Measurement instrument firm's sales drop

Manufacturer of advanced electrical test instruments and systems reports that sales levels for the second quarter of fiscal 2007 fell short of the guidance range.

Keithley Instruments, a leader in solutions for emerging measurement needs, announced that sales levels for the second quarter of fiscal 2007, which ended March 31, 2007, fell short of the guidance range that was previously provided.

This shortfall was primarily a result of more cautious spending patterns among the Company's customers with regard to their capital equipment purchases during the quarter.

For the second quarter of fiscal 2007, Keithley expects to report net sales of approximately US$33 million, orders of approximately US$33 million and a loss before taxes of approximately US$2.5 to US$3.0 million.

The pretax loss is due primarily to lower sales volume.

The Company's previous guidance was for sales to range between US$37 to US$41 million and pretax earnings to be in the single digits as a percentage of net sales.

The preliminary financial information reflects the Company's current estimate of its financial results for the quarter.

Sales for the second quarter of fiscal 2007 decreased approximately 17% as compared to the second quarter of fiscal 2006 and decreased approximately 20% sequentially.

Orders for the quarter decreased approximately 18% from the second quarter of fiscal 2006 and decreased approximately 10 percent sequentially.

The year-over-year decrease in orders was primarily semiconductor related, while the sequential decrease in orders was primarily the result of decreased orders from wireless communication customers.

"We have implemented operating cost reductions during March that will impact our cost structure over the second half of the fiscal year," stated Joseph P Keithley, the Company's chairman, president and chief executive officer.

"In addition to normal continuous improvement programs, the Company has implemented additional operating efficiency initiatives and cost saving measures including reducing discretionary spending and restricting the hiring of new employees." The Company will provide more details when it reports its full second quarter fiscal 2007 results on Thursday, April 26, 2007 before the stock market opens.

* About Keithley Instruments - with more than 60 years of measurement expertise, Keithley Instruments Incorporated has become a world leader in advanced electrical test instruments and systems from DC to RF (radio frequency).

Our products solve emerging measurement needs in production testing, process monitoring, product development, and research.

Our customers are scientists and engineers in the worldwide electronics industry involved with advanced materials research, semiconductor device development and fabrication, and the production of end products such as portable wireless devices.

The value we provide them is a combination of precision measurement technology and a rich understanding of their applications to improve the quality of their products and reduce their cost of test.

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