|
| |||||||||||||||
Varian Semiconductor Equipment Associates Reports Record Fiscal 2007 and Fourth Quarter Results GLOUCESTER, MA--(MARKET WIRE)--Oct 25, 2007 -- Varian Semiconductor Equipment Associates,
Inc. ("Varian Semiconductor") (NasdaqGS:VSEA - News) today announced
results for
its fiscal year 2007 and fourth quarter ended September
28, 2007.
Revenue for the fourth quarter of fiscal 2007 totaled $298.7 million, compared to revenue of $213.1 million for the same period a year ago. Varian Semiconductor recorded net income of $43.4 million, or $0.55 per diluted share during the fourth quarter of fiscal 2007, compared to net income of $32.9 million, or $0.39 per diluted share for the same period a year ago. Revenue for fiscal 2007 totaled $1.1 billion, compared to revenue of $730.7 million for fiscal 2006. Varian Semiconductor recorded net income of $142.2 million, or $1.73 per diluted share for fiscal 2007, compared to net income of $94.7 million, or $1.10 per diluted share for fiscal 2006. Varian Semiconductor's fiscal fourth quarter and fiscal year 2007 results include an effective tax rate of 48% due to the global realignment plan, announced on June 21, 2007. The effective tax rate prior to the impact of the realignment plan was approximately 34%, on a non-GAAP basis. Varian Semiconductor's non-GAAP provision for income taxes would have been $28.5 million and non-GAAP earnings per share would have been approximately $0.71 without the incremental realignment tax charges for the fiscal fourth quarter. Varian Semiconductor's non-GAAP provision for income taxes would have been $91.3 million and non-GAAP earnings per share would have been approximately $2.25 without the incremental realignment tax charges for fiscal year 2007. Robert Halliday, chief financial officer, provided forward guidance for the first quarter of fiscal 2008. "We currently expect revenue to be between $250 and $260 million. Earnings per share are anticipated to range from $0.53 to $0.58 per diluted share. We are assuming a tax rate of 31% for the first quarter of fiscal 2008 as we continue our multi-year global realignment plan." Gary Dickerson, Varian Semiconductor's chief executive officer, said, "Varian Semiconductor continues to execute its plan of increasing market share and profitability. In 2007, our operating profit increased 150% as a result of simultaneously increasing our market share and operating margins. We believe that those trends will continue in the future. However, our outlook for the short term is more conservative." 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. This press release includes, within Varian Semiconductor's results of operations, a non-GAAP measure of provision for income taxes and earnings per share. To be comparable with results for prior periods and the guidance issued on July 26, 2007 for the fourth quarter of fiscal 2007, the non-GAAP tax provision and earnings per share exclude the additional tax charges associated with Varian Semiconductor's global realignment plan. The additional tax charge is considered an infrequent event. Management believes that investors may find it useful for this item to be excluded for comparability to guidance for the fourth quarter and results for prior periods. The non-GAAP financial measure included in this earnings announcement is not meant to be considered superior to, or a substitute for, financial results prepared in accordance with GAAP. In addition, the non-GAAP financial measure included in this earnings announcement may be different from, and therefore may not be comparable to, similar measures used by other companies. The reconciliation of GAAP earnings per share is as follows:
(in thousands, except per share data):
Fiscal Three Months Ended
-------------------------------------
September 28, 2007
-------------------------------------
Realignment
GAAP Tax Non-GAAP
Results Charges Results
----------- ------------ -----------
Income before income taxes $ 83,886 $ 83,886
Provision for income taxes (40,480) 11,961 (28,519)
Net income $ 43,406 $ 11,961 $ 55,367
=========== ============ ===========
Diluted earnings per share $ 0.55 $ 0.16 $ 0.71
Fiscal Year Ended September 28, 2007
-------------------------------------
GAAP Tax Non-GAAP
Results Charges Results
----------- ------------ -----------
Income before income taxes $ 276,668 $ 276,668
Provision for income taxes (134,461) 43,198 (91,263)
Net income $ 142,207 $ 43,198 $ 185,405
