Science & Technology
Science and Technology
Science and Technology
Mon, February 2, 2009 Schaeffer's Street Stories: Applied Materials Inc. Warns of Quarterly Loss on Restructuring Charges
CINCINNATI--([ BUSINESS WIRE ])--Applied Materials Inc. (NASDAQ: AMAT) is trading modestly higher this morning following the firm's warning that it would suffer a quarterly loss due to charges for restructuring, inventory, and accounts receivable, as demand fell for semiconductor and display products. The supplier of semiconductor manufacturing equipment also forecast net sales for its first fiscal quarter that ended Jan. 25, of $1.33 billion, which would be at the low end of its previous target range and below the consensus estimate of $1.41 billion.
The company stated that it would take a charge of 6 cents per share for the restructuring, as well as a 2 cent per share provision for doubtful accounts receivable related to some customers' deteriorating financial condition, and a 1 cent per share additional inventory charge due to a decline in semiconductor demand. As a result, AMAT now forecasts a net loss per share of 9 cents to 11 cents for the quarter, compared with its previous target of break-even to a profit of 4 cents a share. The Street estimate stands at a profit of 2 cents per share excluding the charges.
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