Science & Technology
Science and Technology
Science and Technology
Mon, August 3, 2009
Fri, July 31, 2009
Thu, July 30, 2009 Varian Semiconductor: Varian Semiconductor Equipment Associates Reports Fiscal 2009 Third Quarter Results
GLOUCESTER, MA--(Marketwire - July 30, 2009) - Varian Semiconductor Equipment Associates, Inc. ("Varian Semiconductor") (
Revenue for the third quarter of fiscal 2009 totaled $73.4 million, compared to revenue of $182.6 million for the same period a year ago. Varian Semiconductor recorded a net loss of $14.3 million, or $0.20 per diluted share during the third quarter of fiscal 2009, compared to net income of $18.3 million, or $0.25 per diluted share for the same period a year ago.
Gary Dickerson, Varian Semiconductor's chief executive officer, said, "The last nine months have been very challenging. With the great support of our employees, our tactical response was to quickly and aggressively tighten our belts. Our strategic response was to increase our level of spending on, and commitment to, growth opportunities in our existing and new markets. While it is very encouraging that business conditions in our current markets are improving, it is just as rewarding that the early results are quite positive in new markets. We anticipate that we will look back at 2008 and 2009 as similar to 2002 and 2003 -- as a time when we bridged difficult periods while sustaining the investments to fuel future growth."
Bob Halliday, chief financial officer, provided forward guidance for the fourth quarter of fiscal year 2009 by stating, "Fourth quarter revenue is expected to be between $104 and $114 million. Gross margins are projected to increase to between 43% and 44%. Earnings per share are anticipated to range from $0.01 to $0.06 per diluted share. These earnings per share include non-cash charges of approximately $9.0 million for depreciation and equity compensation expense."
Varian Semiconductor will hold a conference call, broadcast over the Internet, at 5:30 p.m. eastern time today to discuss Varian Semiconductor's operating results and outlook. Access to the call is available through the investor relations page on Varian Semiconductor's website at www.vsea.com. Replays will be available via the website for two weeks after the call.
About Varian Semiconductor Equipment Associates, Inc.
Varian Semiconductor is the leading producer of ion implantation equipment used in the manufacture of semiconductors. Varian Semiconductor is headquartered in Gloucester, Massachusetts, and operates worldwide. Varian Semiconductor maintains a website at www.vsea.com. The information contained in Varian Semiconductor's website is not incorporated by reference into this release, and the website address is included in this release as an inactive textual reference only.
Note: This press release contains forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. For this purpose, statements concerning the industry outlook, Varian Semiconductor's guidance for fourth quarter fiscal 2009 revenue, earnings per share, market share, expected product plans, financial performance, market conditions, Varian Semiconductor's investment in new product and application development, and any statements using the terms "believes," "anticipates," "will," "expects," "plans" or similar expressions, are forward-looking statements. The forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: volatility in the semiconductor equipment industry; intense competition in the semiconductor equipment industry; Varian Semiconductor's dependence on a small number of customers; fluctuations in Varian Semiconductor's quarterly operating results; Varian Semiconductor's transition to new products; Varian Semiconductor's exposure to risks of operating internationally; uncertain protection of Varian Semiconductor's patent and other proprietary rights; Varian Semiconductor's reliance on a limited group of suppliers; Varian Semiconductor's ability to manage potential growth, decline and strategic transactions; Varian Semiconductor's reliance on one primary manufacturing facility; and Varian Semiconductor's dependence on certain key personnel. These and other important risk factors that may affect actual results are discussed in detail under the caption "Risk Factors" in Varian Semiconductor's Quarterly Report on Form 10-Q for the quarter ended April 3, 2009 and in other reports filed by Varian Semiconductor with the Securities and Exchange Commission. Varian Semiconductor cannot guarantee any future results, levels of activity, performance or achievement. Varian Semiconductor undertakes no obligation to update any of the forward-looking statements after the date of this release.
VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) Fiscal Three Months Fiscal Nine Months Ended Ended --------------------- --------------------- July 3, June 27, July 3, June 27, 2009 2008 2009 2008 --------- ---------- --------- ---------- Revenue Product $ 62,695 $ 159,283 $ 203,681 $ 629,755 Service 10,663 23,307 40,813 62,183 Royalty 20 13 79 59 --------- ---------- --------- ---------- Total revenue 73,378 182,603 244,573 691,997 Cost of revenue 45,217 94,666 155,248 360,611 --------- ---------- --------- ---------- Gross profit 28,161 87,937 89,325 331,386 --------- ---------- --------- ---------- Operating expenses Research and development 19,104 27,187 60,174 84,469 Marketing, general and administrative 22,150 32,116 73,000 97,517 Restructuring 672 646 8,972 646 --------- ---------- --------- ---------- Total operating expenses 41,926 59,949 142,146 182,632 --------- ---------- --------- ---------- Operating (loss) income (13,765) 27,988 (52,821) 148,754 Interest income, net 1,043 1,773 3,512 6,636 Other (expense) income, net (217) 179 (744) 272 --------- ---------- --------- ---------- (Loss) income before income taxes (12,939) 29,940 (50,053) 155,662 Provision for (benefit from) income taxes 1,318 11,616 (2,614) 59,617 --------- ---------- --------- ---------- Net (loss) income $ (14,257) $ 18,324 $ (47,439) $ 96,045 ========= ========== ========= ========== Weighted average shares outstanding - basic 72,460 72,606 72,200 73,881 Weighted average shares outstanding - diluted 72,460 73,879 72,200 75,339 Net (loss) income per share - basic $ (0.20) $ 0.25 $ (0.66) $ 1.30 Net (loss) income per share - diluted $ (0.20) $ 0.25 $ (0.66) $ 1.27 VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) July 3, October 3, 2009 2008 --------- --------- ASSETS Current assets Cash and cash equivalents $ 177,641 $ 139,679 Short-term investments 53,791 68,996 Accounts receivable, net 99,401 128,904 Inventories 102,521 165,201 Deferred income taxes 25,754 21,902 Other current assets 22,692 24,447 --------- --------- Total current assets 481,800 549,129 Long-term investments 62,798 69,491 Property, plant and equipment, net 67,486 66,636 Other assets 14,791 14,889 --------- --------- Total assets $ 626,875 $ 700,145 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current portion of long-term debt $ 597 $ 558 Accounts payable 12,883 29,072 Accrued expenses 25,661 45,485 Product warranty 3,923 7,661 Deferred revenue 19,617 32,285 --------- --------- Total current liabilities 62,681 115,061 Long-term accrued expenses and other liabilities 64,716 63,627 Deferred income taxes 5,883 3,951 Long-term debt 1,750 2,203 --------- --------- Total liabilities 135,030 184,842 ========= ========= Stockholders' equity Common stock 943 935 Capital in excess of par value 603,513 581,492 Less: Cost of treasury stock (714,877) (714,877) Retained earnings 602,491 649,930 Accumulated other comprehensive loss (225) (2,177) --------- --------- Total stockholders' equity 491,845 515,303 --------- --------- Total liabilities and stockholders' equity $ 626,875 $ 700,145 ========= =========
