News

29 April 2009

 

Aviza slashes March-quarter revenue guidance

Etch and deposition equipment maker Aviza Technology Inc of Scotts Valley, CA, USA says that, for its fiscal second-quarter 2009 (ended 27 March), it now expects net sales of $9.5-11m, below its previously announced guidance of $13-18m. This is also less than half of last quarter’s revenue of $25.2m and a third of $30.2m a year ago.

The firm also now expects that, excluding restructuring charges of $9-10m, its adjusted net loss will be $5-6m, rather than its previous guidance of $1-5m and compared to last quarter's adjusted net income of $4.9m.

When Aviza gave its initial guidance in early February, it said that fiscal Q2 would be challenging as the firm continued to face an unpredictable environment for orders and weakness in customer demand. The firm said that it would continue to institute shut-down days at varying times and locations. US staff were required to take off one Friday every two weeks (amounting to a pay cut of about 10%) while similar cuts took place internationally. Board members and senior management also accepted a 20% cut in fees and salaries.

Previously, Aviza cut 18% of its staff and contractors last year and about 90-110 more in the December quarter. Of 380-400 staff, about 100 are based in Scotts Valley, with the rest at its manufacturing plant in Wales, UK and support facilities in the UK, Germany, France, Taiwan, China, Japan, Korea, Singapore and Malaysia.

In early January this year, Aviza said that it had engaged Needham & Company to assist in evaluating strategic options, including exploring partnering, financing and business development.

See related items:

Aviza’s accelerated cost cutting yields profit despite 29% sales drop

Aviza to exceed profit guidance for December quarter

Aviza increases gross margin after restructuring

Aviza expects revenue at low end of guidance, but raises guidance for income

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