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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: etchmeister who wrote (15018)	5/17/2005 3:50:35 PM
From: Proud_Infidel	Respond to of 25522

Stocks Rise After Treasury Warns China Tuesday May 17, 3:21 pm ET By Michael J. Martinez, AP Business Writer Stocks Move Higher After Treasury Pressures China to Overhaul Its Currency System NEW YORK (AP) -- Stocks turned higher in late trading Tuesday after the Treasury pressured China to overhaul its currency system -- a move that could help reduce the U.S. trade deficit. In late afternoon trading, the Dow Jones industrial average was up 42.00, or 0.4 percent, at 10,294.29. Broader stock indicators also moved higher. The Standard & Poor's 500 index was up 4.41, or 0.4 percent, at 1,170.10, and the Nasdaq composite index climbed 3.69, or 0.2 percent, to 1,998.12. Investors reacted quickly and positively after the Bush administration declared that China may be using its centralized control over its currency to unfairly affect trade. The announcement helped reverse Wall Street's losses for the session. Stocks had sold off modestly after the Labor Department's Producer Price Index, which measures wholesale prices, rose 0.6 percent in May, more than the 0.4 percent economists had expected. With volatile energy and food costs removed, so-called core PPI rose 0.3 percent, compared with the 0.2 percent expected on Wall Street. While rising wholesale prices are seen as a possible precursor to inflation, analysts were cheered that investors had reacted without the usual skittishness that had marked trading over the past month. "Considering the numbers today, the market is taking it pretty well," said Jack Ablin, chief investment officer at Harris Private Bank in Chicago. "It gives us some certainty with the Federal Reserve, since you know the Fed will continue headlong in raising rates." The bond market edged higher, with the yield on the 10-year Treasury note falling to 4.12 percent from 4.13 percent late Monday. The dollar lost ground against other major currencies after strong gains in the past few sessions, and gold prices rose. China's yuan currency is pegged to the dollar in international trading, which has made China far more competitive than the U.S. due to its lower costs and centralized economy. While not outright accusing China of currency manipulation, the Treasury Department said it may do so in the future unless the Chinese government switches to a flexible exchange system. Crude oil futures edged higher, though the Treasury's stance on China helped Wall Street shrug off the increase. A barrel of light crude was quoted at $48.97, up 36 cents, on the New York Mercantile Exchange. Those investors still feeling bullish were buoyed by the latest Commerce Department report on housing starts, which rose 11 percent in April. Economists had been predicting slower growth in home construction, but it appeared the Fed's steady pace of interest rate hikes has not muted the booming housing market. The retail sector -- under scrutiny after Wal-Mart Stores Inc. last week warned of weakness in its second quarter earnings -- had a number of positive earnings reports. Home Depot Inc. beat Wall Street's profit expectations by 5 cents per share, but revenues were lower than expected and sales growth was sluggish. Home Depot, upgraded to "buy" at Deutsche Bank after its earnings were released, climbed $1.58 to $38.95. Department store chain J.C. Penney & Co. Inc. rose $1.49 to $49.32 after it quadrupled its quarterly earnings from a year ago, citing strong gains in its online shopping division. The company beat analysts' forecasts by 2 cents per share. Discount bulk retailer BJ's Wholesale Club Inc. saw a 16 percent gain in first-quarter profits, beating Wall Street's forecasts by a penny per share after one-time charges. The company also posted 5.8 percent sales growth in stores open at least a year. BJ's gained $1.12 to $29.42. And office supplies retailer Staples Inc. added 87 cents to $21.41 as it posted a 27 percent rise in profits and beat Wall Street's profit expectations by a penny per share. Sales grew at a moderate pace, but the chain's North American delivery business showed surprising strength. "You look at these retail earnings, you look at oil prices where they are, and that's a lot of good news," said Brian Bruce, director of global investments at PanAgora Asset Management Inc. in Boston. "But we had those PPI numbers, and that's the offset. Otherwise, we'd be up today." In other news, embattled Wall Street firm Morgan Stanley said in a regulatory filing it may have to increase its $360 million legal reserve after a Florida jury on Monday awarded $604.3 million to financier Ronald Perelman in his lawsuit against the firm. The jury could award up to $2.4 billion more in punitive damages. The firm said it would appeal. Morgan Stanley fell 50 cents to $48.30. Advancing issues outnumbered decliners by nearly 9 to 5 on the New York Stock Exchange, where volume came to 1.11 billion shares, compared with 1.09 billion traded at the same point on Monday. The Russell 2000 index of smaller companies was up 2.29, or 0.4 percent, at 594.00. Overseas, Japan's Nikkei stock average tumbled 1.11 percent. In Europe, Britain's FTSE 100 closed up 0.29 percent, France's CAC-40 lost 0.12 percent for the session, and Germany's DAX index fell 0.24 percent.

