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To: keithcray who wrote (9854)	8/6/2001 12:58:15 PM
From: Sully-	Read Replies (1) \| Respond to of 208838

Applied Materials lays off staff - report By Chris Kraeuter, CBS.MarketWatch.com Last Update: 12:51 PM ET Aug. 6, 2001 SANTA CLARA, Calif. (CBS.MW) -- Applied Materials, the world's largest semiconductor equipment maker, has started laying off employees, according to a research report from Prudential Securities on Monday afternoon. Applied shares (AMAT: news, chart, profile) fell $1.05, or 2.1 percent, at $48.52 on Monday afternoon. Analyst Shekhar Pramanick of Prudential said his research indicates layoffs of "a few percent" began last week and that they affect all divisions. Applied employs about 20,000 workers. Applied Materials spokesman Jeff Lettes said, "We're in a quiet period and are unable to comment about the ongoing operations of the company." The company will report fiscal third-quarter financial results on Aug. 14. Analysts surveyed by Thomson Financial/First Call expect earnings of 2 cents a share on revenue of $1.25 billion, on average. Pramanick said, according to a research note, that the "modest" layoffs are an indication that the company does not yet see an upturn in its business and that it is adjusting its cost structure so it can remain at break-even levels. On July 16, Applied CFO Joe Bronson said the "near term was not a good situation" and that the economic situation surrounding the company had not changed for better or worse. See full story. Chris Kraeuter is a reporter for CBS.MarketWatch.com in San Francisco.

To: keithcray who wrote (9854)	8/7/2001 12:37:56 AM
From: keithcray	Read Replies (1) \| Respond to of 208838

Emulex (EMLX) 27.00 +0.65: Shares of EMLX are responding well to news Hewlett-Packard (HWP) has selected the company's fibre channel host bus adapters for HP's network storage appliance solutions running in Linux environments. Investors are hoping the HP press release may be a positive omen ahead of EMLX's quarterly report. The company reports tomorrow after the close and analysts are expecting earnings of $0.10 per share on revenues of approximately $60 million. Topline results in the area of $60 million would fit with trends in the sector suggesting the industry is experiencing third quarter growth that is sequentially flat to slightly positive. It almost goes without saying that sentiment on the storage sector has deteriorated over the past month. While the leading companies have reported "passable" results, the massive sequential growth rates of the past have been either held in check or vaporized altogether. Though the industry's third quarter is expected to come in more or less flat, there continues to be some evidence the SAN market for storage area networks (SANs) will reaccelerate by the fourth quarter. While the broader sector trends work themselves through, it looks as if Emulex may be gaining ground in the SBus segment. This quarter, the company announced SBus design wins at both Hitachi and Compaq. Notably, Emulex largely defers revenue recognition of shipments associated with channel inventory and OEM stocking inventory until its products are actually shipped out by its customers. This means the company is positioned to deliver a quick revenue recovery when industry conditions do improve. According to IDC, the market for Fibre Channel host bus adapters (HBAs), one of EMLX' core businesses, is expected to expand from approximately $270 million in calendar 1999 to $1.8 billion in calendar 2003. Emulex is the clear leader in Fiber Channel HBAs, increasing its share of this market to 34% in calendar year 2000. This represents nearly twice the share of the company's nearest competitor. We don't see a need to be aggressive buyers ahead of EMLX' report, but continue to believe the company is well positioned once signs of a turnaround are evident. -- Michael Ashbaugh, Briefing.com