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  1. Technology
September 30, 1998

SILICON VALLEY GROUP CUTS 300 MORE JOBS

By CBR Staff Writer

Troubled semiconductor equipment company Silicon Valley Group Inc has announced another round of restructuring which will see 300 jobs go, or 11% of the current total, over the next few months. The company will also close a manufacturing facility in the UK and transfer those operations to a facility in California, as well as cease development and shipments of an outdated photo- resist processing product. The actions will result in a charge of between $26m and $31m, to be taken in the just-completed fourth quarter. The company had previously expected a charge of just $3m, stemming from a previous workforce reduction in July. After the latest job cuts are implemented, SVG will have shed roughly 1,200 staff, or one-third of its worldwide total, since April. Sales for the fourth quarter are expected to be down 10% to 15% from the previous quarter’s $116m and a similar sequential revenue decline is projected for the first half of fiscal 1999. The consensus estimate of analysts surveyed by First Call before yesterday’s announcement was for a loss of $0.21 per share in the fourth quarter. That estimate will now be revised downward, but SVG wouldn’t offer any guidance as to how much. The San Jose- based wafer processing firm said the latest moves are in response to the continued weakness in the semiconductor capital equipment industry. It maintains, however, that new technology is still being aggressively developed and that it will continue to meet the needs of its customers despite its shrinking infrastructure.

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