Trikon to cut staff again after poor results
Trikon, the wafer fabrication equipment supplier based in Newport, UK, has announced a loss of $6.5 million for the quarter ending March 31 2004.
Revenue for the quarter was $6.8 million, down $2.5 million on the previous quarter but an improvement on the $5.1 million reported for the same quarter of 2003.
To reduce costs by an estimated $4-$4.5 million per year, Trikon will implement several initiatives, with the largest saving resulting from a reduction in headcount.
Bob Chappell, Trikon s CFO, revealed that Trikon will also switch its emphasis from long-term projects, such as low-k dielectrics, to supplying to more established markets.
Trikon says that it is continuing to closely manage its working capital. Cash and cash equivalents on 31 March 2004 stood at $29.0 million, down only slightly from $31.6 million on 31 December 2003.
Meanwhile, Trikon’s acting CEO, John Macneil, is set to continue in his role and the company says that it is not searching for a replacement.
Trikon remains bullish about the future. John Macneil, commenting on the first quarter results, said: “Continued improvement over subsequent quarters, combined with the cost reduction steps we have initiated today, will drive my key short term objective, which is to return Trikon to profitability.”
The GaAs and InP markets currently account for only approximately 10% of Trikon s business, and the company said that it doesn t expect to see a significant up-turn in this segment until 2005.
Trikon’s models predict break-even towards the end of this year, or next year, but this is dependent on firm product orders.