To: etchmeister who wrote (15018)	5/17/2005 4:05:16 PM
From: Proud_Infidel	Read Replies (2) \| Respond to of 25522

Applied Materials Announces Results for Second Fiscal Quarter 2005 Tuesday May 17, 4:01 pm ET SANTA CLARA, Calif.--(BUSINESS WIRE)--May 17, 2005--Applied Materials, Inc. (Nasdaq:AMAT - News) Net Sales: $1.86 billion (5% increase quarter over quarter; 8% decrease year over year) Net Income: $305 million (6% increase quarter over quarter; 18% decrease year over year) EPS: $0.18 ($0.01 increase quarter over quarter; $0.04 decrease year over year) New Orders: $1.55 billion (7% decrease quarter over quarter; 30% decrease year over year) Applied Materials, Inc., the world's largest supplier of wafer fabrication solutions to the global semiconductor industry, reported results for its second fiscal quarter ended May 1, 2005. Net sales were $1.86 billion, up 5 percent from $1.78 billion for the first fiscal quarter of 2005, and down 8 percent from $2.02 billion for the second fiscal quarter of 2004. Gross margin for the second fiscal quarter of 2005 was 44.0 percent, down from 44.4 percent for the first fiscal quarter of 2005, and down from 46.5 percent for the second fiscal quarter of 2004. Net income for the second fiscal quarter of 2005 was $305 million, or $0.18 per share, up from net income of $289 million, or $0.17 per share, for the first fiscal quarter of 2005, and down from net income of $373 million, or $0.22 per share, for the second fiscal quarter of 2004. New orders of $1.55 billion for the second fiscal quarter of 2005 decreased 7 percent from $1.68 billion for the first fiscal quarter of 2005, and decreased 30 percent from $2.21 billion for the second fiscal quarter of 2004. Regional distribution of new orders for the second fiscal quarter of 2005 was: Japan 33 percent, North America 18 percent, Taiwan 18 percent, Korea 13 percent, Europe 9 percent, and Southeast Asia and China 9 percent. Backlog at the end of the second fiscal quarter of 2005 was $2.85 billion, compared to $3.21 billion at the end of the first fiscal quarter of 2005. During the second fiscal quarter of 2005, the company repurchased approximately 31 million shares of common stock at an average price of $16.18 per share for an aggregate purchase price of $500 million. Also during the second fiscal quarter of 2005, the company declared a quarterly cash dividend of $0.03 per share, payable on June 8, 2005 to stockholders of record on May 18, 2005. "In a market where conditions remained mixed, Applied Materials continued to perform well," said Mike Splinter, president and chief executive officer of Applied Materials. "Our broad product portfolio provides our customers with enabling technology, as the semiconductor industry continues to adopt 300mm manufacturing and moves into volume sub-100 nanometer production. "Applied gained more than three points of market share in calendar 2004, according to independent market researchers, outpacing the semiconductor equipment industry. Our technologies and products are setting benchmarks for the industry. The company's speed-boosting transistor processes, leading interconnect technologies and extensive suite of inspection and metrology systems are helping customers deliver advanced chips more affordably. Our commitment to providing world-class solutions to customers is the driving force within our company," concluded Splinter. This press release contains forward-looking statements, including statements regarding market conditions and the company's opportunities, product capabilities and strategic position. Forward-looking statements may contain words such as "expect," "anticipate," "believe," "may," "should," "will," "estimate," "forecast," "see," "promise," or similar expressions, and include the assumptions that underlie such statements. These 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. Risks and uncertainties include, but are not limited to: the sustainability of demand in the semiconductor and semiconductor equipment industries, which is subject to many factors, including global economic conditions, business spending, consumer confidence, demand for electronic products and semiconductors, and geopolitical uncertainties; customers' capacity requirements, including capacity utilizing the latest technology; the timing, rate, amount and sustainability of capital spending for new technology, such as 300mm and sub-100 nanometer applications; the company's ability to successfully develop, deliver and support a broad range of products and services and expand its markets; the ability to maintain effective cost controls and to timely align the company's cost structure with business conditions; the successful