Cymer Reports Third Quarter 2012 Operating Results

SAN DIEGO, Oct. 26, 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 third quarter ended September 30, 2012.

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

For the third quarter of 2012:

  • net income totaled $9.8 million, equal to $0.31 per share (diluted), compared to net income of $11.3 million, equal to $0.36 per share (diluted) in the third quarter of 2011 and net income of $9.6 million, equal to $0.30 per share (diluted), in the second quarter of 2012. 
  • revenue totaled $131.5 million compared to revenue of $128.7 million in the third quarter of 2011, and revenue of $149.3 million in the second quarter of 2012.

Commenting on the results, Bob Akins, Cymer's chief executive officer, said, "Third quarter profitability exceeded our expectations driven by higher gross margin and lower than forecasted operating expenses.  Revenue was below our July guidance as deep ultraviolet (DUV) light source demand softened throughout the quarter. Additionally, customer acceptance of a Display Products Group (DPG) Gen 4 tool did not occur in the quarter.  OnPulse revenue, which accounts for approximately 88 percent of our Installed Base Products (IBP) revenue, increased as compared to the prior quarter primarily due to a continued higher mix of ArF pulses and installed base growth.  We demonstrated sustained 30 Watts EUV source expose power during the quarter and we completed the delivery of our first EUV 3300 source to ASML."

In the third quarter of 2012, the company shipped 27 DUV light sources, of which 17 were ArF immersion and 10 were KrF, and the company installed 24 DUV light sources at chipmaker locations.  Gross profit was $71.8 million for the third quarter of 2012, yielding a 54.6 percent gross margin.  Total operating expenses, which include research and development and selling and administrative expenses, were $62.7 million.  Total operating income was $9.0 million or approximately seven percent of revenue.

DUV and IBP bookings for the third quarter of 2012 totaled $112.4 million, resulting in a book-to-bill ratio of 0.86.   Forty-seven percent of the DUV unit bookings were ArF immersion and 53 percent were KrF.  The company ended the quarter with a DUV backlog of $50.3 million.

As of September 30, 2012, cash and investments totaled $305.1 million.

Forward Looking Statements 
This document contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. 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, and expectations for growth in Installed Base Products revenue.  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 inability to obtain Cymer shareholder approval or regulatory approval for the proposed transaction with ASML; the satisfaction of other conditions to the closing of the proposed transaction with ASML; the possibility that the length of time necessary to consummate the proposed transaction with ASML may be longer than anticipated; risks associated with integrating the businesses of Cymer and ASML; the possibility that the businesses of ASML and Cymer may suffer as a result of uncertainty surrounding the proposed transaction with ASML; 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.  The foregoing list of factors is not exhaustive.  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 an industry leader in developing lithography 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, CA, has more than 1,200 employees on payroll (expressed in full time equivalents) 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


Nine Months Ended 


September 30,


September 30,


2012


2011


2012


2011

Revenue

$ 131,478


$ 128,698


$ 431,288


$ 441,331

Cost of revenue

59,690


63,635


205,206


212,571

Gross profit

71,788


65,063


226,082


228,760

Operating expenses:








   Research and development

46,088


35,240


138,685


93,474

   Sales and marketing

5,968


6,200


18,938


18,226

   General and administrative

10,686


10,217


31,519


31,085

     Total operating expenses

62,742


51,657


189,142


142,785

Operating income 

9,046


13,406


36,940


85,975

Other (expense) income:








   Foreign currency exchange (loss) gain 

(436)


(30)


(989)


875

   Interest income

292


205


972


467

   Interest expense

(141)


(184)


(520)


(521)

   Other income (expense)

12


(3)


168


0

Total other (expense) income

(273)


(12)


(369)


821

Income before income taxes

8,773


13,394


36,571


86,796

Income tax (benefit) expense 

(1,053)


2,144


(4,389)


19,026

Net income 

$     9,826


$   11,250


$   40,960


$   67,770

Earnings per share:








   Basic

$       0.31


$       0.37


$       1.32


$       2.23

   Diluted

$       0.31


$       0.36


$       1.29


$       2.19

Weighted average shares outstanding:








   Basic

31,284


30,555


31,125


30,428

   Diluted

32,004


30,992


31,814


30,991





 

 

CYMER, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands)






September 30,


December 31, 


2012


2011

ASSETS




Current assets:




   Cash and cash equivalents

$110,071


$125,027

   Restricted cash

6,150


5,903

   Short-term investments

153,622


124,712

   Accounts receivable, net 

129,997


123,970

   Inventories

286,729


221,740

   Deferred income taxes

36,258


26,963

   Other current assets

49,976


35,601

     Total current assets

772,803


663,916

Long-term investments

41,401


73,811

Property, plant and equipment, net 

142,997


119,015

Deferred income taxes

31,510


34,591

Goodwill

17,125


16,792

Intangible assets, net 

8,971


9,928

Other assets

12,960


9,691

Total assets

$1,027,767


$927,744

LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




   Accounts payable

$55,199


$38,876

   Deferred revenue

86,301


56,546

   Deferred income taxes

178


171

   Other current liabilities

34,711


49,619

     Total current liabilities

176,389


145,212

Deferred revenue

7,184


5,871

Deferred income taxes

1,484


1,463

Other liabilities

23,130


27,255

     Total liabilities

208,187


179,801

Stockholders' equity:




   Preferred stock 

-


-

   Common stock 

45


44

   Additional paid-in capital

687,277


658,755

   Treasury stock 

(492,890)


(492,890)

   Accumulated other comprehensive loss

(9,764)


(11,918)

   Retained earnings

634,912


593,952

   Total stockholders' equity

819,580


747,943

Total liabilities and stockholders' equity

$1,027,767


$927,744





 

 

CYMER, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) 

(in thousands)






Nine Months Ended


September 30,


2012


2011

Operating activities:




   Net income 

$   40,960


$   67,770

   Adjustments to reconcile net income to net cash provided by 




     operating activities:




     Depreciation, amortization and accretion 

21,990


14,744

     Stock-based compensation

18,582


11,960

     Bad debt expense

408


6

     Excess tax benefits from stock option exercises

(2,630)


(3,902)

     Provision for deferred income taxes

(3,640)


(2,398)

     Loss on disposal or impairment of property, plant and equipment

174


127

     Change in assets and liabilities:




       Restricted cash

(247)


(5,790)

       Accounts receivable

(6,402)


3,836

       Inventories

(65,625)


(21,666)

       Other assets

(17,336)


(2,968)

       Accounts payable

16,758


7,502

       Deferred revenue

31,611


20,895

       Other liabilities 

(16,303)


(29,740)

          Net cash provided by operating activities

18,300


60,376

Investing activities: 




   Acquisition of property, plant and equipment

(41,580)


(14,837)

   Cash paid for acquisition of eDiag, net of cash acquired

0


(3,785)

   Purchases of investments

(246,611)


(204,131)

   Proceeds from sold or matured investments

247,857


105,952

          Net cash used in investing activities

(40,334)


(116,801)

Financing activities: 




   Proceeds from issuance of common stock

7,521


14,966

   Excess tax benefits from stock option exercises

2,630


3,902

   Install payments related to prior acquisition

(3,000)


0

   Payments under capital lease obligations 

(244)


(83)

          Net cash provided by financing activities

6,907


18,785

Effect of exchange rate changes on cash and cash equivalents 

171


359

Net decrease in cash and cash equivalents 

(14,956)


(37,281)

Cash and cash equivalents at beginning of the period

125,027


154,312

Cash and cash equivalents at end of the period

$ 110,071


$ 117,031





 

  

SOURCE Cymer, Inc.



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