Varian Semiconductor Equipment Associates, Inc. ("Varian
Semiconductor") (NASDAQ: VSEA) today announced results for its
fiscal year 2009 and fourth quarter ended October 2, 2009.
Revenue for the fourth quarter of fiscal year 2009 totaled
$117.5 million, compared to revenue of $142.1 million for the same
period a year ago. Varian Semiconductor recorded net income of $7.6
million, or $0.10 per diluted share during the fourth quarter of
fiscal year 2009, compared to net income of $1.8 million, or $0.02
per diluted share for the same period a year ago.
Revenue for fiscal year 2009 totaled $362.1 million, compared to
revenue of $834.1 million for fiscal year 2008. Varian
Semiconductor recorded a net loss of $38.0 million, or $0.53 per
diluted share for fiscal year 2009, compared to net income of $99.5
million, or $1.33 per diluted share for fiscal year 2008.
Gary Dickerson, Varian Semiconductor's chief executive officer,
said, "We have built significant market share gains during the last
several years that have enabled us to hit the ground running coming
out of this downturn. Additionally, by continuing to invest in
high-value enabling technology, we anticipate successfully
penetrating new markets in the next fiscal year that can provide us
with significant growth opportunities."
Bob Halliday, chief financial officer, provided forward guidance
for the first quarter of fiscal year 2010, "Our fourth quarter
gross margin of 45.4% exceeded both our guidance of 43% to 44% and
our past performance at this point in a recovery. We project this
trend of increasing gross margin to continue into the first quarter
of fiscal year 2010. First quarter revenue is expected to be
between $134 and $144 million. Earnings per diluted share are
anticipated to range from $0.15 to $0.20."
During the quarter ended October 2, 2009, Varian Semiconductor
identified certain instances dating back to fiscal year 1999 in
which deferred income taxes were not properly recorded in its
financial statements. These adjustments individually and in the
aggregate are not material to Varian Semiconductor's financial
statements for all periods impacted. Varian Semiconductor has
revised its historical financial statements to properly reflect
these adjustments.
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 a leading supplier of ion implantation
equipment used in the fabrication of semiconductor chips. Varian
Semiconductor's products are used by chip manufacturers worldwide
to produce high-performance semiconductor devices. Customers have
made Varian Semiconductor the market leader in ion implant because
of its architecturally superior products that lower their costs and
improve their productivity.
Varian Semiconductor provides support, training, and
after-market products and services that help its customers to
obtain high utilization and productivity, reduce operating costs,
and extend capital productivity of customer investments through
multiple product generations. Varian Semiconductor has ranked #1 in
the VLSI Research Customer Satisfaction Survey 12 times over the
last 13 years. Varian Semiconductor operates globally and is
headquartered in Gloucester, Massachusetts. More information can be
found on Varian Semiconductor's web site 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 first quarter fiscal 2010 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
July 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 OPERATIONS
(In thousands, except per share amounts)
Fiscal Three Months
Ended Fiscal Year Ended
====================== ======================
October 2, October 3, October 2, October 3,
2009 2008 2009 2008
========== ========== ========== ==========
Revenue
Product $ 105,549 $ 122,874 $ 309,230 $ 752,629
Service 11,951 19,188 52,764 81,371
Royalty 8 2 87 61
---------- ---------- ---------- ----------
Total revenue 117,508 142,064 362,081 834,061
Cost of revenue 64,165 77,684 219,413 438,295
---------- ---------- ---------- ----------
Gross profit 53,343 64,380 142,668 395,766
---------- ---------- ---------- ----------
Operating expenses
Research, development
and engineering 19,889 26,771 80,063 111,240
Marketing, general
and administrative 23,193 33,155 96,193 130,672
Restructuring 187 961 9,159 1,607
---------- ---------- ---------- ----------
Total operating
expenses 43,269 60,887 185,415 243,519
---------- ---------- ---------- ----------
Operating income (loss) 10,074 3,493 (42,747) 152,247
Interest income, net 842 2,145 4,354 8,781
Other expense, net (344) (389) (1,088) (117)
---------- ---------- ---------- ----------
Income (loss) before income
taxes 10,572 5,249 (39,481) 160,911
Provision for (benefit
from) income taxes 2,933 3,498 (1,483) 61,395
---------- ---------- ---------- ----------
Net income (loss) $ 7,639 $ 1,751 $ (37,998) $ 99,516
========== ========== ========== ==========
Weighted average shares
outstanding - basic 72,682 71,751 72,321 73,318
Weighted average shares
outstanding - diluted 73,844 72,794 72,321 74,719
Net income (loss) per
share - basic $ 0.11 $ 0.02 $ (0.53) $ 1.36
Net income (loss) per
share - diluted $ 0.10 $ 0.02 $ (0.53) $ 1.33
VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
October 2, October 3,
2009 2008
=========== ===========
ASSETS
Current assets
Cash and cash equivalents $ 192,148 $ 139,679
Short-term investments 44,043 68,996
Accounts receivable, net 115,002 128,904
Inventories 100,764 165,201
Deferred tax assets 19,601 28,599
Other current assets 22,188 24,447
----------- -----------
Total current assets 493,746 555,826
Long-term investments 86,439 69,491
Property, plant and equipment, net 65,785 66,636
Long-term deferred tax assets 5,325 -
Other assets 14,944 14,889
----------- -----------
Total assets $ 666,239 $ 706,842
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt $ 610 $ 558
Accounts payable 26,449 29,072
Accrued expenses 22,812 41,745
Income taxes payable 1,820 4,103
Product warranty 3,943 7,661
Deferred revenue 27,098 32,285
----------- -----------
Total current liabilities 82,732 115,424
Long-term accrued expenses and other
liabilities 66,285 65,064
Long-term deferred tax liabilities - 3,951
Long-term debt 1,592 2,203
----------- -----------
Total liabilities 150,609 186,642
----------- -----------
Stockholders' equity
Common stock 945 935
Capital in excess of par value 612,930 582,270
Less: Cost of treasury stock (714,877) (714,877)
Retained earnings 616,051 654,049
Accumulated other comprehensive income
(loss) 581 (2,177)
----------- -----------
Total stockholders' equity 515,630 520,200
----------- -----------
Total liabilities and
stockholders' equity $ 666,239 $ 706,842
=========== ===========
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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