APT Announces Further Cost-Reduction Actions
Advanced Power Technology Inc. (APT, Bend, OR) announced it is implementing further cost-reduction actions in light of continued weak market conditions in the worldwide communications and semiconductor capital equipment markets, which collectively accounted for approximately 58 percent of the company’s revenue in the first half of 2001. These actions are in addition to the cost reductions implemented in July 2001 that included graduated pay reductions, reductions in discretionary spending and intermittent production shutdowns.
Patrick Sireta, chairman and CEO said, "Since our July 19, 2001, earnings announcement, figures released by the Semiconductor Industry Association for June and July have shown a continued steep reduction in worldwide semiconductor sales and several of our key customers in the communications and the semiconductor capital equipment markets have reduced their near-term outlook."
As a result, the company is reducing its workforce by about 10 percent of the total headcount, or 22 full-time employees. This action will reduce the company’s total headcount to approximately 202 employees worldwide. In addition, the company is increasing the level of salary reduction to 1.5 percent per $10,000 of annual salary and plans to enact additional production shutdowns in the fourth quarter. As a result of these actions, the company expects a savings of about 20 percent of its payroll expenses on an annualized basis from the first half of the 2001 run rate.