Dallas, Texas 05/19/2014 (FINANCIALSTRENDS) – Applied Materials, Inc (NASDAQ:AMAT) is 1 the most cyclical large companies in Silicon Valley and is now enjoying its latest bounce. The company is a maker of semi- conductor manufacturing tools and last week it reported a 19% rise in its Q2 sales, while swinging to the profit as well as posting its very least operating margin in almost three years. The company had projected that its sales in the current quarter would increase by an additional 13% to 19% from the same period in the previous year, with the adjusted profit/ share that is now projected to increase by 39% to 61%.
Company benefiting from demand
The company’s chief executive officer, Gary Dickerson said that the company is seeing a very strong pull from its customers. It is very regularly whip-sawed as the chip makers react to the demand by building-up/ cutting down production capacity. Currently, the company is also benefiting as many companies require new machines for fabricating transistors on chips which have new shapes and also need new combinations of materials said Dickerson. Similarly, Applied Materials, Inc (NASDAQ:AMAT) is also gaining market share from its rivals across a large percentage of the broad line of tools.
Applied Materials, Inc (NASDAQ:AMAT) reported net income for the financial period that ended April 27 of $262M, or 21 cents/ share, in comparison to the loss in the same quarter of the previous year, of $129 million, or 11 cents/ share. The revenue rose to $2.35B from $1.97 billion. The adjusted EPS with the exclusion of 1-time items was 28 cents, said the company. These results were in-line with the company’s previous projection as well as the average analyst projections. For the financial Q3, it forecast EPS of 25 cents -29 cents. The revenue projection has risen very sharply from the same quarter of the previous year, but flat to down 5% from the 2nd period.