cymer (cymi) posted a good report (one cent higher than expectations):
Cymer Announces Second Quarter and Six Month Results for 1998
SAN DIEGO, CALIF. - July 27, 1998 - Cymer Inc. <NASDAQ: CYMI>, the
world's leading supplier of excimer laser illumination sources for deep
ultraviolet (DUV) photolithography, today reported financial results for
the three month and six month periods ended June 30, 1998.
Second quarter revenues increased 7 percent to $53,022,000 as compared
to first quarter 1998 revenues of $49,679,000. Net income for the second
quarter declined to $1,689,000, or $0.06 per share (diluted), compared
to first quarter 1998 net income of $2,703,000, or $0.09 per share
(diluted). When compared to the quarter ended June 30, 1997 revenues of
$50,132,000, current quarter revenues increased 6 percent. Current
quarter net income declined as compared to net income for the second
quarter of 1997 of $7,430,000, or $0.24 per share (diluted).
For the first six months of 1998, Cymer recorded net income of
$4,392,000, or $0.14 per share (diluted) on an 18 percent increase in
revenues of $102,701,000 compared to net income of $11,838,000, or $0.39
per share (diluted) on revenues of $87,103,000 in the first six months
of 1997.
"For the quarter, revenues from the sale of spare parts and service
contributed to overall revenue gains due to our growing installed base
of lasers coming out of warranty," said Robert Akins, president and
chief executive officer of Cymer. "In addition, we saw strong market
acceptance of our newest product the ELS-5010 krypton fluoride laser as
evidenced by orders exceeding $16,000,000 during its first three months
of introduction. The 5010, which is an advanced version of our 5000
Series laser has an average selling price of $503,000 as compared to
$410,000 for the 5000 Series laser. While industry conditions resulted
in a reduction in the total number of units shipped for the quarter on a
sequential basis, overall revenues increased in part due to the
acceptance of this new product."
According to William Angus, senior vice president and chief financial
officer, "Gross margins decreased from 38 percent to 36 percent on a
sequential basis, while expenses for research and development, sales and
marketing, and general and administrative remained flat on a percentage
basis. The gross margin decrease was primarily due to inventory reserves
associated with the planned obsolescence of Cymer's older 4000 Series
laser."
Backlog at June 30, 1998, including both new systems and spare parts was
$81,366,000 as compared to March 31, 1998 backlog of new systems and
spare parts of $110,818,000. Cash and cash equivalents, and short and
long-term investments totaled $168,714,000. Working capital totaled
$169,184,000, while capital spending further declined to $4,831,000 for
the quarter compared to $5,719,000 for the first quarter of 1998.
"We are facing challenging market conditions that are expected to
continue for the foreseeable future," cautioned Akins. "Based on
information currently available to us, we expect total units shipped for
the third quarter of 1998 to be less than those of the second quarter.
However, due to higher average selling prices on the 5010 lasers, we
expect total revenues and financial performance to be relatively flat
for the third quarter."
"We firmly believe in the long-term fundamentals driving this business
and remain confident in our ability to maintain our market leadership,"
added Akins. "During the quarter, the company purchased an additional
205,000 shares under its stock repurchase plan, bringing total
repurchased shares to 305,000 as of June 30, 1998."
Forward Looking Statements
Statements in this press release regarding the effects of Cymer's new
products on its competition, new product introduction schedules,
anticipated market conditions 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 for the
Company's 5010 lasers; 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 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.
Analyst Contact: William Angus
Senior Vice President and CFO ÿ
Cymer, Inc.
619-451-7300
619-618-3090 (Fax)ÿ Media Contact: Marie C. Burke
Director, Investor Relations
Cymer, Inc.
619-618-5232
619-618-3090 (Fax)
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Cymer, Inc.Quarter ending June 306 Monthsÿ1997ÿ1998ÿ1997ÿ1998Revenuesÿ
$50,132,000ÿ$53,022,000ÿ$87,103,000ÿ$102,701,000Net Incomeÿ 7,430,000ÿ
1,689,000ÿ 11,838,000ÿ 4,392,000Avg. diluted sharesÿ30,694,000ÿ
30,291,000ÿ30,558,000ÿ30,366,000Share earnings (basic):
Net incomeÿ$0.26ÿ$0.06ÿ$0.42ÿ$0.15Share earnings (diluted):
Net incomeÿ$0.24ÿ$0.06ÿ$0.39ÿ$0.14
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