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

Exhibit 99.1

FOR IMMEDIATE RELEASE

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

CYMER REPORTS FOURTH QUARTER AND 2009 OPERATING RESULTS

SAN DIEGO, Calif., January 28, 2010—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 fourth quarter and year ended December 31, 2009.

For the fourth quarter of 2009:

• net income totaled $12,153,000 equal to $0.40 per share (diluted), compared to net income of $3,984,000, equal to $0.13 per share (diluted) in the fourth quarter of 2008 and net income of $10,785,000, equal to $0.36 per share (diluted), in the third quarter of 2009.

• revenue totaled $96,404,000 compared to revenue of $100,448,000 in the fourth quarter of 2008, and revenue of $92,328,000 in the third quarter of 2009.

For the year ended December 31, 2009:

• net income totaled $11,976,000, equal to $0.40 per share (diluted), compared to net income of $36,540,000, equal to $1.22 per share (diluted), for the year ended December 31, 2008.

• revenue totaled $307,664,000, compared to revenue of $459,010,000 in the prior year.

Commenting on results, Bob Akins, Cymer’s chief executive officer, said, “Over the course of 2009 we invested in technology and product leadership and positioned the company for future growth in what was a very challenging year for the global economy and semiconductor industry. We are pleased with our solid financial performance in the fourth quarter as we further benefited from an improving business environment, our reduced cost structure, and increased operational efficiencies. I would like to thank Cymer employees worldwide for their dedication to the success of our customers and their drive towards continued technology leadership.”

In the fourth quarter of 2009, the company shipped 13 light sources, all of which were XLR, and installed 31 light sources at chipmaker locations, of which 19 were argon fluoride (ArF) immersion. The company reported gross profit of $46.3 million for the fourth quarter of 2009, yielding a 48 percent gross margin. Total operating expenses, which include research and development and selling and administrative expenses, were $26.6 million. Total operating income was $19.7 million or 20.4 percent of revenue. The fourth quarter effective tax rate was 44.8 percent.

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Deep ultraviolet (DUV) bookings for the fourth quarter of 2009 totaled $101.2 million, resulting in a book-to-bill ratio of 1.05. Seventy-two percent of the light source bookings in the fourth quarter were ArF immersion technology buys and twenty-eight percent were for KrF capacity expansion. The company ended the quarter with a DUV backlog of approximately $46.0 million, with ArF immersion light sources comprising approximately 84 percent of the value of sources in backlog.

For the full year 2009, the company shipped 38 light sources, of which 35 were XLR, and installed 78 light sources at chipmaker locations, of which 46 were ArF immersion. The company reported gross profit of $136.4 million for the full year of 2009, yielding a 44.3 percent gross margin. Total operating expenses for the year of $118.4 million includes research and development, selling and administrative and restructuring expenses. Total operating income was $18.0 million or approximately six percent of revenue.

As of December 31, 2009, cash and investments totaled $186 million, an increase of $28 million, or 18 percent, from September 30, 2009.

Corporate Outlook

Commenting on the outlook, Akins stated, “As we enter 2010, the outlook for our industry and Cymer’s business is very encouraging. We would expect to see an increased level of chipmaker investment in advanced immersion lithography in support of the transition to 45nm and below nodes, and a growing need for KrF tools to support capacity expansions. We also expect chipmaker utilization to remain at or above fourth quarter 2009 levels for the foreseeable future, resulting in strong demand for our Installed Base Product support. We continue to invest in our laser produced plasma EUV light source technology, and we are optimistic about our position in the display market with our TCZ laser crystallization tool for OLED manufacturing.”

Based on information available at this time, Cymer is providing the following guidance for the first quarter of 2010:

• Revenue to increase approximately 10 percent as compared to the revenue reported for the fourth quarter of 2009 on the strength of light source sales.

• Gross margin to be approximately 47 to 49 percent.

• R&D expenses to be approximately $18.5 million.

• SG&A expenses to be in the range of $12.5 to $13.0 million.

• The annual effective tax rate to be approximately 32 to 35 percent.

Cymer’s management will hold a conference call at 2:00 pm (PST) today, January 28, 2010, to discuss fourth quarter and 2009 operating results and first 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 atwww.cymer.com.

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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 company’s future growth, the benefits from the company’s investment in technology and product leadership, the improving business environment, 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.

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.

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Cymer, Inc.

	Three Months Ended Dec 31				Years Ended Dec 31
	2009		2008		2009		2008
Total revenues	$	96,404,000	$	100,448,000	$	307,664,000	$	459,010,000
Net income	$	12,153,000	$	3,984,000	$	11,976,000	$	36,540,000
Diluted earnings per share	$	0.40	$	0.13	$	0.40	$	1.22
Weighted average common shares outstanding—diluted		30,264,000		29,645,000		29,945,000		29,992,000

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CYMER, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(In thousands, except per share data)

