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Cymer Reports First Quarter 2010 Operating Results
Apr 22, 2010 (04:04 PM EDT)
SAN DIEGO, April 22 /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 first quarter ended March 31, 2010.
For the first quarter of 2010:
Commenting on first quarter results, Bob Akins, Cymer's chief executive officer, said, "We are off to a solid start in 2010. Semiconductor fabs are operating at significantly higher utilization levels as compared to this time last year, and investment in argon fluoride (ArF) immersion lithography is being driven by technology transition buys in all three chipmaking sectors. First quarter revenue exceeded our January guidance increasing approximately 18 percent over fourth quarter 2009 as we responded to customer requests to accelerate deliveries of ArF immersion units from the second quarter. We also delivered a higher level of gross margin as we continued to realize the benefits of our 2008 and 2009 sustainable operating improvements."
In the first quarter of 2010, the company shipped 24 light sources, of which 16 were ArF immersion, 7 were krypton fluoride (KrF), and 1 was ArF dry. The company installed 18 light sources at chipmaker locations during the quarter. The company reported gross profit of $56.8 million for the first quarter of 2010, yielding a 50 percent gross margin. Total operating expenses, which include research and development and selling and administrative expenses, were $34.2 million. Increased investments in extreme ultraviolet (EUV) source development and TCZ development and market penetration, as well as the reinstatement of various variable compensation programs drove a higher level of operating expense. Total operating income was $22.6 million or approximately 20 percent of revenue. The first quarter effective tax rate was 30 percent. As of March 31, 2010, cash and investments totaled $172 million.
Deep ultraviolet (DUV) bookings for the first quarter of 2010 totaled $111.6 million, resulting in a book-to-bill ratio of 0.98. Seventy five percent of the light source bookings in the first quarter were ArF immersion and 25 percent were KrF. The company ended the quarter with a DUV backlog of approximately $43.8 million, with ArF immersion light sources comprising approximately 92 percent of the value of sources in backlog.
Commenting on the outlook, Akins stated, "For Cymer, 2010 represents a year of growth and continued investment in promising new light source and display manufacturing technologies. We anticipate that ArF immersion will continue to represent the majority of our second quarter light source shipments and we expect to ship several KrF sources. We also anticipate that Installed Base Products revenue will increase driven by installed base growth, higher pulse utilization, and a more favorable mix of ArF immersion pulses. We believe our investment in EUV commercialization and TCZ market penetration positions us strategically for future growth and market leadership."
Based on information available at this time, Cymer is providing the following guidance for the second quarter of 2010:
Cymer's management will hold a conference call at 2:00 pm (PDT) today, April 22, 2010, to discuss first quarter 2010 operating results and second 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 effects of higher fab utilization levels, ArF immersion technology investment, the benefits of the company's operational improvements, 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.
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 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.
SOURCE Cymer, Inc.