Cymer Reports Fourth Quarter and 2009 Operating Results

Jan 28, 2010, 16:30 ET from Cymer, Inc.

SAN DIEGO, Jan. 28 /PRNewswire-FirstCall/ -- Cymer, Inc. (Nasdaq: CYMI), the world's leading supplier of light sources used by chipmakers to create advanced semiconductor chips, today announced operating results for the fourth quarter and year ended December 31, 2009.

(Logo:  http://www.newscom.com/cgi-bin/prnh/20090406/LA94420LOGO)

For the fourth quarter of 2009:

  • net income totaled $12,153,000 equal to $0.40 per share (diluted), compared to net income of $3,984,000, equal to $0.13 per share (diluted)  in the fourth quarter of 2008 and net income of $10,785,000, equal to $0.36 per share (diluted), in the third quarter of 2009.  
  • revenue totaled $96,404,000 compared to revenue of $100,448,000 in the fourth quarter of 2008, and revenue of $92,328,000 in the third quarter of 2009.

For the year ended December 31, 2009:

  • net income totaled $11,976,000, equal to $0.40 per share (diluted), compared to net income of $36,540,000, equal to $1.22 per share (diluted), for the year ended December 31, 2008.
  • revenue totaled $307,664,000, compared to revenue of $459,010,000 in the prior year.

Commenting on results, Bob Akins, Cymer's chief executive officer, said, "Over the course of 2009 we invested in technology and product leadership and positioned the company for future growth in what was a very challenging year for the global economy and semiconductor industry.  We are pleased with our solid financial performance in the fourth quarter as we further benefited from an improving business environment, our reduced cost structure, and increased operational efficiencies.  I would like to thank Cymer employees worldwide for their dedication to the success of our customers and their drive towards continued technology leadership."

In the fourth quarter of 2009, the company shipped 13 light sources, all of which were XLR, and installed 31 light sources at chipmaker locations, of which 19 were argon fluoride (ArF) immersion.  The company reported gross profit of $46.3 million for the fourth quarter of 2009, yielding a 48 percent gross margin.  Total operating expenses, which include research and development and selling and administrative expenses, were $26.6 million.  Total operating income was $19.7 million or 20.4 percent of revenue.  The fourth quarter effective tax rate was 44.8 percent.  

Deep ultraviolet (DUV) bookings for the fourth quarter of 2009 totaled $101.2 million, resulting in a book-to-bill ratio of 1.05.   Seventy-two percent of the light source bookings in the fourth quarter were ArF immersion technology buys and twenty-eight percent were for KrF capacity expansion.   The company ended the quarter with a DUV backlog of approximately $46.0 million, with ArF immersion light sources comprising approximately 84 percent of the value of sources in backlog.

For the full year 2009, the company shipped 38 light sources, of which 35 were XLR, and installed 78 light sources at chipmaker locations, of which 46 were ArF immersion.  The company reported gross profit of $136.4 million for the full year of 2009, yielding a 44.3 percent gross margin.  Total operating expenses for the year of $118.4 million includes research and development, selling and administrative and restructuring expenses. Total operating income was $18.0 million or approximately six percent of revenue.  

As of December 31, 2009, cash and investments totaled $186 million, an increase of $28 million, or 18 percent, from September 30, 2009.  

Corporate Outlook  

Commenting on the outlook, Akins stated, "As we enter 2010, the outlook for our industry and Cymer's business is very encouraging.   We would expect to see an increased level of chipmaker investment in advanced immersion lithography in support of the transition to 45nm and below nodes, and a growing need for KrF tools to support capacity expansions.  We also expect chipmaker utilization to remain at or above fourth quarter 2009 levels for the foreseeable future, resulting in strong demand for our Installed Base Product support.  We continue to invest in our laser produced plasma EUV light source technology, and we are optimistic about our position in the display market with our TCZ laser crystallization tool for OLED manufacturing."

