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Cymer reports improved Q2 results, plans share buyback

02 Aug 2006

Deep UV laser developer Cymer reports improved Q2 business; semiconductor industy-targeted lasers show sales growth; company announces share buyback plan.

Cymer, San Diego, CA, US, a developer of excimer laser light sources for semiconductor manufacturing, has announced operating results for its second quarter and first half of fiscal 2006, which ended June 30.

For the second quarter, Cymer's net income rose to $22.6 million, a 105% increase over Q2 2005, and a 10% improvement on Q1 2006. Revenue grew to $135.3 million, a 40% increase on that of last year's Q2, and a 6% increase on this year's Q1.

For the first six months of 2006, the company's net income climbed to $43.2 million, a 163% increase on net income in the first half of 2005. H1 2006 revenue rose to $262.5 million, a 45% increase on that of H1 2005.

"We achieved record quarterly total revenue and non-systems revenue, and record net income," said Bob Akins, Cymer's CEO. "Gross margin improved for the sixth consecutive quarter, and at 48%, met our expectations posted in April, 2006 guidance.

"We recognized revenue on 75 light sources in the second quarter, a 7% increase over the prior quarter," Akins continued. "We shipped 31 of our XLA Series argon fluoride (ArF) light sources, the second highest quarterly volume of XLA light sources since the series was introduced. Shipments of our XLA 300, which targets high volume immersion production, accounted for 8% of Q2system shipments."

Cymer's Q2 2006 bookings totaled $128.3 million compared to Q1 bookings of $135.6 million. The Q2 2006 book-to-bill ratio was 0.95, and the quarter-end backlog totaled $92.2 million.

Nancy Baker, Cymer's chief financial officer, stated, "The company generated $16.4 million in cash from operations in Q2 2006, and spent $2.8 million on the acquisition of property and equipment, and an additional $8.2 million on an EUV patent license agreement. These trasactions yielded free cash flow of $5.4 million for Q2."

• Cymer also announced that the company intends to repurchase up to $150 million of the company's common stock. The purchases will be made from time to time in the open market or in privately negotiated transactions, the board stated. As of July 28, 2006, Cymer has approximately 41.2 million shares of common stock outstanding.

Bob Akins, Cymer's chairman and CEO, said, "Over the last six quarters, we have achieved sequential quarterly growth in revenue, gross margin, and operating and net income, while significantly improving our operating efficiencies. We remain the segment's technology and market leader, and our most advanced, highest value added products are experiencing growing demand. We are optimistic about our prospects in the current year as well as longer-term.

"Our current cash position and our expectation of generating substantial amounts of cash through the remainder of this year enable us to execute this repurchase plan and to fund our new business development programs as well."

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