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

To: Proud_Infidel who wrote (15036)	5/18/2005 10:32:26 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

Applied beats quarterly estimates but outlook is down Mark LaPedus EE Times (05/17/2005 4:09 PM EDT) SAN JOSE, Calif. — Chip-equipment giant Applied Materials Inc. beat Wall Street's estimates on moderate sales growth for the quarter. However, the company projected a drop in sales and orders for its current quarter, due to a lack of capital spending in the foundry market. Applied reported sales of $1.86 billion for its second fiscal quarter, 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. 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. The company beat Wall Street's expectations. Applied was expected to earn $0.17 a share for the quarter. Sales were expected to be $1.8 billion for the period, said Bill Ong, an analyst with American Technology Research Inc. in San Francisco. Orders were expected to decline sequentially by 5 percent at $1.6 billion, Ong said. In a recent report, the analyst also indicated that Applied is reducing its headcount in select groups. Meanwhile, Applied's orders were slightly below expectations. 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. "In a market where conditions remained mixed, Applied Materials continued to perform well," said Mike Splinter, president and chief executive of Applied Materials (Santa Clara, Calif.), in a statement. According to Gartner Inc., Applied grew its overall market share in semiconductor wafer-fab equipment (WFE) market from 18.7 percent in 2003 to 21.8 percent in 2004, based on sales revenue. The company's market share growth in calendar year 2004 was the largest of any of the top 10 WFE companies, according to Gartner. For its third fiscal quarter, Applied is expected to report flat sales and earnings, which are below consensus among analysts, according to SG Cowen Securities Corp. (New York). The company's outlook is below expectations. For its third fiscal quarter, Applied projects that its sales will fall 10-to-15 percent over the previous period. EPS will range from $0.12-to-$0.14 per share in the quarter. Orders are expected to decline 5-to-10 percent sequentially. Applied blamed the outlook on the foundry market. "We thought the foundries would come back (in capital spending), but they haven't," according to the Applied CEO. "I think their spending will be quite low." One market remains hot for the chip-equipment market. "Flat-panel demand is very strong," he said.