Applied Materials beats forecast, sees recovery

Applied Materials beats forecast, sees recovery
Tom Foremski
Leading chip equipment maker Applied Materials declared that the long slump in its industry is over, reporting better than expected results for its first fiscal quarter.
The company reported impressive levels of new orders of $1.03bn compared with $684m of new orders in the fourth quarter. The good news overshadowed revenues of $742m that were 43 per cent down compared with $1.31bn for the same period last year. While new orders were up sequentially, they were lower compared with $1.29bn in new orders for the same period in 1998.
“We are pleased with our first quarter results, especially the order momentum exiting the quarter. We believe the industry is in a recovery stage due to stabilization of memory prices and customer migration to 0.18 micron technologies,” said Applied Materials CEO James Morgan. “The near term outlook for our industry is favorable, with an improved DRAM pricing environment, healthy PC demand and a strong US economy.”


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