INDUSTRY NEWS

Asyst to shut down automation unit

Complaining that the division's profit margins were much too low, Asyst Technologies announced that it will close its 2 1/2-year-old automation subsidiary, Asyst Automation, Inc., (AAI) in September of this year. Based in Wilmington, MA, the unit employs approximately 120 people, some of whom will transfer to Asyst's headquarters in Fremont, CA.

The minienvironment vendor lost $13.3 million in the third quarter of FY97 because of discontinued operations, including the estimated costs of closing AAI. The supplier reported that net sales for the period grew 46% to $36.4 million, compared with net sales of $25 million for the third quarter of FY96. Asyst reported that net sales of continuing operations increased 62% to $102.7 million for the first 9 months of FY97, which began April 1, 1996. Revenues on continuing operations for the same period were $8.6 million compared with income of $7.6 million for the same period in FY96.

Of Asyst's three divisions, the technology and software units were "extremely profitable," says Lisa Garcia, corporate communications manager. "But automation was not, and we decided to close it."

Asyst acquired the subsidiary in April 1994. Then called Proconics, the business unit manufactured stockers, which Asyst integrated with conveyor track systems made by Middlesex General Industries of Woburn, MA. Siemens is one of the unit's biggest customers for the stockers and transport systems. Demand for the integrated automation gear was high, but the division's operating costs were higher.

The vendor will "no longer manufacture or actively sell" the automation gear, says Garcia. However, it will continue to support Siemens and other customers of its installed base of stockers and conveyor systems. A number of the unit's employees have been offered positions at Asyst headquarters in order to maintain continuity, she says. In addition, the company will be investigating other automation options, particularly as they pertain to 300-mm wafers.

"Companies knew that the closure was coming and they feel confident and secure that we will continue to support them," Garcia points out. "Actually, we were pleasantly surprised at how well the [decision] was received. We're not pleased about having to close the division, especially for the people involved."

Asyst emphasized that its core mini-environment/SMIF business saw continued growth during the third quarter, receiving new and repeat orders from major semiconductor manufacturers in the United States, Japan, and the Asia/Pacific region. Among the repeat customers was National Semiconductor, which purchased SMIF systems for the chipmaker's first 8-in. wafer production fab. The vendor also expects big things from Radiance Systems, the San Jose­based software subsidiary it purchased and renamed Asyst Software. Garcia notes that a large portion of Asyst's business comes from more than 100 OEMs, such as Lam Research, Applied Materials, and Tencor Instruments.

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