Electroglas Announces Plan to Manage Costs; Move Will Reduce Costs and Workforce While Focusing on Future Development.SANTA CLARA Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. , Calif.--(BUSINESS WIRE)--Sept. 2, 1998--Electroglas Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :EGLS EGLS Eastside German Language School (Issaquah, WA) ) today announced it has implemented cost reduction measures that will enable the company to maintain its current level of technology development by offsetting the effects of the struggling semiconductor market. Electroglas regrets that these measures will include a reduction of approximately 13 percent of its global workforce, affecting approximately 90 employees. Since the beginning of the year, Electroglas' worldwide headcount has decreased by a total of 22.5 percent. In addition, the company has extended its policy of mandatory days off, instituted in the second fiscal quarter of 1998, for the third and fourth fiscal quarters of 1998. Executive salaries have also been reduced. "The dramatic worldwide slowdown in the semiconductor and related equipment industries continues to affect our business. The combined effects of the Asian financial crises, the slowdown in the PC market, and the continued overcapacity o·ver·ca·pac·i·ty n. Too great a capacity for production of commodities or delivery of services in relation to actual need: the problem of overcapacity in many large industries. in the industry have caused our customers to sharply reduce capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. ," said Curt Wozniak, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Electroglas. "Unfortunately, this has caused a series of cost-reducing moves, including a necessary reduction in workforce. These changes will help decrease our level of expenses in the current environment, while keeping our core global infrastructure in place and preserving our ability to continue aggressive development of new products that will benefit the market." The reduction in workforce does not affect Knights Technology Inc., an Electroglas wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , or the Electroglas Inspection Products division. Employees affected by the workforce reduction will receive a severance package A severance package is pay and benefits an employee receives when they leave employment at a company. In addition to the employee's remaining regular pay, it may include some of the following:
"Moving forward, we are committed to investing in our core product programs and supporting the infrastructures that enhance our long-term growth potential," Wozniak said. "Electroglas will focus on providing our customers with the necessary tools to improve their process management and profitability." The company expects to report a charge in the quarter ending Sept. 30, 1998 to cover costs related to today's reduction of force. About Electroglas Inc. Electroglas delivers essential tools for process management designed to enhance the profitability of semiconductor companies. The company's wafer probers The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. , inspection systems and software solutions serve as the data collection, management and analysis tools that semiconductor manufacturers depend on to improve their productivity and process control by optimizing sort-floor efficiency. Electroglas has been a leading supplier of wafer probers for over 35 years and has an installed base of more than 10,000 systems. The company's stock trades on the NASDAQ National Market under the symbol "EGLS." The company's World Wide Web site is located at www.electroglas.com.
CONTACT: KVO Public Relations
Julianne Whitelaw, 530/888-9285
julianne_whitelaw@kvo.com
or
Electroglas Inc.
Maria V. Apodaca, 408/727-6500, Ext. 6511
mapodaca@electroglas.com
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