Aseco Reports Fourth Quarter Results

Aseco Corp. (Marlboro, MA) announced results for its fourth quarter of fiscal 1999, which ended March 28. Revenues for the fourth quarter declined 62% to $3.9 million from $10.3 million in the fourth quarter of fiscal 1998. Excluding special charges in both quarters, Aseco would have reported a net loss of $1.2 million, or $0.33 per share, in the current quarter compared to a net loss of $667,000, or $0.18 per share, in the fourth quarter of 1998 and a net loss of $1.5 million, or $0.41 per share, in the third quarter of 1999.

In the fourth quarter of fiscal 1999, the company reported a net loss of $7.4 million, or $1.96 per share, which includes the previously announced special charges of $6.2 million for the write-down of various assets including inventory and long-term assets, as well as costs related to a reduction in headcount and the shutdown of the company's Malaysian subsidiary. This compares to a net loss of $4.3 million, or $1.16 per share, in the fiscal fourth quarter of 1998, which included $4.5 million of special charges related to valuation adjustments for inventory, additional expense resulting from the final allocation of the Western Equipment Developments acquisition purchase price and costs related to layoffs.

For the year ended March 28, revenues declined 57% to $19.2 million from $44.2 million in the year ended March 29. Excluding special charges in fiscal 1998 and 1999, Aseco would have reported a net loss of $5.3 million, or $1.42 per share, for the year compared to net income of $399,000, or $0.10 per share, in 1998.

The company reported a net loss of $13.7 million, or $3.64 per share, for fiscal 1999, including a $2.2 million charge taken in the second quarter for the restructuring of its U.K.-based wafer handling and inspection operations and the $6.2 million special charge taken in the fourth quarter. This compares to a net loss of $8.1 million, or $2.20 per share, for fiscal 1998, which included the $4.5 million of special pretax charges recorded in the fourth quarter of 1998 as well as a charge of $4.9 million for in-process research and development associated with the company's acquisition of Western Equipment Developments (Holdings) LTD.

Aseco designs, manufactures and markets surface mount device test handlers used to automate the testing of integrated circuits, integrated circuit lead inspection equipment and wafer handling and wafer inspection equipment. Surface mount devices have a wide variety of applications including automotive, electronics, personal computers and telecommunications equipment. Customers for Aseco's products are primarily semiconductor manufacturers.