Applied Materials posted fiscal third-quarter revenue of $2.34 billion, down from $2.79 billion in the year-ago period.
The midpoint of the range of Applied Materials' revenue forecast for the current quarter is about $1.58 billion.
Analysts had expected third-quarter revenue of $2.32 billion and fourth-quarter revenue of $1.94 billion, according to Thomson Reuters I/B/E/S.
"From European austerity to slowing growth in China and the U.S., economic uncertainty is weighing on top of a seasonal pullback to reduce weaker near-term demand. And our customers are choosing to delay their investments until they see stronger demand signals," Splinter said.
He said business would likely bottom out in the current quarter and then begin to improve as foundries resume investments in equipment to manufacture cutting-edge chips for smartphones and tablets.
Applied Materials said net income for the quarter ended in July was $218 million, or 17 cents a share, versus $476 million, or 36 cents a share, in the same quarter last year.
Last year, net income was 17%. This year it was almost half at 9%, as revenue dropped a little more than 16%. Now the mid-range of their guidance is for revenue to drop 27% yoy. Not pretty at all.
I still see the company as a sloth and I find it hard to understand why it's taken them so long to "do a review"!!
Shouldn't you have had all your ducks in a row already, especially if you consider this quarter to be "the bottom". Why haven't they been reviewing this stuff all along or if they have, what's the deal here?
Personally, I continue to see this as a lousy approach. I don't see much to change my view of the company. Solid products, seriously lousy stock from a shareholder's perspective. Like any stock, if you time it right, you will be rewarded but to expect a reward from this management appears to be asking a TON.
As always, I hope I am wrong going forward and AMAT FINALLY figures out how to be a good stock and a good product but .....but.....they haven't done anything in the past few years to make me think "it will be different this time".
JMO
TO |
