Varian Semiconductor Equipment Associates Announces Restructuring As Part Of Ongoing Efforts To Drive Operating Leverage
Friday September 27, 7:15 am ET
GLOUCESTER, Mass.--(BUSINESS WIRE)--Sept. 27, 2002--Varian Semiconductor Equipment Associates, Inc. (Nasdaq: VSEA - News), announced today that it has taken further actions to restructure its business and reduce costs in anticipation of continued soft demand for semiconductor devices and semiconductor capital equipment.
Included in the Company's actions is a reduction of its worldwide workforce by 15 percent, to approximately 1,370.
Ernest L. Godshalk, president and chief operating officer, said, "Varian Semiconductor's business fundamentals and market position remain sound. Our strong balance sheet enables us to continue to increase investment in R & D to develop new leading-edge products. However, we believe that the pace of recovery is slowing and that semiconductor unit volumes, which drive demand for our products, are uncertain. Accordingly, we are adjusting our business infrastructure to meet the changing dynamics of the equipment industry focusing on continued cycle time reduction to be more responsive to rapidly changing customer demand. When effective, these actions are expected to reduce our breakeven point to approximately $82 million."
Robert J. Halliday, chief financial officer, said, "Despite volatility in the marketplace, revenue for our September quarter is still expected to range between $85 and $105 million and we should be approximately breakeven in the quarter. As a result of these actions, included in the results will be a restructuring charge of approximately $3.4 million."
The Company will release its results for the fourth quarter and fiscal year 2002 after the close of the market on October 24, 2002 and hold a conference call to discuss results at approximately 5 p.m. eastern time on that day.
About Varian Semiconductor
Varian Semiconductor Equipment Associates, Inc. is the leading producer of ion implantation equipment used in the manufacture of semiconductors. The Company is headquartered in Gloucester, Massachusetts, and operates worldwide. Varian Semiconductor maintains a website at www.vsea.com. The information contained in the Company's website is not incorporated by reference into this release, and the website address is included in this release as an inactive textual reference only.
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 industry outlook, the Company's guidance on fourth quarter 2002 revenue and gross margins, market share, capacity utilization and technological improvements and benefits, and any statements using the terms "believes," "anticipates," "will," "expects," "plans" or similar expressions, are forward-looking statements. The forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: volatility in the semiconductor equipment industry; intense competition in the semiconductor equipment industry; the Company's dependence on a small number of customers; fluctuations in the Company's quarterly operating results; the Company's transition to new products; uncertain protection of the Company's patent and other proprietary rights; concentration in the Company's customer base and lengthy sales cycles; the Company's reliance on a limited group of suppliers; potential environmental liabilities; the Company's dependence on certain key personnel; the Company's limited operating history; and the risk of substantial indemnification obligations under the agreements governing the spin-off of the Company from Varian Associates, Inc. on April 2, 1999. These and other important risk factors that may affect our actual results are discussed in detail under the caption "Risk Factors" in the Company's Annual Report on Form 10-K and in other reports filed by the Company 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. |
