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To: StanX Long who wrote (9144)	3/26/2003 1:35:54 AM
From: StanX Long	Read Replies (1) \| Respond to of 95640

Layoffs continue, Stan. Photronics closes U.S. plant, cuts 10-12% of workforce By Mark LaPedus Semiconductor Business News (03/25/03 05:37 p.m. EST) siliconstrategies.com BROOKFIELD, Conn. -- Continuing to scale back its U.S. production capabilities, Photronics Inc. today (March 25, 2003) announced plans to shut down its photomask manufacturing operations in Phoenix, Ariz.--a move that impacts 10 percent to 12 percent of its worldwide workforce. Last summer, Photronics also shut down its mask operations in Milpitas, Calif., which affected 7 percent to 9 percent of its workforce. Today, the Brookfield-based supplier of photomasks said it would record an after tax charge of between $36-to-$40 million, or $1.12 and $1.25 per diluted share, in the fiscal quarter ending May 4, 2003, in connection with these plans. The moves are designed to reduce costs and restore profitability, said Daniel Del Rosario, Photronics' CEO. "It is our goal to return to profitability by the end of the July quarter this year and we believe that the cost reductions we are announcing today will enable us to achieve this objective,” he said in a statement. "Technology, as it relates to semiconductor designs at and below 130 nanometers, and strategic investments in our Asian, European and North American manufacturing networks will be the key growth drivers for our company over the next 18 to 24 months,” he said. “Nearer-term economic and geo-political conditions continue to generate a cautious outlook on the part of all customers, as they aggressively manage their inventories and the roll out of new semiconductor designs. Until our market intelligence concludes that both corporate and consumer confidence have significantly improved, we are conditioning our global team to effectively operate in a business environment likely to remain challenging,” he said. The announcement underscores the problems in the photomask industry, which has been hit hard by the semiconductor downturn. The problems have prompted the U.S. government, photomask companies and several semiconductor makers to reportedly form a research consortium. The consortium, which is in the final stages of development, would help overcome the technical and economic difficulties associated with deep-submicron mask design (see March 20 story ).