Cymer Reports Second Quarter 2012 Operating Results

Jul 24, 2012, 16:25 ET from Cymer, Inc.

SAN DIEGO, July 24, 2012 /PRNewswire/ -- Cymer, Inc. (Nasdaq: CYMI), the world's leading supplier of light sources used by chipmakers to manufacture advanced semiconductor devices, today announced operating results for the second quarter ended June 30, 2012.

(Logo:  http://photos.prnewswire.com/prnh/20090406/LA94420LOGO)

For the second quarter of 2012:

  • net income totaled $9.6 million, equal to $0.30 per share (diluted), compared to net income of $27.7 million, equal to $0.89 per share (diluted) in the second quarter of 2011 and net income of $21.5 million, equal to $0.68 per share (diluted), in the first quarter of 2012. 
  • revenue totaled $149.3 million compared to revenue of $158.2 million in the second quarter of 2011, and revenue of $150.5 million in the first quarter of 2012.

Commenting on results, Bob Akins, Cymer's chief executive officer, said, "The second quarter of 2012 was an active and productive quarter. Higher gross pulses, a greater mix of ArF pulses, and continued light source installed base growth contributed to a rise in OnPulse revenue.  Our deep ultraviolet (DUV) light source shipments grew from the prior quarter as we continued to satisfy requests for increased customer demand. Our extreme ultraviolet (EUV) source development and commercialization progress continued as we demonstrated improved expose power performance using prepulse and we realized significant improvement in extending collector lifetimes and the viability of collector refurbishment.  We also began the integration and testing of our first EUV 3300 source.  In addition, we completed qualification and customer acceptance of our first TCZ Gen 5 crystallization system, and entered into our first multi-year TCZ OnPulse agreement." 

In the second quarter of 2012, the company shipped 36 DUV light sources, of which 20 were ArF immersion, 2 were ArF dry and 14 were KrF, and the company installed 31 DUV light sources at chipmaker locations.  Gross profit was $78.8 million for the second quarter of 2012, yielding a 52.8 percent gross margin.  Total operating expenses, which include research and development and selling and administrative expenses, were $67.6 million.  Total operating income was $11.2 million or eight percent of revenue.

DUV and Installed Base Products (IBP) bookings for the second quarter of 2012 totaled $154.7 million, resulting in a book-to-bill ratio of 1.09.  Sixty-eight percent of the DUV unit bookings were ArF immersion and thirty-two percent were KrF.  The company ended the quarter with a DUV backlog of approximately $69.0 million.

As of June 30, 2012, cash and investments totaled approximately $334 million.

Company Outlook 

Commenting on the outlook for the third quarter of 2012, Akins stated, "We expect IBP revenue to continue to rise led by OnPulse and OnPulse enhancements. We anticipate shipping a slightly lower number of DUV light sources than the previous quarter.  We also expect to recognize revenue on a TCZ crystallization tool.  We continue to make progress on EUV source prepulse development and we expect to ship the first 3300 source to ASML this quarter.  We remain committed to successful EUV source technology development and we will continue to invest in its performance scaling and commercialization." 

Based on information available at this time, Cymer is providing the following guidance for the third quarter of 2012:

  • Revenue to be approximately the same as the prior quarter. 
  • Gross margin to be approximately 52 percent.
  • R&D expenses to be approximately $57.0 million.
  • SG&A expenses to be approximately $17.5 million.
  • The tax expense to be approximately $1.0 million.

Cymer's management will hold a conference call at 2:00 pm (PDT) today, July 24, 2012, to discuss second quarter operating results and third quarter 2012 guidance.  This press release, the conference call and accompanying slides may be accessed on the investor relations page of the company's Web site at www.cymer.com.

