) has reported first quarter 2012 earnings of 68 cents per share,
strongly beating the Zacks Consensus Estimate of 24 cents on a
favorable tax rate.
Cymer reported revenue of $150.5 million in the first quarter,
down 2.5% from $154.4 million in the year-ago period. However,
revenue surpassed the Zacks Consensus Estimate of $139.0 million,
thanks to customer acceptance on the three extreme ultraviolet
(EUV) 3100 sources and strong demand for deep ultraviolet (DUV)
light sources. OnPulse revenue was strong driven by the mix of
higher value ArF pulses and installed base growth.
In the quarter, the company shipped 26 DUV light sources, of
which 17 were ArF immersion and 9 were KrF, and the company
installed 47 DUV light sources at chipmaker locations.
In the reported quarter, DUV and Installed Base Products' (IBP)
bookings totaled $135.8 million, leaving Cymer with a book-to-bill
ratio of 1.06, reflecting strong growth in 2012. The company ended
the quarter with a DUV backlog of approximately $56.2 million.
The reported gross profit decreased 5.0% year over year to $75.5
million. Gross margin decreased 130 basis points from the year-ago
quarter to 50.2% due to weak revenue.
Operating income came in at $16.7 million, up 53.2% year over
year. Operating margin decreased 1,200 basis points year over year
to 53.2%. R&D and S&M expenses increased as a percentage of
sales, as did SG&A expenses. Lower gross margins also led to
the decline in the quarter's operating margin.
Reported net income was $21.5 million or 68 cents per share,
down from $28.8 million or 94 cents in the comparable quarter last
Balance Sheet & Cash Flow
Cymer exited the first quarter with cash, cash equivalents,
restricted cash and short-term investments of approximately $2.7
billion, up from $2.6 billion in the prior quarter. Trade
receivables were $126.9 million, up from $124.0 million in the
Cash flow from operations was $31.6 million, up from $12.1
million in the previous quarter. Capital expenditure increased to
$9.3 million from $4.3 million in the prior quarter.
For the second quarter of 2012, Cymer expects total revenue of
approximately $151 million. Gross margin is expected to be 50%,
R&D expenses of $58 million, SG&A expenses of $16.5
million, and an effective tax rate of 0%.
Cymer is the world's leading supplier of light sources, which
are contained within excimer laser-based photolithography systems.
The first quarter was lackluster, with both revenue and earnings
lagging prior-year figures. However, the revenue and earnings
numbers were above the Zacks Consensus Estimates.
Cymer holds 80% share of the entire installed base of DUV
lithography tools and is well positioned for growth in the long
term. The company continues to expand installed base product
offering by introducing new advanced performance enhancements and
data offerings to OnPulse customers. We also remain encouraged by
the strong bookings growth in the first quarter and expect strong
recovery in the coming quarters.
Currently, Cymer has only one DUV light source competitor,
Gigaphoton. Gigaphoton is a wholly owned subsidiary of
) and is headquartered in Japan. In the development of EUV source
technology, the company faces competition from Gigaphoton as well
Currently, Cymer has a Zacks #3 Rank, implying a short-term Hold
CYMER INC (
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