Applied sees strong capital spending by foundries
2/16/2012 7:48 PM EST
SAN FRANCISCO—Chip equipment vendor Applied Materials Inc. Thursday (Feb. 16) reported quarterly results that exceeded analysts' expectations and said it continues to see strong capital investment from chip makers, led by foundries, that it expects to lift its sales in the current quarter.
Mike Splinter, Applied's chairman and CEO, said global demand for mobile devices is driving a third consecutive quarter of strong capital investment by semiconductor manufacturers. Splinter said 2012 is "shaping up to be the year of the foundry," with Applied seeing a 75 percent increase in revenue from foundry customers in the quarter ended Jan. 29.
Applied (Santa Clara, Calif.) reported sales of $2.19 billion for its fiscal first quarter, which closed Jan. 29, up nominally from $2.18 billion in the previous quarter and down 19 percent from the year-ago quarter. The company reported a net income for the quarter of $117 million, or 9 cents per share, down 74 percent from the previous quarter and down 77 percent from the year-ago quarter.
On a pro forma basis, excluding charges, Applied reported a net income for the quarter of $344 million, or 18 cents per share, down 10 percent from the previous quarter and down 48 percent from the year-ago quarter.
Applied's sales and income results exceeded consensus analysts' expectations, which called for revenue of $1.97 billion and pro-forma net income of 12 cents per share, according to Yahoo Finance.
Orders for the quarter totaled $2.01 billion, up 26 percent from the previous quarter, including $1.42 billion from the company's Silicon Systems Group, Applied said.
Applied said it expects sales for the current quarter to grow 5 to 15 percent to between $2.3 billion and $2.52 billion. The company's sales target for the quarter exceeded consensus analysts' expectations of about $2.08 billion, according to Yahoo Finance.