Cymer Announces First Quarter
Financial Results for 1999
SAN DIEGO, Calif., April 26, 1999—Cymer, Inc. (Nasdaq NM: CYMI), the world's leading supplier of excimer laser illumination sources for deep ultraviolet (DUV) photolithography, today reported first quarter results for 1999.
Revenues for the quarter increased 6 percent to $40,092,000, as compared to fourth quarter 1998 revenues of $37,992,000. Net loss for the quarter was $2,298,000 or $0.08 per share (diluted) as compared to fourth quarter net loss of $3,322,000, or $0.12 per share (diluted). For comparative purposes, first quarter 1998 revenues and net income were $49,679,000 and $2,703,000, respectively, or $0.09 per share (diluted).
"On a sequential basis total units shipped for the quarter increased by 26 percent from the fourth quarter, driven primarily by demand for our ELS-5010 laser," said William Angus, senior vice president and chief financial officer. "Sales of the 5010 accounted for over 65 percent of total units shipped for the quarter versus 50 percent of our units shipped in Q4 1998. Non-systems revenue (spares, service and contract revenue), which represented 20 percent of total revenue, declined by 34 percent on a sequential basis impacting the overall increase in revenue."
Research and development expenses increased by 15 percent on a sequential basis due in part to planned expansion of laser development programs as well as increased patent filing activity. Overall, the net loss for the quarter was lower than anticipated, primarily due to lower than expected sales and marketing expenses. These reductions were a result of the timing of new hires to support customer requirements and are scheduled to be completed in the second quarter. In addition, there were certain one-time savings in project costs.
"We were pleased to announce this quarter encouraging results from our development program of an extreme ultraviolet (EUV) light source at 13.5 nm," said Robert Akins, president and chief executive officer of Cymer. "EUV together with our advanced F2 laser development work can play an important role in advanced lithography over the next decade. Cymer is uniquely positioned in the industry as the only light source supplier with enabling technology spanning four separate wavelength generations."
Akins continued, "We have growing confidence that a recovery is underway as evidenced by our backlog increasing to $50,155,000 at the end of this quarter as compared to $37,316,000 at the end of the fourth quarter of 1998. We expect to see our revenue growth accelerate in the second half of this year."
"Based on information currently available to us, we expect total revenues for the second quarter of 1999 to again increase modestly as compared to those of the first quarter," said Angus. "This combined with the increased levels of investment we are making in support of the anticipated market recovery is expected to result in an estimated Q2 loss of between $0.05 and $0.10 per share."
Cash and cash equivalents, and short and long-term investments totaled $160,175,000 at March 31, 1999 and capital spending and depreciation for the quarter were $5,748,000 and $4,152,000, respectively.
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