FREMONT, Calif.--Credence Systems Corp. here warned of lower-than-expected revenues for IC testers in its current fiscal quarter, ending Jan. 31, and the company's CEO said it could take up to one year for the industry to pull out of its apparent downturn in demand.
The Fremont-based supplier of automatic test equipment (ATE) said its revenues would be at least 40% below net sales in the prior quarter due to delays in systems shipments, particularly to chip-testing operations in Asia. Last fall, Credence posted $220.2 million in revenues and $49.0 million in net income for the company's fiscal fourth quarter, ended Oct. 31.
"Going into this quarter we anticipated a slowdown in the semiconductor test and assembly sector during what we believed was an absorption phase. The magnitude of the slowdown now appears greater than we expected," said Graham Siddall, president and chief executive officer of Credence. "We now believe we may be seeing a cyclical downturn in the industry and we believe a recovery may not occur until late calendar 2001 or 2002. In light of that belief, we will be taking steps in the coming weeks to reduce our expense structure to match our lower anticipated revenue."