Spectra-Physics Adjusts Expectations for Quarter

MOUNTAIN VIEW, Calif., Sept. 29 -- Spectra-Physics has announced that it expects to report net sales of between $34 and $36 million, and a net loss before special charges of $0.3 to $0.8 million, or a two-cent to five-cent loss per share, for the third quarter ending September 30, 1999. These numbers compare with actual net sales of $39.7 million and net income of $2.3 million, or 14 cents per share, in the third quarter of fiscal 1998.
The company attributed the expected net loss primarily to lower-than-anticipated net sales, unfavorable shifts in product mix, and decreased returns on investments in certain markets. Spectra-Physics expects to take special charges in the third quarter of approximately $5.7 million, before tax, as a result of the following actions: the company's exit from the hard-drive disk texturing systems business; its targeting of optics R&D and manufacturing toward products for the telecommunications market; and its realignment of R&D as well as product management and distribution for high-power semiconductor lasers in response to new market opportunities and changing technology cycles.