Applied's net sales for first fiscal quarter down 35pc

SANTA CLARA, USA: Applied Materials Inc. today announced preliminary results for its first fiscal quarter ended January 25, 2009.

The company expects a net loss in the range of $0.09 to $0.11 per share for the first fiscal quarter, which includes the following charges that decreased earnings per share by $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 and industry 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.

On November 12, 2008, Applied Materials had provided a target of earnings per diluted share for the first fiscal quarter in the range of $0.00 to $0.04. This target did not include the above charges, which could not be estimated or were not known at that time.

Net sales for the first fiscal quarter are expected to be approximately $1.33 billion, down 35 percent from the fourth quarter of fiscal 2008, and at the low end of the previously provided target range of down 25-35 percent.

The company intends to continue implementing cost reduction programs, including shutdowns and additional restructuring activities, as appropriate for the unprecedented business conditions.

On February 10, 2009, Applied Materials will announce its first fiscal quarter results and hold its regularly scheduled conference call beginning at 1:30 p.m. Pacific Standard Time.