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To: CusterInvestor who wrote (870)	3/15/2001 11:42:15 PM
From: CusterInvestor	Respond to of 120405

Whoops! Someone Knew something today...where is the SEC when you need them? Thursday March 15, 2001 06:31 PM Company Press Release Tegal Updates Business Outlook, Institutes Cost Reduction Plan and Reaffirms Profitability Expectations for Fiscal 2001 PETALUMA, Calif.--(BUSINESS WIRE)--March 15, 2001--In view of continuing weakness in capital spending in the semiconductor and related industries, Tegal Corp. (Nasdaq:TGAL) today expanded on its previously discussed business outlook. The company said it expected fourth-quarter financial results to be negatively impacted by the industrywide slowdown in capital equipment spending and the revenue recognition requirements of SAB 101. Accordingly, Tegal has implemented a cost reduction plan geared toward minimizing the effects on earnings of the industry downturn while supporting the company's near- and long-term business objectives. Tegal also reaffirmed that it expects to report a substantial increase in both revenues and net income for fiscal year 2001 over last year's net loss of 12.6 million. Through the first three quarters of fiscal 2001, Tegal reported net income of 5.1 million, or 0.39 per diluted share, on revenue of 32.4 million. Chairman and Chief Executive Officer Michael Parodi said: "We, as others, have seen a sharp curtailment in capital spending and push out of orders now in backlog. We don't believe market conditions will affect our competitive position or market leadership. Rather, they reflect restraint in customer spending that is in line with current end-user demand and worldwide industry economics. "Given this outlook, we have implemented a cost reduction plan that includes six mandatory days off per quarter, merit increase delays, executive salary cuts of 10 percent, and reduction of outside services. We believe that these actions are prudent and will support our business objectives during this period. "At the same time, we are maintaining our spending on strategic development programs to address the semiconductor industry's ongoing transition to new, difficult-to-etch materials, such as high-k dielectrics and III-V materials, whose characteristics are particularly suited to telecom and datacom applications. "We continue to believe that Tegal is well positioned to gain market share when manufacturers begin ramping up their new materials production activity. Our foundational success in these areas strengthens our position as one of the premier suppliers of wafer processing equipment used to etch new materials for ICs, opto-telecom and other micro-electronics-related devices."