AMAT to buy Komatsu 50% joint venture
Tuesday September 28, 7:04 am Eastern Time
Applied Materials to buy Komatsu stake in
venture
SANTA CLARA, Calif., Sept. 28 (Reuters) - Semiconductor equipment maker Applied Materials Inc (NasdaqNM:AMAT - news) said on Tuesday it intends to buy Japanese construction machinery maker Komatsu Ltd.'s 50 percent stake in their joint venture, Applied Komatsu Technology Inc.
Terms of the deal were not disclosed.
Applied Komatsu Technology, a supplier of fabrication systems used to produce flat panel displays, was formed in September 1993.
Applied Materials said the purchase reflects a change in its decision in the fourth fiscal quarter of 1998 to discontinue the unit's operations.
The company said as a result of the change, it will reclassify the operating results of Applied Komatsu Technology to continuing operations, but there will be no change in Applied Materials' net income or total earnings per share amounts as previously reported.
The acquisition is not expected to have a material effect on Applied Materials' balance sheet or ongoing net income for the fiscal year 1999, the company said.
Non-recurring items, including in-process research & development expenses, resulting from this transaction are not expected to have an adverse effect on Applied Materials' net income for the fourth fiscal quarter of 1999, it added.
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