mlkrborn
14 years ago
Varian Beats on Revenue Growth - Analyst Blog; ACLS poses competion.
Date : 04/29/2011 @ 11:38AM
Source : Zacks
Stock : Axcelis Technologies, Inc. (MM) (ACLS)
Quote : 1.87 0.08 (4.47%) @ 3:50PM
Varian Beats on Revenue Growth - Analyst Blog
Varian Semiconductor Inc. (VSEA) reported second quarter 2011 earnings per share (EPS) of $1.07, inching past the Zacks Consensus Estimate by a penny. The quarter’s results were significantly higher than the year-ago quarter and the upper end of the company’s guided range of $1.02–$1.07, attributable to higher revenues and margins.
Revenues
Varian reported second quarter 2011 total revenue of $330.0 million, up 61.8% from $204.0 million in the year-ago quarter. The revenue exceeded the company’s guided range of $315.0-$325.0 million and the Zacks Consensus Estimate of $321.0 million. The phenomenal growth in revenue may be attributed to the increase in contribution across all its operating segments.
Product revenues jumped 63.7% to $313.1 million from $191.3 million in the year-ago quarter. The improvement was driven by increased sales of memory and logic tools. Revenue from the Service segment increased 33.1% year over year to $23.0 million.
The company’s solar ion implant tool Solion continued to gain traction with solar cell manufacturers during the quarter.
Varian’s unit shipments were 52.0% from Foundry, 22.0% from Memory and 46.0% from Logic, compared to 53.0%, 28.0% and 22.0%, respectively, in the previous quarter. Geographically, Asia contributed 68.0% of total revenue, while North America and Europe contributed 23.0% and 9.0%, respectively.
Operating Results
Gross profit in the second quarter surged 62.1% year over year to $161.8 million. Gross margin was 49.0%, compared to 48.9% in the comparable quarter last year. The marginal improvement was attributable product mix.
Operating margin was 28.8%, compared to 21.3% in the year-ago quarter. Total operating expenses surged 18.1% year over year to $66.5 million. The increase in operating expenses was mainly due to higher investments in various projects aimed at growth in the core market and tapping of new ones. An increase in headcount and variable compensation also raised expenses.
Varian reported net income of $82.3 million or $1.07 per share, up from $38.6 million or 51 cents in the year-ago quarter.
Balance Sheet
Cash, equivalents and short-term investments as of March 31, 2011, were $421.9 million versus $329.3 million as of December 31, 2010. Accounts receivables were $222.1 million and inventories were $212.3 million.
During the quarter, Varian repurchased 543,000 of its outstanding shares for a total value of $20.0 million.
Guidance
For the third quarter of fiscal 2011, Varian expects total revenue in the range of $323.0 million to $333.0 million, gross margin to be 0.5% lower than the second quarter, operating margin of between 27.0% and 28.0%, a tax rate of between 16.0% and 17.0%, and diluted EPS of between 97 cents and $1.02.
Varian expects research and development (R&D) expenses to increase by approximately $1.6 million and marketing, general, and administrative expenses to increase $0.6 million from the previous quarter. Capital expenditure is expected to be roughly $6.5 million.
Varian commented that it will continue to commit significant R&D and marketing resources to the development of new products and markets.
Recommendation
We believe that second quarter results are encouraging given the solid year-over-year revenue growth and higher-than-expected EPS. Moreover, we are encouraged by the introduction of Trident, the new high current tool and Solion, the solar ion implant tool, which are expected to strengthen Varian’s existing market position and improve prospects in new markets.
However, we think that Japan issues and the Solion roll-out will keep a lid on the gross margin in the near term. Competitive pressure from Axcelis Technologies Inc. (ACLS) and Nissin Electric Co. Ltd. is also a concern.
Currently, Varian has a Zacks #2 Rank, which translates into a short-term Buy recommendation.
briankerecz
22 years ago
Varian Semiconductor Announces New VIISta Platform Offering
VIISta 810 HP Single Wafer Ion Implanter Extends VSEA's Market Leadership Position in Medium Current
GLOUCESTER, Mass.--(BUSINESS WIRE)--July 22, 2002--Varian Semiconductor Equipment Associates, Inc. (NASDAQ: VSEA - News), the leading supplier of ion implantation systems, today introduced the VIISta 810 HP single wafer medium current ion implanter.
