Applied results underline semiconductor recovery

Revenues at Applied Materials amounted to $2.30 billion for its second financial quarter, generating a net profit of $264 million and demonstrating the revival of the semiconductor business.

Applied makes the equipment used by chip companies to manufacture their products, and also has interests in the flat planel and solar industries.

Its sales of $2.30 billion were up 24 percent quarter on quarter, year on year, with its silicon and display business units showing solid gains. It turned in a gross margin of 40.4 percent.

Mike Splinter, Applied’s CEO (pictured), said that global demand for computing and consumer electronics is encouraging its customers to install extra capacity at their fabs. He believes the recovery will span years.

Breaking the results out by business segments, its solar division showed an operating loss of $145 million. That includes $83 million Applied spent on thin film solar manufacturing equipment.

Its silicon division saw net sales rise by 45 percent compared to the first quarter, with DRAM customers representing 41 percent of sales, foundry 37 percent, logic 12 percent and flash 10 percent.

Its display group generated net sales of $270 million, with those sales doubling compared to the first quarter – mainly in its Generation 8.5 system shipments.