Applied Materials slides due to light guidance, orders

|By:, SA News Editor

Though it beat FQ1 revenue estimates and posted in-line EPS, Applied Materials (NASDAQ:AMAT) is guiding for FQ2 revenue to be flat to up just a couple percent Q/Q, and for EPS of $0.26-$0.30. That's below a consensus for 5% Q/Q revenue growth and EPS of $0.32.

FQ1 orders totaled $2.27B, +1% Q/Q and -1% Y/Y, and below revenue of $2.36B (negative book-to-bill). Chip equipment orders +7% Q/Q to $1.43B, with DRAM/NAND growth offsetting logic and foundry declines. Global services -8% to $690M due to lower chip services and 200mm wafer equipment orders. Display -18% to $107M due to lower TV equipment orders, and energy/environmental (solar) +14% to $50M. Forex adjustments contributed to a 5% drop in backlog to $2.78B.

Gross margin fell to 42.3% from 44.2% in FQ4 and 42.5% a year ago. Operating expenses (non-GAAP) rose less than 1% Y/Y to $552M, in spite of 8% revenue growth.

AMAT -1.7% AH to $23.86. KLA-Tencor provided soft guidance last month.

FQ1 results, PR

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