A company that focuses on the very small was getting a big reaction in extended trading Monday.
said after the close that it realigned its organizational structure to focus on three major nanotech markets. Additionally, the company set plans to reduce excess capacity and restructure in the second half of the year, while lowering its revenue guidance for the second quarter.
The company will realign its sales, marketing and R&D groups to focus on its three major markets -- nanoelectronics, nanoresearch and nanobiology. As part of the moves, FEI will close its Peabody, Mass., facility. The early estimate of the restructuring and related charges is about $15 million in the second half of 2005.
Second-quarter revenue will probably be $109 million to $111 million, compared with the previously issued forecast of $114 million to $120 million, the company said. FEI expects to break even for the quarter, before items. The company had said it would earn 5 cents to 9 cents a share for the quarter, when its results were calculated according to generally accepted accounting principles.
Thomson First Call has a mean revenue estimate of $119 million for the second quarter. Shares of FEI were dropping $2.31, or 9.5%, to $21.99 in after-hours trading.
"Our backlog remains at near-record levels, and we expect stronger orders in the second half of the year," FEI said in a press release. "The combination of our cost-reduction steps and the movement of the backlog into shipments, especially in the fourth quarter, is aimed at increasing profitability later in 2005 and in 2006."
Currently, the company believes bookings for the third quarter will be around 10% above the second quarter, with a further increase in the fourth quarter. FEI said revenue in the third quarter should be similar to the second quarter, with a sequential increase in the fourth quarter.