and higher performance integrated circuits (ICs). "As the
leading supplier of the enabling laser light systems essential to the
progression of this advanced technology, Cymer is uniquely positioned to
capitalize on this growth," said Akins.
Akins added that in addition to meeting or exceeding its 1997 financial
projections, Cymer is pleased to report that it met all of its major
business development objectives during the year. "Consistent with our
plan, we boosted manufacturing capacity by more than 100 percent to meet
rising demand. We also expanded our global infrastructure to support
both stepper manufacturers and chipmakers around the world. Finally, we
made excellent progress on our future technology roadmap. This included
shipping next-generation argon fluoride (ArF) laser systems and
significant development of our two new krypton fluoride (KrF) laser
models slated for introduction and shipment in 1998. In addition to
raising the competitive bar, these new systems will allow Cymer to offer
a complete suite of advanced laser models designed to further strengthen
our technical and market leadership position."
FY '97 Operating Highlights
Product revenues for 1997 reflected the sale of 460 lasers, compared to
145 in 1996. During the fourth quarter, this number totaled 133 laser
systems, 131 of which were for use in semiconductor photolithography
applications. Gross margins on product sales reached 40 percent during
the fourth quarter, contributing to gross margins of 38.5 percent for
the year. Operating income for the year was $34,444,000, up 337 percent
from the $7,884,000 reported in 1996. At year-end, backlog was
$108,704,000. Cash, cash equivalents and short-term investments totaled
$132,290,000 with a quick ratio of 2.3:1 and a current ratio of 3.4:1.
Working capital totaled $202,539,000, while capital spending was
approximately $42,200,000 for the year and $11,610,000 for the fourth
quarter.
Preparing for the Future
"Looking ahead, we remain extremely optimistic about the long-term
prospects for our market. According to independent market analyst firms,
the DUV lithography market is currently projected to grow at a compound
annual growth rate of 28 percent through the year 2000. We plan to
leverage the two new products slated for introduction and shipment in
the coming year to capitalize on this anticipated long-term growth and
further solidify our leadership position," said Akins.
Akins added, "Near term, however, the current Asian economic condition,
coupled with the ongoing DRAM supply/demand imbalance, is affecting
demand for the lithography equipment that relies on Cymer lasers. Many
of the world's leading lithography suppliers, all of which are Cymer
customers, are now indicating that their earlier forecasts are under
revision due to these changing market conditions. We are also seeing
shifts in market share among the suppliers themselves."
"As a result of these factors, and based on information currently
available to us, we anticipate a reduction in our revenues by 10 to 15
percent in the first quarter of 1998 from fourth quarter levels. We will
closely monitor the situation going forward, consulting with customers
on an ongoing basis to ensure that their laser inventory levels are in
line with the current demand scenario," noted Akins.
Akins concluded, "1998 will be a year in which our plan is to further
distance Cymer from the competition through increased investments
throughout the year in: 1) aggressive R&D and manufacturing programs to
develop and deliver the higher performance products that will enable
higher average selling prices; and 2) further expansion of our global
service and support network to support our growing installed based of
DUV lasers in production. We currently expect that the investments
needed to fund these critical future-oriented efforts, coupled with the
anticipated revenue decline, will reduce our quarterly earnings by $0.10
- $0.15 per share in the first quarter of 1998, as compared to our just
announced fourth quarter."
Forward Looking Statements
Statements in this press release regarding the effects of Cymer's new
products on its competition, new product introduction schedules, market
growth projections and revenue, spending and earnings projections are
forward looking statements, are based on current expectations and
involve a number of risks and uncertainties. Actual results may differ
materially from those projected in any such statements due to various
factors, including: the demand for semiconductors in general, and, in
particular, for leading-edge devices with smaller geometries; changing
business and economic conditions in various geographic regions,
including Asia, and the effect of these conditions on capital spending
plans by the Company's customers and end-users; the rate at which
semiconductor manufacturers take delivery of photolithography tools from
the Company's customers, which in turn may be affected by delays and
cancellations of new factory construction; the timing of customer
orders, shipments, and acceptances; the effect of recent price increases
instituted by the Company on new orders; new and enhanced product
offerings by competitors; the Company's ability to meet its production
goals; and failure by the Company to match expense levels with revenue
fluctuations.
