Oak Technology's new chief financial officer will have to contend with a $14.2 million loss for the first quarter of 1999, ending Sept. 30, and expectations of more of the same in the current quarter.
The Sunnyvale, Calif., company reported Thursday revenue had declined 54 percent from the same period last year, and named Robert Hersh to keep track of Oak's finances.
Sales for the quarter were $20 million, down from the $43.3 million in last year's first quarter, when Oak reported net income of $6.2 million. The loss includes one-time charges of $7.2 million related to the write-off of ongoing R&D efforts when Oak acquired Xerographic Laser Images and ViewPoint Technology, both of which were completed during the quarter.
"The management team at Oak remains strongly focused on redirection and restructuring initiatives to steer the company toward a return to sustainable and profitable growth," said Richard Black, Oak's president.
The company is expecting sales for the current quarter to be flat compared with last quarter. Black also announced Thursday that the company had repurchased 658,000 shares of common stock during the quarter for $2.1 million. The company's board had earlier approved a repurchase plan of up to 2 million shares, and this brings the total to 1.8 million shares acquired.
Incoming vice president and chief financial officer Hersh moves from Network Peripherals, where he served as CFO and vice president of operations. He has also worked as vice president of finance and CFO at Seeq Technology.
"In addition to proven financial management skills in the semiconductor industry, Hersh brings strong operational experience to Oak," Black said.