The Company said that it expects to report lower than anticipated results for the third fiscal quarter as a result of a continued downward pricing pressure in its coated glass business and delays in capital spending from two customers causing lower bookings and expected revenue for thin film deposition equipment this quarter.Applied Films expects revenues for the third quarter to be in the range of $30.0 million to $32.0 million, compared to $39.2 million in the second fiscal quarter of 2002.
Based on these revised projected revenue estimates for the third fiscal quarter, the Company would expect to report GAAP loss per share between ($0.07) and ($0.12), and a loss before amortization of intangibles of between ($0.02) and ($0.06) per share, which excludes amortization of intangibles related to the acquisition of the Large Area Coatings division of Unaxis, compared with GAAP earnings per share of $0.07, and earnings before amortization of intangibles of $0.14 per share in the second quarter of fiscal 2002. These statements are forward-looking and subject to the qualifying safe harbor statement. Actual results may differ materially.
"We are facing continued challenges in the market for our coated glass, used in touch panel, microdisplay and other liquid crystal related display applications. Price pressure and an overall reduction of demand drastically impacted our gross margins in this segment of our business in the third quarter," said Thomas Edman, Applied Films President and Chief Executive Officer. "On the equipment side of our business, an order delay reduced revenue recognized from new bookings for our architectural glass equipment. This order is expected to move forward in our fourth fiscal quarter. In addition, an existing order for display equipment was pushed out because of contractual progress payment funding issues from one of our Taiwanese customers."
"On the other hand, we are encouraged by Korean 5th generation investments in active matrix flat panel production facilities which moved forward during the quarter, and also by announcements from several Taiwanese manufacturers indicating that they have increased their planned investments for the second half of this year. In recent months, Applied Films has implemented spending reductions globally, with workforce reductions in Longmont, Colorado, as well as reductions in all discretionary spending. We plan to manage our cost structure while continuing to invest in our new product development," said Edman.