Varian Semiconductor Equipment Associates, Inc. ("Varian
Semiconductor") (NASDAQ: VSEA) today announced results for its
fiscal year 2010 third quarter ended July 2, 2010.
Revenue for the third quarter of fiscal year 2010 totaled $227.7
million, compared to revenue of $73.4 million for the same period a
year ago. Varian Semiconductor recorded net income of $45.2
million, or $0.60 per diluted share during the third quarter of
fiscal year 2010, compared to a net loss of $12.5 million, or $0.17
per diluted share for the same period a year ago.
Gary Dickerson, chief executive officer of Varian Semiconductor,
said, "We have invested in bringing to market, technology that
enables our customers to address device scaling challenges. Our
technology leadership is providing us with the ability to penetrate
new accounts and achieve dramatic growth this year." Dickerson
continued, "We are also reaching important milestones with our
growth initiatives. Most notably, we launched the Solion implant
product. Overall, the initial response has been very favorable with
significant increased demand for demonstration tools and a growing
potential customer base. We expect several production tool
shipments over the coming months."
Bob Halliday, chief financial officer, provided forward guidance
for the fourth quarter of fiscal year 2010, "Our third quarter
earnings per diluted share of $0.60 were at the high end of our
guidance of $0.55 to $0.60 per diluted share. Also, our gross
margins of 49.0% exceeded our guidance. Fourth quarter revenue is
expected to be between $250.0 and $260.0 million and earnings per
diluted share are anticipated to range from $0.70 to $0.75."
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 13 times over the
last 14 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 fourth quarter fiscal 2010 revenue,
earnings per diluted share, expected product shipments, financial
performance, 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; market adoption of
Varian Semiconductor's new products, such as the Solion implant
product; 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)
Three Months Ended Nine Months Ended
------------------- -------------------
July 2, July 3, July 2, July 3,
2010 2009 2010 2009
--------- --------- --------- ---------
Revenue
Product $ 209,919 $ 62,695 $ 528,662 $ 203,681
Service 17,810 10,683 44,292 40,892
--------- --------- --------- ---------
Total revenue 227,729 73,378 572,954 244,573
Cost of revenue 116,115 45,217 292,813 155,248
--------- --------- --------- ---------
Gross profit 111,614 28,161 280,141 89,325
--------- --------- --------- ---------
Operating expenses
Research, development and
engineering 25,782 19,104 71,856 60,174
Marketing, general and
administrative 31,229 22,150 89,282 73,000
Restructuring 380 672 380 8,972
--------- --------- --------- ---------
Total operating expenses 57,391 41,926 161,518 142,146
--------- --------- --------- ---------
Operating income (loss) 54,223 (13,765) 118,623 (52,821)
Interest income, net 1,044 1,043 2,811 3,512
Other expense, net (98) (217) (1,062) (744)
--------- --------- --------- ---------
Income (loss) before income taxes 55,169 (12,939) 120,372 (50,053)
Provision for (benefit from) income
taxes 10,001 (484) 19,989 (4,416)
--------- --------- --------- ---------
Net income (loss) $ 45,168 $ (12,455)$ 100,383 $ (45,637)
========= ========= ========= =========
Weighted average shares outstanding
- basic 74,680 73,177 74,262 72,982
Weighted average shares outstanding
- diluted 75,590 73,177 75,237 72,982
Net income (loss) per share -
basic $ 0.60 $ (0.17)$ 1.35 $ (0.63)
Net income (loss) per share -
diluted $ 0.60 $ (0.17)$ 1.33 $ (0.63)
VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
July 2, October 2,
2010 2009
------------- -------------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 231,199 $ 192,148
Short-term investments 44,306 44,043
Accounts receivable, net 180,128 115,002
Inventories 158,709 100,764
Deferred income taxes 18,055 19,601
Other current assets 21,005 22,188
------------- -------------
Total current assets 653,402 493,746
Long-term investments 115,206 86,439
Property, plant and equipment, net 69,529 65,785
Long-term deferred income taxes 6,937 5,325
Other assets 15,004 14,944
------------- -------------
Total assets $ 860,078 $ 666,239
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt $ 653 $ 610
Accounts payable 45,258 26,449
Accrued expenses 39,549 22,812
Income taxes payable 3,009 1,820
Product warranty 7,312 3,943
Deferred revenue 34,800 27,098
------------- -------------
Total current liabilities 130,581 82,732
Long-term accrued expenses and other long-term
liabilities 78,086 66,285
Long-term debt 1,097 1,592
------------- -------------
Total liabilities 209,764 150,609
Stockholders' equity
Common stock 957 945
Capital in excess of par value 648,142 612,930
Less: Cost of treasury stock (714,877) (714,877)
Retained earnings 716,434 616,051
Accumulated other comprehensive (loss) income (342) 581
------------- -------------
Total stockholders' equity 650,314 515,630
------------- -------------
Total liabilities and stockholders'
equity $ 860,078 $ 666,239
============= =============
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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