Southwall Technologies Inc. announced 4Q 2006 revenue of USD 9.2 million, down 4% from the 3Q of 2006 and down 23% from the 4Q of 2005. The revenue decline was primarily due to constrains on machine c…
Southwall Technologies Inc. announced 4Q 2006 revenue of USD 9.2 million, down 4% from the 3Q of 2006 and down 23% from the 4Q of 2005. The revenue decline was primarily due to constrains on machine capacity needed to meet customer demand and supplier quality issues. 4Q 2006 net loss was USD 75,000, or a loss of USD 0.01 per fully diluted share, as compared with net income of USD 211,000, or USD 0.01 per fully diluted share, in the 4Q of 2005. 4Q 2006 gross margin was 41%, up 10 percentage points from the 4Q 2005, primarily due to improving yields and the successful transfer of manufacturing from Palo Alto, California, to its state-of-the-art facility in Germany. “We are excited about our 2006 gross margin results,” said Dr. R. Eugene Goodson, president and CEO. “They are a direct result of our well-executed manufacturing plan, yield improvement programmes, and the focus on improved efficiency throughout the organization. We plan to capitalize on this momentum and drive for even greater operational efficiency as we face a challenge of softening demand on the display market. Our other markets are growing or stable.”
