FYI,
Tencor Instruments Announces Company-Wide Reduction in Force
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Sept. 18, 1996--Tencor Instruments
(NASDAQ:TNCR) today announced it has reduced its work force by nearly 15%, affecting
approximately 220 regular and contract employees -- primarily in the areas of manufacturing and
administration.
The number of regular employees affected was limited to approximately 130, due to the company's
long-term strategy of managing capacity using a temporary workforce. The majority of the affected
employees were located at the company's California headquarters.
Employees affected by the reduction in force will receive extended benefits based on length of
service, as well as outplacement assistance.
"As we indicated at the end of our second quarter, the pace of the semiconductor industry has
slowed significantly, impacting our bookings and sales levels," said Jon D. Tompkins, chairman,
president and chief executive officer. "A reduction in force is always a painful decision; however, it is
critical that we realign our operations to match current market conditions.
"At the same time, we remain committed to developing the high-performance products and the
support organization that will strengthen our competitive position for the future and help us meet our
long-term growth and profitability goals," Tompkins added.
Tencor's reduction in force is only one of a number of cost containment measures the company has
implemented in recent months. In addition to discretionary expense reductions, these actions include a
hiring freeze, and reduction in base pay for corporate officers and vice presidents.
The company has also scheduled several shutdowns, the first of which occurred the week of Aug. 26.
Other shutdowns will take place over the three days prior to the Thanksgiving holiday and during the
week between Christmas and New Year's -- Tencor's customary holiday break.
To the extent that this news release discusses expectations about market conditions, expectations
regarding expenses and profitability, organizational development, or otherwise makes statements
about the future, such statements are forward looking and are subject to a number of risks and
uncertainties that could cause actual results to differ materially from the statements made.
These factors include risks associated with managing expenses and other factors discussed in the
business description and management's discussion and analysis sections of the Company's Report on
Form 10K and Annual Report to Shareholders.
About Tencor: Tencor Instruments, founded in 1976, is a recognized leader in the design and
manufacture of innovative wafer defect inspection, software-based yield management, film
measurement and metrology systems used in semiconductor manufacturing and related industries. The
company reported revenues of $109 million for the quarter ended June 30, 1996.
Corporate offices are located in Mountain View and Santa Clara, Calif., with sales and service
offices worldwide. The company's home page can be found on the World Wide Web at
tencor.com.
CONTACT: Tencor Instruments
Bruce Wright, 408/970-9500, x2979 (investment community)
Roberta Emerson, 408/970-9500, x2926 (media)
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