Varian Semiconductor Equipment Associates, Inc. ("Varian
Semiconductor") (NASDAQ: VSEA) today announced results for its
fiscal 2009 first quarter ended January 2, 2009.
Revenue for the first quarter of fiscal 2009 totaled $107.4
million, compared to revenue of $254.1 million for the same period
a year ago. Varian Semiconductor recorded a net loss of $13.6
million, or $0.19 per diluted share during the first quarter of
fiscal 2009, compared to net income of $43.7 million, or $0.57 per
diluted share for the same period a year ago.
Gary Dickerson, Varian Semiconductor's chief executive officer,
said, "The rate of deterioration in the semiconductor capital
equipment industry has been unprecedented. We have implemented
significant cost reductions across the company to make sure that we
continue to remain in a strong financial position regardless of the
length of this downturn. We also continue to invest in product and
applications development initiatives to drive future growth and
margin expansion, and continue to be optimistic that our product
and technology roadmaps will give us leverage in the recovery."
Bob Halliday, chief financial officer, provided forward guidance
for the second quarter of fiscal year 2009 by stating, "Second
quarter revenue should be between $60 and $70 million. We expect to
lose between approximately $21 and $25 million before taxes in the
second quarter. That loss includes a restructuring charge of
approximately $2 million. We expect to reduce second quarter
operating expenses by approximately $10 million from the first
quarter, including a $4.2 million reduction in restructuring
expense."
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 2009 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 Annual Report on Form 10-K for the year ended
October 3, 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 Ended
---------------------------
January 2, December 28,
2009 2007
------------ -------------
Revenue
Product $ 92,028 $ 235,510
Service 15,365 18,529
Royalty 48 17
------------ -------------
Total revenue 107,441 254,056
Cost of revenue 67,538 131,852
------------ -------------
Gross profit 39,903 122,204
------------ -------------
Operating expenses
Research and development 22,080 28,743
Marketing, general and administrative 26,760 32,563
Restructuring 6,249 -
------------ -------------
Total operating expenses 55,089 61,306
------------ -------------
Operating (loss) income (15,186) 60,898
Interest income, net 1,715 2,707
Other (expense) income, net (82) 49
------------ -------------
Income (loss) before income taxes (13,553) 63,654
Provision for income taxes 5 19,987
------------ -------------
Net (loss) income $ (13,558) $ 43,667
============ =============
Weighted average shares outstanding - basic 71,896 74,930
Weighted average shares outstanding - diluted 71,896 76,608
Net (loss) income per share - basic $ (0.19) $ 0.58
Net (loss) income per share - diluted $ (0.19) $ 0.57
VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
January 2, October 3,
2009 2008
------------ ------------
ASSETS
Current assets
Cash and cash equivalents $ 170,023 $ 139,679
Short-term investments 53,642 68,996
Accounts receivable, net 123,068 128,904
Inventories 144,571 165,201
Deferred income taxes 22,348 21,902
Other current assets 23,321 24,447
------------ ------------
Total current assets 536,973 549,129
Long-term investments 60,231 69,491
Property, plant and equipment, net 64,482 66,636
Other assets 14,836 14,889
------------ ------------
Total assets $ 676,522 $ 700,145
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt $ 571 $ 558
Accounts payable 21,839 29,072
Accrued expenses 37,028 45,485
Product warranty 6,289 7,661
Deferred revenue 31,138 32,285
------------ ------------
Total current liabilities 96,865 115,061
Long-term accrued expenses and other
liabilities 63,774 63,627
Deferred income taxes 3,951 3,951
Long-term debt 2,054 2,203
------------ ------------
Total liabilities 166,644 184,842
============ ============
Stockholders' equity
Common stock 938 935
Capital in excess of par value 589,370 581,492
Less: Cost of treasury stock (714,877) (714,877)
Retained earnings 636,372 649,930
Accumulated other comprehensive loss (1,925) (2,177)
------------ ------------
Total stockholders' equity 509,878 515,303
------------ ------------
Total liabilities and stockholders'
equity $ 676,522 $ 700,145
============ ============
Contacts: Bob Halliday Executive Vice President and Chief
Financial Officer 978.282.7597 Mary Wright Director, Investor
Relations 978.282.5859 Tom Baker Vice President, Finance
978.282.2301
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