SAN JOSE, Calif. -- MKS Instruments Inc. has reduced its headcount by 600 jobs, or approximately 23 percent of its worldwide headcount.
Fab tool sub-systems maker MKS (Andover, Mass.) also expects its GAAP net loss will be below the low end of the guidance. This is due to charges associated with reductions in workforce and special charges incurred in the quarter.
The company now expects that revenues will range from $74-to-$76 million, at the low end of its original guidance of $75 million, and expects a non-GAAP net loss of minus $0.41 to minus $0.38 per basic share, also at the low end of its original guidance of minus $0.40 per basic share.
It will take special charges during the quarter ranging from $6.0-to-$7.5 million. As a result, MKS now expects the GAAP results to be a net loss of minus $0.57 to minus $0.54 per basic share, as compared to previously announced guidance of a GAAP net loss of minus $0.46 to minus $0.31 per basic share.
Included in the estimated GAAP net loss were special charges associated with reductions in workforce, resulting in a charge in the quarter of approximately $6.3-to-$7.0 million, and a charge for excess, obsolete and committed inventory purchases of approximately $11.6-to-$12.3 million caused by the reduced demand for the company's products. These charges were partially offset by a first quarter 2009 tax benefit of approximately $5.4 million as a result of a recently completed federal income tax audit.
Leo Berlinghieri, CEO and president, painted a mixed picture. "As we previously announced, we implemented a reduction in work force early in the quarter. However, due to the uncertain effect of the global financial crisis and its impact on demand from our semiconductor equipment OEM customers and the other markets we serve, it was necessary to take further actions to reduce our costs and our headcount during the quarter,'' he said in a statement.
''We implemented a restructuring and an additional reduction in workforce at the end of the quarter, resulting in a combined reduction during the quarter of approximately 600 people, representing approximately 23 percent of our worldwide headcount,'' he said. ''These reductions were done with consideration to both our ability to grow in diverse markets and to respond to the demand and innovation requirements from the semiconductor equipment industry, when the economy begins to recover. As a result of these actions, we expect annual compensation-related savings of approximately $40 million."
MKS' rival, Advanced Energy Industries Inc. recently cut 330 jobs--22 percent of its headcount--across all functional areas and geographies.
RSS
Digital
10 emerging technologies to watch:
EE Times has compiled a list of emerging technologies that we think will be worth watching out for in 2010. Biofeedback or thought-control of electronics are among the contenders.
Hot applications in 2010:
We've compiled a list of 10 technology applications you should watch for in 2010, ranging from e-book readers to 3-D TVs. We examine the features that make these apps so compelling as well unresolved issues.
Top 25 predictions for semis in 2010:
2010 is just beginning to unfold in the electronics industry. Looking into our crystal ball, we have released our own chip forecasts--and other predictions--for 2010.
Seven things to fix in 2010:
The editors of EE Times came up with their own informal list of things we hope engineers fix in 2010, spanning everything from nano-lithography to space travel. What do you want to see get done this year?
'09 moves that are shaping the future:
This was a brutal year, but the industry gets a nod for showing grace under fire. Here's our Top 10 guide to the coming year, illustrating what to expect in 2010.
10 CEOs out in 2009:
It's been a tough year for the global electronics industry and CEOs. We survey the dismissal of 10 industry CEOs during the first three quarters of 2009 and what's ahead for the rest of the year.
Notable women in microelectronics:
There is no better time than a global economic recession to examine the keys to successful corporate governance. So, EE Times has compiled an international list that celebrates women who are business and technology leaders in semis.
EE Times updates Silicon 60:
Seventeen companies have been added to the lastest version of our Silicon 60 list of emerging startups. Forty-three companies survived as emerging companies that are still worth watching.
RSS| 
Digital| 
Mobile
