March 18, 2003 – Minneapolis, MN – August Technology Corp., a supplier of automated inspection solutions for the microelectronics industry, said that it will reduce its direct, contract, and temporary work force by approximately 17%, or 30 positions, in response to continued uncertainty in the microelectronics industry.
The work force reduction includes positions in all functional areas within the company and is anticipated to result in cost savings of approximately $2.3 million annually.
In addition to the reduction in work force, the company continues to focus on controlling discretionary spending in all areas of its operations.
The company has confirmed its 1Q03 revenue guidance, and anticipates revenue for quarter ending March 31 to be in line with revenues of $6.3 million in 4Q02.
“Although any decision that negatively impacts our employees is very difficult, we felt that it was the appropriate time to more closely align our operations with the current level of business,” said Jeff O’Dell, August Technology chairman and CEO. “Throughout this downturn we have strategically invested in our product development, sales, and service organizations and feel that we are very well positioned for when the market recovers.”