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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
JANUARY 29, 1998
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Date of Report (date of earliest event reported)
CYMER, INC.
(Exact name of Registrant as specified in its charter)
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CALIFORNIA 0-21321 33-0175463
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(State or other jurisdiction of (Commission File Number) (I.R.S. Employer Identification No.)
incorporation or organization)
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16750 VIA DEL CAMPO COURT
SAN DIEGO, CALIFORNIA 92127
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
Registrant's telephone number, including area code: (619) 451-7300
NOT APPLICABLE
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(Former name or former address, if changed since last report)
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ITEM 5. Other Events
The information which is set forth in the Registrant's News Releases
dated January 29, 1998 regarding (i) the Registrant's results of operations for
1997 and the quarter ended December 31, 1997 and (ii) the Registrant's stock
repurchase program is incorporated herein by reference.
ITEM 7. Financial Statements and Exhibits.
(c) Exhibits
99.1 Text of News Release dated January 29, 1998 regarding
Registrant's results of operations.
99.2 Text of News Release dated January 29, 1998 regarding
Registrant's stock repurchase program.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: January 30, 1998 CYMER, INC.
/s/ WILLIAM A. ANGUS
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William A. Angus,
Senior Vice President,
Chief Financial Officer and Secretary
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FOR IMMEDIATE RELEASE
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Analyst Contact: William Angus Media Contact: Andrea Mace
Senior Vice President and CFO Director
Cymer, Inc. MCA, Inc.
Phone: 619/451-7300 Phone: 650/968-8900
Fax: 619/618-3090 Fax: 650/968-8990
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CYMER ANNOUNCES RECORD FOURTH QUARTER AND YEAR-END RESULTS FOR 1997
1997 Net Income up 300 Percent on 213 Percent Revenue Rise
SAN DIEGO, Calif., January 29, 1998-Cymer, Inc. (Nasdaq NM: CYMI), the world's
leading supplier of excimer laser illumination sources essential for deep
ultraviolet (DUV) photolithography, today reported record fourth quarter and
year-end results for 1997.
Net income for the fourth quarter doubled to $7,173,000, or $0.24 per share
(diluted), on revenues of $59,076,000 compared to net income of $3,547,000, or
$0.12 per share (diluted), on revenues of $27,567,000 for the fourth quarter of
1996.
For the year, net income increased 300 percent to $26,058,000, or $0.86 per
share (diluted), compared to $6,510,000, or $0.29 per share (diluted), reported
for 1996. Revenues climbed 213 percent for the year, reaching $203,647,000,
compared to $64,995,000 recorded for 1996.
FY '97 Business Highlights
Commenting on the results, Cymer President and Chief Executive Officer Robert
Akins noted that the company's rapid growth was driven by the semiconductor
industry's adoption of DUV lithography to create faster, smaller and higher
performance integrated circuits (ICs). "As the leading supplier of the enabling
laser light systems essential to the progression of this advanced technology,
Cymer is uniquely positioned to capitalize on this growth," said Akins.
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[CYMER, INC. LETTERHEAD]
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CYMER REPORTS FOURTH QUARTER AND YEAR-END RESULTS FOR 1997..........
PAGE 2 OF 7
Akins added that in addition to meeting or exceeding its 1997 financial
projections, Cymer is pleased to report that it met all of its major business
development objectives during the year. "Consistent with our plan, we boosted
manufacturing capacity by more than 100 percent to meet rising demand. We also
expanded our global infrastructure to support both stepper manufacturers and
chipmakers around the world. Finally, we made excellent progress on our future
technology roadmap. This included shipping next-generation argon fluoride (ArF)
laser systems and significant development of our two new krypton fluoride (KrF)
laser models slated for introduction and shipment in 1998. In addition to
raising the competitive bar, these new systems will allow Cymer to offer a
complete suite of advanced laser models designed to further strengthen our
technical and market leadership position."
FY '97 Operating Highlights
Product revenues for 1997 reflected the sale of 460 lasers, compared to 145 in
1996. During the fourth quarter, this number totaled 133 laser systems, 131 of
which were for use in semiconductor photolithography applications. Gross margins
on product sales reached 40 percent during the fourth quarter, contributing to
gross margins of 38.5 percent for the year. Operating income for the year was
$34,444,000, up 337 percent from the $7,884,000 reported in 1996. At year-end,
backlog was $108,704,000. Cash, cash equivalents and short-term investments
totaled $132,290,000 with a quick ratio of 2.3:1 and a current ratio of 3.4:1.
