Cymer (CYMI) 8-K Cymer Reports Third Quarter 2009 Operating Results

Exhibit 99.1

FOR IMMEDIATE RELEASE

Investor Relations Contact: Paul Bowman Interim CFO and V.P., Investor Relations Cymer, Inc. (858) 385-5312 pbowman@cymer.com Media Contact: Kelly Hamor Formula (619) 234-0345 Hamor@formulapr.com

CYMER REPORTS THIRD QUARTER 2009 OPERATING RESULTS

SAN DIEGO, Calif., October 20, 2009—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.

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.

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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 atwww.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. 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.

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About Cymer

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, OnPulse, XLR, 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.

Cymer, Inc.

	Three Months Ended September 30				Nine Months Ended September 30
	2009		2008		2009			2008
Total revenues	$	92,328,000	$	110,619,000	$	211,260,000		$	358,562,000
Net income (loss)	$	10,785,000	$	5,331,000	($	177,000	)	$	32,556,000
Diluted earnings (loss) per share	$	0.36	$	0.18	($	0.01	)	$	1.07
Weighted average common shares outstanding—diluted		30,138,000		29,779,000		29,697,000			32,952,000

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CYMER, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(In thousands, except per share data)

	For the three months ended September 30,						For the nine months ended September 30,
	2009			2008			2009			2008
REVENUES:
Product sales	$	92,110		$	110,169		$	210,724		$	356,762
Product sales—related party		218			450			536			1,800
Total revenues		92,328			110,619			211,260			358,562
COST OF REVENUES		47,827			58,715			121,096			186,132
GROSS PROFIT		44,501			51,904			90,164			172,430
OPERATING EXPENSES:
Research and development		17,258			24,334			49,986			71,272
Sales and marketing		4,674			5,853			12,584			18,366
General and administrative		7,165			7,997			20,839			27,090
Restructuring		—			—			8,407			—
Total operating expenses		29,097			38,184			91,816			116,728
OPERATING INCOME (LOSS)		15,404			13,720			(1,652	)		55,702
OTHER INCOME (EXPENSE):
Foreign currency exchange loss		(10	)		(6,359	)		(1,488	)		(6,428	)
Write-down of investment		(291	)		(270	)		(291	)		(5103	)
Interest and other income		322			2,014			1,343			7,722
Interest and other expense		(68	)		(1,645	)		(921	)		(4,943	)
Total other expense—net		(47	)		(6,260	)		(1,357	)		(8,752	)
INCOME (LOSS) BEFORE INCOME TAX PROVISION (BENEFIT)		15,357			7,460			(3,009	)		46,950
INCOME TAX PROVISION (BENEFIT)		5,429			2,612			(632	)		16,433
NET INCOME (LOSS)		9,928			4,848			(2,377	)		30,517
Net loss attributable to noncontrolling interest		857			483			2,200			2,039
NET INCOME (LOSS) ATTRIBUTABLE TO CYMER, INC.	$	10,785		$	5,331		($	177	)	$	32,556
EARNINGS (LOSS) PER SHARE:
Basic earnings (loss) per share	$	0.36		$	0.18		($	0.01	)	$	1.08
Weighted average common shares outstanding—basic		29,762			29,665			29,697			30,034
Diluted earnings (loss) per share	$	0.36		$	0.18		($	0.01	)	$	1.07	(a)
Weighted average common shares outstanding—diluted		30,138			29,779			29,697			32,952	(a)

(a) As a result of applying the if-converted method for calculating diluted earnings per share for the the nine month period ended September 30, 2008, shares have been adjusted assuming conversion of our 3.5% convertible subordinated notes, and net income has been adjusted for an add back of related interest expense, net of tax. Shares have been adjusted by 2.8 million and net income has been adjusted by $2.7 million for the nine month period ended September 30, 2008.

