Applied Materials Q1 results exceed expectations

SANTA CLARA, USA: Applied Materials Inc., the world's leading supplier of manufacturing solutions for the semiconductor, display and solar industries, reported results for its first quarter of fiscal 2011 ended Jan. 30, 2011.

Applied generated orders of $2.97 billion, net sales of $2.69 billion, operating income of $674 million, and net income of $506 million or $0.38 per share. Non-GAAP operating income was $659 million, and non-GAAP net income was $484 million or $0.36 per share.

"Applied's solid first quarter was driven by continued strength in semiconductor systems and record profitability in solar," said Mike Splinter, chairman and CEO.

"We see momentum building in our end markets and expect our company's fiscal year revenue to be more than $11 billion, exceeding our previous record by over a billion dollars. We now expect wafer fab equipment spending to be up 10 to 15 percent from approximately $31 billion in calendar 2010, with crystalline silicon solar equipment spending rising by more than 30 percent year over year."

"On a year-over-year basis, our non-GAAP earnings per share grew more than 170 percent on a 45 percent increase in net sales, demonstrating our focus on operating efficiencies and profitability improvement," said George Davis, executive vice president and chief financial officer. "With the improving market outlook, we expect to deliver record non-GAAP earnings of more than $1.50 per share in fiscal 2011."