Based on information available at this time, Cymer is providing the following guidance for the first quarter of 2010:

  • Revenue to increase approximately 10 percent as compared to the revenue reported for the fourth quarter of 2009 on the strength of light source sales.
  • Gross margin to be approximately 47 to 49 percent.
  • R&D expenses to be approximately $18.5 million.
  • SG&A expenses to be in the range of $12.5 to $13.0 million.
  • The annual effective tax rate to be approximately 32 to 35 percent.

Cymer's management will hold a conference call at 2:00 pm (PST) today, January 28, 2010, to discuss fourth quarter and 2009 operating results and first quarter 2010 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 the company's future growth, the benefits from the company's investment in technology and product leadership, the improving business environment, the industry's transition to EUV lithography and the statements under the caption "Corporate 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 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. Cymer's light sources have been widely adopted by the world's top chipmakers and the company's installed base comprises approximately 3,300 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, OnPulse, XLR, 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.         Three Months Ended Dec 31      Years Ended Dec 31
                           2009          2008          2009          2008
                       -----------------------------------------------------
    Total 
     revenues          $96,404,000  $100,448,000  $307,664,000  $459,010,000
                                             
    Net income         $12,153,000    $3,984,000   $11,976,000   $36,540,000
    Diluted earnings
     per share               $0.40         $0.13         $0.40         $1.22
    Weighted average
     common shares
     outstanding 
     - diluted          30,264,000    29,645,000    29,945,000    29,992,000
    
    
    CYMER, INC.                                                              
    CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)                        
    (In thousands, except per share data)                                    
    ------------------------------------------------------------------------ 
                                                                             
                                          Three Months          Years        
                                             Ended              Ended        
                                          December 31,       December 31,    
                                          ------------       ------------    
                                          2009     2008      2009      2008  
    REVENUES:                                                                
       Product sales                    $96,071  $99,967  $306,795  $456,729 
       Product sales - related party        333      481       869     2,281 
                                            ---      ---       ---     ----- 
         Total revenues                  96,404  100,448   307,664   459,010 
                                         ------  -------   -------   ------- 
    
    COST OF REVENUES                     50,154   54,636   171,250   240,768 
                                         ------   ------   -------   ------- 
                                                                             
    GROSS PROFIT                         46,250   45,812   136,414   218,242 
                                         ------   ------   -------   ------- 
                                                                             
    OPERATING EXPENSES:                                                      
       Research and development          15,823   23,957    65,809    95,229 
       Sales and marketing                4,019    5,347    16,603    23,713 
       General and administrative         6,730    9,090    27,569    36,180 
       Restructuring                          -    3,038     8,407     3,038 
                                            ---    -----    ------    ------ 
                                                                             
         Total operating expenses        26,572   41,432   118,388   158,160 
                                         ------   ------   -------   ------- 
                                                                             
    OPERATING INCOME                     19,678    4,380    18,026    60,082 
                                         ------    -----    ------    ------ 
                                                                             
    OTHER INCOME (EXPENSE):                                                  
       Foreign currency                                                      
        exchange gain (loss)                381     (214)   (1,107)   (6,642)
       Write-down of investment               -     (206)     (291)   (5,309)
       Interest and other income            166    1,123     1,509     8,845 
       Interest and other expense          (108)  (1,769)   (1,029)   (6,712)
                                            ---    -----     -----     ----- 
                                                                             
         Total other income                                                  
          (expense) - net                   439   (1,066)     (918)   (9,818)
                                            ---    -----       ---     ----- 
                                                                             
    INCOME BEFORE INCOME TAX PROVISION   20,117    3,314    17,108    50,264 
                                         ------    -----    ------    ------ 
                                                                             
    INCOME TAX PROVISION                  9,021      154     8,389    16,587 
                                          -----      ---     -----    ------ 
                                                                             
    NET INCOME                           11,096    3,160     8,719    33,677 
                                         ------    -----     -----    ------ 
       Net loss attributable to                                              
        noncontrolling interest in                                           
        subsidiary                        1,057      824     3,257     2,863 
                                          -----      ---     -----     ----- 
    NET INCOME ATTRIBUTABLE TO                                               
     CYMER, INC.                        $12,153   $3,984   $11,976   $36,540 
                                        =======   ======   =======   ======= 
                                                                             
