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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Return to Sender who wrote (43596)	3/2/2009 11:03:05 PM
From: Sam	2 Recommendations Respond to of 95597

UPDATE 1-Advantest warns of record loss, cuts 1,200 jobs Wed Feb 25, 2009 3:31am EST * Forecasts record $804 mln annual loss amid chip slump * To 1,200 jobs, more than a quarter of workforce * Slashing costs to preserve cash through downturn (Adds details, background) TOKYO, Feb 25 (Reuters) - Japan's Advantest Corp (6857.T: Quote, Profile, Research, Stock Buzz), the world's biggest supplier of machines that test semiconductors, said it would cut more than a quarter of its workforce and warned it faces a record $804 million annual loss. Semiconductor equipment makers worldwide are suffering as a slump in chip prices forces makers such as Intel Corp (INTC.O: Quote, Profile, Research, Stock Buzz) and Samsung Electronics Co (005930.KS: Quote, Profile, Research, Stock Buzz) to reduce spending. Makers of chip testers have suffered the deepest cuts in sales. Orders at Advantest plunged 71 percent in October-December to a record low as the global recession threw cold water on its hopes for a recovery in demand from makers of dynamic random access memory and logic chips. It also faces increasing competition from rivals Teradyne Inc (TER.N: Quote, Profile, Research, Stock Buzz) and Verigy Ltd (VRGY.O: Quote, Profile, Research, Stock Buzz), which are developing advanced computer memory testers. Advantest said it expects the chip tester market to shrink 43 percent in 2009, following a 26 percent fall last year. "2009 will be a year to endure," Advantest Chief Executive Toshio Maruyama told reporters on the sidelines of a briefing. The company said it would cut 1,200 jobs and cut pay and bonuses for managers to save 25 billion yen a year, as it tried to ensure its cash lasts through the lengthening downturn. Adventist had cash reserves of 135 billion yen at the end of December, including short-term investments. It said it would also cut back product lines and reorganise offices and other facilities in the face of a forecast net loss of 78 billion yen ($804 million) in the year to March, down from a profit of 16.6 billion yen a year earlier. The net earnings were also brought down by a writedown of deferred tax assets. ($1=97.05 Yen) (Reporting by Mayumi Negishi and Sachi Izumi)