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

To: stockycd who wrote (18267)	3/27/1998 7:52:00 PM
From: MileHigh	Respond to of 70976

BB and All, I am sure this is old news to everyone....Electroglas warns... Friday March 27, 4:24 pm Eastern Time Company Press Release Electroglas Anticipates Lower than Anticipated Business Volume SANTA CLARA, Calif.--(BUSINESS WIRE)--March 27, 1998-- Electroglas, Inc. (NASDAQ:EGLS - news) a leading supplier of automatic wafer probing equipment and yield management software to the global semiconductor industry announced that it expects financial results for the first quarter ending March 31, 1998, to be below securities analyst's expectations. The Company expects revenues of approximately $37 million and earnings of near breakeven. In the same period of fiscal year 1997, the Company reported revenues of $25.6 million and, essentially, was breakeven at the profit line. Electroglas attributed the revenue shortfall for the first quarter to lower than anticipated orders for its prober products, due to the continuing softness in demand for semiconductor equipment stemming from end-user excess capacity, coupled with a depressed pricing environment, as well as ongoing uncertainty about business conditions in Asia. The current uncertainty in the marketplace has made it more difficult to gauge near-term business activity. Customers are very cautious and are delaying their capital spending plans. The slower order rate in the current quarter will most likely cause revenues for the second quarter ending June 30, 1998, to be sequentially lower but has not been quantified. Because of this uncertainty, Electroglas is taking steps to control expenses by the elimination of a significant number of open personnel requisitions, requiring mandatory time off in selected operating areas and delays in discretionary spending programs. ''Despite the current softness, however, we continue to invest aggressively in the 4090 micro and the 300-mm product development programs to participate in the future expected growth of the semiconductor equipment industry,'' commented Curt Wozniak, CEO of Electroglas. ''In addition, we will continue to nurture the new yield management and post-fab inspection business units acquired in 1997.'' Legal Notice Regarding Forward-Looking Statements Statements in this press release which are not purely historical are forward-looking statements, including statements regarding Electroglas' plans, expectations or intentions regarding the future. Forward-looking statements in this release include, but are not limited to, statements regarding financial results, revenues and earnings for the first quarter ending March 31, 1998, future expected growth of the semiconductor industry, and the Company's plans regarding its new business units acquired in 1997. All forward-looking statements included in this release are made as of the date hereof, based on information available to Electroglas as of the date hereof, and Electroglas assumes no obligation to update any forward-looking statement. It is important to note that actual outcomes and Electroglas' actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as continued or increased softness in demand for semiconductor equipment, particularly softness related to weakening economic conditions in Asia, unexpected cancellations or delay in customer orders, unexpected declines in the level of capital expenditures of semiconductor manufacturers, declines in the demand for semiconductors, the introduction of competitors' products having technological and/or pricing advantages, unforeseen technological developments, difficulties and delays related to the Company's current and future products, changes in market conditions related to need for yield management products and semiconductor manufacturing equipment, and customer acceptance of new product offerings resulting from the Knights and Techne acquisitions. Readers should also refer to the risk disclosures outlined in Electroglas' Form 10-Qs filed from time-to-time and the Form 10-K filed for Electroglas' fiscal year ended December 31, 1996. About Electroglas: Electroglas, Inc. is a leader in the development, manufacture, marketing and servicing of automatic wafer probing equipment and yield management software for use in the semiconductor industry. The Company's stock trades on the Nasdaq National Market under the symbol ''EGLS''. The Company's World Wide Web site is located at