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CYMER, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In thousands, except share data)

	September 30,			December 31,
	2009			2008
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	111,590		$	252,391
Restricted cash		1,200			—
Short-term investments		46,702			30,900
Accounts receivable—net		77,837			64,296
Accounts receivable—related party		583			818
Inventories		179,668			194,746
Deferred and prepaid income taxes		45,955			46,886
Income taxes receivable		5,152			—
Prepaid expenses and other assets		8,690			9,344
Total current assets		477,377			599,381
PROPERTY AND EQUIPMENT—NET		102,749			114,390
LONG-TERM INVESTMENTS		—			9,456
DEFERRED INCOME TAXES		28,481			29,168
GOODWILL		8,833			8,833
INTANGIBLE ASSETS—NET		8,497			9,898
OTHER ASSETS		6,143			6,318
TOTAL ASSETS	$	632,080		$	777,444
LIABILITIES
CURRENT LIABILITIES:
Accounts payable	$	16,388		$	15,003
Accounts payable—related party		3,324			4,108
Accrued warranty		17,400			23,565
Accrued payroll and benefits		14,649			12,682
Accrued patents, royalties and other fees		4,235			3,795
Convertible subordinated notes		—			140,722
Accrued income taxes		9,059			1,085
Deferred revenue		19,449			15,344
Accrued and other current liabilities		2,376			8,278
Total current liabilities		86,880			224,582
ACCRUED INCOME TAXES		9,695			18,447
DEFERRED REVENUE		312			—
OTHER LIABILITIES		8,033			11,791
Total liabilities		104,920			254,820
COMMITMENTS AND CONTINGENCIES
EQUITY
Cymer, Inc. STOCKHOLDERS’ EQUITY:
Preferred stock—authorized 5,000,000 shares; $.001 par value; no shares issued or outstanding		—			—
Common stock—authorized 100,000,000 shares; $.001 par value; 42,657,000 shares issued and 29,805,000 shares outstanding at September 30, 2009; 42,461,000 shares issued and 29,609,000 shares outstanding at December 31, 2008		43			42
Additional paid-in capital		593,471			586,539
Treasury stock at cost (12,852,000 common shares) at September 30, 2009 and December 31, 2008		(473,580	)		(473,580	)
Accumulated other comprehensive loss		(6,819	)		(5,999	)
Retained earnings		410,597			410,774
Total Cymer, Inc. stockholders’ equity		523,712			517,776
Noncontrolling interest		3,448			4,848
Total equity		527,160			522,624
TOTAL LIABILITIES AND EQUITY	$	632,080		$	777,444

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CYMER, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(In thousands)

	For the nine months ended September 30,
	2009			2008
OPERATING ACTIVITIES:
Net income (loss) attributable to Cymer, Inc.	($	177	)	$	32,556
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		16,661			20,198
Stock-based compensation		3,769			4,525
Bad debt expense		893			(54	)
Noncontrolling interest		(2,200	)		(2,039	)
Provision for deferred income taxes		632			(3,615	)
(Gain) loss on disposal or impairment of property and equipment		1,881			(11	)
Write-down of investments		291			5,103
Change in assets and liabilities:
Restricted cash		(1,200	)		—
Accounts receivable		(13,920	)		13,027
Accounts receivable—related party		235			468
Income taxes receivable		(5,036	)		(13,741	)
Inventories		15,417			(56,090	)
Prepaid expenses and other assets		654			(5,231	)
Accounts payable		1,416			(3,718	)
Accounts payable—related party		(784	)		(3,072	)
Accrued and other liabilities		(13,419	)		(13,058	)
Deferred revenue		4,516			5,309
Income taxes payable and accrued income taxes		(586	)		(9,104	)
Net cash provided by (used in) operating activities		9,043			(28,547	)
INVESTING ACTIVITIES:
Acquisition of property and equipment		(6,318	)		(19,174	)
Purchases of investments		(39,138	)		(90,309	)
Proceeds from sold or matured investments		32,363			81,184
Net cash used in investing activities		(13,093	)		(28,299	)
FINANCING ACTIVITIES:
Proceeds from issuance of common stock		3,771			1,752
Cash investment in joint venture received from minority shareholder		800			2,000
Repayment of convertible subordinated note		(140,722	)		—
Excess tax benefits from stock option exercises		199			37
Repurchase of common stock into treasury		—			(22,876	)
Net cash used in financing activities		(135,952	)		(19,087	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		(799	)		(7,020	)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(140,801	)		(82,953	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD		252,391			305,707
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD	$	111,590		$	222,754
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid	$	2,702		$	5,336
Income taxes paid	$	10,157		$	43,888
NONCASH OPERATING AND FINANCING ACTIVITIES:
In transit funds from the issuance of common stock	$	194			—

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