AMAT report looks awful...
Applied Materials Announces Results for Second Fiscal Quarter 2001; New Orders
of $1.35 Billion; Net
Sales of $1.91 Billion
Business/Technology Editors
SANTA CLARA, Calif.--(BUSINESS WIRE)--May 15, 2001--Applied
Materials, Inc., the world's largest supplier of wafer fabrication
solutions to the semiconductor industry, reported results for its
second fiscal quarter ended April 29, 2001. Net sales were $1.91
billion, down 30 percent from $2.73 billion for the first fiscal
quarter of 2001, and down 13 percent from $2.19 billion for the second
fiscal quarter of 2000. Ongoing net income (net income, excluding
one-time items) for the second fiscal quarter of 2001 was $269
million, or $0.32 per diluted share, down 52 percent from $558
million, or $0.66 per diluted share, for the first fiscal quarter of
2001, and down 41 percent from $459 million, or $0.53 per diluted
share, for the second fiscal quarter of 2000.
New orders were $1.35 billion for the second fiscal quarter of
2001, decreasing 44 percent from $2.43 billion for the first fiscal
quarter of 2001, and decreasing 54 percent from $2.93 billion for the
second fiscal quarter of 2000. Regional distribution of new orders for
the second fiscal quarter of 2001 was: North America 24 percent, Japan
21 percent, Taiwan 20 percent, Southeast Asia and China 15 percent,
Europe 14 percent and Korea 6 percent. Backlog at the end of the
second fiscal quarter of 2001 decreased to $3.05 billion, from $3.90
billion at the end of the first fiscal quarter of 2001.
Gross margin for the second fiscal quarter of 2001 was 44.8
percent, down from 48.8 percent for the first fiscal quarter of 2001,
and down from 50.1 percent for the second fiscal quarter of 2000.
Operating income as a percentage of net sales, excluding one-time
items, was 17.4 percent for the second fiscal quarter of 2001,
compared to 27.5 percent for the first fiscal quarter of 2001 and 28.7
percent for the second fiscal quarter of 2000. Ongoing net income as a
percentage of net sales was 14.1 percent for the second fiscal quarter
of 2001, compared to 20.4 percent for the first fiscal quarter of 2001
and 21.0 percent for the second fiscal quarter of 2000.
"Our business continued to experience a severe decline during the
second quarter," said James C. Morgan, chairman and chief executive
officer, "as decreased demand for electronic goods resulted in reduced
capital equipment investment by semiconductor manufacturers. We have
responded by taking actions to align our cost structure with lower
business volumes. Despite cutbacks in semiconductor capital spending,
customers continue to invest in new technologies, such as copper, and
the transition to 300mm wafers. In this difficult environment, we will
continue to focus on supporting customers by providing the industry
with the most comprehensive portfolio of leading-edge products."
The Company's reported results of operations for the second fiscal
quarter of 2001 included a pre-tax restructuring charge of $58
million, or $0.05 per diluted share after tax, associated with the
previously announced Voluntary Separation Plan, as well as other
severance costs and facilities consolidations, including the closure
of Etec's Tucson, Arizona printed circuit board equipment inspection
business.
"We remain confident in the long-term growth prospects of our
business," said Morgan. "Applied Materials will again use this
difficult period to better service our customers, invest in
technology, introduce new products, strengthen our global operations
and increase market share so that we will be in an even stronger
position when the next upturn occurs."
This press release contains certain forward-looking statements,
including, but not limited to, those relating to customers'
transitions to new technologies and long-term growth prospects. These
forward-looking statements are subject to known and unknown risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied by such statements. Such risks and
uncertainties include, but are not limited to: the Company's ability
to timely align its cost structure with prevailing market conditions;
the length and severity of the current economic downturn; changes in
customer capacity requirements and demand for semiconductors; changes
in the timing and amount of capital equipment purchases by customers;
the successful and timely development of new markets, products,
processes and services; and other risks described in Applied
Materials' filings with the Securities and Exchange Commission. The
Company assumes no obligation to update the information in this press
release.
Applied Materials will be discussing its second fiscal quarter
results, along with its outlook for the third fiscal quarter of 2001,
on a conference call today beginning at 1:30 p.m. PST. A webcast of
the conference call will be available on Applied Materials' Web site
under the "Investors" section.
Applied Materials (Nasdaq: AMAT), the largest supplier of products
and services to the global semiconductor industry, is one of the
world's leading information infrastructure providers. Applied
Materials enables Information for Everyone(TM) by helping
semiconductor manufacturers produce more powerful, portable and
affordable chips.
Applied Materials' Web site is appliedmaterials.com. |
