AI
Applied Materials outlook disappoints, shares fall
Applied Materials Inc (AMAT.O: Quote, Profile, Research), the largest supplier of tools for making microchips, gave a profit forecast far below Wall Street expectations, stirring concerns about holiday-season sales and sending its shares down 5 percent.
The estimate came after Applied Materials reported on Wednesday a 6 percent drop in net income, matching a similar drop in revenue, for its fiscal fourth quarter ended October 28, amid a cyclical industry downturn.
Chief Executive Mike Splinter said he expected a continued pullback in spending on dynamic random access memory (DRAM), used in personal computers, but ongoing strength in flash memory, found in many consumer electronic devices, would help.
"We see the first part of fiscal 2008 as challenging," Splinter said on a conference call. "We expect foundries will remain cautious until their demand picture regains clarity."
Applied Materials' results and outlook come amid uncertainty on Wall Street about how much the U.S. credit crisis would hurt demand for technology products and services.
Tech shares tanked last week after Cisco Systems Inc (CSCO.O: Quote, Profile, Research) reported dramatic decreases in orders from U.S. banks. But tech shares snapped their losing streak on Tuesday as investors hunted for bargains as the end-of-year holiday season -- the busiest for consumer electronics sales -- approached.
Applied Materials saw the current quarter's profit at between 16 cents and 20 cents per share, with revenue falling a sequential 13 percent to 18 percent from the fourth quarter.
Wall Street analysts, on average, were looking for a first-quarter profit excluding items of 27 cents, and roughly flat revenue of $2.32 billion, according to Reuters Estimates.
Applied Materials Inc (AMAT.O: Quote, Profile, Research), the largest supplier of tools for making microchips, gave a profit forecast far below Wall Street expectations, stirring concerns about holiday-season sales and sending its shares down 5 percent.
The estimate came after Applied Materials reported on Wednesday a 6 percent drop in net income, matching a similar drop in revenue, for its fiscal fourth quarter ended October 28, amid a cyclical industry downturn.
Chief Executive Mike Splinter said he expected a continued pullback in spending on dynamic random access memory (DRAM), used in personal computers, but ongoing strength in flash memory, found in many consumer electronic devices, would help.
"We see the first part of fiscal 2008 as challenging," Splinter said on a conference call. "We expect foundries will remain cautious until their demand picture regains clarity."
Applied Materials' results and outlook come amid uncertainty on Wall Street about how much the U.S. credit crisis would hurt demand for technology products and services.
Tech shares tanked last week after Cisco Systems Inc (CSCO.O: Quote, Profile, Research) reported dramatic decreases in orders from U.S. banks. But tech shares snapped their losing streak on Tuesday as investors hunted for bargains as the end-of-year holiday season -- the busiest for consumer electronics sales -- approached.
Applied Materials saw the current quarter's profit at between 16 cents and 20 cents per share, with revenue falling a sequential 13 percent to 18 percent from the fourth quarter.
Wall Street analysts, on average, were looking for a first-quarter profit excluding items of 27 cents, and roughly flat revenue of $2.32 billion, according to Reuters Estimates.
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