SpeedFam International told investors it expects to report lower-than-anticipated revenues and an operating loss this quarter, which ends May 31.
The Chandler, Ariz., supplier of semiconductor production systems said sales of chemical mechanical planarization tools were slower than expected because of delays in wafer fab investments.
SpeedFam SFAM said it anticipates revenues for its fourth quarter to drop by about 50 percent to $24 million compared with $49.3 million in the same period last year. In addition to weakness in semiconductor equipment markets, SpeedFam said its sales continued to be eroded by sluggish demand for production tools used to make thin-film heads for disk drives.
Consequently, SpeedFam said it expects to report an operating loss of $10 million to $10.8 million, including a one-time charge of $4.5 million to $5 million to cover inventory adjustments, layoffs, general reserves, and special customer service allowances. The company said it cut its workforce by 11 percent by late April.