Forward Looking Statements 

Statements in this press release that are not strictly historical in nature are forward-looking statements.  These statements include, but are not limited to statements regarding plans for the development and performance of the company's EUV source technology, the company's development of and manufacturing capability for its silicon crystallization tool for the display industry, expectations for growth in Installed Base Products revenue, and the statements under the caption "Company Outlook" above.  These statements are predictions based on current information and expectations and involve a number of risks and uncertainties.  In addition, statements regarding backlog and book-to-bill ratios should not be read as predictions or projections of future performance.  Actual events or results may differ materially from those projected in any of such statements due to various factors, including but not limited to: the risk that the company's EUV sources, which are still under development and not capable of supporting the commercial production of integrated circuits, may not meet customer specifications or may have reliability or performance problems; the risk that commercial EUV systems may not be introduced by the company on time, or at all; the risk that a competitor's EUV or other source may be selected over the company's EUV source; the demand for semiconductors in general, and, in particular, for leading-edge devices with smaller geometries; cyclicality in the market for semiconductor manufacturing equipment; the timing of customer orders, shipments and acceptances; delays or cancellations by customers of their orders; the performance and market acceptance of the company's new products or technologies; new and enhanced product offerings by competitors; the company's ability to meet its production and product development schedules; the rate at which semiconductor manufacturers adopt new technologies and purchase and take delivery of photolithography tools from the company's customers; the company's ability to secure adequate supplies of critical components for its advanced products; the company's ability to manage its expense levels and unanticipated expenses; the company's ability to achieve its forecasted gross margin which includes its ability to absorb manufacturing costs; the company's ability to align its cost structure with forecasted business levels; the company's ability to manage its foreign currency exposure; the performance and conditions in the United States and world financial markets; the policies and actions of the United States and other governments; and general economic conditions.  For a discussion of these and other factors which may cause our actual events or results to differ from those projected, please refer to the company's most recent annual report on Form 10-K and quarterly reports on Form 10-Q, as well as other subsequent filings with the Securities and Exchange Commission (SEC).  You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.  All forward-looking statements are qualified in their entirety by this cautionary statement, and the company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release.

About Cymer

Cymer, Inc. (Nasdaq: CYMI) is the market leader in developing light sources, used by chipmakers worldwide to pattern advanced semiconductor chips, and is pioneering a new silicon crystallization tool for the display industry. Cymer's light sources have been widely adopted by the world's top chipmakers and the company's installed base comprises approximately 3,750 systems. Continuing its legacy of leadership, Cymer is currently pioneering the industry's transition to EUV lithography, the next viable step on the technology roadmap for the creation of smaller, faster chips. The company is headquartered in San Diego, Calif., and supports its customers from numerous offices around the globe. Cymer maintains a Web site to which it regularly posts press releases, SEC filings, and additional information about Cymer.  Interested persons can also subscribe to automated e-mail alerts or RSS feeds. Please visit www.cymer.com.

Cymer and all other Cymer product or service names used herein are either registered trademarks or trademarks of Cymer, Inc. Any other marks mentioned herein are the property of their respective holders.

CYMER, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in thousands, except per share data)

Three Months Ended

Six Months Ended 

June 30,

June 30,

2012

2011

2012

2011

Revenue

$ 149,312

$ 158,235

$ 299,810

$ 312,633

Cost of revenue

70,519

74,051

145,516

148,936

Gross profit

78,793

84,184

154,294

163,697

Operating expenses:

   Research and development

50,282

30,455

92,597

58,234

   Sales and marketing

6,479

5,992

12,970

12,026

   General and administrative

10,812

10,825

20,833

20,868

     Total operating expenses

67,573

47,272

126,400

91,128

Operating income 

11,220

36,912

27,894

72,569

Other (expense) income:

   Foreign currency exchange (loss) gain 

(290)

122

(553)

906

   Interest income

300

116

680

262

   Interest expense

(125)

(204)

(379)

(337)

   Other income

2

2

156

3

Total other (expense) income

(113)

36

(96)

834

Income before income taxes

11,107

36,948

27,798

73,403

Income tax expense (benefit) 

1,504

9,227

(3,336)

