Applied (Santa Clara,
Calif.) reported sales of $2.34 billion for the quarter ended July 29,
down 6 percent from the previous quarter and down 13 percent from the
year-ago quarter. The company reported a net income in accordance with
generally accepted accounting principles (GAAP) of $218 million, or 17
cents per diluted share, down 25 percent from the previous quarter and
down 54 percent from the year-ago quarter.
On a non-GAAP basis, excluding charges, Applied reported a net income of
$300 million, or 24 cents per share, down 14 percent from the previous
quarter and down 36 percent from the year-ago quarter.
For the current quarter, which closes in October, Applied said it
expects sales to decline to between $1.4 billion and $1.76 billion.
"We are seeing strong seasonal effect in our wafer fab equipment
business, along with macroeconomic uncertainties that are leading our
customers to reduce spending until they see signs of stronger consumer
demand over the next few months," Splinter said.
Applied reported orders of $1.17 billion for its Silicon Systems Group
(SGS), down 41 percent sequentially, primarily due to lower demand from
foundry and logic customers. Foundries accounted for 58 percent of its
fiscal third quarter orders, while flash memory made up 19 percent, DRAM
accounted for 10 percent and logic and other chip makers accounted for
13 percent, Applied said.
The company reported SGS sales of $1.55 billion in the fiscal third quarter, down 13 percent from the fiscal third quarter.
Applied said it continues to expect that total the total market for
semiconductor equipment sales for the year will be between $30 billion
and $33 billion.
More blame on macroeconomic doom and gloom, but at least Applied expects sales to improve after this quarter. Interesting that foundry vendors--who earlier this year were keeping Applied and other tool makers on target--are blamed for slowing down orders. But CEO Mike Splinter said he expects foundries to led the way back by improving orders by the end of the calendar year.
Join our online Radio Show on Friday 11th July starting at 2:00pm Eastern, when EETimes editor of all things fun and interesting, Max Maxfield, and embedded systems expert, Jack Ganssle, will debate as to just what is, and is not, and embedded system.