CLEVELAND--(BUSINESS WIRE)--
Keithley Instruments, Inc. (NYSE:KEI), a leader in solutions for
emerging measurement needs, today announced a cost reduction plan
designed to improve the Company's profitability.
The Company has reduced its global workforce by approximately five
percent, which includes recent attrition. The actions are expected to
reduce operating expenses by approximately seven percent, which will
be offset partially by inflationary and other cost increases that are
expected to be incurred during fiscal year 2009.
The Company expects that non-recurring severance and related costs
for implementation of its actions will total approximately $1.6
million, with all of the charges being incurred in the current year's
fourth quarter ending September 30, 2008. Based upon current
expectations, the Company is estimating net sales for the fourth
quarter of fiscal year 2008, which will end September 30, 2008, to
range between $33 million and $35 million and expects to incur a
pre-tax loss for the quarter, excluding the non-recurring charges
mentioned above.
"While our long-term outlook is positive, we believe it was
necessary to act in response to the continued weakness in
semiconductor capital spending, as well as a general weakness in other
industries in which we participate," stated Joseph P. Keithley, the
Company's Chairman, President and Chief Executive Officer. "The
actions we have taken will have a minimal impact on new product
development activities and will not affect those products that we plan
to introduce during the next twelve months."
Forward Looking Statements
Statements in this release that are not historical facts,
including those relating to cost savings, estimated charges expected
to be incurred, sales growth and current expectations of sales and
results, are "forward-looking statements", as defined in the Private
Securities Litigation Reform Act of 1995, that involve a number of
risks and uncertainties. Actual results may differ materially from the
results stated or implied in the forward-looking statements as a
result of a number of factors that include, but are not limited to:
timing of recognizing shipments to revenue; worldwide economic
conditions; uncertainties in the credit and capital markets; business
conditions in the semiconductor, wireless, precision electronics and
other segments of the worldwide electronics industry; the Company's
ability to develop new products in a timely fashion and gain market
acceptance of those products to remain competitive and gain market
share; competitive factors, including pricing pressures, loss of key
employees, technological developments and new products offered by
competitors; and the Company's ability to implement planned cost
savings initiatives without adversely affecting the Company's product
development program. Further information on factors that could cause
actual results to differ from those anticipated is included in the
Company's annual report on Form 10-K and quarterly reports on Form
10-Q which are filed with the Securities and Exchange Commission. In
light of these uncertainties, the inclusion of forward-looking
information should not be regarded as a representation by the Company
that its plans or objectives will be achieved. Further, the Company is
not obligating itself to revise forward-looking statements contained
herein to reflect events or circumstances after the date of this
release or to reflect the occurrence of unanticipated events.
About Keithley Instruments, Inc.
With more than 60 years of measurement expertise, Keithley
Instruments has become a world leader in advanced electrical test
instruments and systems from DC to RF (radio frequency). Our products
solve emerging measurement needs in production testing, process
monitoring, product development, and research. Our customers are
scientists and engineers in the worldwide electronics industry
involved with advanced materials research, semiconductor device
development and fabrication, and the production of end products such
as portable wireless devices. The value we provide them is a
combination of precision measurement technology and a rich
understanding of their applications to improve the quality of their
products and reduce their cost of test.
Source: Keithley Instruments, Inc.