This system provides increased productivity and faster system installation, reducing customers' time to first wafer out and speeding their return on investment.
"As the industry moves toward smaller device geometries, the new VIISta 810 HP (High Productivity) implanter is the optimum successor to the industry-leading VIISta 810 implanter," said John Aldeborgh, vice president of sales and marketing for Varian Semiconductor. "The advantages of single wafer processing on the VIISta 810 HP and the VIISta platform include individual wafer statistical process control, enhanced productivity over older-generation spinning disk multi-wafer systems, and increased process flexibility for advanced applications including high tilt halo implants. In addition, the VIISta 810 HP provides precise total incident angle and dosimetry control to enable tighter distribution of electrical device parameters and a 50% reduction in contamination to enhance device yields."
Ernest Godshalk, president and chief operating officer of Varian Semiconductor remarked, "With the introduction of the VIISta 810 HP single wafer medium current ion implanter, Varian Semiconductor extends its lead in the marketplace by offering the most cost effective and technologically innovative ion implanters to meet the demanding requirements of the industry's most advanced device geometries."
The VIISta platform of parallel beam, single wafer implanters covers the entire range of ion implantation requirements, from 200eV through 3.75 MeV. The benefits of parallel beam systems center around their ability to precisely place dopants in the device structures.
Each implanter in the VIISta platform offers specific advantages in terms of integrated circuit performance. For high current implants, the VIISta 80 presents an opportunity to improve junction abruptness control and increase the drive current and processing speed. For medium current implants, the VIISta 810 HP provides exceptional control of the Vt and halo implants, improving the consistency of operating characteristics and yield across the wafer. For high energy implants, the VIISta 3000 provides additional accuracy in the placement of dopant species to enhance well-to-well isolation characteristics, reducing the size of the transistors and increasing the number of integrated circuits on the wafer. The VIISta P2LAD ultra low energy ion implanter combines pulsed-plasma doping with the VIISta platform functionality to overcome the significant technical challenges presented by the requirements of low energy doping for ultra shallow junctions.
About Varian Semiconductor
Varian Semiconductor Equipment Associates is the leading producer of ion implantation equipment used in the manufacture of semiconductors. The company is headquartered in Gloucester, Massachusetts, and operates worldwide. Varian Semiconductor maintains a web site at www.vsea.com. The information contained in the Company's web site is not incorporated by reference into this release, and the web site address is included in this release as an inactive textual reference only.
Note: This release contains forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. For this purpose, the statements concerning the anticipated customer benefits of the new product discussed in this release are forward-looking statements and any statements using the terms "believes," "anticipates," "expects," "plans," or similar expressions are forward-looking statements. There are a number of important risks and factors that could cause actual events to differ materially from those suggested or indicated by such forward-looking statements. These include, among others, the possible failure of the new product to provide the anticipated customer benefits or to achieve significant market acceptance, volatility in the semiconductor equipment industry; economic conditions in general and as they affect the Company's customers; significant fluctuations in the Company's quarterly operating results; the impact of rapid technological change; the Company's dependence on the development and introduction of new products; the Company's concentration on ion implantation systems and related products; concentration in the Company's customer base and lengthy sales cycles; the highly competitive market in which the Company competes; risks of international sales; foreign currency risks; and general economic conditions; and other factors identified in the Company's Annual Report on Form 10-K, and the most recent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. The Company cannot guarantee any future results, levels of activity, performance or achievement. The Company undertakes no obligation to update any of the forward-looking statements after the date of this press release.
briankerecz
22 years ago
Varian Semiconductor Equipment Associates Reports Fiscal 2002 Third Quarter Results
GLOUCESTER, Mass.--(BUSINESS WIRE)--July 23, 2002--Varian Semiconductor Equipment Associates, Inc. (Nasdaq: VSEA - News) today announced results for its third quarter of fiscal 2002 ended June 28, 2002.
