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| 8-K - FORM 8-K - CYMER INC | d245438d8k.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
| Investor Relations Contact: | Media Contact: | |||
| Natalie Badillo | Taryn Unruh | |||
| Cymer, Inc. | Formula | |||
| (858) 385-6097 | (619) 234-0345 | |||
| nbadillo@cymer.com | coller@formulapr.com |
CYMER REPORTS THIRD QUARTER 2011 OPERATING RESULTS
SAN DIEGO, Calif., October 20, 2011 - 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 third quarter ended September 30, 2011.
| • | net income totaled $11.3 million, equal to $0.36 per share (diluted), compared to net income of $20.9 million, equal to $0.70 per share (diluted) in the third quarter of 2010 and net income of $27.7 million, equal to $0.89 per share (diluted) in the second quarter of 2011. |
| • | revenue totaled $128.7 million compared to revenue of $141.7 million in the third quarter of 2010, and revenue of $158.2 million in the second quarter of 2011. |
Commenting on third quarter results, Bob Akins, Cymer’s chief executive officer, said, “Our Installed Base Products continue to deliver value to our customers and our revenue from these products remained strong. As anticipated, shipments of deep ultraviolet (DUV) light sources were significantly lower than the prior quarter as chipmakers reduced their capital investments. In the third quarter, we installed two additional 3100 extreme ultraviolet (EUV) sources, and we now have four sources which are exposing wafers at chipmakers. We also shipped our first TCZ Gen 5 system to a leading display manufacturer.”
In the third quarter of 2011, the company shipped 25 light sources, of which 18 were ArF immersion and 7 were KrF, and the company installed 38 DUV light sources at chipmaker and other end user locations. Gross profit was $65.1 million for the third quarter of 2011, yielding a 50.6 percent gross margin. Total operating expenses, which include research and development and selling and administrative expenses, were $51.7 million. Total operating income was $13.4 million or 10.4 percent of revenue. The third quarter effective tax rate was 16 percent. As of September 30, 2011, cash and investments totaled $277 million.
DUV and IBP bookings for the third quarter totaled $123.2 million, resulting in a book-to-bill ratio of 0.97. Sixty-four percent of the DUV bookings were ArF immersion and thirty-six percent were KrF. The company ended the quarter with a DUV backlog of $53.8 million. In addition to the DUV backlog, the company earlier in the year announced significant orders for EUV 3300 sources and TCZ systems.
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| CYMER REPORTS THIRD QUARTER 2011 OPERATING RESULTS | Page 2 of 6 |
Company Outlook
Commenting on the outlook, Akins stated, “Our Installed Base Products revenue is positioned to grow in the fourth quarter primarily due to installed base growth and continued high gross pulse utilization. We anticipate shipping a similar number of DUV light sources in the fourth quarter as compared to the third quarter; however the mix of shipments is anticipated to contain a greater percentage of KrF sources. As light source demand strengthens, we believe we will continue to be competitively well positioned. Chipmaker demand for EUV continues to be strong as they view EUV technology as the best path toward enabling Moore’s law and scaling of geometries below 20 nanometers. We believe we have identified and are addressing the key EUV source technical challenges facing us and we are working closely with ASML and our key suppliers to drive execution to our source power and performance roadmap. Our investment in EUV source development is substantial and one we view as essential to enable lithography scaling, and which we believe will drive significant long term growth.”
Based on information available at this time, Cymer is providing the following guidance for the fourth quarter of 2011:
| • | Revenue to be approximately $128 million. |
| • | Gross margin to be approximately 50 percent. |
| • | R&D expenses to be approximately $38.5 million. |
| • | SG&A expenses to be approximately $17.0 million. |
| • | The effective tax rate to be approximately 26 percent. |
Cymer’s management will hold a conference call at 2:00 pm (PDT) today, October 20, 2011, to discuss third quarter operating results and fourth quarter 2011 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.
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| CYMER REPORTS THIRD QUARTER 2011 OPERATING RESULTS | Page 3 of 6 |
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 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, the industry’s transition to EUV lithography 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 3100 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.
