President And Chief Executive Officer, Timothy J. Stultz said, “Severe reductions in semiconductor capital equipment spending resulted in a sharp decline in our quarterly revenues. However, our service and upgrade business, as well as our product sales into the high-brightness LEDs and solar photovoltaics markets, have showed continued strength and resilience during this unprecedented decline in memory and logic fab spending.”
“While we are beginning to see signs that business is improving in the semiconductor industry, and that the first quarter may indeed be the trough quarter for capital spending, we will continue to take steps to further reduce our expenses and cost structure until such time as visibility, certainty and lead times improve,” commented Stultz. “For five straight quarters we have reduced our ongoing operating expenses and driven down our cash break-even revenue level. Continued cost reduction actions taken in the first quarter of the year and those planned for the current quarter will further drive down operating expenses and our cash break-even level.”
“While we are steadfast in our commitment to reduce and manage expenses, we are equally committed to our investments in new products, technologies and applications which will be the fuel for growth when spending in our industry resumes,” added Stultz. “We are very encouraged by the performance of, and customer reception to, our latest product offerings, and expect to emerge from this downturn with a stronger and increased position within our served markets.”
Summary of First Quarter 2009:
Gross margin was 28.3%, down from 42.1% for the prior quarter and 45.6% in the year-ago period, reflecting decreased factory absorption as a result of decreased sales volume. Operating expenses totaled $11.9 million, including a $0.7 million restructuring charge relating to workforce reductions in the quarter, representing a decrease of 2% from the prior quarter and 29% from the year-ago period.
The net loss for the first quarter included $0.3 million of stock-based compensation expenses and $0.7 million of restructuring charges, compared $0.9 million and $0.9 million, respectively, in the first quarter of 2008. The net loss also included a foreign currency charge of $1.3 million associated with a reclassification of the company’s inter-company loans with Japan at the end of fiscal 2008 as well as the weakening of the Japanese yen during the quarter.
Earnings (loss) before interest, income taxes, depreciation and amortization excluding certain items such as asset impairment, restructuring and acquisition-related charges (EBITDA) for the first quarter was ($6.9) million, compared to ($2.0) million for the fourth quarter of 2008 and $2.5 million for the first quarter of 2008.
