SOURCE:
Varian Semiconductor
2008-07-24 15:31:00
Varian Semiconductor Equipment Associates Reports Fiscal 2008 Third Quarter Results
GLOUCESTER, MA–(EMWNews – July 24, 2008) – Varian Semiconductor Equipment Associates,
Inc. (“Varian Semiconductor”) (
its fiscal 2008 third quarter ended June 27, 2008.
Revenue for the third quarter of fiscal 2008 totaled $182.6 million,
compared to revenue of $288.8 million for the same period a year ago.
Varian Semiconductor recorded net income of $18.3 million, or $0.25 per
diluted share during the third quarter of fiscal 2008, compared to net
income of $23.4 million, or $0.29 per diluted share for the same period a
year ago.
Gary Dickerson, Varian Semiconductor’s chief executive officer, said, “With
slower overall business conditions, we are aggressively driving new product
and application development to improve our position when capital spending
increases. With these new product and application opportunities, we should
capture more of the market and grow the overall total available market for
ion implantation equipment.”
Bob Halliday, chief financial officer, provided forward guidance for the
fourth quarter of fiscal year 2008 by stating, “We currently expect revenue
to be between $130 and $140 million, with earnings slightly above
break-even. We have taken a number of cost-cutting actions, including a
shutdown during the last week of August. We continue to drive cost
reductions, including additional shutdowns in the calendar year.”
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 2008
revenue and earnings per share, market share, expected product plans,
financial performance, market conditions, Varian Semiconductor’s
positioning new products and applications for ion implant, 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 March 28, 2008 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
June 27, June 29, June 27, June 29,
2008 2007 2008 2007
---------- --------- ---------- ----------
Revenue
Product $ 159,283 $ 264,253 $ 629,755 $ 686,466
Service 23,307 21,940 62,183 63,112
Royalty 13 2,565 59 6,607
---------- --------- ---------- ----------
Total revenue 182,603 288,758 691,997 756,185
Cost of revenue 94,666 153,023 360,611 409,153
---------- --------- ---------- ----------
Gross profit 87,937 135,735 331,386 347,032
---------- --------- ---------- ----------
Operating expenses
Research and development 27,187 26,267 84,469 76,046
Marketing, general and
administrative 32,116 31,498 97,517 94,524
Restructuring 646 - 646 -
---------- --------- ---------- ----------
Total operating expenses 59,949 57,765 182,632 170,570
---------- --------- ---------- ----------
Operating income 27,988 77,970 148,754 176,462
Interest income, net 1,773 4,500 6,636 15,919
Other income (expense), net 179 (292) 272 401
---------- --------- ---------- ----------
Income before income taxes 29,940 82,178 155,662 192,782
Provision for income taxes 11,616 58,792 59,617 93,981
---------- --------- ---------- ----------
Net income $ 18,324 $ 23,386 $ 96,045 $ 98,801
========== ========= ========== ==========
Weighted average shares
outstanding - basic 72,606 79,052 73,881 81,392
Weighted average shares
outstanding - diluted 73,879 81,116 75,339 83,297
Net income per share -
basic $ 0.25 $ 0.30 $ 1.30 $ 1.21
Net income per share -
diluted $ 0.25 $ 0.29 $ 1.27 $ 1.19
VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 27, September 28,
2008 2007
------------ ------------
ASSETS
Current assets
Cash and cash equivalents $ 121,131 $ 109,514
Short-term investments 55,247 88,384
Accounts receivable, net 153,578 189,573
Inventories 165,941 170,293
Deferred income taxes 35,388 27,907
Other current assets 18,188 26,010
------------ ------------
Total current assets 549,473 611,681
Long-term investments 76,719 96,153
Property, plant and equipment, net 69,246 73,980
Other assets 16,886 17,274
------------ ------------
Total assets $ 712,324 $ 799,088
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt $ 545 $ 510
Accounts payable 30,959 49,863
Accrued expenses 58,569 55,289
Product warranty 9,711 12,183
Deferred revenue 37,255 54,742
------------ ------------
Total current liabilities 137,039 172,587
Long-term accrued expenses and other
liabilities 64,582 53,904
Deferred income taxes 3,685 3,858
Long-term debt 2,410 2,761
------------ ------------
Total liabilities 207,716 233,110
------------ ------------
Stockholders' equity
Common stock 933 927
Capital in excess of par value 572,179 548,426
Less: Cost of treasury stock (714,877) (535,423)
Retained earnings 647,562 553,221
Accumulated other comprehensive loss (1,189) (1,173)
------------ ------------
Total stockholders' equity 504,608 565,978
------------ ------------
Total liabilities and stockholders'
equity $ 712,324 $ 799,088
============ ============
| Contacts: Bob Halliday Executive Vice President and Chief Financial Officer 978.282.7597 or Mary Wright Director, Investor Relations 978.282.5859 or Tom Baker Vice President, Finance 978.282.2301 |
|
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