Asyst eases stock dilution fear with credit deal
Thursday October 3, 4:28 pm ET
FREMONT, Calif., Oct 3 (Reuters) - Semiconductor equipment maker Asyst Technologies Inc (NasdaqNM:ASYT - News) said on Thursday it has arranged a $25 million credit facility, easing investor concern that it would have to issue stock to raise cash to pay for a pending acquisition.
Asyst also backed its earlier sales guidance of $70 million for its second quarter, which ended in September.
Asyst stock had fallen 24 percent earlier in the day, but eased after the news of the credit facility agreement. The shares closed down 29 cents, or 5.4 percent, to $5.11 on Nasdaq.
Asyst is set to close a deal later this month to take a controlling interest in a business of Japan's Shinko Electric Co. Ltd. (Tokyo:6507.T - News). Investors were concerned that Asyst would have to sell stock to raise adequate cash to close the deal, thus diluting the value of its shares, Banc of America Securities chip equipment analyst Mark FitzGerald said.
Asyst spokesman John Swenson said the company does not expect to raise additional capital in current market conditions. Asyst stock is well off its high of $67 reached in 2000, limiting its ability to raise cash from a stock offering.
"We don't anticipate any additional financing in these market conditions," Swenson said.
With the $25 million credit facility from an unspecified U.S. commercial bank, $20 million expected next week from a sale of raw materials to Solectron Corp. (NYSE:SLR - News) and current cash balances, the company expects to have around $50 million to $52 million of cash and short-term investments left over after closing the Shinko deal, Swenson said.
Asyst makes tools that transport silicon wafers around microchip factories. Companies that serve the chip industry have been battered by a downturn that has idled factories and left unsold inventories of chips collecting dust in warehouses. |
