"As we anticipated, we experienced a significant reduction in revenues in the fourth quarter of 2010 as a result of the current slowdown in the semiconductor industry as well as order delays at one of our largest customers due to its continuing handler evaluation for eight site testing," said John J. Pollock, president and chief executive officer. "Although our customer's handler evaluation for some of its applications continues, it recently issued our first VMAX test handler orders for some of its leadless package applications. Also, our fourth quarter included the important highlight of our first revenue units of our 1164 reliability test systems to one of the largest semiconductor manufacturers worldwide."
"Forecasters are now projecting a seasonally flat to down first quarter for the semiconductor industry, but a resumption of growth in the second quarter and for the remainder of 2011," Mr. Pollock continued. "Accordingly, while we expect our performance to improve in the first quarter, we anticipate that our revenues for the quarter will remain below break-even and will depend in part on the timing of product acceptance on some of our new product shipments. As growth resumes in the semiconductor industry, however, we believe the competitiveness of our products and our expanding customer base position us to take full advantage of the improving conditions."
Certain matters in this news release are forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include, but are not limited to, adverse domestic or global economic conditions, slowing growth in the demand for semiconductor devices, the volatility and cyclicality of the microelectronics industry, changes in the rates of capital expenditures by semiconductor manufacturers, progress of product development programs, unanticipated costs associated with the integration or restructuring of operations, and other risk factors set forth in the Company's SEC filings, including its Form 10-K for the year ended December 31, 2009.