    EARNINGS PER SHARE:                                                      
       Basic earnings per share           $0.41    $0.13     $0.40     $1.22 
                                          =====    =====     =====     ===== 
       Weighted average common                                               
        shares outstanding-basic         29,861   29,596    29,738    29,924 
                                         ======   ======    ======    ====== 
                                                                             
       Diluted earnings per share         $0.40    $0.13     $0.40     $1.22 
                                          =====    =====     =====     ===== 
       Weighted average common                                               
        shares outstanding-                                                  
         diluted                         30,264   29,645    29,945    29,992 
                                         ======   ======    ======    ====== 
    
    
    
    CYMER, INC.                                                             
    CONSOLIDATED BALANCE SHEETS (UNAUDITED)                                 
    (In thousands, except share data)                                       
    ----------------------------------------------------------------------- 
                                                                            
                                                                            
                                                  December 31,  December 31,
                                                  ------------  ------------
                                                      2009          2008    
    ASSETS                                                                  
                                                                            
    CURRENT ASSETS:                                                         
       Cash and cash equivalents                     $118,381      $252,391 
       Restricted cash                                  1,200             - 
       Short-term investments                          62,895        30,900 
       Accounts receivable - net                       76,792        64,296 
       Accounts receivable - related party                732           818 
       Inventories                                    185,077       194,746 
       Deferred and prepaid income taxes               45,689        46,886 
       Prepaid expenses and other assets               12,121         9,344 
                                                       ------         ----- 
                                                                            
         Total current assets                         502,887       599,381 
                                                                            
    PROPERTY AND EQUIPMENT - NET                      106,755       114,390 
    LONG-TERM INVESTMENTS                               5,167         9,456 
    DEFERRED INCOME TAXES                              26,998        29,168 
    GOODWILL                                            8,833         8,833 
    INTANGIBLE ASSETS - NET                             8,327         9,898 
    OTHER ASSETS                                        5,951         6,318 
                                                        -----         ----- 
                                                                            
    TOTAL ASSETS                                     $664,918      $777,444 
                                                     ========      ======== 
                                                                            
    LIABILITIES AND STOCKHOLDERS' EQUITY                                    
                                                                            
    CURRENT LIABILITIES:                                                    
       Accounts payable                               $21,756       $15,003 
       Accounts payable - related party                 9,284         4,108 
       Accrued warranty                                16,640        23,565 
       Accrued payroll and benefits                    16,434        12,682 
       Accrued patents, royalties and other fees        3,501         3,795 
       Convertible subordinated notes                       -       140,722 
      Accrued income taxes                             12,363         1,085 
       Deferred revenue                                22,339        15,344 
       Accrued and other current liabilities            1,306         8,278 
                                                                            
                                                                            
         Total current liabilities                    103,623       224,582 
                                                                            
    ACCRUED INCOME TAXES                               11,562        18,447 
    DEFERRED REVENUE                                      525             - 
    OTHER LIABILITIES                                   7,570        11,791 
                                                        -----        ------ 
                                                                            
         Total liabilities                            123,280       254,820 
                                                      =======       ======= 
                                                                            
    STOCKHOLDERS' EQUITY                                                    
                                                                            
    CYMER, INC. STOCKHOLDERS' EQUITY:                                       
       Preferred stock - authorized 5,000,000                               
        shares; $.001 par value;                                            
         no shares issued or outstanding                    -             - 
       Common stock - authorized 100,000,000                                
        shares; $.001 par value;                           43            42 
         42,751,000 shares issued and 29,899,000                            
          shares outstanding at                                             
         December 31, 2009; 42,461,000 shares                               
          issued and 29,609,000                                             
         shares outstanding at December 31, 2008                            
       Additional paid-in capital                     598,314       586,539 
       Treasury stock at cost (12,852,000                                   
        common shares                                (473,580)     (473,580)
         at December 31, 2009 and                                           
          December 31, 2008)                                                
       Accumulated other comprehensive loss            (8,280)       (5,999)
       Retained earnings                              422,750       410,774 
                                                      -------       ------- 
         Total Cymer, Inc. stockholders' equity       539,247       517,776 
       Noncontrolling interest                          2,391         4,848 
                                                        -----         ----- 
       Total stockholders' equity                     541,638       522,624 
                                                      -------       ------- 
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY       $664,918      $777,444 
                                                     ========      ======== 
    