Revenue for the third quarter of fiscal 2002 totaled $95 million, compared to revenue of $147 million for the same period a year ago. The Company recorded net income of $3 million, or $0.07 per diluted share during the third quarter of fiscal 2002, compared to net income of $8 million, or $0.24 per diluted share for the same period a year ago.
For the first nine months of fiscal 2002 revenue totaled $240 million and net income was $8 million or $0.22 per diluted share, compared to revenue and net income of $562 million and $45 million or $1.34 per diluted share, respectively, for the same period a year ago.
The first nine months of fiscal 2002 included $28 million in royalty and license revenue and a $5 million gain from the sale of the Lam Research warrant. The first nine months of fiscal 2001 included a cumulative effect adjustment recorded upon the adoption of SAB 101 of $27 million, or $0.79 per diluted share. Excluding the non-recurring effects of the Lam royalty and license agreement in fiscal 2002 and the cumulative effect of the adoption of SAB 101 in fiscal 2001, revenue and net loss were $212 million and $14 million, or $0.44 per share in the first nine months of fiscal 2002, compared to revenue and net income of $562 million and $72 million, or $2.13 per diluted share in the first nine months of fiscal 2001.
Gross margin for the third quarter of fiscal 2002 was 39 percent, compared to 31 percent for the same period a year ago. Gross margin for the first nine months of fiscal 2002 was 35 percent (excluding the Lam royalty and license revenue of $28 million), compared to 39 percent for the same period a year ago.
Shipments, which approximate pre-SAB 101 revenue, were $95 million for the third quarter of fiscal 2002 and $196 for the first nine months of fiscal year 2002 (excluding the Lam royalty and license revenue of $28 million).
Richard A. Aurelio, Varian Semiconductor's chairman and chief executive officer, said, "We are benefiting from strong pockets of business, primarily in Asia, where we have been able to meet unanticipated requests for early delivery of our leading-edge tools. As the business environment improves, the interest in our VIISta platform of tools continues to strengthen. However, even considering these indicators of rising activity and growing acceptance of our technology, we do not see enough evidence of continued sustainable growth in worldwide demand at the present time."
Robert J. Halliday, chief financial officer, added, "We are very pleased with our profitability at current revenue levels. Long-term, we remain committed to driving down our costs, which is critical in the current competitive environment, and to maximizing our long-term profitability. In addition, we will be increasing our investment in R&D spending to further strengthen our leading position in ion implantation technology."
Halliday also provided forward guidance, noting that, "We currently expect revenue for the fourth quarter of fiscal 2002 to be between $85 and $105 million, and shipments to range from $105 to $125 million. Revenue is expected to be lower than shipments during the fourth quarter of fiscal 2002 as we expect to ship more VIISta 810HPs, for which revenue is not recognized until customer acceptance. Gross margin may be down slightly in the fourth quarter compared to the third quarter."
Varian Semiconductor will hold a conference call, broadcast over the Internet, at 5:00 p.m. eastern time today for analysts, investors and media to discuss the Company's operating results and outlook. Access to the call is available through the Company's website at www.vsea.com. Replays will be available via the website for two weeks after the call.
About Varian Semiconductor
Varian Semiconductor Equipment Associates, Inc. is the leading producer of ion implantation equipment used in the manufacture of semiconductors. The Company is headquartered in Gloucester, Massachusetts, and operates worldwide. Varian Semiconductor maintains a website at www.vsea.com. The information contained in the Company'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, the statements concerning the industry outlook, the Company's guidance on fourth quarter 2002 revenue and gross margins, market share, capacity utilization and technological improvements and benefits, 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; the Company's dependence on a small number of customers; fluctuations in the Company's quarterly operating results; the Company's transition to new products; uncertain protection of the Company's patent and other proprietary rights; concentration in the Company's customer base and lengthy sales cycles; the Company's reliance on a limited group of suppliers; potential environmental liabilities; the Company's dependence on certain key personnel; the Company's limited operating history; and the risk of substantial indemnification obligations under the agreements governing the spin-off of the Company from Varian Associates, Inc. on April 2, 1999. These and other important risk factors that may affect our actual results are discussed in detail under the caption "Risk Factors" in the Company's Annual Report on Form 10-K and in other reports filed by the Company with the Securities and Exchange Commission. The Company cannot guarantee any future results, levels of activity, performance or achievement. The Company undertakes no obligation to update any of the forward-looking statements after the date of this press release.
VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Fiscal Three Fiscal Nine
Months Ended Months Ended
June 28, June 29, June 28, June 29,
2002 2001 2002 2001
----------- ----------- ----------- -----------
Revenue
Product revenue $ 74,834 $ 122,869 $ 156,840 $ 479,201
Service revenue 17,635 20,390 48,843 69,504
Royalty and license
revenue 2,188 3,909 _33,972 13,494
----------- ----------- ----------- -----------
Total revenue 94,657 147,168 239,655 562,199
Cost of revenue 57,765 101,135 138,176 345,562
----------- ----------- ----------- -----------
Gross profit 36,892 46,033 101,479 216,637
Operating expenses
Research and
development 12,515 11,697 37,997 38,476
Marketing, general
and administrative 22,086 24,412 61,651 76,435
----------- ----------- ----------- -----------
Total operating
expenses 34,601 36,109 99,648 114,911
----------- ----------- ----------- -----------
Operating income 2,291 9,924 1,831 101,726
Interest income, net 1,469 2,270 4,405 6,288
Other income, net - - 5,149 -
----------- ----------- ----------- -----------
Income before income
taxes and cumulative
effect of change in
accounting principle 3,760 12,194 11,385 108,014
----------- ----------- ----------- -----------
Provision for
income taxes 1,141 4,024 3,757 35,645
----------- ----------- ----------- -----------
Income before
cumulative effect
of change in
accounting
principle 2,619 8,170 7,628 72,369
----------- ----------- ----------- -----------
Cumulative effect of
change in accounting
principle, net of
tax - - - (27,038)
-----------
Net income $ 2,619 $ 8,170 $ 7,628 $ 45,331
=========== =========== =========== ===========
Weighted average
shares outstanding -
basic 33,420 32,340 32,990 32,185
Weighted average
shares outstanding -
diluted 35,269 34,457 34,827 33,911
Income per share
before cumulative
effect of change
in accounting
principle - basic $ 0.08 $ 0.25 $ 0.23 $ 2.25
Income per share
before cumulative
effect of change
in accounting
principle - diluted $ 0.07 $ 0.24 $ 0.22 $ 2.13
Cumulative effect of
change in accounting
principle - basic $ 0.00 $ 0.00 $ 0.00 $ (0.84)
Cumulative effect of
change in accounting
principle - diluted $ 0.00 $ 0.00 $ 0.00 $ (0.79)
Net income per
share - basic $ 0.08 $ 0.25 $ 0.23 $ 1.41
Net income per
share - diluted $ 0.07 $ 0.24 $ 0.22 $ 1.34
VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 28, Sept. 28,
2002 2001
----------- -----------
ASSETS
Current assets
Cash and cash equivalents $ 320,686 $ 278,641
Accounts receivable, net 53,827 85,455
Inventories, net 92,819 115,689
Other current assets 47,721 44,525
----------- -----------
Total current assets 515,053 524,310
Property, plant and equipment, net 45,628 46,288
Other assets 16,104 17,459
----------- -----------
Total assets $ 576,785 $ 588,057
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Notes payable and other short-term borrowings $ 5,207 $ 15,900
Accounts payable 28,810 19,271
Accrued expenses 54,654 43,149
Product warranty 10,266 20,075
Deferred revenue 48,381 81,137
----------- -----------
Total current liabilities 147,318 179,532
Long-term accrued expenses 5,676 7,292
Deferred taxes 1,893 1,788
----------- -----------
Total liabilities 154,887 188,612
Stockholders' equity
Common stock 337 326
Capital in excess of par value 250,512 235,700
Retained earnings 171,049 163,419
----------- -----------
Total stockholders' equity 421,898 399,445
Total liabilities and
stockholders' equity $ 576,785 $ 588,057
=========== ===========
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eastunder
17 years ago
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