Electroglas Anticipates Lower than Anticipated Business Volume.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)--March 27, 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) ) a leading supplier of automatic wafer probing equipment and yield management software to the global semiconductor industry announced that it expects financial results for the first quarter ending March 31, 1998, to be below securities analyst's expectations. The Company expects revenues of approximately $37 million and earnings of near breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations . In the same period of fiscal year 1997, the Company reported revenues of $25.6 million and, essentially, was breakeven at the profit line. Electroglas attributed the revenue shortfall for the first quarter to lower than anticipated orders for its prober products, due to the continuing softness in demand for semiconductor equipment stemming from end-user excess capacity, coupled with a depressed pricing environment, as well as ongoing uncertainty about business conditions in Asia. The current uncertainty in the marketplace has made it more difficult to gauge near-term business activity. Customers are very cautious and are delaying their 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. plans. The slower order rate in the current quarter will most likely cause revenues for the second quarter ending June 30, 1998, to be sequentially lower but has not been quantified. Because of this uncertainty, Electroglas is taking steps to control expenses by the elimination of a significant number of open personnel requisitions, requiring mandatory time off in selected operating areas and delays in discretionary spending programs. "Despite the current softness, however, we continue to invest aggressively in the 4090 micro and the 300-mm product development programs to participate in the future expected growth of the semiconductor equipment industry," commented Curt Wozniak, 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. "In addition, we will continue to nurture NURTURE. The act of taking care of children and educating them: the right to the nurture of children generally belongs to the father till the child shall arrive at the age of fourteen years, and not longer. Till then, he is guardian by nurture. Co. Litt. 38 b. the new yield management and post-fab inspection business units acquired in 1997." Legal Notice Regarding 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. Statements in this press release which are not purely historical are forward-looking statements, including statements regarding Electroglas' plans, expectations or intentions regarding the future. Forward-looking statements in this release include, but are not limited to, statements regarding financial results, revenues and earnings for the first quarter ending March 31, 1998, future expected growth of the semiconductor industry, and the Company's plans regarding its new business units acquired in 1997. All forward-looking statements included in this release are made as of the date hereof, based on information available to Electroglas as of the date hereof, and Electroglas assumes no obligation to update any forward-looking statement. It is important to note that actual outcomes and Electroglas' actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as continued or increased softness in demand for semiconductor equipment, particularly softness related to weakening economic conditions in Asia, unexpected cancellations or delay in customer orders, unexpected declines in the level of capital expenditures of semiconductor manufacturers, declines in the demand for semiconductors, the introduction of competitors' products having technological and/or pricing advantages, unforeseen technological developments, difficulties and delays related to the Company's current and future products, changes in market conditions related to need for yield management products and semiconductor manufacturing equipment, and customer acceptance of new product offerings resulting from the Knights and Techne Techne, or techné, as distinguished from episteme, the Greek word τέχνη (literally: craftsmanship) is often translated as craft or art. It is the rational method involved in producing an object or accomplishing a goal or objective. acquisitions. Readers should also refer to the risk disclosures outlined in Electroglas' Form 10-Qs Form 10-Q See 10-Q. filed from time-to-time and the 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 for Electroglas' fiscal year ended December 31, 1996. About Electroglas: Electroglas, Inc. is a leader in the development, manufacture, marketing and servicing of automatic wafer probing equipment and yield management software for use in the semiconductor industry. The Company's stock trades on the Nasdaq National Market under the symbol "EGLS". The Company's World Wide Web site is located at http://www.electroglas.com CONTACT: Electroglas, Inc. Gail Pagano, 408/727-6500 (Investor Relations Investor relations The process by which the corporation communicates with its investors. ) |
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