On a GAAP basis, the company posted a net EPS loss of $0.42 on a goodwill impairment charges and restructuring charges of $545 million, leading to an operating loss of $499 million.
The company’s CEO said:
We see improving business conditions entering 2013, with orders projected to increase after bottoming in the fourth quarter. Accelerated changes in device technology and the adoption of new materials in all of the industries we serve provide opportunities for Applied to build on our leadership and grow our market share.
For the first quarter of Applied Materials’ 2013 fiscal year, the company expects net sales to be flat to down 15% sequentially, and adjusted EPS to range from breakeven to $0.06. The adjusted EPS estimate excludes about $0.05 related to completed acquisitions, but no other adjustments that may arise from now on.
The company’s acquisition of Varian contributed just one cent to the adjusted quarterly EPS and about $0.11 for the full year, not including acquisition-related charges. Applied added an unexpected $124 million to its restructuring and integration charges for the Varian acquisition.
The slow market for semiconductors means a slow market for the machines that make chips and wafers. Demand from solar panel makers gave Applied Materials a nice boost for a while, but the solar industry’s over-capacity problems have stifled further demand in the sector. Some $421 million of Applied’s goodwill writedown “reflects the deterioration in solar equipment market conditions, our customers’ financial condition, and reduced market valuations.” That about sums up the solar market.
The company’s shares are up about 0.3% in after-hours trading tonight, at $10.33 in a 52-week range of $9.97 to $13.94. The consensus target price for the shares was around $12.60 before today’s report.
Paul Ausick
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
