Cymer Reports Second Quarter 2012 Operating Results

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.



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