Electroglas Revises Third-Quarter 2002 Revenue Expectations, Announces Cost Reduction Plans.Business Editors/High-Tech Writers SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--Oct. 8, 2002 Electroglas, Inc. (Nasdaq: EGLS EGLS Eastside German Language School (Issaquah, WA) ), announced today that it expects its revenue for the third quarter ended September 30, 2002 to be in the range of $11 - 12 million, down from the $13 - 17 million range provided in its earnings conference call on July 18, 2002. Electroglas is scheduled to release its third-quarter results prior to the market open on Thursday, October 17, 2002. 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, "During the third quarter, semiconductor customers re-assessed their excess production capacity in view of expected semiconductor demand and pushed out deliveries of new equipment. We did, however, see a slight increase in bookings from the second quarter to over $14 million, for a positive book-to-bill ratio Book-to-Bill Ratio The technology industry's demand-to-supply ratio for orders on a "firm's book" to number of orders filled. Notes: This ratio tells whether the company has more orders than it can deliver (if greater than 1), has the same amount of orders that it can . While we continue to focus on our strategic product development efforts, we have already taken many steps to reduce spending, including a 20% reduction of employees since the first quarter of this year and company-wide shutdowns." Wozniak further stated, "Unfortunately, the current projections for recovery of the business conditions in the industry are poor for the remainder of 2002 and into 2003. As a result, we have decided to further reduce our employee base by an additional 20-25% during the fourth quarter to reduce our cost and 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 point, and preserve our cash position." 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. This press release contains forward-looking statements including statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc expected revenue for the third quarter ended September 30, 2002, projections for recovery of the business conditions in the semiconductor industry and anticipated cost benefits of employee base reductions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ from those stated in such forward-looking statements including, but not limited to, the risk that revenue will not be recognized in the quarter as anticipated and the risk that a decrease in our employee base will not result in the expected cost reductions. Electroglas assumes no obligation to update this information. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to Electroglas' business in general, see the risk disclosures in Electroglas' SEC filings, including its most recent Annual Report on 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. for the year ended December 31, 2001 and its quarterly reports on Form 10-Q Form 10-Q See 10-Q. filed from time to time with the SEC. About Electroglas: Electroglas delivers essential tools for process management to enhance semiconductor manufacturers. The Company's wafer probers, inspection systems and software solutions serve as 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 40 years and has an installed base of more than 15,000 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 http://www.electroglas.com |
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