Applied Materials, Inc. (Nasdaq:AMAT) expects a net loss in the range of $0.09 to $0.11 per share for the first fiscal quarter ending January 25, 2009, according to preliminary results released today.
The results are well below the target earnings of of $0.00 to
$0.04 for the quarter, announced in November 2008.
The company said the following charges were partly responsible for a decrease in earnings per share of $0.09: 1] a restructuring charge of approximately $133 million (or $0.06 per share) associated with a cost reduction program announced on November 12, 2008; 2] a provision of $48 million (or $0.02 per share) for doubtful accounts receivable related to certain customers’ deteriorating financial condition in the challenging economic environment; and 3] additional inventory charges of $20 million (or $0.01 per share) due to a decline in demand for semiconductor and display products.
Net sales for the quarter are expected to be approximately $1.33 billion, down 35% from 4Q08, and at the low end of the previously provided target range of down 25 to 35%.
The company intends to continue implementing cost reduction programs, including shutdowns and additional restructuring activities.
The company will officially release results on February 10, 2009.
Applied Materials, Inc. provides equipment, service and software products for the fabrication of semiconductor chips, flat panel displays, solar photovoltaic cells, flexible electronics and energy efficient glass.
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