The world's largest supplier of chip production systems posted a net loss of $82 million in the just-ended fiscal quarter, including a pre-tax restructuring charge of $149 million related to layoffs announced two months ago (see Sept. 20 story). Excluding one-time charges and items, Applied said its net income was $22 million, or $0.03 per diluted share, which was short of Wall Street's consensus by one cent per share, according to First Call/Thomson Financial.

During a conference call with analysts today, Applied Materials said it expects another 20% sequential decline in revenues in the current fiscal quarter, with net sales dropping to about $1 billion. At that level of sales, Applied could post a slight loss for the current fiscal quarter, said Joseph R. Bronson, executive vice president and chief financial officer of the company.

New orders in the fiscal fourth quarter fell 9% on a sequential basis to $1.10 billion from $1.21 billion in fiscal Q3. Orders were 69% lower than $3.60 billion in the fiscal fourth quarter last year, said Applied.

Orders declined greater than expected in the fiscal fourth quarter due to cancellations of 300-mm tool orders, said company executives during the conference call.

"The semiconductor industry continued to decline for the fourth consecutive quarter," said James C. Morgan, chairman and chief executive officer of Applied. "Worsening global economic conditions and uncertainties from recent events have caused both businesses and consumers to decrease near-term spending, triggering further capital spending reductions for wafer fabrication equipment. However, customers continue to make investments for new technology applications, including copper-based and nanometer generation devices and 300-mm wafers," he said.

Applied said its net sales totaled $7.34 billion in fiscal 2001, ended Oct. 28, which was 23% decline from $9.56 billion in the fiscal 2000 period. The company's net income for fiscal 2001 was $508 million, a 75% drop from $2.06 billion in 2000.