D3 Family Fund ups stake in Electro Scientific to 15.02%, asks for share repurchases

By Angela McDaniels

Tacoma, Wash., Oct. 7 - Electro Scientific Industries, Inc. investors led by D3 Family Fund LP said they want to company to begin a share repurchase program now while the share price is weak.

The investors believe that the company will have enough cash over the next three to four years to both fund a share repurchase program covering almost half the company's shares and double revenues, all without incurring debt, according to a letter to Electro Scientific president and chief executive officer Nick Konidaris. The letter was included in a schedule 13D filed with the Securities and Exchange Commission.

Halving the number of outstanding shares would help boost the company's return on invested capital and earnings per share, the investors noted.

D3 and its affiliates beneficially own 4,060,127 shares, or 15.02%, of the company's stock. They reported beneficial ownership of 3,860,945 shares on July 14 for a 14.3% stake.

Electro Scientific is a Portland, Ore.-based supplier of manufacturing equipment used by customers in the semiconductor, passive components and electronic equipment markets.

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