	Three Months Ended December 31,						Years Ended December 31,
	2009			2008			2009			2008
REVENUES:
Product sales	$	96,071		$	99,967		$	306,795		$	456,729
Product sales—related party		333			481			869			2,281
Total revenues		96,404			100,448			307,664			459,010
COST OF REVENUES		50,154			54,636			171,250			240,768
GROSS PROFIT		46,250			45,812			136,414			218,242
OPERATING EXPENSES:
Research and development		15,823			23,957			65,809			95,229
Sales and marketing		4,019			5,347			16,603			23,713
General and administrative		6,730			9,090			27,569			36,180
Restructuring		—			3,038			8,407			3,038
Total operating expenses		26,572			41,432			118,388			158,160
OPERATING INCOME		19,678			4,380			18,026			60,082
OTHER INCOME (EXPENSE):
Foreign currency exchange gain (loss)		381			(214	)		(1,107	)		(6,642	)
Write-down of investment		—			(206	)		(291	)		(5,309	)
Interest and other income		166			1,123			1,509			8,845
Interest and other expense		(108	)		(1,769	)		(1,029	)		(6,712	)
Total other income (expense)—net		439			(1,066	)		(918	)		(9,818	)
INCOME BEFORE INCOME TAX PROVISION		20,117			3,314			17,108			50,264
INCOME TAX PROVISION		9,021			154			8,389			16,587
NET INCOME		11,096			3,160			8,719			33,677
Net loss attributable to noncontrolling interest in subsidiary		1,057			824			3,257			2,863
NET INCOME ATTRIBUTABLE TO CYMER, INC.	$	12,153		$	3,984		$	11,976		$	36,540
EARNINGS PER SHARE:
Basic earnings per share	$	0.41		$	0.13		$	0.40		$	1.22
Weighted average common shares outstanding—basic		29,861			29,596			29,738			29,924
Diluted earnings per share	$	0.40		$	0.13		$	0.40		$	1.22
Weighted average common shares outstanding—diluted		30,264			29,645			29,945			29,992

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CYMER, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In thousands, except share data)

	December 31,			December 31,
	2009			2008
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	118,381		$	252,391
Restricted cash		1,200			—
Short-term investments		62,895			30,900
Accounts receivable—net		76,792			64,296
Accounts receivable—related party		732			818
Inventories		185,077			194,746
Deferred and prepaid income taxes		45,689			46,886
Prepaid expenses and other assets		12,121			9,344
Total current assets		502,887			599,381
PROPERTY AND EQUIPMENT—NET		106,755			114,390
LONG-TERM INVESTMENTS		5,167			9,456
DEFERRED INCOME TAXES		26,998			29,168
GOODWILL		8,833			8,833
INTANGIBLE ASSETS—NET		8,327			9,898
OTHER ASSETS		5,951			6,318
TOTAL ASSETS	$	664,918		$	777,444
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	21,756		$	15,003
Accounts payable—related party		9,284			4,108
Accrued warranty		16,640			23,565
Accrued payroll and benefits		16,434			12,682
Accrued patents, royalties and other fees		3,501			3,795
Convertible subordinated notes		—			140,722
Accrued income taxes		12,363			1,085
Deferred revenue		22,339			15,344
Accrued and other current liabilities		1,306			8,278
Total current liabilities		103,623			224,582
ACCRUED INCOME TAXES		11,562			18,447
DEFERRED REVENUE		525			—
OTHER LIABILITIES		7,570			11,791
Total liabilities		123,280			254,820
STOCKHOLDERS’ 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; 42,751,000 shares issued and 29,899,000 shares outstanding at December 31, 2009; 42,461,000 shares issued and 29,609,000 shares outstanding at December 31, 2008		43			42
Additional paid-in capital		598,314			586,539
Treasury stock at cost (12,852,000 common shares at December 31, 2009 and December 31, 2008)		(473,580	)		(473,580	)
Accumulated other comprehensive loss		(8,280	)		(5,999	)
Retained earnings		422,750			410,774
Total Cymer, Inc. stockholders’ equity		539,247			517,776
Noncontrolling interest		2,391			4,848
Total stockholders’ equity		541,638			522,624
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	664,918		$	777,444

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CYMER, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(In thousands)

	Years Ended December 31,
	2009			2008
OPERATING ACTIVITIES:
Net income	$	8,719		$	33,677
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		21,057			26,633
Stock-based compensation		5,667			5,630
Bad debt expense		2			1,885
Provision for deferred income taxes		2,328			(16,152	)
Loss on disposal or impairment of property and equipment		1,881			297
Write-down of investments		291			5,309
Change in assets and liabilities:
Restricted cash		(1,200	)		—
Accounts receivable		(12,651	)		26,275
Accounts receivable—related party		86			294
Inventories		9,487			(63,620	)
Prepaid expenses and other assets		(2,684	)		(2,414	)
Accounts payable		6,626			(8,788	)
Accounts payable—related party		5,176			(320	)
Accrued and other liabilities		(14,536	)		(13,557	)
Deferred revenue		7,379			4,909
Income taxes payable and accrued income taxes		4,254			(11,234	)
Net cash provided by (used in) operating activities		41,882			(11,176	)
INVESTING ACTIVITIES:
Acquisition of property and equipment		(14,831	)		(23,689	)
Purchases of investments		(94,161	)		(90,309	)
Proceeds from sold or matured investments		65,909			95,051
Net cash used in investing activities		(43,083	)		(18,947	)
FINANCING ACTIVITIES:
Proceeds from issuance of common stock		6,744			2,506
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		267			58
Repurchase of common stock into treasury		—			(22,876	)
Net cash used in financing activities		(132,911	)		(18,312	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS		102			(4,881	)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(134,010	)		(53,316	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR		252,391			305,707
CASH AND CASH EQUIVALENTS AT END OF THE YEAR	$	118,381		$	252,391
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid	$	2,803		$	5,549
Income taxes paid	$	11,232		$	45,770
NONCASH OPERATING AND FINANCING ACTIVITIES:
In transit funds from the issuance of common stock	$	81			—

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