FREMONT, Calif. -- Therma-Wave Inc. a vendor of process control metrology systems used for chip making, has taken strong measures to cut costs including laying off 115 employees or about 21% of its staff. Therma-Wave company officers are taking a salary reduction of up to 15% and a company-wide salary freeze will be initiated, Martin Schwartz, president and chief executive officer, said in a statement.
The statement disclosed reduced estimates for Therma-Wave's of financial performance for the second quarter of its fiscal year, ending September 30, 2002
The company said that, taking into account recent order push outs and cancellations, the company expects revenues to be approximately $10.5 million with a loss of $0.55 per share including $0.05 per share for non-recurring charges associated with the reduction in workforce and shut down of certain activities.
"The revised guidance reflects continuing weakness in new equipment orders due to the extended downturn in the worldwide semiconductor market and the absence of any significant signs of a broader global economic recovery," said Schwartz in a statement. "Therma-Wave reduced its workforce by approximately 21 percent or roughly 115 employees, company officers will take a salary reduction of up to 15 percent and a company-wide salary freeze will be initiated," continued Schwartz. "In addition, the company will shut down operations ten days next quarter, including closing for the holiday weeks of Thanksgiving, Christmas and New Year's."
"In terms of our operational structure, we will consolidate certain facilities and close some smaller regional offices. In addition, we plan to aggressively pursue opportunities to increase revenues from our service operations and we will significantly reduce capital expenditures compared to the plan for the fiscal year. We are currently assessing additional actions to reduce cash burn and to ensure that the company's balance sheet remains in healthy condition," concluded Schwartz.