Jul 25, 2001 Kulicke & Soffa Industries Inc., a manufacturer of machinery for semiconductor factories, said yesterday that sales fell sharply in the third quarter and that it was bracing for a protracted downturn in the semiconductor industry.
The Willow Grove company lost $9.5 million for the quarter ended June 30 as revenue fell 51 percent to $131 million. Kulicke & Soffa said it did not expect a turnaround until at least the second half of next year.
"The fact that we reported revenue above our estimates should not, however, be cause for optimism," C. Scott Kulicke, the company's chairman and chief executive officer, said in a conference call. The company had estimated that revenue would be from $115 million to $130 million.
"We expect our September quarter to be worse than the June quarter, with revenues somewhere between the $90 [million] to $105 million range," he said. With the announcement, the company reported a loss for the second consecutive quarter.
Kulicke & Soffa has taken several steps to conserve cash and gird for the turmoil in the technology industry.
Since the fall, the company has eliminated 340 positions worldwide, reduced its capital spending and management compensation, eliminated overtime, and shortened workweeks at some of its plants, said Nancy R. Kyle, director of investor relations.
Despite the earnings woes, James Meyer, director of research for Janney Montgomery Scott in Center City, said the company had "plenty of cash" to get through this downturn.
Shares of the company's stock fell 49 cents, or 3 percent, to $15.66 yesterday on the Nasdaq.
