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THE STATE / TECHNOLOGY

Applied Materials to Take 4th-Quarter Charges

October 24, 1998| Bloomberg News

Applied Materials Inc. said it will take charges in the fiscal fourth quarter of $285 million, or 56 cents a share, as part of a previously disclosed restructuring plan, resulting in a loss for the quarter. Analysts had expected the No. 1 maker of semiconductor equipment to post a profit of 2 cents a share when it releases results Nov. 17. It had a profit of $187.3 million, or 49 cents a share, a year earlier. The Santa Clara, Calif.-based company said it completed the restructuring disclosed in August, which included cutting 2,000 jobs, or 15% of its work force. Applied expects the moves to save $40 million a quarter. Applied is reducing costs to cope with a steep drop in demand for chip equipment, caused by weak computer sales and the economic crisis in Asia, where many chip makers are based. Applied's shares rose $1.06 to close at $33.94 on Nasdaq.

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