Applied Materials lowers forecast, warns of chip equipment slowdown
Applied Materials reported this morning that chip equipment sales will be down about 35 percent to $1.33 billion for its first fiscal quarter ended Jan. 25.
The world’s biggest provider of chip manufacturing equipment said that preliminary figures show sales at the low end of its previous forecast, which estimated a 25 percent to 35 percent sales decline. The company now expects a loss per share of 9 cents to 11 cents. Analysts had been expecting a profit of 2 cents a share on sales of $1.43 billion.
The company is taking a $133 million restructuring charge in the quarter and a $48 million charge for doubtful accounts. It will also have a $20 million inventory write-off. The company said it faces “unprecedented business conditions” and foresees unspecified shutdowns and cost-cutting measures ahead. Applied reports final numbers on Feb. 10.
Looks like Applied Materials is stuck in the same muck as the rest of the chip industry and the global economy. Though this morning it’s up 2 cents to $9.39 a share.
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About the Author, Dean Takahashi
Dean is lead writer for GamesBeat at VentureBeat. He covers video games, security, chips and a variety of other subjects. Dean previously worked at the San Jose Mercury News, the Wall Street Journal, the Red Herring, the Los Angeles Times, the Orange County Register and the Dallas Times Herald. He is the author of two books, Opening the Xbox and the Xbox 360 Uncloaked. Follow him on Twitter at @deantak, and follow VentureBeat on Twitter at @venturebeat.
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