Processing equipment supplier FSI International Inc is set to implement a series of cost reducing measures in light of its third-quarter results. The Minneapolis, Minnesota-based company reported a loss of $4.7m against a profit of $2.7m last time for the nine months through May 30, while revenue rose only slightly to $182.2m. The company says it has been hit by a downturn in the microelectronics industry, contributed to by the falling prices of Dynamic Random Access Memory chips and the Asian economic crisis. FSI is anticipating its finances will get worse before they get better, and believes the industry trends will continue well into next year. FSI expects fiscal 1999 revenues to be 10 to 15% below 1998 levels, and as a result is seeking to reduce 1999 expenditures by the same amount. Part of the reductions will include job losses and the discontinuation of some projects the company is working on.
