(Compares with estimates, adds details about results, share
Aug 14 Chip-equipment maker Applied Materials
Inc reported a better-than-expected third-quarter
profit as contract manufacturers spend more on technology used
to make smartphone and memory chips.
The company also forecast current-quarter adjusted profit
largely above analysts' average estimate.
Demand for DRAM chips, used mainly in personal computers, is
expected to grow in the current quarter, Chief Executive Gary
Dickerson said on call with analysts.
Applied Materials, which also provides equipment to make
flat panel displays and solar cells, forecast an adjusted profit
of 25-29 cents per share for the fourth quarter.
Analysts on average were expecting a profit of 26 cents per
share, according to Thomson Reuters I/B/E/S.
The company said it expects revenue growth of about 10 to 17
percent, implying revenue of $2.19 billion to $2.33 billion for
the quarter. Analysts on average were expecting $2.28 billion.
Leading contract chipmaker Taiwan Semiconductor
Manufacturing Co Ltd and its rivals are working on new
cutting-edge manufacturing technology that will allow them to
make more advanced chips for mobile gadgets.
TSMC, which reported results in July, said it expected
revenue to grow at least a record 20 percent this year, helped
by increased demand from smartphone makers such as Apple Inc
Applied Materials' net income rose to $301 million, or 24
cents per share, in the third quarter ended July 27, from $168
million, or 14 cents per share, a year earlier.
On an adjusted basis, the company earned 28 cents per share.
Revenue rose 14.7 percent to $2.27 billion. ID:nHUG9x4C1k]
Analysts had expected a profit of 27 cents per share on
revenue of $2.29 billion.
Revenue in the company's silicon systems business, which
brings in about two-thirds of total sales, rose 16 percent to
Backlog grew 9 percent from the second quarter to $2.97
billion, which includes positive adjustments of $19 million.
Applied Materials shares closed at $21.15 on the Nasdaq on
Thursday. They were up 1.2 percent in extended trading.
(Reporting By Lehar Maan in Bangalore; Editing by Maju Samuel)