Varian Semiconductor Equipment Associates, Inc. ("Varian
Semiconductor") (NASDAQ: VSEA) today announced results for its
fiscal year 2011 second quarter ended April 1, 2011.
Revenue for the second quarter of fiscal year 2011 totaled
$330.0 million, compared to revenue of $204.0 million for the same
period a year ago. Varian Semiconductor recorded net income of
$82.3 million, or $1.07 per diluted share during the second quarter
of fiscal year 2011, compared to net income of $38.6 million, or
$0.51 per diluted share for the same period a year ago.
Gary Dickerson, chief executive officer of Varian Semiconductor,
said, "We are increasingly optimistic about our growth potential in
2011 and beyond. In 2010, we developed new implant applications for
semiconductor doping and physical materials modification. Our
Solion implant product also continues to gain traction with solar
cell manufacturers." Dickerson added, "We continue to commit
significant research and development and marketing resources to the
development of new products and markets that leverage our core
technology."
Bob Halliday, chief financial officer, provided forward guidance
for the third quarter of fiscal year 2011, "In the second quarter
of fiscal year 2011, we reported our highest quarterly revenues,
operating margins, net income and earnings per share. Our revenues
of $330.0 million exceeded our guidance and our earnings per share
of $1.07 were at the high end of our guidance. Third quarter
revenue is expected to be between $323.0 and $333.0 million and
earnings per share are anticipated to range from $0.97 to
$1.02."
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 customer demand, business
opportunities, guidance for third 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 and Varian Semiconductor's spending on
research and development and marketing and the impact of such
spending on product development and sales. 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 1, 2010 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.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(unaudited)
Three Months Ended Six Months Ended
-------------------- --------------------
April 1, April 2, April 1, April 2,
2011 2010 2011 2010
--------- --------- --------- ---------
Revenue
Product $ 313,096 $ 191,282 $ 572,664 $ 318,743
Service 16,925 12,675 39,938 26,482
--------- --------- --------- ---------
Total revenue 330,021 203,957 612,602 345,225
Cost of revenue 168,250 104,117 311,881 176,698
--------- --------- --------- ---------
Gross profit 161,771 99,840 300,721 168,527
--------- --------- --------- ---------
Operating expenses
Research, development and
engineering 29,787 24,346 56,411 46,074
Marketing, general and
administrative 36,760 31,950 70,277 58,053
--------- --------- --------- ---------
Total operating expenses 66,547 56,296 126,688 104,127
--------- --------- --------- ---------
Operating income 95,224 43,544 174,033 64,400
Interest income, net 780 902 1,483 1,767
Other expense, net (382) (460) (400) (964)
--------- --------- --------- ---------
Income before income taxes 95,622 43,986 175,116 65,203
Provision for income taxes 13,279 5,393 20,919 9,988
--------- --------- --------- ---------
Net income $ 82,343 $ 38,593 $ 154,197 $ 55,215
========= ========= ========= =========
Weighted average shares
outstanding - basic 75,409 74,407 74,837 74,053
Weighted average shares
outstanding - diluted 76,606 75,331 75,955 75,048
Net income per share - basic $ 1.09 $ 0.52 $ 2.06 $ 0.75
Net income per share - diluted $ 1.07 $ 0.51 $ 2.03 $ 0.74
VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
April 1, October 1,
2011 2010
----------- -----------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 363,833 $ 235,450
Short-term investments 58,089 60,871
Accounts receivable, net 222,103 223,960
Inventories 212,330 190,538
Deferred income taxes 18,868 20,955
Other current assets 35,689 21,428
----------- -----------
Total current assets 910,912 753,202
Long-term investments 133,701 101,332
Property, plant and equipment, net 72,635 68,140
Deferred income taxes 5,364 4,363
Other assets 15,311 15,173
----------- -----------
Total assets $ 1,137,923 $ 942,210
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 65,334 $ 53,529
Accrued expenses and other current liabilities 35,393 46,739
Deferred revenue 58,079 46,707
Income taxes payable 10,924 7,476
Product warranty 12,284 8,627
----------- -----------
Total current liabilities 182,014 163,078
Long-term accrued expenses and other long-term
liabilities 91,106 81,130
----------- -----------
Total liabilities 273,120 244,208
Stockholders' equity
Common stock 978 958
Capital in excess of par value 709,273 654,458
Less: Cost of treasury stock (776,938) (732,859)
Retained earnings 929,832 775,635
Accumulated other comprehensive income (loss) 1,658 (190)
----------- -----------
Total stockholders' equity 864,803 698,002
----------- -----------
Total liabilities and stockholders'
equity $ 1,137,923 $ 942,210
=========== ===========
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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