SAN JOSE, Calif. - Applied Materials Inc. reported sales of $2.69 billion for the first quarter, compared to $2.89 billion in the previous quarter and $1.85 billion a year ago.
Applied reported a net of $506 million, or $0.38 a share, for the first quarter, compared to $468 million, or $0.35 a share, in the previous quarter, and $83 million, or $0.06, a year ago.
Applied beat Wall Street's expectations. It was expected to earn $0.33 on sales of $2.59 billion, according to Zacks.
"Applied's solid first quarter was driven by continued strength in semiconductor systems and record profitability in solar," said Mike Splinter, chairman and chief executive, in a statement. "We see momentum building in our end markets and expect our company's fiscal year revenue to be more than $11 billion, exceeding our previous record by over a billion dollars. We now expect wafer fab equipment spending to be up 10 to 15 percent from approximately $31 billion in calendar 2010, with crystalline silicon solar equipment spending rising by more than 30 percent year over year."
For the second quarter of fiscal 2011, Applied expects net sales to be in the range of flat to up 5 percent quarter over quarter.
In the first quarter, Applied saw mixed results within its groups.
Silicon Systems Group (SSG) orders were $1.61 billion in the first quarter, down 4 percent from the fourth quarter of fiscal 2010. Net sales increased to $1.50 billion, up 1 percent. Operating income decreased by 4 percent from the fourth quarter to $543 million or 36 percent of net sales.
Applied Global Services (AGS) orders were $552 million in the first quarter, down 13 percent from the fourth quarter of fiscal 2010. Net sales increased to $567 million, up 10 percent from the fourth quarter, led by higher shipments of 200-mm equipment. Operating income decreased to $85 million or 15 percent of net sales as a result of lower margins on 200-mm equipment.
Display orders declined 19 percent from the fourth quarter of fiscal 2010 to $142 million. Net sales were $147 million, down 48 percent from the fourth quarter, primarily driven by a cyclical decline in LCD equipment demand. Operating income decreased to $28 million or 19 percent of net sales.
Energy and Environmental Solutions (EES) had record orders of $668 million in the first quarter, up 22 percent from the fourth quarter of fiscal 2010. Net sales were $476 million, down 22 percent from the fourth quarter which included $230 million in thin film equipment sales. Net sales of crystalline silicon equipment set a record in the first quarter. Operating income increased to $144 million or 30 percent of net sales and included a favorable adjustment of $28 million related to a previously announced restructuring program. Excluding this adjustment, operating income would have been 24 percent of net sales.
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