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Applied Materials sees no Japan quake impact
SAN FRANCISCO |
SAN FRANCISCO (Reuters) - Chip equipment maker Applied Materials (AMAT.O) has seen no financial impact so far to its business from Japan's earthquake that has disrupted supplies among manufacturers.
Mike Splinter, chief executive of the world's top supplier of semiconductor manufacturing equipment, said Applied Materials' crisis team in Japan was still at work but has yet to see a major impact on the company from the disaster.
"We've seen minor impact on our customers," Splinter told analysts at the company's annual analysts day event.
"So far we have seen no material impact on Applied Materials through our Q2," he added. "Of course this situation is dynamic and it is still changing, it's still somewhat unpredictable."
The Santa Clara, California-based company repeated its expectation of over $11 billion in revenue in fiscal 2011 and non-GAAP earnings above $1.50 per share.
Over a week after an earthquake and tsunami struck the northeast of Japan, many electronics manufacturers are struggling to get back up to speed as they grapple with power cuts, crippled infrastructure and a shortage of parts.
"Our emergency response team, our business continuity team that went into action immediately after the earthquake, is still intact, meeting multiple times a day to ensure whatever happens we are able to respond to," Splinter said.
Shares of Applied Materials were down 1 percent at $14.96 in late trading.
Chip makers rebounding from the recession increased investments in chip equipment by around 130 percent last year. But in 2011, chip equipment spending has been expected to rise a much slower 10 percent to 15 percent.
Lost production due to the disaster in Japan might lead chip makers to delay plans to expand or upgrade their facilities this year, analysts say.
(Reporting by Noel Randewich; Editing by Derek Caney)
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