Working capital totaled $202,539,000, while capital spending was approximately
$42,200,000 for the year and $11,610,000 for the fourth quarter.
Preparing for the Future
"Looking ahead, we remain extremely optimistic about the long-term prospects for
our market. According to independent market analyst firms, the DUV lithography
market is currently
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CYMER REPORTS FOURTH QUARTER AND YEAR-END RESULTS FOR 1997..........
PAGE 3 OF 7
projected to grow at a compound annual growth rate of 28 percent through the
year 2000. We plan to leverage the two new products slated for introduction and
shipment in the coming year to capitalize on this anticipated long-term growth
and further solidify our leadership position," said Akins.
Akins added, "Near term, however, the current Asian economic condition, coupled
with the ongoing DRAM supply/demand imbalance, is affecting demand for the
lithography equipment that relies on Cymer lasers. Many of the world's leading
lithography suppliers, all of which are Cymer customers, are now indicating that
their earlier forecasts are under revision due to these changing market
conditions. We are also seeing shifts in market share among the suppliers
themselves."
"As a result of these factors, and based on information currently available to
us, we anticipate a reduction in our revenues by 10 to 15 percent in the first
quarter of 1998 from fourth quarter levels. We will closely monitor the
situation going forward, consulting with customers on an ongoing basis to ensure
that their laser inventory levels are in line with the current demand scenario,"
noted Akins.
Akins concluded, "1998 will be a year in which our plan is to further distance
Cymer from the competition through increased investments throughout the year in:
1) aggressive R&D and manufacturing programs to develop and deliver the higher
performance products that will enable higher average selling prices; and 2)
further expansion of our global service and support network to support our
growing installed based of DUV lasers in production. We currently expect that
the investments needed to fund these critical future-oriented efforts, coupled
with the anticipated revenue decline, will reduce our quarterly earnings by
$0.10 - $0.15 per share in the first quarter of 1998, as compared to our just
announced fourth quarter."
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CYMER REPORTS FOURTH QUARTER AND YEAR-END RESULTS FOR 1997..........
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Forward Looking Statements
Statements in this press release regarding the effects of Cymer's new products
on its competition, new product introduction schedules, market growth
projections and revenue, spending and earnings projections are forward looking
statements, are based on current expectations and involve a number of risks and
uncertainties. Actual results may differ materially from those projected in any
such statements due to various factors, including: the demand for semiconductors
in general, and, in particular, for leading-edge devices with smaller
geometries; changing business and economic conditions in various geographic
regions, including Asia, and the effect of these conditions on capital spending
plans by the Company's customers and end-users; the rate at which semiconductor
manufacturers take delivery of photolithography tools from the Company's
customers, which in turn may be affected by delays and cancellations of new
factory construction; the timing of customer orders, shipments, and acceptances;
the effect of recent price increases instituted by the Company on new orders;
new and enhanced product offerings by competitors; the Company's ability to meet
its production goals; and failure by the Company to match expense levels with
revenue fluctuations.
Corporate Profile
Cymer, Inc. is the leading provider of excimer laser illumination sources for
use in deep ultraviolet (DUV) photolithography systems targeted at the pilot and
production segments of the semiconductor manufacturing market.
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CYMER, INC.