integration and performance of acquired businesses; changes in management; and other risks described in Applied Materials' Securities and Exchange Commission filings, including its reports on Form 10-K, Form 10-Q and Form 8-K. All forward-looking statements are based on management's estimates, projections and assumptions as of the date hereof. The company undertakes no obligation to update any forward-looking statements. Applied Materials will discuss its second fiscal quarter results, along with its outlook for the third fiscal quarter of 2005, on a conference call today beginning at 1:30 p.m. Pacific Time. A webcast of the conference call will be available on Applied Materials' web site under the "Investors" section. Applied Materials, Inc. (Nasdaq:AMAT - News), headquartered in Santa Clara, California, is the largest supplier of equipment and services to the global semiconductor industry. Applied Materials' web site is www.appliedmaterials.com. APPLIED MATERIALS, INC. CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS Three Months Ended Six Months Ended ---------------------------------------------------------------------- (In thousands, except May 2, May 1, May 2, May 1, per share amounts) 2004 2005 2004 2005 ---------------------------------------------------------------------- Net sales $2,018,105 $1,861,189 $ 3,573,553 $3,641,765 Cost of products sold 1,079,464 1,042,759 1,958,743 2,033,110 ----------- ----------- ------------ ----------- Gross margin 938,641 818,430 1,614,810 1,608,655 Operating expenses: Research, development and engineering 244,175 225,589 486,820 467,351 Marketing and selling 95,975 92,448 184,373 170,278 General and administrative 83,457 88,875 163,751 177,298 Restructuring, asset impairments and other charges - - 167,459 - ----------- ----------- ------------ ----------- Income from operations 515,034 411,518 612,407 793,728 Interest expense 11,682 9,815 23,482 19,087 Interest income 26,220 40,449 57,493 77,107 ----------- ----------- ------------ ----------- Income before income taxes 529,572 442,152 646,418 851,748 Provision for income taxes 156,224 137,322 190,694 258,153 ----------- ----------- ------------ ----------- Net income $ 373,348 $ 304,830 $ 455,724 $ 593,595 ----------- ----------- ------------ ----------- Earnings per share: Basic $ 0.22 $ 0.18 $ 0.27 $ 0.36 Diluted $ 0.22 $ 0.18 $ 0.26 $ 0.35 Weighted average number of shares: Basic 1,690,617 1,660,584 1,686,193 1,666,627 Diluted 1,729,506 1,671,822 1,732,542 1,679,443 ---------------------------------------------------------------------- APPLIED MATERIALS, INC. CONSOLIDATED CONDENSED BALANCE SHEETS ---------------------------------------------------------------------- October 31, May 1, (In thousands) 2004(1) 2005 ---------------------------------------------------------------------- ASSETS Current assets: Cash and cash equivalents $ 1,493,292 $ 1,663,749 Short-term investments 5,084,704 4,743,114 Accounts receivable, net 1,670,153 1,595,402 Inventories 1,139,368 1,085,578 Deferred income taxes 610,095 661,836 Other current assets 283,907 255,263 ------------ ------------ Total current assets 10,281,519 10,004,942 Property, plant and equipment 2,953,130 2,972,966 Less: accumulated depreciation and amortization (1,607,602) (1,673,182) ------------ ------------ Net property, plant and equipment 1,345,528 1,299,784 Goodwill, net 257,321 337,825 Purchased technology and other intangible assets, net 50,291 76,260 Deferred income taxes and other assets 158,786 197,347 ------------ ------------ Total assets $12,093,445 $11,916,158 ------------ ------------ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 45,864 $ 46,466 Accounts payable and accrued expenses 1,895,061 1,757,039 Income taxes payable 347,056 358,575 ------------ ------------ Total current liabilities 2,287,981 2,162,080 Long-term debt 410,436 414,302 Other liabilities 133,001 157,832 ------------ ------------ Total liabilities 2,831,418 2,734,214 ------------ ------------ Stockholders' equity: Common stock 16,803 16,477 Additional paid-in capital 2,070,733 1,401,418 Deferred stock compensation, net (96) - Retained earnings 7,164,170 7,757,765 Accumulated other comprehensive income 10,417 6,284 ------------ ------------ Total stockholders' equity 9,262,027 9,181,944 ------------ ------------ Total liabilities and stockholders' equity $12,093,445 $11,916,158 ---------------------------------------------------------------------- (1) Certain amounts in the October 31, 2004 consolidated condensed balance sheet have been reclassified to conform to the 2005 presentation. -------------------------------------------------------------------------------- Source: Applied Materials, Inc.