Nikon outlook is blurry as chip makers lose flash
Article Abstract:
Since Jun 1993, Nikon Corp's stock has gained 33 percent on the Tokyo Stock Exchange and more than 100 percent in the United States, where it trades as depository receipts. Investors are assuming that Nikon's sales of steppers, a type of machinery for making semiconductors, will rise as worldwide demand for memory chips grows. Nikon currently holds three-fifths of the world market for steppers. There are two key problems with this rosy scenario: recession-battered chip makers in Japan have no plans to invest heavily in steppers, and Nikon has no plans to diversify away from semiconductor production equipment, a sector that accounted for almost 30 percent of Nikon's sales in the most recent fiscal year and a healthy chunk of its profit. In fact, Nikon expects to post a pretax loss of $19.7 million for the fiscal year ending Mar 31, 1993, its first ever.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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Applied Materials to cut staff 15%, salaries
Article Abstract:
Applied Materials announced that it will reduce its work force by an additional 2,000, or 15%, and lower executive salaries by up to 10%. The leading semiconductor equipment manufacturer also said the reorganization will yield a one-time charge and net loss for its 4th qtr 1998 ending Oct 25. Chmn and CEO James Morgan blamed the moves on an unprecedented combination of Asian economic troubles, industry overcapacity and the shift toward inexpensive PCs. Applied eliminated 1,500 jobs in the 3rd qtr 1998. The most recent round of cuts fell short of some analysts's projections but probably will cast further doubts on the chip-industry decline. Applied will have lowered its staff by more than 25%, from 16,200 employees at the start of 1998 to around 12,000.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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Investors eye embedded-chip production
Article Abstract:
The embedded microprocessor industry is a $15.3 bil market that is growing. Along with computers and other computing devices, products such as watches, toasters, and pagers also include chips. Embedded processors are becoming smarter and cheaper, and are used for more products than ever. However, the market is highly fragmented and dominated by big companies, resulting in a market that is not investor friendly.
Publication Name: Business Review Weekly
Subject: Business, general
ISSN: 0727-758X
Year: 1998
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