Silicon Valley Group Sees Revenue Hurt by Semiconductor Slowdown

Silicon Valley Group (SVGI Quote) said its revenue in the second fiscal quarter would suffer from order cancellations and delays, and the semiconductor equipment maker disclosed plans to lower capital spending and payroll costs.

The company, which already feared a sluggish market, said things were worse than expected. New orders for the quarter will be down 10% to 20% sequentially, and ending backlog will decline 30% to 40%. In the first fiscal quarter, revenue was $255 million.

Silicon Valley didn't offer specific guidance for second-quarter earnings, but two analysts polled by Thomson Financial/First Call expect a profit of 12 cents a share. The company earned 32 cents a share in the year-ago quarter.

The company, which is based in San Jose, Calif., said all employees, except those required for customer support and new product functions, will be required to take five Fridays off in the third fiscal quarter, which ends in June. Capital spending will also be selectively deferred, the company said.

In recent Nasdaq trading, Silicon Valley Group gained 13 cents, or 0.4%, to $29.56.