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Excelitas Technologies Corp. - X-Cite Vitae LB 11/24

Applied Cutting 1300+ Jobs

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SANTA CLARA, Calif., Nov. 12, 2009 – In the wake of posting a net loss of $305 million for 2009, chip-making equipment manufacturer Applied Materials said it will cut between 1300 and 1500 jobs, or 10 to 12 percent of its work force, over the next 18 months.

Applied Materials said it will implement other “operating efficiencies” in 2010, such as embedding its sales force into its business groups and consolidating its manufacturing and supply chain closer to more of its customers and suppliers. The company said that its cost-cutting moves, most of which are expected to happen during the first quarter of fiscal 2010, are expected to total between $100 million and $125 million. Savings from the plan are anticipated to be approximately $450 million. In fiscal 2009, the company shaved operations and saved $460 million.

The company reported its fourth-quarter results this week, touting its return to profitability during the quarter and said it expects net sales to grow by more than 30 percent in the next fiscal year. Net income for the fourth quarter was down 40 percent from 2008, to $138 million, or 10 cents a share, on net sales of $1.53 billion (down 25 percent from 2008). It reported net sales of $5 billion and a net loss of $305 million, or 23 cents a share, for fiscal 2009.

“Applied delivered a solid fourth quarter led by increased net sales and profitability in our semiconductor equipment business, with improved demand and financial performance in all of our segments,” said Mike Splinter, chairman and CEO. “For the year, we invested in growth across all of our businesses, introducing new products and expanding into new markets while reducing our cost structure.”

Excelitas PCO GmbH - PCO.Edge 11-24 BIO MR

Applied was named the No. 1 equipment supplier to the solar PV industry during 2009 and recently opened the world’s largest nongovernmental solar energy research facility, located in Xi’an, China. The company said its Energy and Environmental Solutions business has grown to more than $1 billion in annual net sales in less than three years and is expected to achieve break-even or better results in fiscal 2010.

“Since 2006, Applied has successfully extended our nanomanufacturing leadership from semiconductor and display to the solar industry, and, during that time, we have seen changes in customer and geographic concentration in all of these markets,” Splinter said. “We are adapting our operating structure to align with these changes and enhance the value we provide to our customers and stockholders.”

For more information, visit: www.appliedmaterials.com
 



Published: November 2009
Glossary
chip
1. A localized fracture at the end of a cleaved optical fiber or on a glass surface. 2. An integrated circuit.
nano
An SI prefix meaning one billionth (10-9). Nano can also be used to indicate the study of atoms, molecules and other structures and particles on the nanometer scale. Nano-optics (also referred to as nanophotonics), for example, is the study of how light and light-matter interactions behave on the nanometer scale. See nanophotonics.
photonics
The technology of generating and harnessing light and other forms of radiant energy whose quantum unit is the photon. The science includes light emission, transmission, deflection, amplification and detection by optical components and instruments, lasers and other light sources, fiber optics, electro-optical instrumentation, related hardware and electronics, and sophisticated systems. The range of applications of photonics extends from energy generation to detection to communications and...
Applied MaterialsBusinessCaliforniaChinachipcost-cuttingcostscutDisplaysEmploymentenergygreen photonicsindustrialjobslossMike SplinternanoNews & Featuresoperating efficienciesphotonicsprofitPVquartersemiconductorssolarwork force

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