Varian Semiconductor Equipment Associates, Inc. ("Varian
Semiconductor") (NASDAQ: VSEA) today announced results for its
fiscal 2009 second quarter ended April 3, 2009.
Revenue for the second quarter of fiscal 2009 totaled $63.8
million, compared to revenue of $255.3 million for the same period
a year ago. Varian Semiconductor recorded a net loss of $19.6
million, or $0.27 per diluted share during the second quarter of
fiscal 2009, compared to net income of $34.1 million, or $0.45 per
diluted share for the same period a year ago.
Gary Dickerson, Varian Semiconductor's chief executive officer,
said, "The 2009 economic environment remains challenging. However,
for Varian we also see 2009 as a year of great opportunity as we
invest in new product and application development and we see early,
positive market acceptance."
Bob Halliday, chief financial officer, provided forward guidance
for the third quarter of fiscal year 2009 by stating, "Third
quarter revenue should be between $60 and $70 million. We expect to
have a pre-tax loss of approximately $19 million in the third
quarter, an improvement of $4.6 million from the second quarter.
This pre-tax loss includes non-cash charges of approximately $9.2
million for depreciation and equity compensation expense. We expect
a net loss of $19 million in the third quarter. We expect to reduce
third quarter operating expenses by approximately $2.7 million from
the second quarter, including a $1.6 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 third quarter fiscal 2009 revenue, loss before taxes, and
operating expenses, market share, expected product plans, financial
performance, market conditions, Varian Semiconductor's investment
in new product and application development, 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 Fiscal Six Months
Ended Ended
--------------------- ---------------------
April 3, March 28, April 3, March 28,
2009 2008 2009 2008
--------- ---------- --------- ----------
Revenue
Product $ 48,958 $ 234,962 $ 140,986 $ 470,472
Service 14,785 20,347 30,150 38,876
Royalty 11 29 59 46
--------- ---------- --------- ----------
Total revenue 63,754 255,338 171,195 509,394
Cost of revenue 42,493 134,093 110,031 265,945
--------- ---------- --------- ----------
Gross profit 21,261 121,245 61,164 243,449
--------- ---------- --------- ----------
Operating expenses
Research and development 18,990 28,539 41,070 57,282
Marketing, general and
administrative 24,090 32,838 50,850 65,401
Restructuring 2,051 - 8,300 -
--------- ---------- --------- ----------
Total operating expenses 45,131 61,377 100,220 122,683
--------- ---------- --------- ----------
Operating (loss) income (23,870) 59,868 (39,056) 120,766
Interest income, net 754 2,156 2,469 4,863
Other (expense) income, net (445) 44 (527) 93
--------- ---------- --------- ----------
(Loss) income before income
taxes (23,561) 62,068 (37,114) 125,722
(Benefit from) provision for
income taxes (3,937) 28,014 (3,932) 48,001
--------- ---------- --------- ----------
Net (loss) income $ (19,624) $ 34,054 $ (33,182) $ 77,721
========= ========== ========= ==========
Weighted average shares
outstanding - basic 72,244 74,106 72,070 74,518
Weighted average shares
outstanding - diluted 72,244 75,252 72,070 76,002
Net (loss) income per
share - basic $ (0.27) $ 0.46 $ (0.46) $ 1.04
Net (loss) income per
share - diluted $ (0.27) $ 0.45 $ (0.46) $ 1.02
VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
April 3, October 3,
2009 2008
---------- ----------
ASSETS
Current assets
Cash and cash equivalents $ 197,617 $ 139,679
Short-term investments 45,938 68,996
Accounts receivable, net 76,918 128,904
Inventories 127,163 165,201
Deferred income taxes 23,864 21,902
Other current assets 24,572 24,447
---------- ----------
Total current assets 496,072 549,129
Long-term investments 64,672 69,491
Property, plant and equipment, net 64,006 66,636
Other assets 14,715 14,889
---------- ----------
Total assets $ 639,465 $ 700,145
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt $ 584 $ 558
Accounts payable 14,847 29,072
Accrued expenses 28,507 45,485
Product warranty 4,566 7,661
Deferred revenue 22,639 32,285
---------- ----------
Total current liabilities 71,143 115,061
Long-term accrued expenses and other
liabilities 63,665 63,627
Deferred income taxes 3,951 3,951
Long-term debt 1,904 2,203
---------- ----------
Total liabilities 140,663 184,842
========== ==========
Stockholders' equity
Common stock 942 935
Capital in excess of par value 597,609 581,492
Less: Cost of treasury stock (714,877) (714,877)
Retained earnings 616,748 649,930
Accumulated other comprehensive loss (1,620) (2,177)
---------- ----------
Total stockholders' equity 498,802 515,303
---------- ----------
Total liabilities and
stockholders' equity $ 639,465 $ 700,145
========== ==========
Contacts: Bob Halliday Executive Vice President and Chief
Financial Officer 978.282.7597 or Tom Baker Vice President, Finance
978.282.2301
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