News

7 January 2009

 

Aviza to exceed profit guidance for December quarter

For its fiscal first-quarter 2009 (to 26 December 2008), etch and deposition equipment maker Aviza Technology Inc of Scotts Valley, CA, USA now expects net sales to be at the low end of the guidance range of $25-32m given in late November (down almost 30% on fiscal Q4/2008’s $35.5m).

However, adjusted net income is expected to be $1-4m, compared to the original guidance range of $50,000 to an adjusted net loss of $4m (and compared to fiscal Q4/2008's net loss of $3.1m). Aviza says that the improvements are due to the faster impact of its cost-reduction measures and favorable currency exchange translation.

To decrease its overall dependence on the falling DRAM market, Aviza has been downsizing its programs, products and spending related to trench capacitor technology for DRAMs, involving ceasing development of large batch thermal systems. Meanwhile, last April, Aviza announced a restructuring of its product strategy, served markets and internal operations to refocus on growth market segments with its single-wafer products, including its core strengths in atomic layer deposition (ALD) technology for the sub-45nm nodes, and PVD and etch technologies for the 3D-IC, MEMS and III-Vs markets. Most of Aviza’s business has now shifted to these markets.

“The results of our December quarter will reflect our ongoing efforts to improve our financial performance in the face of an extremely challenging macroeconomic environment,” says CEO Jerry Cutini. “We’ve been able continue to decrease operating costs while maintaining our focus on our served markets with our single-wafer products.”

Aviza also announced that it has engaged Needham & Company to assist in evaluating strategic options, including exploring partnering, financing and business development. “We are looking forward to working closely with them as we move through a very difficult and unpredictable economy,” says Cutini. “Aviza and Needham & Company have a long history of working together and, more importantly, they have a significant depth of experience in the semiconductor capital equipment industry.”

See related items:

Aviza increases gross margin after restructuring

Aviza expects revenue at low end of guidance, but raises guidance for income

Aviza ships PVD systems to top-3 GaAs RF device maker

Aviza wins multiple orders from HB-LED maker

Search: Aviza PVD ALD Etch

Visit: www.aviza.com