Applied Materials Has 1st-Qtr Loss as Sales Decline (Update3)
By Cesca Antonelli
02/12 19:15
quote.bloomberg.com
Santa Clara, California, Feb. 12 (Bloomberg) -- Applied Materials Inc. reported a fiscal first-quarter loss as the biggest maker of semiconductor-manufacturing tools cut jobs and demand for its equipment slumped. Orders inched up from the fourth quarter's, sending Applied shares higher.
The loss in the period ended Jan. 27 was $45.5 million, or 6 cents a share, compared with net income of $156.8 million, or 19 cents, a year earlier. Sales fell 58 percent to $1 billion from $2.36 billion.
Chief Executive Jim Morgan eliminated thousands of jobs and trimmed salaries last year, trying to cut costs during the chip- equipment industry's steepest slump. New orders climbed to $1.12 billion from the fourth quarter's $1.1 billion, and may rise 10 percent to 15 percent this quarter from the period just ended, Chief Financial Officer Joe Bronson said on a conference call.
``There are some encouraging signs,'' said Tim Gaumer, an analyst at Transamerica Asset Management, which owns Applied shares and manages $12 billion. ``It's the first time we've seen an increase in orders.''
The shares of Santa Clara, California-based Applied rose as high as $45.20 after the earnings report. Earlier, they fell 97 cents to $44.71 in regular U.S. trading. They've gained 11 percent so far this year. |
