Applied Materials to cut jobs!
NEW YORK - November 11, 2009 - Applied Materials Inc. (AMAT) plans to cut up to 1,500 jobs, or 12% of its total work force, as the chip-tool maker posted a fiscal fourth-quarter profit: its first in a year.
The layoffs come as the world's largest semiconductor-equipment maker continues to slim down its operations to account for the massive drop in sales of the tools used to make chips. In February, the company announced it would cut about 2,000 workers, roughly 14% of its work force at the time. The company said the latest restructuring would save $450 million, with cuts coming over the next 18 months.
"Our semiconductor business is in the early phase of recovery," said Splinter during a conference call to discuss the results.
For the quarter ended October 25, Applied Materials reported a profit of $137.9 million, or 10 cents a share, down 40% from $231.1 million, or 17 cents a share, a year earlier. Excluding stock-compensation and acquisition costs and other items, earnings fell to 13 cents from 20 cents.
Revenue dropped 25% to $1.53 billion.
Applied Materials predicted sales would grow more than 30% in the new fiscal year. Analysts were looking for revenue of $6.2 billion, up 30%, according to a poll by Thomson Reuters.
The company also offered first-quarter earnings estimates above Wall Street views, excluding restructuring costs. It estimated pre-tax costs of $100 million to $125 million related to the shake-up, most of which will be recognized in the current quarter.
Applied Materials and its rivals have reported improved demand after a severe slump that started two years ago, when oversupply of memory chips prompted manufacturers to cut capacity.
The company also makes flat-panel displays and solar-power products. Last week, it acquired the assets of privately held Advent Solar in a deal aimed at cutting costs as prices for solar panels have slumped. In the company's core business, profit declined 11% and revenue decreased 12%.
The layoffs come as the world's largest semiconductor-equipment maker continues to slim down its operations to account for the massive drop in sales of the tools used to make chips. In February, the company announced it would cut about 2,000 workers, roughly 14% of its work force at the time. The company said the latest restructuring would save $450 million, with cuts coming over the next 18 months.
"Our semiconductor business is in the early phase of recovery," said Splinter during a conference call to discuss the results.
For the quarter ended October 25, Applied Materials reported a profit of $137.9 million, or 10 cents a share, down 40% from $231.1 million, or 17 cents a share, a year earlier. Excluding stock-compensation and acquisition costs and other items, earnings fell to 13 cents from 20 cents.
Revenue dropped 25% to $1.53 billion.
Applied Materials predicted sales would grow more than 30% in the new fiscal year. Analysts were looking for revenue of $6.2 billion, up 30%, according to a poll by Thomson Reuters.
The company also offered first-quarter earnings estimates above Wall Street views, excluding restructuring costs. It estimated pre-tax costs of $100 million to $125 million related to the shake-up, most of which will be recognized in the current quarter.
Applied Materials and its rivals have reported improved demand after a severe slump that started two years ago, when oversupply of memory chips prompted manufacturers to cut capacity.
The company also makes flat-panel displays and solar-power products. Last week, it acquired the assets of privately held Advent Solar in a deal aimed at cutting costs as prices for solar panels have slumped. In the company's core business, profit declined 11% and revenue decreased 12%.
