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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Alex MG who wrote (29690)	2/12/2002 4:11:31 PM
From: Frederick Langford	Respond to of 99280

Applied Materials Announces Results for First Fiscal Quarter 2002; New Orders of $1.1 Billion; Net Sales of $1.0 Billion Business Editors/High-Tech Writers SANTA CLARA, Calif.--(BUSINESS WIRE)--Feb. 12, 2002--Applied Materials, Inc., the world's largest supplier of wafer fabrication solutions to the semiconductor industry, reported results for its first fiscal quarter ended January 27, 2002. Net sales were $1.0 billion, down 21 percent from $1.26 billion for the fourth fiscal quarter of 2001, and down 58 percent from $2.36 billion for the first fiscal quarter of 2001. Ongoing net income (which excludes one-time items) for the first fiscal quarter of 2002 was $15 million, or $0.02 per diluted share, down 34 percent from $22 million, or $0.03 per diluted share, for the fourth fiscal quarter of 2001, and down 97 percent from $424 million, or $0.50 per diluted share, for the first fiscal quarter of 2001. One-time items for the first fiscal quarter of 2002 consisted of pre-tax charges of $77 million in connection with the restructuring previously announced on December 12, 2001, primarily for employee severance and facilities realignment, and $8 million for acquired in-process research and development. The reported net loss for the first fiscal quarter of 2002 was $45 million, or $0.06 per share, compared to a net loss of $82 million, or $0.10 per share, for the fourth fiscal quarter of 2001, and net income of $157 million, or $0.19 per diluted share, for the first fiscal quarter of 2001. New orders of $1.12 billion for the first fiscal quarter of 2002 were slightly higher than the $1.10 billion reported in the fourth fiscal quarter of 2001, and decreased 54 percent from $2.43 billion for the first fiscal quarter of 2001. Regional distribution of new orders for the first fiscal quarter of 2002 was: Taiwan 27 percent, Southeast Asia and China 25 percent, North America 22 percent, Europe 15 percent, Japan 6 percent and Korea 5 percent. Backlog at the end of the first fiscal quarter of 2002 decreased to $2.68 billion, from $2.73 billion at the end of the fourth fiscal quarter of 2001. Gross margin for the first fiscal quarter of 2002 was 38.5 percent, compared to 37.1 percent for the fourth fiscal quarter of 2001 and 48.4 percent for the first fiscal quarter of 2001. Ongoing net income as a percentage of net sales was 1.5 percent for the first fiscal quarter of 2002, down from 1.8 percent for the fourth fiscal quarter of 2001 and 18.0 percent for the first fiscal quarter of 2001. "We are pleased with our results this quarter and that our financial position remained strong, with cash and investments now totaling $4.9 billion. Throughout this extremely difficult industry environment, Applied Materials has continued to invest in the critical new technologies our customers need for advanced chip designs using copper and nanometer-sized circuits, as well as the move to 300mm wafers. While we believe that industry conditions remain challenging in the short-term, we are somewhat encouraged by orders for the new technologies. Our strong product momentum and enhanced global infrastructure reinforce Applied Materials' leadership and strategically position the Company to gain market share as the industry recovers," said James C. Morgan, chairman and chief executive officer. Fred