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8-K - FORM 8-K - CYMER INCd426191d8k.htm

Exhibit 99.1

 

LOGO

 

FOR IMMEDIATE RELEASE   
Investor Relations Contact:    Media Contact:
Natalie Badillo    Taryn Unruh
Cymer, Inc.    Formula
(858) 385-6097    (619) 234-0345
nbadillo@cymer.com    unruh@formulapr.com

CYMER REPORTS THIRD QUARTER 2012 OPERATING RESULTS

SAN DIEGO, Calif., October 26, 2012 - 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.

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.

 

 

 

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CYMER REPORTS THIRD QUARTER 2012 OPERATING RESULTS……………………..……………Page 2 of 5

 

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.

 

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CYMER REPORTS THIRD QUARTER 2012 OPERATING RESULTS……………………..……………Page 3 of 5

 

CYMER, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in thousands, except per share data)

 

     Three Months Ended
September 30,
       Nine Months Ended
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     
  

 

 

   

 

 

      

 

 

   

 

 

 

 

 

 

 

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CYMER REPORTS THIRD QUARTER 2012 OPERATING RESULTS……………………..……………Page 4 of 5

 

CYMER, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands)

 

                                                         
     September 30,
    2012    
   

 December 31,
    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  
  

 

 

   

 

 

 

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CYMER REPORTS THIRD QUARTER 2012 OPERATING RESULTS……………………..……………Page 5 of 5

 

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     
  

 

 

    

 

 

 

 

 

 

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