Applied Materials Inc, the world's biggest maker of computer-chip production equipment, had a second-quarter loss of US$62.1 million as sales fell and it had to close factories and cut jobs.
The net loss was US$0.04 a share, compared with net income of US$52 million, or US$0.03, in the same quarter last year. Sales in the quarter that ended April 27 dropped 4.3 percent to US$1.11 billion from US$1.16 billion, chief financial officer Joe Bronson said.
Orders in the quarter fell 42 percent to US$971 million -- the first time since October 1998 they were less than US$1 billion -- and Bronson forecast little change in the current quarter. Chief executive Mike Splinter took over from Jim Morgan after two years of falling sales with a mandate to cut costs and expand services to chipmakers struggling with declining demand for electronics.
"Consumers of chip equipment are being cautious with buying additional capacity," said Jim Grossman, who helps manage US$57 billion at Thrivent Investment Management and owns Applied shares. "The environment is quite difficult out there."
Profit in the current quarter will be US$0.03 to US$0.04 a share before US$50 million to US$100 million in restructuring costs, Bronson said. Sales will be unchanged or slightly less than this quarter's revenue. The company had net income of US$0.07 and sales of US$1.46 billion in last year's third quarter.
New orders, a gauge of sales in three to six months, will be little changed in the quarter ending in July, Bronson said. New orders were US$1.78 billion in the third quarter last year and US$1.69 billion in the second period of the last fiscal year.
Second-quarter orders were below the company's February forecast of slightly more than US$1.02 billion. The shortfall was the result of lower-than-expected demand for equipment that forms microscopic patterns on glass plates. The instruments, which sell for about US$15 million apiece, haven't sold in two quarters, Bronson said.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source