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Austin, Texas-Based Applied Materials to Announce Major Layoff.(Originated from Austin American-Statesman, Texas)

Knight Ridder/Tribune Business News, August, 1996 by Ladendorf, Kirk

Aug. 13--The 1996 slump in microchip prices is having opposite effects on two Austin high-tech heavyweights, Dell Computer and Applied Materials, both of which report earnings today.

Dell is thriving amid falling chip prices by passing on price cuts to customers, which is driving up sales. Dell reported record sales and earnings in the first quarter, and analysts expect another strong quarterly report today.

Applied Materials, the world's largest maker of semiconductor-manufacturing equipment, has signaled that it will report disappointing sales and profits for the quarter ended July 28 because of the fallout of lower chip prices.

With the Applied financial report may come news of job cuts. Several other equipment makers have announced layoffs in...

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