By Josh Beckerman
Applied Materials Inc. said its profit rose 38% as revenue
increased 8% in the quarter ending in January, but gave a
disappointing forecast for earnings in the current quarter.
Applied Materials, based in Santa Clara, Calif., has a broad
product line of machines used in processing silicon wafers to make
computer chips. Applied also sells equipment used in making LCD
displays and solar panels.
The company's results often swing widely as chip makers react to
demand by building or cutting production capacity.
Applied Materials expects earnings, excluding items, of 26 cents
to 30 cents a share for the current quarter. Analysts polled by
Thomson Reuters project 32 cents a share.
The company expects sales will range from flat to up "a couple
of percentage points" from the $2.36 billion reported for the
latest period. Analysts project $2.48 billion.
In September 2013, Applied announced plans to buy rival Tokyo
Electron Ltd. in a deal valued at around $9.3 billion, which will
create a company called Eteris. The transaction is still being
reviewed by regulators, and Applied said in October it may close
later than expected.
The Wall Street Journal reported in December that the deal was
awaiting approval from the U.S., China, Japan, Korea and Taiwan.
Applied Materials said Jan. 23 that the parties are "actively
engaged with regulators."
Christian Keller, a former Applied Materials employee, was one
of four people the Securities and Exchange Commission charged last
week with alleged insider trading. The four paid more than $1.6
million combined to settle the charges, the SEC said.
For the period that ended Jan. 25, Applied reported net income
of $348 million, or 28 cents a share, up from $253 million, or 21
cents a share, a year earlier.
Excluding acquisition-related charges and other items, Applied
earned 27 cents a share.
The company had projected earnings excluding items of 25 cents
to 29 cents. It had projected revenue to range from flat to up 5%
from October-quarter revenue of $2.26 billion.
Applied Materials shares fell 12 cents to $24.14 in recent
after-hours trading.
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