GLOUCESTER, MA (NASDAQ: VSEA) today announced results for its
fiscal 2008 first quarter ended December 28, 2007.
Revenue for the first quarter of fiscal 2008 totaled $254.1
million, compared to revenue of $225.6 million for the same period
a year ago. Varian Semiconductor recorded net income of $43.7
million, or $0.57 per diluted share during the first quarter of
fiscal 2008, compared to net income of $37.0 million, or $0.44 per
diluted share for the same period a year ago.
Gary Dickerson, Varian Semiconductor's chief executive officer,
said, "In calendar year 2007, Varian Semiconductor achieved record
market share, improved operating margins, and extended its product
leadership, including the introduction of PLAD into volume
production. In calendar year 2008, Varian should continue to gain
market share and further advance its product leadership. However,
we see calendar year 2008 as a reduced spending year for our
customers, particularly for manufacturers of DRAM devices.
Therefore, we will maintain a conservative operating posture for
the near term."
Robert Halliday, chief financial officer, provided forward
guidance for the second quarter of fiscal 2008. "We currently
expect revenue to be between $250 and $260 million. Earnings per
share are anticipated to range from $0.50 to $0.55 per diluted
share."
Robert Halliday further added, "Although our visibility into the
third quarter of fiscal 2008 is very limited, we are concerned
about anticipated spending reductions by our customers and are
tentatively planning for a shutdown for the last week of June and
the first week of July."
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 second quarter fiscal 2008 revenue and earnings per share,
market share, expected product plans, financial performance, market
conditions for 2008, 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 Annual
Report on Form 10-K for the year ended September 28, 2007 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 Ended
---------------------------
December 28, December 29,
2007 2006
------------- -------------
Revenue
Product $ 235,510 $ 202,350
Service 18,529 21,477
Royalty 17 1,796
------------- -------------
Total revenue 254,056 225,623
Cost of revenue 131,852 125,170
------------- -------------
Gross profit 122,204 100,453
------------- -------------
Operating expenses
Research and development 28,743 24,223
Marketing, general & administrative 32,563 30,469
------------- -------------
Total operating expenses 61,306 54,692
------------- -------------
Operating income 60,898 45,761
Interest income, net 2,707 5,625
Other income (expense), net 49 715
------------- -------------
Income before income taxes 63,654 52,101
Provision for income taxes 19,987 15,109
------------- -------------
Net income $ 43,667 $ 36,992
============= =============
Weighted average shares outstanding - basic 74,930 83,127
Weighted average shares outstanding - diluted 76,608 84,646
Net income per share - basic $ 0.58 $ 0.45
Net income per share - diluted $ 0.57 $ 0.44
VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 28, September 28,
2007 2007
------------ ------------
ASSETS
Current assets
Cash and cash equivalents $ 108,957 $ 109,514
Short-term investments 80,322 88,384
Accounts receivable, net 214,118 189,573
Inventories 176,538 170,293
Deferred income taxes 28,866 27,907
Other current assets 14,715 26,010
------------ ------------
Total current assets 623,516 611,681
Long-term investments 73,649 96,153
Property, plant and equipment, net 68,956 73,980
Other assets 17,113 17,274
------------ ------------
Total assets $ 783,234 $ 799,088
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt $ 521 $ 510
Accounts payable 44,650 49,863
Accrued expenses 53,355 55,289
Product warranty 11,996 12,183
Deferred revenue 56,129 54,742
------------ ------------
Total current liabilities 166,651 172,587
Long-term accrued expenses and other
liabilities 60,229 53,904
Deferred income taxes 3,858 3,858
Long-term debt 2,626 2,761
------------ ------------
Total liabilities 233,364 233,110
------------ ------------
Stockholders' equity
Common stock 929 927
Capital in excess of par value 555,384 548,426
Less: Cost of treasury stock (600,465) (535,423)
Retained earnings 595,184 553,221
Accumulated other comprehensive loss (1,162) (1,173)
------------ ------------
Total stockholders' equity 549,870 565,978
------------ ------------
Total liabilities and stockholders'
equity $ 783,234 $ 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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