Varian Semiconductor Equipment Associates, Inc. ("Varian
Semiconductor") (NASDAQ: VSEA) today announced results for its
fiscal 2009 third quarter ended July 3, 2009.
Revenue for the third quarter of fiscal 2009 totaled $73.4
million, compared to revenue of $182.6 million for the same period
a year ago. Varian Semiconductor recorded a net loss of $14.3
million, or $0.20 per diluted share during the third quarter of
fiscal 2009, compared to net income of $18.3 million, or $0.25 per
diluted share for the same period a year ago.
Gary Dickerson, Varian Semiconductor's chief executive officer,
said, "The last nine months have been very challenging. With the
great support of our employees, our tactical response was to
quickly and aggressively tighten our belts. Our strategic response
was to increase our level of spending on, and commitment to, growth
opportunities in our existing and new markets. While it is very
encouraging that business conditions in our current markets are
improving, it is just as rewarding that the early results are quite
positive in new markets. We anticipate that we will look back at
2008 and 2009 as similar to 2002 and 2003 -- as a time when we
bridged difficult periods while sustaining the investments to fuel
future growth."
Bob Halliday, chief financial officer, provided forward guidance
for the fourth quarter of fiscal year 2009 by stating, "Fourth
quarter revenue is expected to be between $104 and $114 million.
Gross margins are projected to increase to between 43% and 44%.
Earnings per share are anticipated to range from $0.01 to $0.06 per
diluted share. These earnings per share include non-cash charges of
approximately $9.0 million for depreciation and equity compensation
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 fourth quarter fiscal 2009 revenue, earnings per share, 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 Quarterly Report on Form 10-Q for the quarter ended
April 3, 2009 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
--------------------- ---------------------
July 3, June 27, July 3, June 27,
2009 2008 2009 2008
--------- ---------- --------- ----------
Revenue
Product $ 62,695 $ 159,283 $ 203,681 $ 629,755
Service 10,663 23,307 40,813 62,183
Royalty 20 13 79 59
--------- ---------- --------- ----------
Total revenue 73,378 182,603 244,573 691,997
Cost of revenue 45,217 94,666 155,248 360,611
--------- ---------- --------- ----------
Gross profit 28,161 87,937 89,325 331,386
--------- ---------- --------- ----------
Operating expenses
Research and development 19,104 27,187 60,174 84,469
Marketing, general and
administrative 22,150 32,116 73,000 97,517
Restructuring 672 646 8,972 646
--------- ---------- --------- ----------
Total operating expenses 41,926 59,949 142,146 182,632
--------- ---------- --------- ----------
Operating (loss) income (13,765) 27,988 (52,821) 148,754
Interest income, net 1,043 1,773 3,512 6,636
Other (expense) income, net (217) 179 (744) 272
--------- ---------- --------- ----------
(Loss) income before income
taxes (12,939) 29,940 (50,053) 155,662
Provision for (benefit from)
income taxes 1,318 11,616 (2,614) 59,617
--------- ---------- --------- ----------
Net (loss) income $ (14,257) $ 18,324 $ (47,439) $ 96,045
========= ========== ========= ==========
Weighted average shares
outstanding - basic 72,460 72,606 72,200 73,881
Weighted average shares
outstanding - diluted 72,460 73,879 72,200 75,339
Net (loss) income per
share - basic $ (0.20) $ 0.25 $ (0.66) $ 1.30
Net (loss) income per
share - diluted $ (0.20) $ 0.25 $ (0.66) $ 1.27
VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
July 3, October 3,
2009 2008
--------- ---------
ASSETS
Current assets
Cash and cash equivalents $ 177,641 $ 139,679
Short-term investments 53,791 68,996
Accounts receivable, net 99,401 128,904
Inventories 102,521 165,201
Deferred income taxes 25,754 21,902
Other current assets 22,692 24,447
--------- ---------
Total current assets 481,800 549,129
Long-term investments 62,798 69,491
Property, plant and equipment, net 67,486 66,636
Other assets 14,791 14,889
--------- ---------
Total assets $ 626,875 $ 700,145
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt $ 597 $ 558
Accounts payable 12,883 29,072
Accrued expenses 25,661 45,485
Product warranty 3,923 7,661
Deferred revenue 19,617 32,285
--------- ---------
Total current liabilities 62,681 115,061
Long-term accrued expenses and other
liabilities 64,716 63,627
Deferred income taxes 5,883 3,951
Long-term debt 1,750 2,203
--------- ---------
Total liabilities 135,030 184,842
========= =========
Stockholders' equity
Common stock 943 935
Capital in excess of par value 603,513 581,492
Less: Cost of treasury stock (714,877) (714,877)
Retained earnings 602,491 649,930
Accumulated other comprehensive loss (225) (2,177)
--------- ---------
Total stockholders' equity 491,845 515,303
--------- ---------
Total liabilities and stockholders'
equity $ 626,875 $ 700,145
========= =========
Contacts: Bob Halliday Executive Vice President and Chief
Financial Officer 978.282.7597 Tom Baker Vice President, Finance
978.282.2301
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