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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Mark Marcellus who wrote (5867)	3/18/2003 1:05:14 PM
From: Jeffrey D	Read Replies (1) \| Respond to of 25522

Thanks, Mark. Jeff From Goldman Sachs: Summary: Applied Materials (AMAT-$13; OP/A) announced a widely anticipated restructuring plan that includes a 14% headcount reduction and the consolidation of manufacturing facilities. We make two major points: (1) We do not believe investors should infer that business has deteriorated during the quarter as Applied has made it clear since their Jan. earnings call that they intend to increase profitability at current revenue levels, and (2) These reductions should address Street concerns about Applied's operating leverage. Post the announced cuts, Applied will have the same number of employees as the '98 trough but revenues are 63% higher.