    
    
    CYMER, INC.                                                          
    CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)                    
    (In thousands)                                                       
    -------------------------------------------------------------------- 
                                                                         
                                                           Years Ended    
                                                           December 31, 
                                                        -----------------  
                                                          2009      2008 
                                                                         
    OPERATING ACTIVITIES:                                                
       Net income                                       $8,719   $33,677 
       Adjustments to reconcile net                                      
        income to net cash                                               
         provided by (used in) operating activities:                     
         Depreciation and amortization                  21,057    26,633 
         Stock-based compensation                        5,667     5,630 
         Bad debt expense                                    2     1,885 
         Provision for deferred income taxes             2,328   (16,152)
         Loss on disposal or impairment of                               
          property and equipment                         1,881       297 
         Write-down of investments                         291     5,309 
         Change in assets and liabilities:                               
           Restricted cash                              (1,200)        - 
           Accounts receivable                         (12,651)   26,275 
           Accounts receivable - related party              86       294 
           Inventories                                   9,487   (63,620)
           Prepaid expenses and other assets            (2,684)   (2,414)
           Accounts payable                              6,626    (8,788)
           Accounts payable - related party              5,176      (320)
           Accrued and other liabilities               (14,536)  (13,557)
           Deferred revenue                              7,379     4,909 
           Income taxes payable and                                      
            accrued income taxes                         4,254   (11,234)
                                                         -----   ------- 
                                                                         
              Net cash provided by (used in)                             
               operating activities                     41,882   (11,176)
                                                        ------   ------- 
                                                                         
    INVESTING ACTIVITIES:                                                
       Acquisition of property and equipment           (14,831)  (23,689)
       Purchases of investments                        (94,161)  (90,309)
       Proceeds from sold or matured investments        65,909    95,051 
                                                        ------    ------ 
                                                                         
              Net cash used in investing activities    (43,083)  (18,947)
                                                       -------   ------- 
                                                                         
    FINANCING ACTIVITIES:                                                
       Proceeds from issuance of common stock            6,744     2,506 
       Cash investment in joint venture received from                    
        minority shareholder                               800     2,000 
       Repayment of convertible subordinated note     (140,722)        - 
       Excess tax benefits from stock                                    
        option exercises                                   267        58 
       Repurchase of common stock into treasury              -   (22,876)
                                                           ---   ------- 
                                                                         
              Net cash used in financing activities   (132,911)  (18,312)
                                                      --------   ------- 
                                                                         
    EFFECT OF EXCHANGE RATE CHANGES ON CASH AND                          
      CASH EQUIVALENTS                                     102    (4,881)
                                                           ---    ------ 
                                                                         
    NET DECREASE IN CASH AND CASH EQUIVALENTS         (134,010)  (53,316)
    CASH AND CASH EQUIVALENTS AT                                         
     BEGINNING  OF THE YEAR                            252,391   305,707 
                                                       -------   ------- 
                                                                         
    CASH AND CASH EQUIVALENTS AT END OF THE YEAR      $118,381  $252,391 
                                                      ========  ======== 
                                                                         
                                                                         
                                                                         
    SUPPLEMENTAL DISCLOSURE OF CASH                                      
     FLOW INFORMATION:                                                   
       Interest paid                                    $2,803    $5,549 
                                                        ======    ====== 
       Income taxes paid                               $11,232   $45,770 
                                                       =======   ======= 
                                                                         
    NONCASH OPERATING AND FINANCING ACTIVITIES:                          
       In transit funds from the issuance                                
        of common stock                                    $81         - 
                                                           ===       === 

SOURCE Cymer, Inc.



RELATED LINKS

http://www.cymer.com