Spectra-Physics Announces Results, Cutbacks
MOUNTAIN VIEW, Calif., April 27 -- Spectra-Physics, a majority-owned subsidiary of Thermo Electron Corp., announced its financial results for the first quarter and revealed plans to reduce costs and expenses in the current economic environment, including a reduction in force and plans to centralize all European distribution operations in one location. Spectra-Physics' first-quarter net sales were $54.6 million, up 39 percent from $39.4 million for the first quarter of 2000.
"First-quarter 2001 was characterized by strong revenue growth across our five core markets, which grew 30 percent in the aggregate year-over-year," said Patrick L. Edsell, chairman, president and chief CEO of Spectra-Physics. "Although the near-term outlook for the telecommunications industry is uncertain, first-quarter shipments of passive and active components to manufacturers of dense wavelength division multiplexing systems contributed 7 percent of net sales, compared with 1 percent a year ago and 9 percent sequentially. While continuing to make selective investments in telecommunications product development, manufacturing capacity and infrastructure, we are managing costs and expenses carefully in response to economic and market conditions."
The reduction in force affects about 140 regular and temporary employees in the Passive Telecommunications Group in Oroville, California. This reduction represents 11 percent of Spectra-Physics' total work force. The company also plans to centralize all European distribution operations in one location in Darmstadt, Germany, near Frankfurt.
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