Based on the announcement below, it sounds like ESIO is taking steps to get out of their Semiconductor Group business. That business serves the DRAM market for PCs and has really taken a beating since 2008 due to the recession and everyone switching to tablets and smartphones. GSIG, a ESIO competitor, also announced they are looking to exist this business last year. May not bode well for any improvement in the semi market in the near future if they are aggressively restructuring now. I really think ESIO is overvalued at this PPS.
"On March 30, 2012, management of Electro Scientific Industries, Inc. (ESI) finalized a restructuring plan to improve efficiency, focus its resources, and implement its ongoing globalization strategy. The planned completion date for actions to be taken under the plan is September 30, 2012. This plan, together with the previously disclosed planned reduction in headcount during the quarter ended March 31, 2012, will result in ESI recording restructuring and other non-recurring charges in the quarter in the aggregate amount of approximately $5.6 million, comprised primarily of $1.3 million of severance and employee-related costs, $2.6 million of accelerated depreciation for assets that will not be used going forward, and $1.7 million in inventory charges. ESI expects approximately $0.9 million of the charges will result in future cash expenditures."