16,883

Net income 

$     9,603

$   27,721

$   31,134

$   56,520

Earnings per share:

   Basic

$       0.31

$       0.91

$       1.00

$       1.86

   Diluted

$       0.30

$       0.89

$       0.98

$       1.83

Weighted average shares outstanding:

   Basic

31,134

30,529

31,019

30,364

   Diluted

31,756

30,993

31,682

30,925

CYMER, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands)

June 30,

December 31, 

2012

2011

ASSETS

Current assets:

   Cash and cash equivalents

$113,186

$125,027

   Restricted cash

$5,981

5,903

   Short-term investments

156,445

124,712

   Accounts receivable, net 

132,554

123,970

   Inventories

241,207

221,740

   Deferred income taxes

27,523

26,963

   Other current assets

48,485

35,601

     Total current assets

725,381

663,916

Long-term investments

64,171

73,811

Property, plant and equipment, net 

134,781

119,015

Deferred income taxes

33,995

34,591

Goodwill

16,897

16,792

Intangible assets, net 

9,257

9,928

Other assets

11,875

9,691

Total assets

$996,357

$927,744

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

   Accounts payable

$55,005

$38,876

   Deferred revenue

82,984

56,546

   Deferred income taxes

173

171

   Other current liabilities

37,348

49,619

     Total current liabilities

175,510

145,212

Deferred revenue

5,780

5,871

Deferred income taxes

1,464

1,463

Other liabilities

22,010

27,255

     Total liabilities

204,764

179,801

Stockholders' equity:

   Preferred stock 

-

-

   Common stock 

44

44

   Additional paid-in capital

677,549

658,755

   Treasury stock 

(492,890)

(492,890)

   Accumulated other comprehensive loss

(18,196)

(11,918)

   Retained earnings

625,086

593,952

   Total stockholders' equity

791,593

747,943

Total liabilities and stockholders' equity

$996,357

$927,744

CYMER, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) 

(in thousands)

Six Months Ended

June 30,

2012

2011

Operating activities:

   Net income 

$   31,134

$   56,520

   Adjustments to reconcile net income to net cash provided by 

     operating activities:

     Depreciation, amortization and accretion 

13,360

9,663

     Stock-based compensation

11,735

7,268

     Bad debt expense (recoveries)

405

(176)

     Excess tax benefits from stock option exercises

(1,812)

(3,820)

     Provision for deferred income taxes

2,178

5,337

     Loss on disposal or impairment of property, plant and equipment

174

67

     Change in assets and liabilities:

       Restricted cash

(78)

0

       Accounts receivable

(9,430)

(2,711)

       Inventories

(21,841)

(9,994)

       Other assets

(15,792)

(4,089)

       Accounts payable

11,652

6,131

       Deferred revenue

25,082

19,795

       Other liabilities 

(16,518)

(25,686)

          Net cash provided by operating activities

30,249

58,305

Investing activities: 

   Acquisition of property, plant and equipment

(23,338)

(9,307)

   Cash paid for acquisition of eDiag, net of cash acquired

0

(3,785)

   Purchases of investments

(204,438)

(87,664)

   Proceeds from sold or matured investments

181,879

70,711

          Net cash used in investing activities

(45,897)

(30,045)

Financing activities: 

   Proceeds from issuance of common stock

5,355

14,901

   Excess tax benefits from stock option exercises

1,812

3,820

   Install payments related to prior acquisition

(3,000)

0

   Payments under capital lease obligations 

(187)

(40)

          Net cash provided by financing activities

3,980

18,681

Effect of exchange rate changes on cash and cash equivalents 

(173)

556

Net (decrease) increase in cash and cash equivalents 

(11,841)

47,497

Cash and cash equivalents at beginning of the period

125,027

154,312

Cash and cash equivalents at end of the period

$ 113,186

$ 201,809

SOURCE Cymer, Inc.



RELATED LINKS

http://www.cymer.com