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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