SOURCE: Varian Semiconductor

February 26, 2007 09:01 ET

Varian Semiconductor Awarded Largest Service Contract in Its History by Major U.S. Logic Chipmaker

Contract Covers a Multitude of Single Wafer Medium and High Current Implanters at Multiple Locations

GLOUCESTER, MA -- (MARKET WIRE) -- February 26, 2007 -- Varian Semiconductor Equipment Associates, Inc. (NASDAQ: VSEA) today announced it has been awarded two service contracts by a major U.S. logic chipmaker totaling more than $30 million. The contracts represent the single largest service agreement with a customer in VSEA's history.

Under terms of the contracts, Varian Semiconductor will provide comprehensive service and support to this customer covering a multitude of VIISta® single wafer medium and high current ion implanters at a 300mm and a 200mm wafer processing fab. The contracts include world-class 24X7, 365 days-a-year support by VSEA's dedicated onsite engineers.

"Awarding us contracts of this scope is a clear indication of this customer's confidence in our ability to deliver superior parts, labor, service and preventative maintenance support," said Jim Mullin, VP of Customer Operations for Varian Semiconductor. "One of the contracts is a renewal of a five-year, high-level service agreement, which is a true testament of how our customer values our outstanding service and support. Customers around the world continue to count on us, as the leader in customer support, to provide exceptional service, keeping their VIISta single wafer platform tools running at peak performance. This kind of support, in turn, helps lower operating costs and improves productivity."

In November 2006, Varian Semiconductor was one of only 14 semiconductor equipment manufacturers worldwide to be awarded VLSI Research's prestigious five-star rating. As a five-star award winner, Varian Semiconductor was cited for demonstrating exceptional customer satisfaction across measured categories including cost of ownership, quality of results, product performance, customer service, technical leadership and commitment. The five-star rating system reflects equipment performance and customer service evaluations from equipment users based on the 2006 VLSI Research Customer Satisfaction Survey on Chip Making Equipment. VLSI Research is the world's leader in providing independent customer evaluations of semiconductor equipment suppliers.

The VIISta platform is the only complete production-proven suite of single wafer solutions for all medium current, high current and high energy applications. All of the VIISta products feature the Varian Control System (VCS™), the Varian Positioning System (VPS™) and a common single wafer endstation. This high degree of commonality across the VIISta platform provides flexibility in managing capacity, product mix changes, spare parts and training.

About Varian Semiconductor

Varian Semiconductor Equipment Associates is the leading supplier of ion implant equipment to semiconductor manufacturers, enabling them to pack more, higher performing transistors into computer chips that are revolutionizing the electronics industry. Varian Semiconductor's products are used by chip manufacturers worldwide to produce high-performance semiconductor devices. Customers have made Varian Semiconductor the market leader in ion implant because of its architecturally superior products that lower their costs and improve their productivity. The Company has ranked #1 in the VLSI Research Customer Satisfaction Survey nine times over the last 10 years. Varian Semiconductor operates globally and is headquartered in Gloucester, Massachusetts. More information can be found on Varian Semiconductor's web site at www.vsea.com.

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 Company's performance, market share and technology leadership, technological capabilities and benefits and growth 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, 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.

Contact Information

  • Contacts:
    Bob Halliday
    Executive Vice President
    Chief Financial Officer
    978.282.7597
    or
    Mary Wright
    Director, Investor Relations
    978.282.5859