The news is all negative for the moment.
<<Applied Materials: Expect a Net Loss in Q1
February 03, 2009
Applied Materials (AMAT) says its expects to generate $1.33 billion for its first fiscal quarter, down 35 percent from the same quarter a year ago.
The Santa Clara, Calif.-based company, which makes machines for producing solar cells and integrated circuits, isn’t due to release its earnings on Feb. 10. But it released some numbers Monday to let investors know the picture won’t be pretty.
Applied expects to record a net loss of 9 cents per share to 11 cents per share for the quarter ending Jan. 25. The company didn’t anticipate posting a loss — the previous guidance, issued in November, called for zero to 4 cents per share.
The earnings were hit by a restructuring charge of about $133 million, or 6 cents per share, from implementing cost-cutting plans. The plans included gutting 12 percent of its global workforce. Because some customers weren’t able to pay on time, the company included a charge of $48 million, or 2 cents per share, in the earnings. Applied also counted $20 million, or 1 cent per share, in inventory charges as a result of a lower demand for its semiconductor and display equipment.
Applied didn’t break down the numbers by divisions, so it’s unlear how its solar division has been affected by the economic downturn since it last reported earnings in November.>>
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