TOKYO --- Although chip equipment sales increased 12 percent year-on-year at Tokyo Electron Limited (TEL), the company announced an annual loss for the second year running on Wednesday (April 30, 2003) and stated its intention to cut 1000 jobs and streamline development and manufacturing operations worldwide.
TEL, the world's second largest vendor of chip-making equipment, had warned investors earlier this month that it would take a charge of about $200 million to pay for a reduction in headcount and expected to make a loss of about $340 million (see April 3 story).
Today the company reported that its consolidated net loss was 41.55 billion yen (about $346.5 million) in the year to March 31, 2003, more than doubling the net loss of 19.9 billion yen recorded in the previous year.
Total sales revenue from all divisions was 460.6 billion yen (about $3.85 billion) up 10.2 percent from the previous year. Sales of the semiconductor production equipment division amounted to 364.7 billion yen (about $3.05 billion), an increase of 12.0 percent from the previous year.
For the next financial year TEL predicted that semiconductor-related capital investment would get underway in the second half of its fiscal 2003, after September 2003.
The company said that because of the delayed rebound in chip-related spending and continuing global uncertainty the company is implementing restructuring measures to "thoroughly" reduce costs, and to return to profit before income tax on flat sales.
For the current fiscal year, started April 1, the company predicted a net loss of 6.0 billion yen (about $50 million) on net sales of 465 billion yen (about $3.9 billion) with about 78.5 percent of the sales revenue or 365 billion yen (about $ 3.1 billion) attributed to semiconductor processing equipment.