SEZ reduces outlook on slow DRAM, foundry orders

October 10, 2007 – SEZ Group, Villach, Austria, says 3Q orders came up about 26% shorter than expected to 28 million Swiss francs (about US $40.5M), mainly due to slow business from the DRAM segment, attributed to ongoing ASP pressures. Sales for the quarter are estimated at about CHF 65M ($54.8M), putting the company “significantly” below breakeven (vs. +9.8% EBIT in 2Q07). Despite predicting “a significant recovery of demand” by the end of 3Q, orders and sales ended up being down 36%-38% from 2Q levels.

SEZ also has reduced its outlook for all of 2007, now predicting sales of CHF 330M ($278M) vs. 350M ($295M), with EBIT margin expectations reduced from 5% to 2%. The company has been predicting a rebound in foundry business for two straight quarters, but now says demand will recover in 1Q08.

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