Aki & All,
Some news items.
CFM Technologies Announces Workforce Reduction; Comments on Business
Outlook
WEST CHESTER, Penn.--(BUSINESS WIRE)--March 16, 1998--CFM Technologies, Inc. (Nasdaq: CFMT) today announced a workforce reduction totaling 78 of the Company's 407 employees.
Roger Carolin, President and Chief Executive Officer, commented, "In our first fiscal quarter press release, we disclosed reductions in customer demand that we now believe will continue over the next several quarters as the semiconductor industry responds to current conditions. As a result, we are taking what we believe to be the necessary actions to better align our costs with these industry conditions and overall reduced demand for semiconductor and FPD capital equipment. We deeply regret having to take this step because of the personal dislocation to affected employees. In addition, the Company's senior management has voluntarily taken a 15% reduction in current compensation, which will remain in effect until conditions improve.
"While making these reductions, we have been careful to preserve the
infrastructure needed to continue the Company's recent initiative to
improve overall customer communication, service and support, worldwide. We are also continuing to move forward with key investments in new product development. We are preparing to ship our first 300mm Full Flow wet processing system to Semiconductor 300 in Dresden, Germany. We believe the inherent advantages of Full Flow technology in the areas of cost of operation, footprint, evaporative emissions and water and chemical usage will be validated at Semiconductor 300 - the world's first production 300mm fab. These actions reflect our commitment to a course which will position the Company to take maximum advantage of an eventual upturn in demand, when it does occur."
The discussion above regarding the Company's expectation of future
results of operations, product introductions, and order activity
includes certain forward-looking statements on these subjects. As such, actual results may vary materially from such expectations. Factors which could cause actual results to differ from expectations include variations in the level of orders, which can be affected by general economic conditions including the current economic and financial conditions in Asia, particularly in Korea; growth rates in the semiconductor and flat panel display manufacturing industries,
difficulties or delays in product delivery, functionality or
performance, changes in budgeted costs or failure to realize a
successful outcome to pending patent litigation.
CFM Technologies, Inc. is a leading manufacturer of advanced cleaning
equipment for the semiconductor and flat panel display industries. CFM's systems provide superior contamination control and processing
capabilities using a totally enclosed processing chamber. Watermarks and other drying defects are eliminated through CFM Direct-Displace(TM) IPA vapor drying technology. CFM historically has developed technical innovations to lower cost of ownership for advanced wet processing systems.
CONTACT:
Jeff Randall
Chief Financial Officer
610-696-8300
or
Michele Katz/Libby Marshall/
Jonathan Rebell
Morgen-Walke Associates
Press: Lee Foley/Elizabeth Pieroni
212-850-5600
KEYWORD: PENNSYLVANIA
BW1500 MAR 16,1998
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Brooks Automation Expects Lower Than Anticipated Fiscal 1998 Second
Quarter Results
CHELMSFORD, Mass--(BUSINESS WIRE)--March 16, 1998--Brooks Automation,
Inc. (Nasdaq: BRKS) today announced that it currently anticipates
revenues for its fiscal 1998 second quarter ending March 31, 1998 will
range between $19 million and $21 million, up from $16.4 million
reported in the comparable quarter of fiscal 1997, but below securities analysts' expectations for the current quarter. At such revenue levels, the Company expects fiscal 1998 second quarter earnings will be significantly below the consensus estimate of break-even.
The Company attributed the anticipated revenue shortfall to the
continuing softness in demand for semiconductor and flat panel display fabrication equipment stemming from end-user excess capacity, coupled with a depressed pricing environment, as well as ongoing uncertainty about business conditions in Asia. During the current quarter, the Company experienced several significant customer requested shipment delays of core 200 mm products, as well as order cancellations from other customers discontinuing certain product lines.
Commenting on these recent developments, Robert J. Therrien, President and Chief Executive Officer of Brooks Automation, said: "While the Company remains cautious about when growth in the semiconductor fabrication equipment sector will return, we remain committed to providing our customers with innovative automation solutions and unsurpassed service worldwide. I continue to believe Brooks is well positioned from a product perspective to capitalize on the next growth cycle."
