SAN DIEGO--(BUSINESS WIRE)--Jan. 15, 2009--Cymer, Inc. (Nasdaq:CYMI), the global leader of light sources used to
pattern advanced semiconductor chips, today announced that the company
estimates its fourth quarter 2008 revenue to be approximately $100
million. At the time of its third quarter earnings release on October
28, 2008, the company had estimated that its fourth quarter revenue
would be in the range of approximately $100 to $106 million.
Subsequently, business conditions in the lithography sector have further
deteriorated as demand for new light sources has declined sharply and
demand for installed base products is slowing. To bring expenses in-line
with currently anticipated demand, the company is taking actions to
lower its global cost structure by $50 to $55 million annually. These
actions include:
- 10 percent reduction in personnel or an approximate 100 headcount
reduction.
- Temporary 10 percent reduction in employee base pay.
- Suspension of the company's 401(k) matching program.
- Suspension of annual merit increases and bonus payments.
- Significant reduction in non-essential operating and capital
expenditures.
"These actions achieve our targeted cost reduction while preserving our
ability to invest in argon fluoride immersion and next generation
extreme ultraviolet (EUV) light source technologies," said Bob Akins,
Cymer's chief executive officer. "We believe that with these actions,
Cymer will be in a position to extend its market leadership and emerge
fundamentally stronger when the economy recovers."
Based on the limited visibility that exists, the company currently
anticipates that its first quarter 2009 revenue could decrease 30 to 35
percent compared to revenue for the fourth quarter 2008. The company
expects to record restructuring related charges in its first quarter
2009 financial results of approximately $4.5 million in conjunction with
the actions announced today.
The company will discuss fourth quarter and full year 2008 results and
provide additional guidance for first quarter 2009 in its upcoming
earnings announcement on February 11, 2009. A news release will be
distributed after close of market, and a public webcast will be
available at 2:00pm PST on the Investor Relations website at www.cymer.com.
The company is currently observing a pre-earnings quiet period and will
not make further comments about its fourth quarter results in the
interim.
Forward Looking Statements
Statements in this press release that are not strictly historical in
nature are forward-looking statements. These statements include, but are
not limited to statements regarding the company's estimated revenue for
the fourth quarter of 2008 and the first quarter of 2009, its cost
reduction activities and related costs and savings, the company's
ability to invest in its technologies and the company's prospects to
extend its market leadership and to emerge stronger in the future. These
statements are predictions based on current information and expectations
that involve a number of risks and uncertainties. Actual events or
results may differ materially from those projected in any of such
statements due to various factors, including but not limited to: the
company's ability to achieve forecasted headcount reductions and
savings; its ability to align its cost structure with forecasted
business levels; the company's ability to manage its expense levels and
unanticipated expenses; the performance and conditions in the United
States and world financial markets; the policies and actions of the
United States and other governments; and general economic conditions.
For a discussion of these and other factors which may cause our actual
events or results to differ from those projected, please refer to the
company's most recent annual report on Form 10-K and quarterly reports
on Form 10-Q, as well as other subsequent filings with the Securities
and Exchange Commission. You are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the date of
this press release. All forward-looking statements are qualified in
their entirety by this cautionary statement, and the company undertakes
no obligation to revise or update any forward-looking statements to
reflect events or circumstances after the date of this press release.
About Cymer
Cymer, Inc. is the market leader in developing light sources, used by
nearly every major chipmaker around the world to manufacture advanced
semiconductor chips. For more than two decades, Cymer has created light
sources that are essential in creating the technology that impacts the
way people work, communicate and play each day. Whether one has an iPod,
computer, Blackberry or other electronic item, chances are Cymer's light
helped create the chip inside. In addition, Cymer is leading the
industry in its transition to extreme ultra-violet lithography, the next
viable technology needed to manufacture smaller, faster chips. In 2007,
Cymer was named one of the "100 Fastest Growing Tech Companies" in the
world by CNN Money/Business 2.0. The company was founded and is
headquartered in San Diego, Calif. and supports its customers from two
dozen offices around the globe. Cymer maintains a website at www.cymer.com
to which Cymer regularly posts copies of its press releases as well as
additional information about Cymer. Interested persons can subscribe on
Cymer's website to email alerts or RSS feeds that are sent automatically
when it issues press releases, files its reports with the Securities and
Exchange Commission or posts certain other information to the website.
CONTACT:
Media Contact
Formula
Kelly Hamor, 619-234-0345
Hamor@formulapr.com
or
Cymer, Inc.
Paul Bowman, Interim CFO and V.P., IR
858-385-5312
PBowman@cymer.com
Source: Cymer, Inc.
