Asyst says accounting charge will make it non-compliant with loan conditions
Asyst Technologies said Wednesday that that it “As a result of the current economic environment and recent decline in the market value of the company, Asyst currently is conducting an interim goodwill impairment analysis, which the company anticipates will result in a non-cash charge of $85-$90 million for the quarter.”
It also revealed that the non-cash charge would reduce its net income as well as hit its balance sheet and reduce its shareholders’ equity. As a result “the company would not be in compliance as of Sept. 30, 2008 with the covenant relating to maximum debt-to-capital ratios under is primary credit facility”.
The company said it has already “initiated discussions with its lenders about a waiver or further amendment of covenant requirements under the facility,” a step that could cause an increase in its interest rate and the imposition of an amendment fee on .
We posted last week about the two-percentage point increase in the interest it is paying on its credit agreement with KeyBank National Association.
Shares of Asyst have been steadily declining since they ended August at $4.12. They have dropped 84 percent since, closing Wednesday at 66 cents. Earlier this month Asyst formally ended discussions with Aquest Systems, which offered to buy the company for $6.50 a share, saying that Aquest had “been unable to assemble and submit a transaction proposal.”
On the bright side, the Fremont maker of automation equipment for the semiconductor and flat panel display industries said that revenue in its fiscal 2009 second quarter was $95.1 million, well above the consensus forecast of $92 million analysts were expecting in a Thomson Reuters survey.
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Typos everywhere; consistently sloppy blog.
Sorry for the typos, Ging. But at least we’re consistent. Let us know if you are ever in doubt about exactly what we’re writing because of them. We’d love to have an editor to read all of our posts before they go up but, sad to say, the current economics of the newspaper business make that impossible. They are very busy getting the print product in shape.
Why don’t we talk about the market and current article-we understand and can overcome the typos but for us at our investor group we want answers and information!
So what do you say Ging-is Asyst a buy>? What do you know about them and what can you tell us?
What will happen with this company now…they seem to have the second largest market share next to Brooks and are trading very low. They seem to have orders in the kitchen which “should” carry them through the current crisis unlike Axeis… Should we be taking a second look at this company? Won’t other hedge funds or the same groups also consider them again once the market seems to settle? Just need some honest answers-
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