Applied <AMAT.O> sees higher revenues, EPS in Q3
PALO ALTO, Calif., May 18 (Reuters) - Applied Materials Inc. said it expects orders to grow in the third quarter from the second quarter and that revenues in the third quarter should be in the $1.3 billion to $1.5 billion range.
Joe Bronson, chief financial officer, told analysts on a conference call to discuss Applied's second quarter, that operating earnings should rise to about $0.50 to $0.54 a share, fully diluted. Gross margins should be in the high 40 percent range (of revenues), Bronson said.
Earlier, Applied reported second quarter earnings that were better than analysts' expectations. Applied reported second quarter net sales of $1.12 billion and net income of $141.6 million, or 36 cents a share.
Applied executives also said the company has reduced its spending on 300 millimeter technology, a next generation semiconductor manufacturing technology, which will enable more chips to be made on a semiconductor wafer.
"To date, no customers have committed to 300 millimeter production," Bronson said. "The company is prepared to increase spending on 300 millimeter, upon customer requirements."
18:01 05-18-99
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