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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Shoibal Datta who wrote (43129)	3/5/2001 7:37:20 PM
From: Proud_Infidel	Respond to of 70976

VSEA warns: Varian Semiconductor Comments On Fiscal 2001 Second Quarter Outlook GLOUCESTER, Mass.--(BUSINESS WIRE)--March 5, 2001--Varian Semiconductor Equipment Associates, Inc. (NASDAQ: VSEA - news) today announced that, based on the current business environment, it expects revenue for the second fiscal quarter ending March 30, 2001, to be below the guidance the company had provided on January 25, 2001 in its earnings press release and conference call. ``As a result of continuing weakness in the fundamentals that drive our customers' capital spending plans,'' said Richard A. Aurelio, Varian Semiconductor's chairman and chief executive officer, `` we anticipate that the quarter's total revenue will increase no more than 10 percent over the same quarter last year. Our earlier guidance had anticipated an approximately 15 percent increase in revenue for the quarter over the same quarter last year.'' (Total revenue in last year's second quarter was $156 million.) ``Although some customers have asked us to delay deliveries and a few have cancelled orders,'' Aurelio continued, ``we believe we are maintaining our market share gains of the last year. Our customers' recognition of the importance of our new VIISta platform for their needs in increasing fab productivity and advancing their own technology, particularly for 300 mm production, is an important factor in our market leadership. Visibility about future business trends remains limited, but we believe we are well positioned to capture additional market opportunities despite changes in the business environment.'' Aurelio also noted that the company is implementing cost and capital expenditure reduction plans consistent with lower revenue expectations. ``We are continuing to maintain a focused and active R&D program,'' he noted, ``to advance our strategic leadership in ion implantation technology.'' For the remainder of fiscal 2001, the company advised that it expects total revenue to be in line with industry performance. ``With current industry dynamics uncertain,'' Aurelio said, ``it is impossible to predict when more rapid growth might resume. Consequently, we are no longer able to provide guidance for the fiscal second quarter or full year regarding such factors as gross margin, operating expenses as a percent of revenue or net income.'' Varian Semiconductor will present at the Morgan Stanley Dean Witter Semiconductor and Systems Conference on Tuesday, March 6, 2001. The company plans to issue results for its second quarter of fiscal 2001 after the close of the market on April 25, 2001. At 5 p.m. eastern time on that day, the company will conduct a conference call to discuss its second quarter results for the coming quarters. Information on how to access a webcast of both the Morgan Stanley Conference presentation and the earnings conference call will be provided on the company's website, www.vsea.com. About Varian Semiconductor Varian Semiconductor Equipment Associates is a 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 web site at www.vsea.com. The information contained in our web site is not incorporated by reference into this release, and our web site address is included in this release as an inactive textual reference only. Note: This press 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 company's operating outlook, market share and technology leadership are forward-looking statements. There are a number of important factors that could cause actual events to differ materially from those suggested or indicated by such forward-looking statements. These include, among others, volatility in the semiconductor equipment industry; economic conditions in general and as they affect the company's customers; significant fluctuations in the company's quarterly operating results; the impact of rapid technological change and the company's dependence on the development and introduction of new products; the company's concentration on ion implantation systems and related products; concentration in the company's customer base and lengthy sales cycles; the highly competitive market in which the company competes; risks of international sales; foreign currency risks; general economic conditions; and other factors identified in the company's Annual Report on Form 10-K, and the most recent Quarterly Reports on Form 10-Q filed 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.