SAN FRANCISCO (AFX) -- Applied Materials Inc. said fiscal first-quarter net income more than tripled from a year earlier, when results were hurt by a large one-time charge, as the No. 1 chip-equipment maker boosted sales and made products more efficiently. The maker of semiconductor manufacturing tools also issued sales and profit forecasts for the fiscal second quarter that exceeded Wall Street expectations. For the three months ended Jan. 30, the company earned $288.8 million, or 17 cents a share, up from $82.4 million, or 5 cents, a year earlier. The results edged out analysts' estimates by a penny, according to the consensus forecast from Thomson First Call. A $167 million charge for the consolidation of facilities in the year-earlier period skewed the firm's results. Excluding the charge, Applied Materials said earnings for that period would have been 12 cents per share. Quarterly revenue climbed 14 percent to $1.78 billion from $1.56 billion, topping analysts' expectations of $1.74 billion. Applied Material's gross margin, an important indicator of profitability that measures manufacturing costs as a percent of revenue, widened to 44.4 percent of sales from 43.5 percent a year earlier. Still, orders for the firm's semiconductor manufacturing tools plunged 36 percent compared to the quarter ended in October, in line with the company's forecast. Large chip makers such as Intel have been cautious about ordering new equipment amid an inventory glut. Gross margin narrowed compared with the 46.6 percent figure for the October quarter. Second-quarter forecasts above Street view In a conference call, the company said it expects revenue for the second quarter to be "flat to slightly up" from the first period. That would beat analysts' forecasts, which called for revenue of $1.68 billion for the period. Earnings for the second quarter are expected to range between 16 cents and 17 cents per share, above the 15 cents expected by analysts, according to Thomson First Call. The company said new orders for the period are expected to be flat to down 10 percent from the first quarter. Analysts were expecting a new-order drop of between 5-15 percent for the period. Applied Materials shares traded up 14 cents in after-hours trading to $17.63, after climbing more than 2 percent in regular Tuesday trading. During the first quarter, the firm spent $300 million to repurchase 17 million of its own shares at an average price of $17.30 per share. This story was supplied by MarketWatch. For further information see www.marketwatch.com.
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