Spectra-Physics Announces Impairment of Telecom Assets

Dec. 7, 2001
Spectra-Physics, Inc. expects to record a pre-tax charge of between $28 million and $33 million during the fourth quarter of 2001, as a result of the impairment of certain assets relating to its passive component telecommunications operations. The impaired assets principally relate to the company's narrowband filter products and include fixed assets, operating leases and inventory.

Spectra-Physics, Inc., a majority-owned subsidiary of Thermo Electron Corporation and a leading supplier of semiconductor-based lasers and optics, expects to record a pre-tax charge of between $28 million and $33 million during the fourth quarter of 2001, as a result of the impairment of certain assets relating to its passive component telecommunications operations. The impaired assets principally relate to the company's narrowband filter products and include fixed assets, operating leases and inventory.

�The impairment reflects developments in the telecommunications market. It does not reflect an intention to exit from the passive segment of this market,� said Patrick L. Edsell, chairman, president and chief executive officer of Spectra-Physics. �Telecommunications continues to be a high-growth market opportunity for us, and we are continuing our investments in the development and manufacturing of both passive and active telecom products.�

Spectra-Physics designs, develops, manufactures, and distributes semiconductor-based lasers and laser optics for a variety of end markets, including passive and active components for the telecommunications industry. Spectra-Physics is also a leader in developing laser products for a variety of other commercial markets, including computer and microelectronics manufacturing, industrial manufacturing, medical, image recording, and research and development. The company's manufacturing operations are based in Mountain View and Oroville, CA; Tucson, AZ; and Stahnsdorf, Germany. International operations consist of subsidiaries located in Japan and Germany, and approximately 30 distributors worldwide.

Spectra-Physics' website is located at www.spectra-physics.com

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