Applied Materials profit tops expectations

Applied Materials profit tops expectations
Tom Foremski
Applied Materials, the leading maker of chip manufacturing equipment, reported better than expected earnings for its second quarter, riding a wave of new demand from chip makers.
The company reported net income of $141.6m compared with $141.2m for the same period last year. Revenues were five per cent lower at $1.12bn compared with last year’s $1.18bn.
New orders for the second quarter reached a record $1.39bn, up 35 per cent from $1.03bn from the first fiscal quarter of 1999. North American new orders represented 30 per cent of the total, Europe 14 per cent, Japan 17 per cent, Korea 8 per cent, Taiwan 25 per cent and Southeast Asia and China 6 per cent.
Applied CEO James Morgan said that the boost in orders was due to demand from chip makers upgrading their fabs to 0.18 micron lines. “The semiconductor industry continues to show signs of improvement in a healthier global economic environment” said Morgan.

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