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| CYMER REPORTS THIRD QUARTER 2011 OPERATING RESULTS | Page 4 of 6 |
CYMER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Revenue |
$ | 128,698 | $ | 141,710 | $ | 441,331 | $ | 387,355 | ||||||||
| Cost of revenue |
63,635 | 73,245 | 212,571 | 192,583 | ||||||||||||
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| Gross profit |
65,063 | 68,465 | 228,760 | 194,772 | ||||||||||||
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| Operating expenses: |
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| Research and development |
35,240 | 22,648 | 93,474 | 64,150 | ||||||||||||
| Sales and marketing |
6,200 | 5,726 | 18,226 | 17,192 | ||||||||||||
| General and administrative |
10,217 | 9,893 | 31,085 | 29,450 | ||||||||||||
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| Total operating expenses |
51,657 | 38,267 | 142,785 | 110,792 | ||||||||||||
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| Operating income |
13,406 | 30,198 | 85,975 | 83,980 | ||||||||||||
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| Other (expense) income: |
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| Foreign currency exchange (loss) gain |
(30 | ) | 39 | 875 | (17 | ) | ||||||||||
| Interest income |
205 | 125 | 467 | 392 | ||||||||||||
| Interest expense |
(184 | ) | (100 | ) | (521 | ) | (416 | ) | ||||||||
| Other income |
(3 | ) | — | — | 46 | |||||||||||
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| Total other (expense) income |
(12 | ) | 64 | 821 | 5 | |||||||||||
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| Income before income taxes |
13,394 | 30,262 | 86,796 | 83,985 | ||||||||||||
| Income tax expense |
2,144 | 9,381 | 19,026 | 26,035 | ||||||||||||
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| Net income |
$ | 11,250 | $ | 20,881 | $ | 67,770 | $ | 57,950 | ||||||||
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| Net loss attributable to noncontrolling interest in subsidiary |
— | — | — | 148 | ||||||||||||
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| Net income attributable to Cymer, Inc. |
$ | 11,250 | $ | 20,881 | $ | 67,770 | $ | 58,098 | ||||||||
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| Earnings per share: |
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| Basic |
$ | 0.37 | $ | 0.71 | $ | 2.23 | $ | 1.95 | ||||||||
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| Diluted |
$ | 0.36 | $ | 0.70 | $ | 2.19 | $ | 1.94 | ||||||||
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| Weighted average shares outstanding: |
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| Basic |
30,555 | 29,544 | 30,428 | 29,752 | ||||||||||||
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| Diluted |
30,992 | 29,910 | 30,991 | 29,973 | ||||||||||||
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| CYMER REPORTS THIRD QUARTER 2011 OPERATING RESULTS | Page 5 of 6 |
CYMER, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)
| September 30, | December 31, | |||||||
| 2011 | 2010 | |||||||
| ASSETS |
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| Current assets: |
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| Cash and cash equivalents |
$ | 117,031 | $ | 154,312 | ||||
| Restricted cash |
5,790 | — | ||||||
| Short-term investments |
112,808 | 54,964 | ||||||
| Accounts receivable, net |
123,797 | 127,747 | ||||||
| Inventories |
228,172 | 213,002 | ||||||
| Deferred income taxes |
15,237 | 11,961 | ||||||
| Other current assets |
56,911 | 55,027 | ||||||
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| Total current assets |
659,746 | 617,013 | ||||||
| Long-term investments |
47,121 | 7,506 | ||||||
| Property, plant and equipment, net |
111,174 | 104,705 | ||||||
| Deferred income taxes |
38,862 | 35,690 | ||||||
| Goodwill |
16,639 | 8,833 | ||||||
| Intangible assets, net |
10,176 | 7,645 | ||||||
| Other assets |
7,212 | 5,939 | ||||||
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| Total assets |
$ | 890,930 | $ | 787,331 | ||||
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| LIABILITIES |
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| Current liabilities: |
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| Accounts payable |
$ | 36,724 | $ | 27,731 | ||||
| Deferred revenue |
50,632 | 30,593 | ||||||
| Deferred income taxes |
119 | — | ||||||
| Other current liabilities |
44,447 | 68,121 | ||||||
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| Total current liabilities |
131,922 | 126,445 | ||||||
| Deferred revenue |
3,421 | 690 | ||||||
| Deferred income taxes |
657 | 21 | ||||||
| Other liabilities |
25,911 | 21,920 | ||||||
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| Total liabilities |
161,911 | 149,076 | ||||||
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| EQUITY |
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| Cymer, Inc. stockholders’ equity: |
