Cymer Posts Decent 3Q - Analyst Blog
October 29 2012 - 4:00AM
Zacks
Cymer Inc. (CYMI)
has reported third quarter 2012 earnings of 31 cents per share,
comprehensively beating the Zacks Consensus Estimate of 7 cents on
the back of higher gross margins.
Revenue
Cymer reported revenue of $131.5
million in the third quarter, up 2.2% from $128.7 million in the
year-ago period. However, revenue was down 11.9% sequentially and
below the management guidance of $151 million due to weak demand
for deep ultraviolet (DUV) light source throughout the quarter.
OnPulse revenue was strong on the
mix of higher value ArF pulses and continued light source installed
base growth.
During the quarter, the company
shipped 27 DUV light sources, of which 17 were ArF immersion and 10
were KrF. The company also installed 24 DUV light sources at
chipmaker locations.
Bookings
In the reported quarter, DUV and
Installed Base Products (IBP) bookings totaled $112.4 million,
leaving Cymer with a book-to-bill ratio of 0.86. The company ended
the quarter with a DUV backlog of approximately $50.3 million.
Operating
Results
Reported gross profit increased
10.3% year over year to $71.8 million. Gross margin increased 400
basis points from the year-ago quarter to 54.6% due to higher
revenue.
Operating income came in at $9.0
million, down 32.8% year over year. Operating margin decreased 360
basis points year over year to 6.8%. Research and development
(R&D) and general and administrative (G&A) expenses
increased while selling and marketing (S&M) expenses decreased
as a percentage of sales.
Reported net income was $9.8
million or 31 cents per share, down from $11.3 million or 36 cents
in the comparable quarter last year.
Balance Sheet & Cash
Flow
Cymer exited the third quarter with
cash, cash equivalents, restricted cash and short-term investments
of approximately $2.7 billion, down from $2.8 billion in the prior
quarter. Trade receivables were $130.0 million, down from $132.6
million in the prior quarter.
Our Take
Cymer is the world's leading
supplier of light sources that are contained within excimer
laser-based photolithography systems. The third quarter results
were decent, with revenue coming above the prior-year figures.
Also, the earnings surpassed the Zacks Consensus Estimate.
Cymer holds approximately 80% share
of the entire installed base of DUV lithography tools and is well
positioned for growth in the long term. The company continues to
expand its installed base product offering by introducing new
advanced performance enhancements and data offerings to OnPulse
customers.
Currently, Cymer has only one DUV
light source competitor, Gigaphoton. Gigaphoton is a wholly-owned
subsidiary of Komatsu Ltd. (KMTUY) and is
headquartered in Japan. In the development of EUV source
technology, the company faces competition from Gigaphoton as well
as Ushio.
Currently, Cymer has a Zacks #5
Rank, implying a short-term Strong Sell rating.
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