Aviza To Cut Staff, Revamps Tool Efforts
Aviza (Scotts Valley, Calif.) said that it will also ''downsize'' programs, products and spending related to trench capacitor technology for DRAMs, and will decrease its overall dependence on the DRAM market. It will also cease development of large batch thermal systems for the trench capacitor market. One of the company's biggest customers is Qimonda AG, which develops DRAMs based on trench capacitor technology. The German DRAM house is going in another technology direction. That company could cease to exist in the long run, according to analysts. Still, Aviza will continue to service and support its large global installed base of these products and will retain the capability to manufacture those systems when customers require additional units. The cost of the restructuring program and other one-time charges is estimated to be in the range of $20-to-$24 million, primarily attributable to the write down of assets relating to non-core products which include inventory revaluation, cancellation of purchase commitments and fixed assets. Aviza expects additional savings to occur when the company vacates its current location in Scotts Valley and relocates its headquarters to a facility in Santa Clara County. Volume manufacturing will no longer be performed at Aviza's current location. Aviza anticipates that the restructuring plan will result in annualized savings of approximately $16 million to $20 million. Going forward, Aviza will refocus on its core strengths in the areas of ALD, etch and PVD technologies for the 3D-IC and related market segments. ''This restructuring effort is designed to allow Aviza to focus on our core market strengths, shed some underperforming products, and ultimately position the company for growth," said Jerry Cutini, Aviza's president and CEO, in a statement. Aviza also announced that on March 28, the company received a letter from Nasdaq notifying the company that the bid price of the company's common stock closed below the minimum $1.00 per share requirement for continued inclusion under Marketplace Rule 4450. According to Nasdaq's letter, the company will be provided 180 calendar days, or until Sept. 24, 2008, to regain compliance in accordance with Marketplace Rule 4450. On Jan. 31, Aviza provided guidance for the second quarter of fiscal 2008 and forecasted net sales in the range of $30-to-$35 million, with an operating loss in the range of approximately $7.0 million to $8.0 million. Aviza anticipates second quarter results to be towards the low end of this guidance, excluding any restructuring charges. It currently anticipates net sales for the third quarter of fiscal 2008 to be above $36 million. Separately, Aviza announced a new order for its Omega fxP system, with two Inductively Coupled Plasma (ICP) process modules, to a key foundry based in China. The Omega fxP will be used for silicon trench and polysilicon etch-back processes in manufacturing power device products. It also announced the follow-on shipment of multiple Omega etch systems to Anadigics Inc. |
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