News Update: Applied Materials Cuts Headcount By 500, Cuts Guidance On $425 Million Charge

Applied Materials (NASDAQ:AMAT) announced that it intends to cut its head count by as many as 500 jobs and take a Q3 charge of $375 million to $425 million, or 18 cents to 21 cents per share, in an effort to cut down its thin film solar manufacturing equipment products.

As a result, the Santa Clara, California-based tech firm lowered its Q3 EPS outlook to $0.10 - $0.14 per share, from $0.22 - $0.26 per share, citing the new charges.

Shares of Applied Materials are trading 2.2% higher premarket on the news.

SmarTrend alerted subscribers to take profits in Applied Materials on May 06, 2010 at $12.68, since then the stock fell 2.6%. We are now watching for any positive developments that could result in a new uptrend signal.

Applied Materials, Inc. develops, manufactures, markets, and services semiconductor wafer fabrication equipment and related spare parts for the worldwide semiconductor industry. The Company's customers include semiconductor wafer and integrated circuit manufacturers, flat panel liquid crystal displays, solar photovoltaic cells and modules and other electronic devices manufacturers.

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