As part of the austerity plan, American semiconductor equipment manufacturer LRCX-US (LRCX-US) announced on Wednesday (25th) that it will lay off 7% of its global workforce, equivalent to 1,300 people.
When the layoffs were announced, Kelin R&D announced better-than-expected results for the previous quarter on Wednesday, but the financial guidance was disappointing, and the stock price fell 4% after hours.
Colin R&D reported revenue of $5.28 billion last quarter, up 2.5 percent year-on-year, and adjusted earnings per share (EPS) of $10.71, up from $8.53 a year earlier, both of which were better than FactSet analysts’ estimates.
Kelin R & D estimates that the adjusted EPS in the third quarter of the fiscal year will fall between US$5.75 and US$7.25, which is worse than the FactSet analyst’s average estimate of US$7.78, and the revenue is estimated at US$3.5 billion to US$4.1 billion, which is also lower than analysts Estimated $4.35 billion.
Chipmaker customers are slowing production capacity, delaying new plant construction and reducing existing plant construction, Kelin R&D said. Among them, the impact of the decline in memory demand is particularly sharp, because about half of the company’s revenue comes from memory manufacturers such as Micron. .
Chief Financial Officer Doug Bettinger said that the company has also cut about 700 dispatched manpower, and plans to implement a similar manpower reduction plan this quarter. Overall, Kelin R&D estimates that the cost of layoffs and facility reductions will reach 150 million to 250 million Dollar.
Kelin R & D also confirmed that the US chip export restrictions imposed on China will lead to a reduction in revenue of 2 billion to 2.5 billion US dollars in 2023.
However, Bettinger said that while the layoffs are just one step in a cost-cutting plan, the company will not touch the research and development department. The company forecasts that R&D spending will increase as a percentage of operating expenses in 2023 compared to last year.
