Semiconductor equipment maker Applied Materials announced it will take a nonrecurring charge for the restructuring of a joint venture with Applied Komatsu Technology in the fourth quarter.
The amount of the charge was not disclosed.
Applied Materials had already announced in August that it will incur a nonrecurring charge regarding its own restructuring, which will result in a fourth fiscal quarter net loss for Applied Materials.
The restructuring included cutting 15 percent, or 2,000 people, from the company's workforce. The company had also announced it would cut executive salaries by 10 percent, as the company comes off a third quarter during which both its revenues and profits tumbled.
Applied Material stock is hovering around its 52-week low and closed yesterday at 23.75, down 5.94 percent. The company's shares have traded as low as 22.44 and as high as 52.97 during the past 52 weeks.
The company is expected to earn 3 cents per share compared to a year-ago profit of 49 cents a share.
Applied Komatsu, a supplier of fabrication systems used to produce flat panel displays, will focus on chemical vapor deposition systems for the flat panel market. Applied Komatsu expects to complete its restructuring plan and associated cost estimates during Applied Materials' 1998 fourth fiscal quarter, which ends on October 25.