August Technology Outlines Cost Cutting Measures To Address Continued Industry Slowdown.Business Editors & Technology Writers BLOOMINGTON, Minn.--(BUSINESS WIRE)--April 26, 2001 August Technology Corporation (Nasdaq:AUGT), a leading supplier of automated inspection solutions for the microelectronics microelectronics, branch of electronic technology devoted to the design and development of extremely small electronic devices that consume very little electric power. industry, today announced that it has taken additional cost cutting measures to prepare for an extended industry slowdown. "We see little evidence of broad-based industry improvement over the next several quarters. For this reason, we have stepped up our cost reduction program while continuing to fund key initiatives to develop technology capabilities and market share," said Jeff O'Dell, president and chief executive officer of August Technology Corporation. The Company's preemptive pre·emp·tive or pre-emp·tive adj. 1. Of, relating to, or characteristic of preemption. 2. Having or granted by the right of preemption. 3. a. cost management program includes a further trimming of operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , material costs and a workforce reduction affecting less than 10 percent of the company's employees. The Company's previously announced expense management measures include enhanced partnerships with strategic suppliers, a reduction in temporary and contract staff, discretionary spending and overtime, as well as a 10 percent executive salary decrease. O'Dell continued, "August Technology's actions to manage these costs are in line with our overall strategy to navigate the company through these extremely difficult market conditions. We feel it is critical to remain highly proactive as we continue to implement initiatives to enhance revenue, drive down production costs, and reduce operating expenses. We are confident that these actions will not materially effect our ability to deliver new products and to service our customers." Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : This release contains forward-looking statements that involve risks and uncertainties, including our statements regarding the delivery of new products. These forward-looking statements involve risks and uncertainties which may cause actual results to differ from those set forth in the forward-looking statements, including but not limited to a deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in general economic conditions, downturns in the microelectronics industry, or any unforeseen difficulties in the development, manufacture or market acceptance of our products. Please refer to additional risk factors stated in August Technology's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission. August Technology does not assume any obligation to update the forward-looking information contained in this press release. August Technology Corporation, based in Bloomington, Minnesota Bloomington is a city in Hennepin County, Minnesota, and a southern suburb of Minneapolis. As of 2005, it had a population of 84,347, making it the largest Twin Cities suburb, and the fifth largest city in the state[1]. , is a leading supplier of automated visual defect inspection equipment for the microelectronics industry. The inspection solutions designed, manufactured and marketed by August Technology, including the NSX NSX New Sportscar eXperimental (concept name for Acura vehicle; originally NS-X) NSX Namespace Extension (Windows Shell Programming) NSX N Syndrome NSX Network and Security Experts NSX New Sports Experimental Series for wafer (1) A small, thin continuous-loop magnetic tape cartridge that has been used from time to time for data storage and specialized applications. (2) The base unit of chip making. It is a slice taken from a salami-like silicon crystal ingot up to 12" (300mm) in diameter. , die and bump inspection, provide microelectronic device manufacturers with quality and process information. August Technology has established service and sales representation in all major manufacturing markets worldwide including the USA, Europe, Japan, Korea, Taiwan, Singapore, Thailand, Malaysia and others. Additional information can be found by visiting August Technology's web site at www.augusttech.com. |
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