As a result of these fiscal 1998 second quarter events, the Company has taken certain organizational actions, including the restructuring of its flat panel display group, to further align its cost structure with market conditions. Earlier in the quarter, the Company effected an approximate 11 percent reduction in its global workforce resulting in a nonrecurring charge of approximately $400,000 for severance
compensation in the second quarter. In addition, the Company expects
to record a nonrecurring charge in the second quarter for inventory
write-offs associated with transitioning customers to next generation
wafer handling products and the anticipated discontinuation of certain
flat panel display products. The Company is currently assessing the
financial impact of the anticipated inventory write-off. Actual second quarter results will be reported in the Company's quarterly earnings announcement scheduled for April 16, 1998.
Brooks Automation, Inc. is an independent supplier of substrate
material handling robots, modules, software controls and fully
integrated cluster tool platforms to semiconductor, flat panel display and data storage manufacturers worldwide. Founded in 1978, the Company has distinguished itself as a technology and market leader, particularly in the demanding cluster-tool vacuum-processing
environment. In addition to corporate facilities in Chelmsford,
Massachusetts, Brooks Automation maintains a software technology center in British Columbia, Canada as well as sales and service offices located in the United States, Europe, Japan, Korea and Taiwan.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information, the foregoing
discussion of anticipated revenues, earnings and other financial
results contains projections and other information that constitute
forward-looking statements. These statements involve known and unknown risks and uncertainties, including, without limitation, risks relating to the Company's dependence on the cyclical semiconductor industry, the Company's dependence on relatively few customers for a significant portion of its revenues, the Company's reliance on sales to OEM customers and the lengthy sales cycles of those customers, the ability of the Company to continue to successfully develop and market new products and product enhancements on a timely basis, the highly
competitive nature and rapid technological change that characterize the industries in which the Company competes, and other risks and
uncertainties described in the Company's reports and registration
statements filed with the Securities and Exchange Commission. As a
result, there can be no assurance that the Company's future results
will not be materially different than those projected. The projections contained herein speak only of the Company's expectations as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.
CONTACT:
Brooks Automation, Inc.
Michael W. Pippins/Deborah D. Fox
978/262-2566
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CFM <CFMT.O> to cut jobs amid slack demand
WEST CHESTER, Pa., March 16 (Reuters) - CFM Technologies Inc, a maker of cleaning equipment for the semiconductor industries, said Monday it
would cut 78 jobs out of a total workforce of 407 amid continued slow
demand.
"We are taking what we believe to be necessary actions to better align
our costs with these industry conditions and overall reduced demand for semiconductor and FPD capital equipment," CFM's chief executive, Roger Carolin, said in a statement.
"In our first-quarter press release, we disclosed reductions in customer demand that we now believe will continue over the next several quarters as the semiconductor industry responds to current conditions," Carolin said.
CFM's senior management voluntarily took a 15 percent pay cut, which
will remain in effect until market conditions improve, the company said.
CFM's stock closed Monday at 16-7/16, up 1/16 from Friday's settlement, in trading on the Nasdaq.
18:27 03-16-98
Copyright 1998 Reuters Limited. All rights reserved.
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Brooks <BRKS.O> sees Q2 loss amid slack demand
CHELMSFORD, Mass., March 16 (Reuters) - Brooks Automation Inc, a maker
of semiconductor equipment, said Monday it expected to post a loss in
the second quarter because of slack demand and order cancellations.
"The company expects fiscal 1998 second-quarter earnings will be
significantly below the consensus estimate of break-even," Books said in a statement. Wall Street had expected the company to break even in the quarter, according to a March 1 First Call poll of five analysts.
Lower than expected revenues of $19-21 million in the quarter will cause the loss, Brooks said. The company cited continued slack demand for semiconductor and flat panel display fabrication equipment; lower
prices; customer requests to delay shipments of core 200 mm products;
and order cancellations from customers discontinuing certain product
lines.
Brooks said it is restructuring its flat panel display group and
expected to take an unspecified charge in the second quarter to write
off inventories of wafer handling products and certain flat panel
display products it expected customers will discontinue.
The company earlier this quarter said it would take a $400,000 charge to cut 11 percent of its workforce. Brooks will report its actual results on April 16.
Brooks' stock lost 3/4 to close at 14-1/4 Monday.
18:53 03-16-98
Copyright 1998 Reuters Limited. All rights reserved.
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