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News >> Technology >>
Asyst revises Q4 sales forecast downwards
By siliconindia
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Thursday, 03 April 2003, 20:30 IST
FREMONT: Asyst Technologies, Inc., (Nasdaq:ASYT), Thursday revised its net sales forecast for the fourth fiscal quarter ended March 31 by 19%. The company announced that it expects to report consolidated net sales of approximately $57 million, as against the previous guidance of $70-$72 million, a shortfall of approximately 19%.
This compares with $38.4 million in the same quarter a year ago and $75.6 million in the prior sequential quarter. The company also provided outlook based on limited visibility for its quarter ending June 2003.
The company attributed the decrease to "sequential decline as a result of continued weakness in the semiconductor industry, lack of substantial participation in recent 300mm DRAM-related equipment buying from Korea, and the sale of Asyst's wafer and reticle carrier (WRC) product lines to Entegris'.
Net sales in the company's base business were lower than forecasted because two anticipated orders related to 200mm SMIF upgrade projects, portions of which were expected to turn during the quarter, were delayed until later in the year. Net sales at Asyst-Shinko (ASI), which is 51% owned by Asyst, were lower than expected as a result of customers pushing out portions of several projects.
Consolidated gross margin is expected to be at or slightly lower than the updated guidance of the "low end" of the forecasted range of 24-26%, reflecting the lower than anticipated sales in the base business while ASI gross margin is expected to substantially improve over the previous quarter. Consolidated research and development and selling, general and administrative expenses are expected to be within the original guidance of $29-$30 million.
Steve Schwartz, chairman and CEO, said, "At current sales levels, the impact of one 200mm upgrade project can be substantial. We had hoped to turn at least one of these projects during the March quarter and, although we believe we succeeded in winning the business, the customer has delayed any commitment to the second half of the calendar year. We believe we have maintained or gained market share in our core product areas, with the exception of current activity in Korea, and that the current softness we are seeing reflects continued low utilization rates among our key customers, well-understood delays in 300mm AMHS decisions and the uncertain macroeconomic environment.
"Adjusted for the sale of the WRC product lines, our consolidated bookings for the March quarter were approximately $36 million, versus $41 million last quarter. Based on limited visibility and the continuing uncertainty globally, our preliminary estimate for the first fiscal quarter is for net sales in the range of $45 million. Many of our key customers are planning to increase spending in the second half of the calendar year, but we believe that any substantial increases in the period will be dependent on a more stable global economic climate. We believe that our productivity and yield-enhancement solutions provide powerful competitive advantages that are especially apparent in lean economic times, and we will continue to pursue every opportunity to sell these benefits to a broader customer base. At the same time, we recognize the need to quickly complement our leveraged manufacturing model with greater efficiencies elsewhere in the business and are in the process of setting a new breakeven target that is substantially lower than where we are today."