Coorstek Updates Outlook for Second Quarter 2001
July 3, 2001
CoorsTek, Inc. recently updated its outlook for the second quarter of 2001. The company is projecting revenue of $102 to $104 million, in line with earlier guidance, and gross margins of around 16% versus 18%. Selling, general and administrative expenses (SG&A) of approximately $17 million, which includes research and development expenses, is also in line with guidance. SG&A excludes a previously disclosed $3.6 million after-tax, non-cash charge related to a change in retiree benefits. The second quarter revenue outlook reflects continued weakness in the semiconductor capital equipment industry and an unprecedented downturn in the telecommunications industry. Factors contributing to the decreased gross margin include a product shift toward more semiconductor assembly business and severance costs related to reductions in workforce.