Applied Materials (AMAT) Post Better Than Expected Profit, But To Show 1,500 Workers The Door

November 11, 2009 5:33 PM EST

After the close, Applied Materials (Nasdaq: AMAT) announced fourth-quarter earnings results and said it is planning to lay off 1,300 to 1,500 people over the next year and a half in cost cutting efforts as the company deals with struggles resulting from the weak economy.

The job cuts by the chip equipment manufacturer will impact 10 to 12 percent of its global work force. The cuts are expected to save the company $450 million annually.

The company reported a 40 percent drop in fourth-quarter net income, dropping from the $231 million in the same quarter last year to $138 million.

Applied Materials reported fourth-quarter earnings of 13 cents per share, 10 cents above the consensus of 3 cents per share. Revenues came in at $1.53 billion, versus the consensus of $1.32 billion.

The company sees revenue growth of 30 percent in the 2010 fiscal year as it implements the planned cost cutting measures.

"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 Applied Materials CEO, Michael Splinter.

First-quarter earnings per share for the company has been forecasted at 10-14 cents, ahead of the market consensus of 5 cents.

Shares for Applied Materials are up 1 percent in the aftermarket hours to $13.29.

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