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

To: chomolungma who wrote (6455)	7/14/2003 12:44:28 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

Applied Materials hints it may abandon options Monday July 14, 12:33 pm ET NEW YORK, July 14 (Reuters) - Applied Materials Inc. (NasdaqNM:AMAT - News) Chief Financial Officer Joseph Bronson on Monday embraced the move by Microsoft Corp. to issue restricted stock instead of stock options to employees, saying he would like to see the semiconductor equipment leader make the same move. Bronson, speaking to analysts at a microchip equipment industry trade show, also waved off speculation that the company's growing cash balance portends a dividend, and suggested the cash gives the world's largest maker of microchip production tools the option to make a major acquisition. Bronson said he would do "everything in my power" to convince the board and new chief executive, Michael Splinter, to move toward issuing restricted stock instead of stock options. Microsoft Corp. (NasdaqNM:MSFT - News) said it would abandon stock options, to issue actual shares of stock that come with restrictions. There is growing pressure on companies to count the estimated cost of stock options against profits, a move that could hit technology companies especially hard. "I applaud Microsoft's decision," Bronson said. "I'm going to spend a lot of time discussing this with Mike and the board." Applied Materials, based in Santa Clara, California, held $5.2 billion in cash and short-term investments at the end of April. Bronson, asked at an analyst meeting whether the company planned a dividend, disavowed the idea, saying the company had better uses for cash. "It gives us an opportunity to do something big if we need to, if we want to," Bronson said, suggesting a major acquisition was a possibility.