More bad news for Semi's - AMAT warning:
Applied Materials' Third Fiscal Quarter Results to be Below Expectations
Business Wire - July 10, 1998 17:06
SANTA CLARA, Calif.--(BUSINESS WIRE)--July 10, 1998--Applied Materials, Inc., the world's largest supplier of wafer fabrication systems and services to the global semiconductor industry, announced today that it expects its financial results for the third fiscal quarter ending July 26, 1998 to be below expectations. The Company currently expects new orders of $600 million to $675 million, net sales of $850 million to $885 million and ongoing earnings of $0.15 to $0.18 per diluted share for the third fiscal quarter of 1998. The ongoing earnings forecast excludes an estimated $25 million to $30 million restructuring charge (approximately $0.05 per share after-tax) associated with a Voluntary Separation Plan announced by the Company on May 26, 1998. Applied Materials will release its financial results for the third fiscal quarter on August 11, 1998.
The Company's customers are delaying orders, rescheduling equipment deliveries and reducing spending on wafer fabrication support as they evaluate the impacts of difficult economic conditions in Asia, DRAM overcapacity and weaker than expected PC sales, compounded by a movement to lower-priced (sub $1,000) PCs. Although these factors have been present for some time, their near-term effect on the semiconductor equipment industry will be more severe than previously anticipated.
go2net.newsalert.com |
