UPDATE 1-Applied Materials forecasts strong quarter as orders pick up
Feb 12 (Reuters) - Chip gear maker Applied Materials Inc , the world's largest chip gear maker, posted higher-than-expected quarterly results as demand for its display and semiconductor products picked up, and forecast current-quarter results largely ahead of analysts' estimates as smartphones and tablets drive sales.
The Santa Clara-based company's shares rose 5 percent after closing at $13.77 on the Nasdaq on Wednesday.
The company said it expected to earn 9 cents to 15 cents per share in the second quarter. It said revenue could rise 15 to 25 percent from the first quarter, which translates to $1.8 billion to $1.96 billion.
Analyst were expecting the company to earn 11 cents per share on revenue of $1.8 billion, according to Thomson Reuters I/B/E/S.
In the first quarter, net income fell to $34 million, or 3 cents per share, from $117 million, or 9 cents per share, a year earlier. Excluding items the company earned 6 cents per share.
Revenue fell 28 percent to $1.57 billion.
Analysts had expected the company to earn 3 cents per share on revenue of $1.55 billion.
Orders for the company's semiconductor products rose 84 percent, driven by increased demand in foundry and memory. The business accounted for about 86 percent of its total revenue in the first quarter.