SAN FRANCISCO—Applied Materials Inc., the largest supplier of semiconductor production equipment, delivered strong quarterly results that beat analysts' expectations Wednesday (Aug. 24), but warned that it expects a sequential sales decline of 15 to 30 percent in the current quarter.
Applied (Santa Clara, Calif.) reported sales of $2.79 billion for the company's fiscal third quarter, ended July 31, down 2 percent compared to the previous quarter and up 11 percent compared with the year-ago quarter. The fab tool maker reported a net income of $476 million, or 36 cents per share, down 3 percent compared to the previous quarter and up 287 percent compared to the year-ago quarter.
On a pro forma basis, excluding charges, Applied reported a quarterly net income of $467 million, or 35 cents per share, down 7 percent compared to the previous quarter and roughly double its pro form net income from the year-ago quarter.
Applied's sales and profit for the company's fiscal third quarter came in above consensus analysts expectations, which called for revenue of $2.68 billion and pro forma earnings per share of 33 cents, according to Yahoo Finance.
In a statement, Applied chairman and CEO Mike Splinter said Applied delivered strong quarterly results, with both sales and profits at the upper end of the company's target ranges. But Splinter warned of softening business conditions.
"While the fundamental drivers of our markets remain strong, we are seeing softness in our business resulting from the uncertain economic environment and overcapacity in solar," Splinter said.
For the current quarter, Applied says it expects sales to decline 15 to 30 percent to between $1.95 billion and $2.37 billion. The company said it expects to report pro forma earnings per share of between 16 and 24 cents.
Applied's outlook for the current quarter came in below consensus analysts' expectations, which called for sales of $2.66 billion and pro forma earnings per share of 33 cents, according to Yahoo Finance.