Electroglas warned investors that it expects financial results for the first quarter to be below Wall Street's estimates because of a slowdown in sales of
The supplier of automatic wafer probing systems and yield management software said Friday it now expects revenue of about $37 million and earnings near breakeven. Wall Street was expecting earnings of 7 cents a share.
In the same period last year, Electroglas reported revenues of $25.6 million and its earnings were at breakeven.
In early trading, shares of Electroglas EGLS was down 3/4 to 14 13/16, and other chip equipment stocks were weak. Novellus NVLS fell 1 1/8 to 42 9/16. Applied Materials AMAT lost 1/4 to 35 1/8, Lam Research LRCX was up 1/4 to 28 1/2, and PRI Automation PRIA rose 11/32 to 26.
Like many other semiconductor equipment suppliers, Electroglas said uncertainty in Asia related to financial turmoil and the chip industry's overcapacity have resulted in a shortfall in orders of its prober products.
"Despite the current softness, however, we continue to invest aggressively in the 4090 micro and the 300-mm product development programs to participate in the future expected growth of the semiconductor equipment industry," said Curt Wozniak, CEO of Electroglas. "In addition, we will continue to nurture the new yield management and post-fab inspection business units acquired in 1997."