SAN FRANCISCO—Applied Materials Inc., the largest maker of semiconductor production equipment, reported second quarter sales and earnings that exceeded analysts' expectations but said it expects sales for the current quarter to decline due to sluggish near-term economic conditions.
Applied (Santa Clara, Calif.) said it expects third quarter sales to decline 3 to 10 percent sequentially to between $2.57 billion and $2.77 billion. A consensus of analysts' estimates had pegged Applied's third quarter sales at $2.82 billion, according to Yahoo Finance.
"While near-term economic conditions have tempered our growth expectations, our outlook for the year remains strong driven by our customers' plans to invest in the advanced technologies needed to meet growing demand for mobile devices and consumer electronics," said Mike Splinter, Applied's chairman and CEO, in statement.
For the fiscal second quarter, which closed May 1, Applied reported sales of $2.86 billion, up 6 percent from the previous quarter and up 24 percent from the year ago quarter. The company reported a net income of $489 million for the second quarter, up 3 percent from the previous quarter and up 85 percent compared to the year ago quarter.
On a non-GAAP basis, excluding charges, Applied posted a net income of $501 million, or 38 cents per share, up 4 percent from the previous quarter and up 72 percent from the year-ago quarter.
A consensus of analysts had expected Applied to report sales of $2.77 billion in the fiscal second quarter, with non-GAAP earnings of 37 cents per share, according to Yahoo Finance.
During the fiscal second quarter, Applied's order backlog increased by $344 million to $3.88 billion, the company said..