Asian troubles mean tight cost control for more firms

Electronic News, Feb 2, 1998

Kalispell, Mont.--Semitool announced it will cut approximately 85 jobs in order to decrease operating expenses and improve margins. The company said the 6 percent reduction in workforce will save over $2 million in operating costs each year.

"We have limited visibility of the financial impact due to the Asian market crisis," said Ray Thompson, Semitool president and CEO. "These cost cutting measures are necessary to better align costs with our current order backlog. Until the Asian market picture becomes clearer, we will closely manage costs until the backlog situation improves."

WJ Too

Watkins-Johnson also plans to cut some jobs in its Semiconductor Equipment group, based in Scotts Valley, Calif., Electronic News learned last week (see story, page 30).

A spokesperson for Semitool said the cuts were believed to be across the board, but did not have specific information about what jobs would be eliminated.

Earlier this month, Semitool reported an 11 percent increase in net sales and an 18 percent increase in net income for fiscal 1Q98, compared with a year ago. The company's order backlog decreased to approximately $59.8 million from $89.3 million over the same period.

ECD Copper Tools

Mr. Thompson said that while he is encouraged by the increasing number of customers adopting electrochemical deposition (ECD) copper tools, production quantity orders for copper plating tools look to be several months out due to long development cycles. "We continue to offer customers the most advanced technologies to improve their positions in the marketplace," Mr. Thompson said. "Our ability to deliver value-added solutions to our customers will enable us to maintain our leadership position in the market and will benefit us over the long-term."