AMAT CEO Says Customers' Use Of Its Equipment Is Up
Wednesday September 3, 9:30 am ET
By Donna Fuscaldo, Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)-- Applied Materials Inc.'s new Chief Executive Michael Splinter said Wednesday that customers' use of its equipment is increasing, with investments being made in 300 millimeter equipment.
Speaking at the SG Cowen Fall Technology Conference in Boston, which was also broadcast on the Internet, Splinter said the transition to 300mm equipment is in "full swing," driven by the dynamic random access memory chip makers. He said more than 60% of Applied Material's orders are for 300mm equipment, which is new equipment used to make chips.
According to the former Intel Corp. (NasdaqNM:INTC - News) executive who was named CEO four months ago, new products Applied Materials introduced in the last several months will aid in its growth.
AMAT, said Splinter, added equipment that improves productivity and reduces defects. Couple those products with recent launches of measurement and inspection equipment, and Applied Materials is "very well positioned in areas we weren't playing in before," and "strongly positioned" in markets it already plays in, he said. Splinter noted that the company expects to hold and increase its market share.
According to Splinter, if the company's sales stay flat, Applied Materials will be profitable, and if sales increase, the company has "great leverage." If orders do not go up, Splinter said new products and services will add to AMAT's revenue base.
When asked if the company is comfortable with its target for orders to increase 10% sequentially this quarter, Joseph Bronson, the company's chief financial officer, said AMAT is standing by its outlook, which it gave two weeks ago.
Shares of AMAT closed the regular session Tuesday at $21.29, down 34 cents, or 1.6%. |
