Applied Materials Profit Exceeds Expectations
Applied Materials Inc. said Tuesday that its fiscal first-quarter profit surged well beyond forecasts as chip makers bought more machines to meet demand.
The semiconductor equipment maker’s net income rose to $328.5 million, or 80 cents a share, from $46 million, or 12 cents, a year ago. Sales more than doubled to $1.67 billion from $742.5 million as chip makers revived mothballed plants to meet orders from computer and cell phone makers. Orders, which rose to a record $2.36 billion, will reach another record in the current period, and profit will exceed analyst forecasts.
The earnings beat the 77-cent forecast of analysts from First Call/Thomson Financial.
Applied also set a 2-for-1 stock split effective March 15.
The company’s shares climbed as high as $174.88 after the report. They had risen $5.44, or 3.4%, to close at $166.50, in Nasdaq trading before the earnings were released.
Santa Clara, Calif.-based Applied Materials said orders, a harbinger of future sales, for its fiscal second quarter will be at least $2.5 billion. It expects earnings of $1 to $1.08 a share on revenue of $2 billion to $2.1 billion. It was expected to earn 83 cents a share in its second quarter, according to First Call.
“The market continues to outpace all previous estimates,” Chief Financial Officer Joseph Bronson said on a conference call with analysts.
At a Glance
Other earnings, excluding one-time gains or charges unless noted:
* China.com Corp., one of the first Asian Internet companies to list on the Nasdaq stock market, said fourth-quarter losses widened fivefold to $13 million from $2.6 million a year ago as it spent more to build up its brand name. Sales surged to $10.8 million from $1 million.
* Lycos Inc. reported better-than-expected profit of $3 million, or 3 cents a share, for its fiscal second quarter as revenue more than doubled. Analysts had forecast 1 cent a share, according to First Call/Thomson Financial. Lycos, operator of one of the most popular Internet search services, had a loss of $13.9 million, or 16 cents, in the year-earlier period. Revenue soared to $68.6 million from $31.1 million, exceeding analyst expectations of $63 million.
* Nextlink Communications Inc. said its fourth-quarter loss from operations nearly doubled to $161.1 million, or 93 cents a share, from a loss of $96.5 million, or 91 cents, a year ago, on increased spending to expand its network and add customers. The results were much better than the $1.47-a-share loss analysts expected, however. The telephone company, which is majority-owned by cellular pioneer Craig McCaw, said revenue more than doubled to $90 million from $43.3 million.
* Network Appliance Inc. said its fiscal third-quarter profit more than doubled to $19.8 million, or 11 cents a share, from $9.4 million, or 6 cents, a year ago, beating estimates by a penny. Revenue doubled to $151.3 million from $75.6 million. The company also announced a 2-for-1 stock split.