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| Preferred stock |
— | — | ||||||
| Common stock |
44 | 43 | ||||||
| Additional paid-in capital |
651,270 | 620,272 | ||||||
| Treasury stock |
(492,890 | ) | (492,890 | ) | ||||
| Accumulated other comprehensive loss |
(10,886 | ) | (2,881 | ) | ||||
| Retained earnings |
581,481 | 513,711 | ||||||
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| Total equity |
729,019 | 638,255 | ||||||
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| Total liabilities and equity |
$ | 890,930 | $ | 787,331 | ||||
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| CYMER REPORTS THIRD QUARTER 2011 OPERATING RESULTS | Page 6 of 6 |
CYMER, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
| Nine Months Ended | ||||||||
| September 30, | ||||||||
| 2011 | 2010 | |||||||
| Operating activities: |
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| Net income |
$ | 67,770 | $ | 57,950 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
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| Depreciation, amortization and accretion |
14,744 | 14,747 | ||||||
| Stock-based compensation |
11,960 | 8,036 | ||||||
| Bad debt expense (recoveries) |
6 | (911 | ) | |||||
| Excess tax benefits from stock option exercises |
(3,902 | ) | (1,519 | ) | ||||
| Provision for deferred income taxes |
(2,398 | ) | (2,927 | ) | ||||
| Loss on disposal or impairment of property, plant and equipment |
127 | 132 | ||||||
| Change in assets and liabilities: |
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| Restricted cash |
(5,790 | ) | 1,265 | |||||
| Accounts receivable |
3,836 | (49,122 | ) | |||||
| Accounts receivable, related party |
— | 732 | ||||||
| Inventories |
(21,666 | ) | (29,959 | ) | ||||
| Other assets |
(2,968 | ) | (3,366 | ) | ||||
| Accounts payable |
7,502 | 13,659 | ||||||
| Accounts payable, related party |
— | (9,273 | ) | |||||
| Deferred revenue |
20,895 | 1,498 | ||||||
| Other liabilities |
(29,740 | ) | 16,124 | |||||
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| Net cash provided by operating activities |
60,376 | 17,066 | ||||||
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| Investing activities: |
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| Acquisition of property, plant and equipment |
(14,837 | ) | (11,440 | ) | ||||
| Cash paid for acquisition of eDiag, net of cash acquired |
(3,785 | ) | — | |||||
| Purchases of investments |
(204,131 | ) | (66,008 | ) | ||||
| Proceeds from sold or matured investments |
105,952 | 68,184 | ||||||
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| Net cash used in investing activities |
(116,801 | ) | (9,264 | ) | ||||
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| Financing activities: |
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| Proceeds from issuance of common stock |
14,966 | 4,136 | ||||||
| Purchase of noncontrolling interest |
— | (2,186 | ) | |||||
| Excess tax benefits from stock option exercises |
3,902 | 1,519 | ||||||
| Repurchase of common stock into treasury |
— | (19,310 | ) | |||||
| Payments under capital lease obligations |
(83 | ) | — | |||||
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| Net cash provided by (used in) financing activities |
18,785 | (15,841 | ) | |||||
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| Effect of exchange rate changes on cash and cash equivalents |
359 | 1,694 | ||||||
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| Net decrease in cash and cash equivalents |
(37,281 | ) | (6,345 | ) | ||||
| Cash and cash equivalents at beginning of the period |
154,312 | 118,381 | ||||||
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| Cash and cash equivalents at end of the period |
$ | 117,031 | $ | 112,036 | ||||
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| Supplemental disclosure of cash flow information: |
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| Interest paid |
$ | 193 | $ | 259 | ||||
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| Income taxes paid |
$ | 34,379 | $ | 29,733 | ||||
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| Supplemental disclosure of non-cash operating, investing and financing activities: |
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| Net increase (decrease) in acquisition of property and equipment included in accounts payable |
$ | 695 | $ | (783 | ) | |||
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| Net decrease in in-transit proceeds from issuance of common stock |
$ | (57 | ) | $ | (36 | ) | ||
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| Property and equipment acquired under capital lease obligations |
$ | 583 | $ | 23 | ||||
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| Future install payments for acquisition of eDiag |
$ | (8,297 | ) | $ | — | |||
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