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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (32006)	8/17/1999 7:27:00 PM
From: marc henschke	Respond to of 70976

To All: 1-800-633-8284 Access code 12884478

To: Proud_Infidel who wrote (32006)	8/17/1999 8:28:00 PM
From: Proud_Infidel	Respond to of 70976

204.247.196.14 Applied sales hit record $1.43 billion as recovery strengthens A service of Semiconductor Business News, CMP Media Inc. Story updated 5:15 p.m. EST/2:15 p.m., PST, 8/17/99 SANTA CLARA, Calif.--Applied Materials Inc. here today posted a 62% increase in net sales to a record $1.43 billion in its third fiscal quarter, ended Aug. 1, compared to $884 million in the same period last year. In contrast to the company's second fiscal quarter, Applied's sales were up 28%. The semiconductor equipment giant also reported a record ongoing net income of $244.4 million vs. $70.6 million in the same period last year and $141.6 million in the second fiscal quarter, which ended May 2. During a conference call with analysts today, Applied Materials executives said the company now anticipates strong growth in semiconductor capital spending during the next several years. Industry investments in new wafer-processing tools are expected to grow 13% in 1999 compared to a drop of 23% last year. Applied expects a 13% increase in fab equipment spending next year, but managers admitted that their current forecast could end up being too conservative. Applied's new orders in the third fiscal quarter reached a record $1.46 billion, an increase of 5% from $1.39 billion in the previous fiscal quarter. New orders were up 140% from $608 million in the same fiscal quarter last year--which was at the low point in the 1998 industry recession. "Our new orders this quarter were driven by both capacity and technology requirements for 0.18-micron production and pilot line applications, as well as by research and development for next-generation products with design features below 0.18-micron," said James C. Morgan, chairman and CEO of Applied. The recovery is being fueled by a wide range of semiconductor products, Morgan said. In particular, production demand was strongest in communications and consumer electronics categories, he added. "We believe the market for semiconductor equipment may double over the next five years, driven by three waves of industry activity," Morgan said. "The first wave, the acceleration of Moore's Law to smaller linewidths, is driving orders today. The second wave, the introduction of several new materials, including copper and low-k dielectric films, is creating the need for a broad range of innovative process technologies. "Just on the horizon is the third wave, the industry's move to 300-mm wafers, which will require completely new wafer processing equipment," the CEO added. New orders in North America and Japan were flat in the fiscal third quarter compared to the previous period, said Joseph R. Bronson, senior vice president, and chief financial officer. Orders were jump significantly in Taiwan, he added during today's conference call with financial analysts. Applied's distribution of new orders in the quarter was: North America 28%, Taiwan 26%, Japan 16%, Europe 16%, Korea 8% and Southeast Asia and China 6%. Backlog at the end of the third fiscal quarter was $1.34 billion, said the company.