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To: Tom Murphy who wrote (2804)	10/25/1998 1:48:00 AM
From: Tom Murphy	Respond to of 3696

Even the big boys are still hurting: Applied Materials Takes $285M Charge (10/23/98 10:48 a.m. ET) By Staff, Semiconductor Business News Applied Materials said Friday it has completed a massive realignment of its operations, including the elimination of 2,000 jobs. Now, Applied plans to take a $285 million charge against earnings in the current fiscal quarter, which ends Oct. 25. With the elimination of about 15 percent of its workforce and consolidation of operations, the world's largest semiconductor equipment supplier said the restructuring will reduce its cost structure by about $40 million per quarter. Applied previously announced it expected to report a net loss for the fiscal fourth quarter because of one-time charges related to severance pay, consolidation of facilities, and pre-tax write-down of intangible assets. To cover the cost of downsizing its workforce, Applied said it is taking a $50 million charge. Consolidation of facilities and related fixed assets is being covered by another $50 million charge. A $70 million charge will cover the write-down of assets. In addition, Applied said it has reserved $65 million related to "a doubtful receivable obtained in connection with the settlement of patent litigation with ASM International." Applied also said it will incur an after-tax charge of approximately $50 million in connection with discontinuance of operations of Applied Komatsu Technology (AKT), a 50-50 joint venture with Komatsu in Japan, which supplies equipment for flat-panel display production. Applied's fiscal fourth quarter results will be released Nov. 17.