Exhibit 99.1
FOR IMMEDIATE RELEASE
Investor Relations Contact: | | Media Contact: |
Terry Slavin | | Meggan Powers |
Director, Corp. Communications & IR | | PR Manager |
Cymer, Inc. | | Cymer, Inc. |
(858) 385-5232 | | (858) 385-6327 |
tslavin@cymer.com | | mpowers@cymer.com |
CYMER REPORTS FIRST QUARTER 2007 OPERATING RESULTS
SAN DIEGO, Calif., April 24, 2007 - Cymer, Inc. (Nasdaq: CYMI), the world’s leading supplier of excimer laser light sources used in semiconductor manufacturing, today announced operating results for the first quarter ended March 31, 2007.
For the first quarter of 2007:
· net income totaled $20,321,000, equal to $0.52 per share (diluted), compared to net income of $20,603,000, equal to $0.52 per share (diluted) in the first quarter of 2006, and net income of $25,411,000, equal to $0.65 per share (diluted) in the fourth quarter of 2006.
· revenue totaled $126,714,000 compared to revenue of $127,117,000 in the prior year’s first quarter, and revenue of $137,441,000 in the fourth quarter of 2006.
Commenting on first quarter results, Bob Akins, Cymer’s chief executive officer, said, “Total revenue for the first quarter of 2007 came in approximately 8 percent below the low end of the guidance range we provided on January 30, 2007. In March, we received notification from one of our direct customers that, due to a major rescheduling and product mix shift of their scanner deliveries, they were changing mix configuration and pushing out receipt of a number of our light sources into the second half of the year. We have been assured by our direct customer that these rescheduled scanners powered by our light sources will be shipped later this year. If these push outs had not occurred, we would have come in within our revenue guidance for the quarter.”
Akins continued, “We shipped 51 light sources in the first quarter, with 32 of them being our XLA Series argon fluoride (ArF) light sources. ArF accounted for 63 percent of total unit shipments and 80 percent of the dollar value of light source shipments in the quarter. Twenty-five percent of the ArF shipments were our XLA 300 model. With our product mix weighted heavily toward ArF light sources, our currency adjusted average selling price rose to $1,158,000 in the first quarter of 2007.”
The company reported gross profit of $61,559,000 yielding a 48.6 percent gross margin in the first quarter of 2007, compared to a gross profit of $67,796,000, yielding a 49.4 percent gross margin in the fourth quarter of 2006. The company recorded operating income of $26,567,000 yielding an operating margin of 21.0 percent in the first quarter of 2007, compared to operating income of $30,856,000, yielding an operating margin of 22.5 percent in the fourth quarter of 2006.
The quarterly average utilization of the company’s light sources at chipmakers grew again in the first quarter, reaching an all time high. Non-systems revenue, which consists of consumables and spare parts, upgrades and service, totaled $67,756,000 for the first quarter of 2007, equal to 53 percent of total revenue. The strongest contribution to the increased utilization came from the company’s ArF light sources: the XLA Series and NanoLith products, primarily in the regions of Korea, the US, and Taiwan.
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Nancy Baker, Cymer’s chief financial officer, stated, “In the first quarter, we saw ArF dominate the systems portion of bookings and backlog, with 78 percent of the light source units and 90 percent of the dollar value of light sources booked being ArF, and 88 percent of the dollar value of the light sources in backlog being ArF. For the first quarter of 2007, backlog totaled $83,362,000, and total bookings were $115,709,000, yielding a book-to-bill ratio of 0.91 for the quarter.
“During the first quarter, we generated approximately $27.1 million dollars in cash from operations,” Baker continued. “With capital spending of $4.1 million dollars in the quarter, we generated free cash flow of approximately $23.0 million.” Free cash flow is a non-GAAP financial measure calculated as the net cash provided by operating activities less the acquisition of property, equipment and patent licenses.
Corporate Outlook
Commenting on Cymer’s outlook, Akins noted, “The FLASH segment of the market continues to experience significant price pressure and we anticipate a decrease in its capacity investment in the second half of the year. Meanwhile DRAM prices have been recently firming, and this has led to significant and difficult to forecast investment allocation decisions between FLASH and DRAM and absolute delivery timing at memory manufacturers. However, memory manufacturers have not announced reductions in their overall strategic capital spending plans. DUV foundry utilization picked up in the first quarter of 2007, and expectations are that they will begin to expand capacity and increase their spending as the year progresses. In the logic segment of the industry, where some manufacturers are reducing spending, others are expected to offset that as they spend more to continue their rapid shrink of critical dimension. Though we continue to believe that semiconductor capital spending this year will be down slightly compared to 2006, the outlook for DUV lithography is for growth, driven by an increase in critical layers by 65nm production and 45nm development, and we believe that we are well-positioned to benefit from these trends.”
Based on information available at this time, Cymer is currently providing the following guidance for the second quarter of 2007, and anticipates:
· Total revenue to be flat compared to the revenue reported for the first quarter of 2007.
· Foreign currency adjusted ASPs to be approximately $1,180,000 on the strength of ArF sales.
· Gross margin to be approximately 49 percent.
· Research and development expenses to be between $20 million and $21 million.
· Selling, general and administrative expenses to be between $17.0 million and $17.5 million.
· The estimated effective tax rate to be approximately 35 percent.
Cymer’s management will hold a conference call at 2:00 pm (PDT) today, April 24, 2007, to discuss first quarter operating results and provide second quarter 2007 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 future product shipments, 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: 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 demand for semiconductors in general, and, in particular, for leading-edge devices with smaller geometries; the timing of customer orders, shipments and acceptances; cyclicality in the market for semiconductor manufacturing equipment; the rate at which semiconductor manufacturers adopt new technologies and purchase and take delivery of photolithography tools from the company’s customers;
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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, 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. 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. is the world’s leading supplier of DUV laser illumination sources, the essential light source for DUV photolithography systems. DUV lithography is a key enabling technology, which has allowed the semiconductor industry to meet the exacting specifications and manufacturing requirements for volume production of today’s advanced semiconductor chips. Further information on Cymer may be obtained from the Company’s SEC filings, the Internet at www.cymer.com or by contacting the company directly.
Free Cash Flow Reconciliation
For the three months ended March 31, 2007
Cash provided by operating activities | | $ | 27,144,000 | |
Less acquisition of property, equipment and patent licenses | | 4,114,000 | |
Free cash flow | | $ | 23,030,000 | |
Cymer, Inc. | | Three Months Ended March 31 | |
| 2006 | | 2007 | |
Total revenues | | $ | 127,117,000 | | $ | 126,714,000 | |
| | | | | |
Net income | | $ | 20,603,000 | | $ | 20,321,000 | |
Diluted earnings per share | | $ | 0.52 | | $ | 0.52 | |
Weighted average common shares outstanding — diluted | | 41,126,000 | | 40,617,000 | |
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