) has reported second quarter 2012 earnings of 30 cents per share,
comfortably beating the Zacks Consensus Estimate of 5 cents.
Cymer reported revenue of $149.3 million in the second quarter,
down 5.6% from $158.2 million in the year-ago period. However,
OnPulse revenue was strong on the mix of higher value ArF pulses
and continued light source installed base growth.
In the quarter, the company shipped 36 DUV light sources, of
which 20 were ArF immersion, 2 were ArF dry and 14 were KrF. The
company also installed 31 DUV light sources at chipmaker
In the reported quarter, DUV and Installed Base Products (IBP)
bookings totaled $154.7 million, leaving Cymer with a book-to-bill
ratio of 1.09, reflecting strong growth. The company ended the
quarter with a DUV backlog of approximately $69.0 million.
Reported gross profit decreased 6.4% year over year to $78.8
million. Gross margin decreased 40 basis points from the year-ago
quarter to 52.8% due to weak revenue.
Operating income came in at $11.2 million, down 69.6% year over
year. Operating margin decreased 1,580 basis points year over year
to 7.5%. R&D and S&M expenses increased as a percentage of
sales, as did SG&A expenses. Lower gross margins also resulted
in the decline in the quarter's operating margin.
Reported net income was $9.6 million or 30 cents per share, down
from $27.7 million or 89 cents in the comparable quarter last
Balance Sheet & Cash Flow
Cymer exited the second quarter with cash, cash equivalents,
restricted cash and short-term investments of approximately $2.8
billion, up from $2.7 billion in the prior quarter. Trade
receivables were $132.6 million, up from $126.9 million in the
Cash flow from operations was ($1.4) million, down from $31.6
million in the previous quarter. Capital expenditure increased to
$14 million from $9.3 million in the prior quarter.
For the third quarter of 2012, Cymer expects total revenue to
remain sequentially flat at approximately $151 million. The company
projected gross margin at 52%, R&D expenses of $57 million,
SG&A expenses of $17.5 million, and tax expense of $1.0
Cymer is the world's leading supplier of light sources that are
contained within excimer laser-based photolithography systems. The
second quarter lacked luster, with both revenue and earnings
lagging prior-year figures. However, the earnings surpassed the
Zacks Consensus Estimate.
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 its 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 second quarter and expect strong
recovery in the quarters ahead.
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 (CYMI): Free Stock Analysis Report
(KMTUY): ETF Research Reports
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