Corporate Profile
Cymer, Inc. is the leading provider of excimer laser illumination
sources for use in deep ultraviolet (DUV) photolithography systems
targeted at the pilot and production segments of the semiconductor
manufacturing market. Further information on Cymer may be obtained from
the Company's SEC filings, the Internet at cymer.com or by
contacting the Company directly.
Analyst Contact: William Angus, III
Senior Vice President and CFO ÿ
619-451-7300
619-618-3090 (Fax)ÿ Media Contact: Andrea Mace
Director
MCA, Inc.
650-968-8900
650-968-8990 (Fax)
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Cymer, Inc.Quarter Dec. 31:19971996Revenues$59,076,000$27,567,000Net
Income7,173,0003,547,000Avg. Diluted Shares30,042,00028,422,000Share
Earnings (basic):
Net Income$0.25$0.14Share Earnings (diluted):
Net Income$0.24$0.12
Year: Revenues$203,647,000$64,995,000Net Income26,058,0006,510,000Avg.
Diluted Shares30,267,00022,420,000Share Earnings (basic):
Net Income$0.92$0.33Share Earnings (diluted):
Net Income$0.86$0.29
------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In thousands, except per share data)For the three months
ended December 31For the twelve months
ended December 31
1996199719961997REVENUES:Product sales$26,957 $58,653 $62,510 $201,191
Other610 423 2,485 2,456
Total revenues
27,567 59,076 64,995 203,647 COSTS AND EXPENSES:Cost of product sales
15,150 35,181 35,583 123,654 Research and development4,264 7,619 11,742
24,971 Sales and marketing2,013 3,671 5,516 11,992 General and
administrative2,003 2,706 4,270 8,586
Total costs and expenses
23,430 49,177
57,111 169,203
OPERATING INCOME4,137 9,899 7,884 34,444
OTHER INCOME (EXPENSE):Foreign currency exchange gain (loss) - net45 37
161 (359)Interest and other income304 2,435 347 5,318 Interest and other
expense(316)(2,829)(691)(4,847)
Total other income (expense) - net
33 (357)(183)112 INCOME BEFORE PROVISION
FOR INCOME TAXES AND
MINORITY INTEREST
4,170
9,542
7,701
34,556 Provision for income taxes(623)(2,386)(1,191)(8,639)Minority
interest
17 141 NET INCOME$3,547 $7,173 $6,510 $26,058
EARNINGS PER SHARE:BASIC:
ÿ ÿ Earnings per share
$0.14
$0.25
$0.33
$0.92 ÿ ÿWeighted average common shares outstanding25,354 28,643 19,868
28,212 DILUTED:
ÿ ÿ Earnings per share$0.12 $0.24 $0.29 $0.86 ÿ ÿWeighted average common
and common
ÿ ÿequivalent shares outstanding28,42230,04222,42030,267
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CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands, except per share data)
December 31,ASSETS19961997CURRENT ASSETS:Cash and cash equivalents
$55,405 $51,903 Short-term investments10,449 80,387 Accounts receivable
-net18,833 59,140 Foreign exchange contracts receivable9,317 31,267
Inventories15,678 47,502 Deferred income taxes1,432 12,690 Prepaid
expenses and other1,880 2,847
Total current assets112,994 285,736
PROPERTY - net
11,707
48,031 LONG-TERM INVESTMENTS1,361 42,667 OTHER ASSETS3,405 8,446
TOTAL ASSETS$129,467 $384,880
LIABILITIES AND STOCKHOLDERS' EQUITYCURRENT LIABILITIES:Accounts payable
$7,095 $22,615 Accrued and other liabilities8,401 26,860 Foreign
exchange contracts payable8,396 27,278 Income taxes payable2,609 6,444
Revolving loan and security agreements1,750
Total current liabilities28,251 83,197
LONG-TERM LIABILITIES:Convertible subordinated notes172,500 Other
liabilities2,396 3,566
MINORITY INTEREST
1,077
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:Preferred Stock - authorized 5,000,000 shares;
$.001 par value,
no shares issued or outstandingCommon Stock - authorized 50,000,000
shares; $.001 par value,
issued and outstanding 27,560,000 and 28,724,000 shares28 29 Paid-in
capital106,658 109,367 Net unrealized gain on investments50 Retained
earnings (accumulated deficit)(7,421)18,637 Cumulative translation
adjustment(445)(3,543)
Total stockholders' equity
98,820 124,540 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $129,467
$384,880
# ÿ # ÿ #
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