Oct. 20, 2009 (PR Newswire) -- SAN DIEGO, Oct. 20 /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 third quarter ended September 30, 2009.
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For the third quarter of 2009:
-- net income totaled $10,785,000 equal to $0.36 per share (diluted),
compared to net income of $5,331,000, equal to $0.18 per share
(diluted), in the third quarter of 2008 and net income of $525,000,
equal to $0.02 per share (diluted), in the second quarter of 2009.
-- revenue totaled $92,328,000 compared to revenue of $110,619,000 in the
third quarter of 2008, and revenue of $62,433,000 in the second quarter
of 2009.
Commenting on third quarter results, Bob Akins, Cymer's chief executive officer, said, "Demand for our XLR immersion lithography light sources and Installed Base Products rose sharply during the quarter. The higher level of demand was driven by increased investment from the foundry and memory sectors in support of transitions to the 5x nanometer node and below. Our leaner, more efficient business operations contributed to the company's strong third quarter financial performance while preserving our ability to continue to strategically invest in extreme ultraviolet (EUV) development and TCZ commercialization."
In the third quarter of 2009, the company shipped twelve light sources of which eleven were XLR, and installed fourteen light sources at chipmaker locations, of which ten were argon fluoride (ArF) immersion. The company reported gross profit of $44.5 million for the third quarter of 2009, yielding a 48.2 percent gross margin. Operational efficiencies, change in product mix, lower OnPulse start-up expenses, and improved manufacturing and field absorption contributed to the higher gross margin. Total operating expenses, which include research and development and selling, general and administrative expenses, were $29.1 million for the third quarter of 2009. Total operating income was $15.4 million or 16.7 percent of revenue. The third quarter effective tax rate was 35.4 percent.
As of September 30, 2009, cash and investments totaled $158 million, which increased $9 million from June 30, 2009.
Deep ultraviolet (DUV) bookings for the third quarter of 2009 totaled $99.0 million, resulting in a book-to-bill ratio of 1.07. All of the light source systems bookings in the third quarter were ArF immersion light sources. The company ended the quarter with a DUV backlog of approximately $41.2 million, with ArF immersion light sources comprising approximately 95 percent of the value of systems in backlog.
Corporate Outlook
Commenting on the outlook, Akins stated, "We have made good progress in 2009 positioning the company for growth. Our DUV product portfolio, led by the XLR600ix has earned its market leading position with its flexible power and improved optical stability aimed at enabling chipmakers' most advanced ArF immersion needs. Our Installed Base Products, led by OnPulse, are helping chipmakers increase productivity and lower their cost of operations and we are focused on continuing to add more light sources under coverage. In the third quarter, we responded to increased demand that resulted in third quarter revenue increasing almost fifty percent, as compared to the prior quarter. In the fourth quarter, we anticipate maintaining this increased level of demand for light sources and Installed Base Products."
Based on information available at this time, Cymer is providing the following guidance for the fourth quarter of 2009:
-- Revenue to be comparable to the revenue reported for the third quarter
2009.
-- Gross margin to be approximately 47 to 48 percent.
-- R&D expenses to be approximately $17.0 million dollars.
-- SG&A expenses to be approximately $12.0 million dollars.
-- The fourth quarter effective tax rate to be approximately 39 to 41
percent. This rate may vary significantly depending on the actual extent
of the profit before tax.
Cymer's management will hold a conference call at 2:00 pm (PDT) today, October 20, 2009, to discuss third quarter 2009 operating results and fourth quarter 2009 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 chipmaker transitions to smaller geometries and the company's continuing investment in EUV development and TCZ commercialization 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 achieve forecasted savings from its cost reduction actions; 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.
