Applied upbeat on forecast, fab capex
Mark LaPedus
(02/15/2006 5:32 PM EST)
URL: eetimes.com
SAN JOSE, Calif. — After posting strong results, chip-equipment giant Applied Materials Inc. foresees another strong quarter amid growth in the memory, foundry and overall IC sector.
Applied (Santa Clara, Calif.) projected that its sales would grow from 13-to-15 percent in its second fiscal quarter, as compared to the first fiscal quarter, which was reported on Wednesday (Feb. 15).
The company projected earnings of $0.22-to-$0.23 a share in the second quarter. Orders are expected to grow 12-to-15 percent in the second fiscal quarter over the first fiscal quarter.
Mike Splinter, president and chief executive of Applied, was upbeat. The company is seeing “increasing equipment intensity in the industry,” he said in a conference call.
Applied projects strong equipment orders in the DRAM and flash-memory segments, he said. Foundry orders vary and depend upon the vendor, he said. On the other hand, flat-panel equipment orders are expected to fall over the next two quarters, according to company executives.
Overall, the Applied CEO projects that the IC industry will grow 7-to-10 percent in 2006 over 2005. Capital spending is expected to jump 10-to-15 percent in 2006, which is higher than originally projected, he said. Wafer fab equipment is expected to grow 15-to-20 percent in 2006, he added.
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