QTR. DEC 31: 1997 1996
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Revenues $59,076,000 $27,567,000
Net Income 7,173,000 3,547,000
Avg. dil shs 30,042,000 28,422,000
Shr earns (basic):
Net income 0.25 0.14
Shr earns (diluted):
Net income 0.24 0.12
Year:
Revenues 203,647,000 64,995,000
Net Income 26,058,000 6,510,000
Avg. dil shs 30,267,000 22,420,000
Shr earns (basic):
Net income 0.92 0.33
Shr earns (diluted):
Net income 0.86 0.29
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CYMER, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
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For the three months For the twelve months
ended December 31 ended December 31
1996 1997 1996 1997
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REVENUES:
Product sales $ 26,957 $ 58,653 $ 62,510 $ 201,191
Other 610 423 2,485 2,456
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Total revenues 27,567 59,076 64,995 203,647
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COSTS AND EXPENSES:
Cost of product sales 15,150 35,181 35,583 123,654
Research and development 4,264 7,619 11,742 24,971
Sales and marketing 2,013 3,671 5,516 11,992
General and administrative 2,003 2,706 4,270 8,586
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Total costs and expenses 23,430 49,177 57,111 169,203
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OPERATING INCOME 4,137 9,899 7,884 34,444
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OTHER INCOME (EXPENSE):
Foreign currency exchange gain (loss) - net 45 37 161 (359)
Interest and other income 304 2,435 347 5,318
Interest and other expense (316) (2,829) (691) (4,847)
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Total other income (expense) - net 33 (357) (183) 112
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INCOME BEFORE PROVISION FOR INCOME
TAXES AND MINORITY INTEREST 4,170 9,542 7,701 34,556
Provision for income taxes (623) (2,386) (1,191) (8,639)
Minority interest 17 141
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NET INCOME $ 3,547 $ 7,173 $ 6,510 $ 26,058
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EARNINGS PER SHARE:
Basic:
Earnings per share $ 0.14 $ 0.25 $ 0.33 $ 0.92
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Weighted average common shares outstanding 25,354 28,643 19,868 28,212
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Diluted:
Earnings per share $ 0.12 $ 0.24 $ 0.29 $ 0.86
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Weighted average common and common
equivalent shares outstanding 28,422 30,042 22,420 30,267
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CYMER, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE DATA)
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DECEMBER 31,
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ASSETS 1996 1997
CURRENT ASSETS:
Cash and cash equivalents $ 55,405 $ 51,903
Short-term investments 10,449 80,387
Accounts receivable - net 18,833 59,140
Foreign exchange contracts receivable 9,317 31,267
Inventories 15,678 47,502
Deferred income taxes 1,432 12,690
Prepaid expenses and other 1,880 2,847
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Total current assets 112,994 285,736
PROPERTY - net 11,707 48,031
LONG-TERM INVESTMENTS 1,361 42,667
OTHER ASSETS 3,405 8,446
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TOTAL ASSETS $ 129,467 $ 384,880
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 7,095 $ 22,615
Accrued and other liabilities 8,401 26,860
Foreign exchange contracts payable 8,396 27,278
Income taxes payable 2,609 6,444
Revolving loan and security agreements 1,750
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Total current liabilities 28,251 83,197
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LONG-TERM LIABILITIES:
Convertible subordinated notes 172,500
Other liabilities 2,396 3,566
MINORITY INTEREST 1,077
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred Stock - authorized 5,000,000 shares; $.001 par value,
no shares issued or outstanding
Common stock - authorized 50,000,000 shares; $.001 par value,
issued and outstanding 27,560,000 and 28,724,000 shares 28 29
Paid-in capital 106,658 109,367
Net unrealized gain on investments 50
Retained earnings (accumulated deficit) (7,421) 18,637
Cumulative translation adjustment (445) (3,543)
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Total stockholders' equity 98,820 124,540
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 129,467 $ 384,880
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FOR IMMEDIATE RELEASE
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Analyst Contact: William Angus Media Contact: Andrea Mace
Senior Vice President and CFO Director
Cymer, Inc. MCA, Inc.
Phone: 619/451-7300 Phone: 650/968-8900
Fax: 619/618-3090 Fax: 650/968-8990
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CYMER ANNOUNCES STOCK REPURCHASE PROGRAM
SAN DIEGO, Calif., January 29, 1998-Cymer, Inc. (Nasdaq NM: CYMI), the world's
leading supplier of excimer laser illumination sources essential for deep
ultraviolet (DUV) photolithography, today announced that its Board of Directors
has authorized the Company to repurchase up to $50,000,000 of the company's
common stock. The purchases will be made from time to time on the open market or
in privately negotiated transactions.
"This new program is further evidence of our strong belief in the intrinsic
value of Cymer stock," said Dr. Robert P. Akins, president and chief executive
officer of Cymer, "We believe that Cymer stock represents an attractive value at
current prices and that it is an excellent investment to make at this time."
Shares repurchased will be used in part to fund the Company's stock plans.
Corporate Profile
Cymer, Inc. is the leading provider of excimer laser illumination sources for
use in deep ultraviolet (DUV) photolithography systems targeted at the pilot and
production segments of the semiconductor manufacturing market.
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[CYMER, INC. LETTERHEAD]
