Applied cuts annual sales target

Published:2012/7/11 3:20:00 Author:Ecco From:SeekIC

Applied Materials Inc., a semiconductor production equipment vendor, announced on July 10 that they would cut its sales outlook for its fiscal year 2012 until October. The company now expects sales to be below its fiscal 2012 target of between $9.1 billion and $9.5 billion. They also wish their pro forma earnings per share to be below its previous expectations of 85 to 95 cents per share—possibly as low as 65 to 75 cents per share.

According to Applied's financial report for the fiscal third quarter of 2012, the sales declined to 10 percent until July 29, while the fiscal second quarter sale was $2.54 billion. Applied said Tuesday it expects pro forma earnings per share for the fiscal third quarter to be in the lower half of its previously stated target range of 21 to 29 cents. Applied also revised its calendar year 2012 industry forecast for wafer fab equipment spending to between $30 billion and $33 billion, compared to its previous expectation of $32 billion to $35 billion, in line with the market changes.

The fab tool vendor trade group SEMI indicated that the total semiconductor equipment sales including packaging, test and assembly equipment for 2012 would decline 2.6 percent from 2011 to total $42.4 billion. The organization also predicted that the sales on wafer processing equipment would fall to $33 billion with reducing 3.8 percent from 2011.

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