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Cymer Posts Profit Increase

Third-quarter earnings beat estimates by 3 cents a share, but revenue falls slightly short.
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Cymer

(CYMI)

reported third-quarter results after the market close Tuesday that showed a year-over-year increase in profits.

The San Diego-based laser light manufacturer posted net income of $27 million, or 68 cents a share, up from the $12.7 million, or 35 cents a share, it posted in the third quarter of 2005. Third quarter revenue was $143.9 million, up 44% from the $99.7 million it generated in the prior-year period.

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Analysts, on average, were looking for earnings of 65 cents a share on roughly $147 million in revenue, according to the Thomson First Call estimate.

Gross margin grew to 50 percent in the third quarter.

"In the immediate future, we believe chipmakers will continue to order equipment in line with expected demand," CEO Bob Akins said. He warned however that demand may slow in the fourth quarter and pick up again in the first quarter of 2007.

Looking forward, the company expects fourth-quarter revenue will be down about 5% to 7% from the third quarter. Analysts expect revenue of $153.3 million in the fourth quarter.

Shares of Cymer were trading down $4.20, or 9.3%, at $41 in recent after-market trading.