Varian Semiconductor Equipment Associates Extends Cost Cutting Programs to Address Business Conditions
GLOUCESTER, Mass.--(BUSINESS WIRE)--Oct. 18, 2001--Varian Semiconductor Equipment Associates, Inc. (NASDAQ: VSEA - news), today announced that the company is extending its cost reduction programs, implemented during the last nine months, in its continuing response to increasingly difficult business conditions for the industry.
Among the most significant actions taken this week was the reduction of the worldwide work force by approximately 12 percent, bringing total global employment to just over 1,500 people. Additional company wide actions include ongoing expense reductions in all categories to better match the company's operations to the severity of the downturn in demand.
``Varian Semiconductor's business is sound, our cash position and balance sheet are strong, and our clearly differentiated product offering has resulted in increased market share,'' said Richard A. Aurelio, chairman and chief executive officer. ``However, we cannot escape deteriorating global demand affecting our entire industry and the current uncertainty about the timing of a recovery. Therefore, we believe that a cautious and conservative operational stance is best.''
``We have talented employees in all parts of the world - among the best in the industry,'' Aurelio continued. ``The cyclical nature of our industry requires us to make these staffing reductions to weather a difficult downturn. I applaud the continuing efforts and dedication of all members of our team in facing challenging times together.''
About Varian Semiconductor
Varian Semiconductor Equipment Associates is the leading producer of ion implantation equipment used in the manufacture of semiconductors. The company is headquartered in Gloucester, Massachusetts, and operates worldwide offices. Varian Semiconductor maintains a web site at www.vsea.com.
Note: This press 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 company's operating outlook, market share and technology leadership, technological capabilities and benefits 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. |
