This came out on Weds. The prior post was news from today. Once the market figured out on its own that SWTX was cutting staff because of lessining demand, the stock got whacked:
Southwall Reduces Jobs At Its Palo Alto, California Plant
PALO ALTO, Calif.--(BUSINESS WIRE)--Aug. 7, 2002--Southwall Technologies Inc. (Nasdaq:SWTX - News), a global developer, manufacturer and marketer of thin-film coatings for the automotive glass, electronic display and architectural markets, today reported that it has cut 23 positions at its Palo Alto, California facility. Of the positions cut, 21 of them were in the operations area. This represents 15% of the total personnel employed in Palo Alto, and 24% of the operations group at this site. Palo Alto is the Company's headquarters location. After this reduction Southwall will employ 275 people throughout its three sites in California, Arizona, and Germany, and a number of remote sales offices. ADVERTISEMENT
"It is extremely unfortunate to have to make these changes. The world economy, however, dictates that we continue to closely manage our costs," said Thomas G. Hood, President and Chief Executive Officer of Southwall Technologies. "This cost savings measure has been implemented with the goal of further improving Southwall's competitiveness and profitability. We have been consistently reducing our costs over the last year and a half, and this action will measurably lower our break-even point. The high cost of doing business in the Silicon Valley requires us to look elsewhere to remain competitive," continued Hood.
"A third large production machine is currently being installed at our German facility. Because of the modern production equipment and lower cost structure that this site affords us, we anticipate a larger portion of our future customer demands to be serviced from this facility," concluded Mr. Hood.
Southwall Technologies (www.southwall.com) designs and produces technologically advanced thin film coatings that selectively absorb, reflect or transmit electromagnetic radiation. Southwall products are used in a number of architectural, automotive and electronic products to enhance optical and thermal performance characteristics, improve user comfort and reduce energy costs. Southwall exports advanced thin film coatings to over 25 countries around the world for use in products manufactured by such companies as Audi, BMW, DaimlerChrysler, Renault, Peugeot-Citroen, Volvo, Saint-Gobain Sekurit, Pilkington, and Mitsubishi Electric. |
