Varian Semiconductor Equipment Associates, Inc. ("Varian
Semiconductor") (NASDAQ: VSEA) today announced results for its
fiscal year 2010 fourth quarter ended October 1, 2010.
Revenue for the fourth quarter of fiscal year 2010 totaled
$258.8 million, compared to revenue of $117.5 million for the same
period a year ago. Varian Semiconductor recorded net income of
$59.2 million, or $0.79 per diluted share during the fourth quarter
of fiscal year 2010, compared to net income of $7.6 million, or
$0.10 per diluted share for the same period a year ago.
Revenue for fiscal year 2010 totaled $831.8 million, compared to
revenue of $362.1 million for fiscal year 2009. Varian
Semiconductor recorded net income of $159.6 million, or $2.12 per
diluted share for fiscal year 2010, compared to a net loss of $38.0
million, or $0.52 per diluted share for fiscal year 2009.
Gary Dickerson, chief executive officer of Varian Semiconductor,
said, "Our overall results were much improved in fiscal year 2010
from 2009. This improvement was driven by both our individual
performance and by implant's more rapid growth compared to overall
wafer fab equipment. With the introduction of Trident, our new high
current tool and Solion, our solar ion implant tool, we expect to
strengthen our current market position and develop new markets in
fiscal year 2011."
Bob Halliday, chief financial officer, provided forward guidance
for the first quarter of fiscal year 2011, "In the fourth quarter,
we reported our highest-ever quarterly earnings per share. Our
fourth quarter earnings per share of $0.79 exceeded our guidance of
$0.70 to $0.75 per share and our gross margins of 49.2% also
exceeded our guidance. First quarter revenue is expected to be
between $270.0 and $280.0 million and earnings per share are
anticipated to range from $0.84 to $0.89, which would be a new
quarterly record for Varian Semiconductor."
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 strengthening of its current
market position and development of new markets in fiscal year 2011,
guidance for first quarter fiscal 2011 revenue, earnings per
diluted share, 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)
Three Months Ended Fiscal Year Ended
------------------------ ------------------------
October 1, October 2, October 1, October 2,
2010 2009 2010 2009
----------- ----------- ----------- -----------
(unaudited) (unaudited)
Revenue
Product $ 240,912 $ 105,549 $ 769,574 $ 309,230
Service 17,914 11,959 62,206 52,851
----------- ----------- ----------- -----------
Total revenue 258,826 117,508 831,780 362,081
Cost of revenue 131,570 64,165 424,383 219,413
----------- ----------- ----------- -----------
Gross profit 127,256 53,343 407,397 142,668
----------- ----------- ----------- -----------
Operating expenses
Research, development
and engineering 26,377 19,889 98,233 80,063
Marketing, general
and administrative 32,423 23,193 121,705 96,193
Restructuring - 187 380 9,159
----------- ----------- ----------- -----------
Total operating
expenses 58,800 43,269 220,318 185,415
----------- ----------- ----------- -----------
Operating income
(loss) 68,456 10,074 187,079 (42,747)
Interest income, net 815 842 3,626 4,354
Other expense, net (70) (344) (1,132) (1,088)
----------- ----------- ----------- -----------
Income (loss) before
income taxes 69,201 10,572 189,573 (39,481)
Provision for (benefit
from) income taxes 10,000 2,933 29,989 (1,483)
----------- ----------- ----------- -----------
Net income (loss) $ 59,201 $ 7,639 $ 159,584 $ (37,998)
=========== =========== =========== ===========
Weighted average shares
outstanding - basic 74,699 73,354 74,372 73,075
Weighted average shares
outstanding - diluted 75,360 73,177 75,275 73,075
Net income (loss)
per share - basic $ 0.79 $ 0.10 $ 2.15 $ (0.52)
Net income (loss)
per share -
diluted $ 0.79 $ 0.10 $ 2.12 $ (0.52)
VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
October 1, October 2,
2010 2009
------------ ------------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 235,450 $ 192,148
Short-term investments 60,871 44,043
Accounts receivable, net 223,960 115,002
Inventories 190,538 100,764
Deferred income taxes 20,955 19,601
Other current assets 21,428 22,188
------------ ------------
Total current assets 753,202 493,746
Long-term investments 101,332 86,439
Property, plant and equipment, net 68,140 65,785
Long-term deferred income taxes 4,363 5,325
Other assets 15,173 14,944
------------ ------------
Total assets $ 942,210 $ 666,239
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt $ 668 $ 610
Accounts payable 53,529 26,449
Accrued expenses 46,071 22,812
Income taxes payable 7,476 1,820
Product warranty 8,627 3,943
Deferred revenue 46,707 27,098
------------ ------------
Total current liabilities 163,078 82,732
Long-term accrued expenses and other
long-term liabilities 80,206 66,285
Long-term debt 924 1,592
------------ ------------
Total liabilities 244,208 150,609
Stockholders' equity
Common stock 958 945
Capital in excess of par value 654,458 612,930
Less: Cost of treasury stock (732,859) (714,877)
Retained earnings 775,635 616,051
Accumulated other comprehensive (loss)
income (190) 581
------------ ------------
Total stockholders' equity 698,002 515,630
------------ ------------
Total liabilities and
stockholders' equity $ 942,210 $ 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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