Cymer, Inc. (Cymer) expects revenues to be in range of $100 million to $106 million for the fourth quarter of 2008. Based on the limited visibility that exists, the company anticipates that its first quarter 2009 revenue could decrease 30 to 35% when compared to revenue for the fourth quarter 2008.
Subsequently, business conditions in lithography sector have further deteriorated as demand for the new light sources has declined sharply and demand for the installed base products is slowing. To bring the expenses in-line with anticipated demand, the company is taking actions to decrease its global cost structure by $50 to $55 million annually. These actions include:
— 10% reduction in personnel or an about 100 headcount reduction.
— Temporary 10% 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.
The company expects to record restructuring related charges in the first quarter 2009 financial results of about $4.5 million in conjunction with actions announced on January 15, 2009.
The company will discuss its fourth quarter and full year 2008 results and provide additional guidance for the first quarter 2009 in the upcoming earnings announcement on February 11, 2009.