LONDON Welsh reclaimer of silicon wafers, Pure Wafer, has received a bid approach from an un-named party as it revealed a pre-tax loss of £800,000 for the year to June 30, compared to a profit of £3.6 million the year before.
That was after restructuring costs and on a turnover of £22.3 million, the same as 2007.
In its statement to the London Stock Exchange, Pure Wafer (Swansea Wales) cautioned the approach may or may not lead to an offer being made for the company. The company is listed on the LSE's Alternate Investment Market (AIM) section.
Pure Wafer has restructured its Swansea site, with its U.S.base at Prescott seeing an increase in capacity in the last year.
The company said it was facing pricing pressure due to tough competition from new Taiwanese rivals and a slowdown in the industry.
Trading for the first half of the new fiscal year has been encouraging to date, although the outlook for the semiconductor industry remains difficult, it said.
It added the "business is now stabilised and, with spare capacity, ready to take advantage of the upswing in the semiconductor market when it occurs."
Eurfyl ap Gwilym, chairman of Pure Wafer said: "The year to June 30, 2008, particularly the second half of the financial year, was one of the most challenging for Pure Wafer as the industry experienced a continued slowdown in the semiconductor market.
"The outlook for the semiconductor industry remains difficult as the global economy continues to face turbulence and uncertainties. The downturn in the industry, coupled with an over-supply of wafer reclaim capacity, has continued to put pressure on pricing and volumes during the current financial year, and we do not expect an early market-wide recovery in the industry.
“Pure Wafer has undertaken a full operational restructuring process to reflect the situation in the market; progress has been made to reduce the costs and the business is now more efficiently structured to reflect current demand.
“These actions, together with the 300mm capacity installed at both Swansea and Prescott, puts Pure Wafer in a good position to take advantage of the industry recovery going forward.
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