) has reported third quarter 2012 earnings of 31 cents per share,
comprehensively beating the Zacks Consensus Estimate of 7 cents
on the back of higher gross margins.
Cymer reported revenue of $131.5 million in the third quarter,
up 2.2% from $128.7 million in the year-ago period. However,
revenue was down 11.9% sequentially and below the management
guidance of $151 million due to weak demand for deep ultraviolet
(DUV) light source throughout the quarter.
OnPulse revenue was strong on the mix of higher value ArF
pulses and continued light source installed base growth.
During the quarter, the company shipped 27 DUV light sources,
of which 17 were ArF immersion and 10 were KrF. The company also
installed 24 DUV light sources at chipmaker locations.
In the reported quarter, DUV and Installed Base Products (IBP)
bookings totaled $112.4 million, leaving Cymer with a
book-to-bill ratio of 0.86. The company ended the quarter with a
DUV backlog of approximately $50.3 million.
Reported gross profit increased 10.3% year over year to $71.8
million. Gross margin increased 400 basis points from the
year-ago quarter to 54.6% due to higher revenue.
Operating income came in at $9.0 million, down 32.8% year over
year. Operating margin decreased 360 basis points year over year
to 6.8%. Research and development (R&D) and general and
administrative (G&A) expenses increased while selling and
marketing (S&M) expenses decreased as a percentage of
Reported net income was $9.8 million or 31 cents per share,
down from $11.3 million or 36 cents in the comparable quarter
Balance Sheet & Cash Flow
Cymer exited the third quarter with cash, cash equivalents,
restricted cash and short-term investments of approximately $2.7
billion, down from $2.8 billion in the prior quarter. Trade
receivables were $130.0 million, down from $132.6 million in the
Cymer is the world's leading supplier of light sources that
are contained within excimer laser-based photolithography
systems. The third quarter results were decent, with revenue
coming above the prior-year figures. Also, the earnings surpassed
the Zacks Consensus Estimate.
Cymer holds approximately 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.
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 #5 Rank, implying a short-term
Strong Sell rating.
CYMER INC (CYMI): Free Stock Analysis Report
(KMTUY): ETF Research Reports
To read this article on Zacks.com click here.