Here is the text of SFAM's pre-announcement:
SpeedFam International Anticipates Lower Than Expected Revenue and Net Loss for Fourth Quarter of Fiscal 1998
Anticipated Operating Loss to Include One-Time Charges
CHANDLER, Ariz.--(BUSINESS WIRE)--May 26, 1998--SpeedFam International, Inc. (NASDAQ:SFAM - news) today announced that it expects to report lower than anticipated total revenue, ranging from $24.0 to $26.0 million, for the fourth fiscal quarter ending May 31, 1998. By comparison, SpeedFam reported total revenue of $49.3 million for the fourth quarter of fiscal 1997.
SpeedFam attributed its lower revenue expectations for fourth-quarter 1998 primarily to slower than anticipated sales of chemical mechanical planarization (CMP) systems to the semiconductor device market. Specifically, the Company cited customer delays in CMP system shipments originally scheduled for the fourth quarter. SpeedFam identified continued weakness in the thin film memory disk media market as an additional factor.
Based on its lower revenue expectations, SpeedFam anticipates a fourth-quarter operating loss of $10.0-$10.8 million. This loss is expected to include one-time charges of $4.5-$5.0 million for general reserves, special customer service allowances, inventory adjustments for disk polishing systems and severance compensation for terminated employees. On April 28, 1998, the Company completed a reduction in its worldwide work force of approximately 11 percent.
Reflecting the contributions of interest income, income tax benefits and equity in the net earnings of SpeedFam's joint ventures, fourth-quarter net loss is expected to be $3.8-$4.3 million, or a loss of $0.24-$0.27 per share. By comparison, the Company reported net earnings of $6.5 million, or $0.46 per share (diluted), for the same quarter a year ago.
SpeedFam acknowledges that its expectations of fourth-quarter financial results are preliminary, subject to the closing of its books and the completion of customary fiscal year-end audit procedures by Company management and independent auditors. SpeedFam plans to announce its final results in early July 1998. |
