Asyst Updates Fiscal Year 2002 First Quarter Outlook; Cancels New Headquarters Construction
FREMONT, Calif., Jun 19, 2001 (BUSINESS WIRE) -- Asyst Technologies, Inc. (Nasdaq NM: ASYT), the leading provider of Standard Mechanical Interface (SMIF)-based manufacturing automation systems, today reduced its revenue outlook for the fiscal first quarter ending June 30, 2001 from approximately $75 million to an estimated $65 to $70 million. The company believes the expected revenue levels are directly attributed to the continuing slowdown in demand across the semiconductor industry.
"The current operating environment is a challenge for Asyst as well as for the semiconductor industry as a whole," noted Mihir Parikh, chairman and chief executive officer. "For Asyst, this has resulted in ongoing pressure on bookings and backlog, and our visibility continues to be limited."
In addition to its updated revenue guidance, the company believes gross margins for the first quarter will be in the range of 25 to 28 percent of revenues and that it will incur an operating loss for the quarter. Parikh noted, "While the severity of the downturn is of concern to us, we nonetheless remain confident that our continuing cost cutting measures and our commitment to the strategic programs and organizational initiatives in place will enhance Asyst's position in the market and prepare us for the next upturn."
The company also announced today in its annual report on Form 10-K filed with the SEC that it had decided not to proceed with the construction of a new corporate headquarters in Fremont, California. The company has amended its contractual arrangements with the bank syndicate financing the new project and has committed to purchase the approximately 36-acre parcel from the syndicate on or before December 31, 2001, for the original purchase price of approximately $38.3 million plus accrued interest. The company has not yet determined whether to sell the property or hold it for future development or sale. The company believes that the current fair market value of the land is substantially less than the original purchase price due to a decline in the real estate market in the Fremont area. If sold in today's market, the company estimates that proceeds from the sale would be in the range of $10 to $20 million less than the amount due to the bank syndicate. The company also believes that it will be required to record an impairment charge or other reserve with respect to the land during the quarter ending June 30, 2001, the exact size of which has not yet been determined. |