=========== ============ ===========
Diluted earnings per share $ 1.73 $ 0.52 $ 2.25About Varian Semiconductor Equipment Associates, Inc. Varian Semiconductor is the leading producer of ion implantation equipment used in the manufacture of semiconductors. Varian Semiconductor is headquartered in Gloucester, Massachusetts, and operates worldwide. Varian Semiconductor maintains a website 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 the industry outlook, Varian Semiconductor's guidance for first quarter fiscal 2008 revenue, gross margin and earnings per share, market share, competitive position, expected first quarter fiscal 2008 product shipments, and financial performance, market conditions for 2008, 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; Varian Semiconductor's transition to new products; 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; potential environmental liabilities; 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 Report on Form 10-Q for the quarter ended June 29, 2007 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 INCOME
(In thousands, except per share amounts)
Fiscal Three Months Ended Fiscal Year Ended
--------------------------- -------------------------
September 28, September 29, September 28, September 29,
2007 2006 2007 2006
----------- ------------ ------------ ------------
Revenue
Product $ 274,863 $ 190,007 $ 961,329 $ 642,038
Service 22,950 20,421 86,062 79,222
Royalty 866 2,668 7,473 9,454
----------- ------------ ------------ ------------
Total revenue 298,679 213,096 1,054,864 730,714
Cost of revenue 156,787 118,428 565,940 421,184
----------- ------------ ------------ ------------
Gross profit 141,892 94,668 488,924 309,530
----------- ------------ ------------ ------------
Operating expenses
Research and
development 27,979 23,873 104,025 90,604
Marketing,
general &
administrative 33,531 28,432 128,055 116,063
----------- ------------ ------------ ------------
Total operating
expenses 61,510 52,305 232,080 206,667
----------- ------------ ------------ ------------
Operating income 80,382 42,363 256,844 102,863
Interest income, net 3,605 5,390 19,524 21,514
Other income, net (101) 307 300 918
----------- ------------ ------------ ------------
Income before income
taxes 83,886 48,060 276,668 125,295
Provision for income
taxes 40,480 15,146 134,461 30,611
----------- ------------ ------------ ------------
Net income $ 43,406 $ 32,914 $ 142,207 $ 94,684
=========== ============ ============ ============
Weighted average shares
outstanding - basic 76,430 83,327 80,151 84,605
Weighted average shares
outstanding - diluted 78,534 84,584 82,220 85,790
Net income per
share - basic $ 0.57 $ 0.39 $ 1.77 $ 1.12
Net income per
share - diluted $ 0.55 $ 0.39 $ 1.73 $ 1.10
VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 28, September 29,
2007 2006
------------- -------------
ASSETS
Current assets
Cash and cash equivalents $ 109,514 $ 258,891
Short-term investments 88,384 154,810
Accounts receivable, net 189,573 125,992
Inventories 170,293 133,929
Deferred income taxes 27,907 31,592
Other current assets 15,197 18,102
------------- -------------
Total current assets 600,868 723,316
Long-term investments 96,153 135,777
Property, plant and equipment, net 73,980 62,249
Other assets 17,274 17,024
------------- -------------
Total assets $ 788,275 $ 938,366
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt $ 510 $ 466
Accounts payable 49,863 45,937
Accrued expenses 52,961 53,947
Product warranty 12,183 8,934
Deferred revenue 54,742 49,840
------------- -------------
Total current liabilities 170,259 159,124
Long-term accrued expenses and other
liabilities 45,419 17,300
Deferred income taxes 3,858 3,722
Long-term debt 2,761 3,270
------------- -------------
Total liabilities 222,297 183,416
------------- -------------
Stockholders' equity
Common stock 927 593
Capital in excess of par value 548,426 453,229
Less: Cost of treasury stock (535,423) (108,910)
Retained earnings 553,221 411,014
Accumulated other comprehensive loss (1,173) (976)
------------- -------------
Total stockholders' equity 565,978 754,950
------------- -------------
Total liabilities and stockholders'
equity $ 788,275 $ 938,366
============= =============Contact: Contacts:
Bob Halliday
Executive Vice President and Chief Financial Officer
978.282.7597
or
Mary Wright
Director, Investor Relations
978.282.5859
or
Tom Baker
Vice President, Finance
978.282.2301
Source: Varian Semiconductor
|  | ||||||||||||||
