San Diego, Calif. – Cymer, a supplier of light sources used by chipmakers to create advanced semiconductor chips, announced operating results for the first quarter ended March 31, 2011. Revenue totaled $154.4 million compared to revenue of $113.8 million in the first quarter of 2010 and revenue of $146.9 million in the fourth quarter of 2010.
For the first quarter of 2011, net income totaled $28.8 million, equal to $0.94 per share (diluted), compared to net income of $16.0 million, equal to $0.53 per share (diluted) in the first quarter of 2010 and net income of $32.9 million, equal to $1.08 per share (diluted) in the fourth quarter of 2010.
Commenting on results, Bob Akins, Cymer's CEO, said, "The first quarter of 2011 was a very productive period for the company. Key customer deep ultraviolet (DUV) selections awarded in the second half of 2010 began to translate into an increased level of light source shipments in the first quarter of 2011, and first quarter gross pulse utilization remained high. We continued to increase our extreme ultraviolet (EUV) investment, adding technical and operational capability in support of the development of our 3100 and 3300 source technology. We continued our focus on ramping our TCZ manufacturing capability to fulfill recently received orders."
In the first quarter of 2011, the company shipped 50 light sources, of which 28 were ArF immersion, 19 were KrF, and three were ArF dry, and the company installed 46 light sources at chipmaker locations. Gross profit was $79.5 million for the first quarter of 2011, yielding a 51.5 percent gross margin. Total operating expenses, which include research and development and selling and administrative expenses, were $43.9 million. Total operating income was $35.7 million or 23.1 percent of revenue. The first quarter effective tax rate was 21 percent. As of March 31, 2011, cash and investments totaled approximately $242 million.
DUV bookings for the first quarter of 2011 totaled $161.5 million, resulting in a DUV book-to-bill ratio of 1.05. Fifty-seven percent of the DUV bookings in the first quarter were ArF immersion, 41 percent were KrF, and two percent were ArF dry. The company ended the quarter with a DUV backlog of $71.0 million, with ArF immersion light sources comprising approximately 83 percent of the value of sources in backlog.
"We are well positioned for continued growth in 2011," commented Akins on the outlook. "We are pleased to have received a multi-unit order valued at over 200 million dollars for the next generation of EUV light sources that will support the ASML NXE:3300 lithography system aimed at high-volume production of semiconductor devices at sub-20 nanometer nodes. We believe EUV will be a major impetus of future growth for Cymer and are therefore proportionately accelerating the rate of our investment in engineering, program management, field support and factory capacity keeping with planned source performance targets and increasing customer demand. In addition, we received a volume order for TCZ Gen 5.5 systems from a leading Asian flat panel display manufacturer. We now have orders for TCZ Gen 4 and Gen 5 systems in excess of $30 million, with options for additional systems in 2012.
"We anticipate gross pulse utilization to remain high in the second quarter of 2011. In our continuing effort to extend OnPulse value, this month we completed the acquisition of eDiag Solutions, a privately held company based in Seoul, Korea, for $15.0 million in cash, $6 million of which was paid at closing in the second quarter. eDiag provides a compelling portfolio of software solutions for lithography source performance data mining and analytics which complements our OnPulse offerings."
Based on information available at this time, Cymer is providing the following guidance for the second quarter of 2011:
* Revenue to be approximately $157 million.
* Gross margin to be approximately 50 percent.
* R&D expenses to be approximately $32 million.
* SG&A expenses to be approximately $17.5 million.
* The second quarter effective tax rate to be approximately 26 percent.
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