Varian Semiconductor Equipment Associates, Inc. ("Varian
Semiconductor") (NASDAQ: VSEA) today announced results for its
fiscal year 2010 second quarter ended April 2, 2010.
Revenue for the second quarter of fiscal year 2010 totaled
$204.0 million, compared to revenue of $63.8 million for the same
period a year ago. Varian Semiconductor recorded net income of
$38.6 million, or $0.51 per diluted share during the second quarter
of fiscal year 2010, compared to a net loss of $19.6 million, or
$0.27 per diluted share for the same period a year ago.
Gary Dickerson, Varian Semiconductor's chief executive officer,
said, "Recently released third party market share data reports that
Varian Semiconductor increased its overall market share by greater
than ten percentage points in 2009. Varian Semiconductor gained
market share in every segment of the ion implant market. Our share
gains reflect the innovation and value that we bring to our current
customer base. Those same benefits and core competencies project
very well to new customers and markets. We remain optimistic about
overall business conditions and our emerging opportunities. Those
opportunities are much closer today because of our sustained
investments last year and the extraordinary efforts of our
employees."
Bob Halliday, chief financial officer, provided forward guidance
for the third quarter of fiscal year 2010, "Our second quarter
revenues of $204.0 million exceeded our guidance of $186.0 to
$196.0 million as we aggressively ramped our efforts to meet
customer delivery requirements. Third quarter revenue is expected
to be between $220.0 and $230.0 million and earnings per diluted
share are anticipated to range from $0.55 to $0.60."
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 Varian Semiconductor's guidance for third quarter fiscal
2010 revenue, earnings per diluted share, market share, expected
product plans, financial performance, market conditions, 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 fiscal year ended October 2, 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)
(unaudited)
Fiscal Three Months Ended Fiscal Six Months Ended
------------------------ ------------------------
April 2, April 3, April 2, April 3,
2010 2009 2010 2009
----------- ----------- ----------- -----------
Revenue
Product $ 191,282 $ 48,958 $ 318,743 $ 140,986
Service 12,675 14,796 26,482 30,209
----------- ----------- ----------- -----------
Total revenue 203,957 63,754 345,225 171,195
Cost of revenue 104,117 42,493 176,698 110,031
----------- ----------- ----------- -----------
Gross profit 99,840 21,261 168,527 61,164
----------- ----------- ----------- -----------
Operating expenses
Research, development
and engineering 24,346 18,990 46,074 41,070
Marketing, general
and administrative 31,950 24,090 58,053 50,850
Restructuring - 2,051 - 8,300
----------- ----------- ----------- -----------
Total operating
expenses 56,296 45,131 104,127 100,220
----------- ----------- ----------- -----------
Operating income
(loss) 43,544 (23,870) 64,400 (39,056)
Interest income, net 902 754 1,767 2,469
Other expense, net (460) (445) (964) (527)
----------- ----------- ----------- -----------
Income (loss) before
income taxes 43,986 (23,561) 65,203 (37,114)
Provision for (benefit
from) income taxes 5,393 (3,937) 9,988 (3,932)
----------- ----------- ----------- -----------
Net income (loss) $ 38,593 $ (19,624) $ 55,215 $ (33,182)
=========== =========== =========== ===========
Weighted average shares
outstanding - basic 74,407 73,054 74,053 72,885
Weighted average shares
outstanding - diluted 75,331 73,054 75,048 72,885
Net income (loss)
per share - basic $ 0.52 $ (0.27) $ 0.75 $ (0.46)
Net income (loss)
per share - diluted $ 0.51 $ (0.27) $ 0.74 $ (0.46)
VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
April 2, October 2,
2010 2009
---------- ----------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 242,148 $ 192,148
Short-term investments 50,811 44,043
Accounts receivable, net 141,231 115,002
Inventories 128,387 100,764
Deferred income taxes 19,005 19,601
Other current assets 20,945 22,188
---------- ----------
Total current assets 602,527 493,746
Long-term investments 108,521 86,439
Property, plant and equipment, net 70,003 65,785
Long-term deferred income taxes 7,031 5,325
Other assets 15,002 14,944
---------- ----------
Total assets $ 803,084 $ 666,239
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt $ 639 $ 610
Accounts payable 52,947 26,449
Accrued expenses 32,910 22,812
Income taxes payable 3,118 1,820
Product warranty 5,688 3,943
Deferred revenue 36,135 27,098
---------- ----------
Total current liabilities 131,437 82,732
Long-term accrued expenses and other
long-term liabilities 73,551 66,285
Long-term debt 1,266 1,592
---------- ----------
Total liabilities 206,254 150,609
Stockholders' equity
Common stock 954 945
Capital in excess of par value 637,763 612,930
Less: Cost of treasury stock (714,877) (714,877)
Retained earnings 671,266 616,051
Accumulated other comprehensive income 1,724 581
---------- ----------
Total stockholders' equity 596,830 515,630
---------- ----------
Total liabilities and stockholders'
equity $ 803,084 $ 666,239
========== ==========
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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