Varian Semi Shares Slide On FY Q2 Warning; Plans Two-Week Summer Shutdown On Weak Semi Cap Ex
Varian Semicondcutor (VSEA) share are sliding in after hours trading after the company offered the latest signs of significant slowing in demand for semiconductor capital equipment.
Varian reported revenue for the fiscal first quarter ended December 28 of $254.1 million, with EPS of 57 cents; that is about in line with the Street consensus of $256.6 million and 58 cents.
Varian said it sees 2008 as “a reduced spending year” for its customers, “particularly for manufacturers of DRAM devices.” Gary Dickerson, CEO, said that “therefore, we will maintain a conservative operating posture for the near term.”
Varian sees March quarter revenue of $250 million to $260 million, with EPS of 50-55 cents; the Street has been looking for $262.6 million and 61 cents.
The company also said that while visibility into the fiscal third quarter is very limited, it is “concerned about anticipated spending reductions by our customers” and is tentatively planned to shutdown for the last week of June and the first week of July.
In after hours trading, Varian is down $2.85, or 8.5%, to $30.55. The stock rose 40 cents in the regular session.
VSEA is a technology driven company and is the leading manufacturer of ion implanters in the world, They are years ahead of the competition in the field of ion implanters.
Tech Trader Daily is a blog on technology investing written from Palo Alto, California by long-time Barron's West Coast Editor Eric J. Savitz. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields.
