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Technology Stocks : ELECTROGLAS -- How far can it go? -- Ignore unavailable to you. Want to Upgrade?

To: Liatris Spicata who wrote (654)	1/29/1999 7:14:00 PM
From: Proud_Infidel	Respond to of 1070

Story posted 5:30 p.m./2:30 p.m., PST, 1/29/99 Electroglas sees hopeful signs after 31.6 million loss in 1998 SANTA CLARA, Calif.--Electroglas Inc. here reported a net loss of $31.6 million for the year as sales slid by nearly a third, but the company expects to see its business slump ease as semiconductor manufacturing capacity comes into balance with demand by the end of the year. "The ongoing over-capacity in the global semiconductor industry has continued to cause turmoil in the overall semiconductor capital equipment industry," noted Curt Wozniak, CEO of Electroglas. As a result, the company has seen its bookings decline and its backlog has been reduced, as customers have been cautious about placing equipment orders. Total revenue for the year was $101.6 million, down 32% from the $150.0 million total seen in 1997 when Electroglas reported a net loss of $15.9 million. In the fourth quarter, the company posted revenues of $14.7 million, down 67% from the $21.9 million result in the year-ago period. Net loss for the quarter was $5.6 million, which grew to $20.3 million after charges related to taxes and impaired technology. Wozniak pointed to a second-half of 1998 swell in semiconductor sales as an indicator that capacity will soon balance with chip demand. While various market reports show the equipment sector flat this year, it could grow by as much as 28% between 2000 and 2002. "In this difficult environment, we continue to focus on our strategy to position ourselves for the long term growth of our industry," Wozniak said. "We are continuing to invest heavily in new products in our core prober business, and in new market opportunities in process management software and hardware. We believe these opportunities represent the best way to Electroglas to expand its served market."