Therma-Wave resounds “going concern” alarm

June 19, 2006 – Therma-Wave Inc., Fremont, CA, a provider of process control metrology systems, says its independent accounting firm has cited the company as a “going concern” in its recent financial reports for the fiscal year ended in March, due to recurring net losses and negative cash flows. The company received a similar “going concern” warning a year ago.

In a recent 10-K filing with the SEC, Therma-Wave indicated it had net losses of $9.2 million, $6.8 million, and $18.1 million in its fiscal years 2006, 2005, and 2004, respectively. The company said it burned through $16.2 million in cash in the past year, and has accumulated deficit of $317.0 million. Figures for fiscal 2006 include nearly $9 million in proceeds from the sale of Therma-Wave’s CCD-i product line to TEL.

Also, according to the 10-K filing, Therma-Wave’s revenues slid 20% from the prior year to about $65.3 million. Its major customer was AMD, which accounted for 23% of the company’s sales in its just-ended fiscal 2006; Intel accounted for 12% of sales. A year ago, Therma-Wave’s top customers were TSMC (15% of sales), Intel (12%), and Samsung (10%).


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