Asyst triples sales, plans to cut 10 percent of jobs
Silicon Strategies
08/04/2004, 7:00 PM ET
FREMONT, California -- Despite tripling sales in its second fiscal quarter Asyst Technologies Inc., a supplier of automation and material handling systems for wafer and display fabs, is planning to cut 10 percent of the company's jobs in second fiscal quarter.
The company expects sales to increase the second fiscal quarter rising by between 3 percent and 10 percent sequentially
The company made a net loss of US$900,000 on net sales of $140.9 million, in its first fiscal quarter, which ended June 26, the company said Wednesday (August 4). The sales were up 8 percent from $130.1 million reported in the prior sequential quarter and up 211 percent from $45.3 million in the same quarter a year ago, the company said.
Sales of tool and fab automation products at ATI were $73.4 million, up 44 percent from $51.1 million reported in the prior sequential quarter. Sales of automated material handling systems (AMHS) at Asyst Shinko, Inc. (ASI), the company's 51 percent owned joint venture company, were $67.5 million, which compares with $79.0 million in the prior quarter.
The sequential quarterly decline in sales at ASI is attributable primarily to the one-quarter delay of expected revenue on a new flat panel display (FPD) automation project, which the company now expects to recognize in the fiscal second quarter.
"We are pleased with our performance at ATI, which reflects our ability again to ramp production significantly while at the same time achieving improvement in gross margin and other operating metrics," said Steve Schwartz, chairman and chief executive officer of Asyst, in a statement.
Schwartz added: "We also have begun to execute the previously discussed restructuring activities that will bring ATI into alignment with our operating model. In the fiscal second quarter, we have initiated a workforce reduction that will trim global headcount by approximately 10 percent at ATI. We anticipate approximately $1.0 million of quarterly savings from this action beginning in the December quarter and we expect to take a restructuring charge in fiscal second quarter of $1 million to $2 million for related costs. With our outsourcing transition now essentially complete, we are evaluating potential facility consolidation that could result in additional quarterly savings as well as restructuring charges upon execution." |
