Ralph
15.05.2001, 22:27
Applied Materials quarterly profit down 52 percent
SANTA CLARA, Calif., May 15 (Reuters) - Applied Materials Inc. (NasdaqNM:AMAT - news) said on Tuesday its second-quarter net income dropped 52 percent as the world's biggest maker of semiconductor equipment suffered in a pronounced slump in the chip industry due to slowing economies and weak demand.
For the quarter ended April 29, the company said net income fell to $226.7 million, or 27 cents per share, from $468.9 million, or 54 cents a year earlier. Sales declined to $1.91 billion from $2.19 billion.
``Our business continued to experience a sever decline during the second quarter,'' James Morgan, chairman and chief executive officer, said in a statement, citing ``decreased demand for electronic goods (that) resulted in reduced capital equipment investment by semiconductor manufacturers.''
Excluding one-time items, Applied had second-quarter results of $269 million, or 32 cents, compared with $459 million, or 53 cents, a year earlier.
The results were in line with Wall Street estimates, as compiled by Thomson Financial/First Call. Estimates ranged from 28 cents to 37 cents, with an average 33 cents.
Shares of Applied rose to $51 in after-hours trading immediately after the announcement from $49.89 at the Before the announcement, up from $49.89 at the end of regular trading on the Nasdaq. The stock has risen about 29 percent since the end of last year, along with those of other chip-equipment makers, amid optimism that sales will jump once the chip slump ends.
In line with many other chip-related companies, Applied has cut jobs to reduce costs until demand rebounds. On March 15, the company said it was seeking to cut its work force by 4.5 percent.
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Ralph
SANTA CLARA, Calif., May 15 (Reuters) - Applied Materials Inc. (NasdaqNM:AMAT - news) said on Tuesday its second-quarter net income dropped 52 percent as the world's biggest maker of semiconductor equipment suffered in a pronounced slump in the chip industry due to slowing economies and weak demand.
For the quarter ended April 29, the company said net income fell to $226.7 million, or 27 cents per share, from $468.9 million, or 54 cents a year earlier. Sales declined to $1.91 billion from $2.19 billion.
``Our business continued to experience a sever decline during the second quarter,'' James Morgan, chairman and chief executive officer, said in a statement, citing ``decreased demand for electronic goods (that) resulted in reduced capital equipment investment by semiconductor manufacturers.''
Excluding one-time items, Applied had second-quarter results of $269 million, or 32 cents, compared with $459 million, or 53 cents, a year earlier.
The results were in line with Wall Street estimates, as compiled by Thomson Financial/First Call. Estimates ranged from 28 cents to 37 cents, with an average 33 cents.
Shares of Applied rose to $51 in after-hours trading immediately after the announcement from $49.89 at the Before the announcement, up from $49.89 at the end of regular trading on the Nasdaq. The stock has risen about 29 percent since the end of last year, along with those of other chip-equipment makers, amid optimism that sales will jump once the chip slump ends.
In line with many other chip-related companies, Applied has cut jobs to reduce costs until demand rebounds. On March 15, the company said it was seeking to cut its work force by 4.5 percent.
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Ralph