The CEO of Applied Materials, Gary Dickenson, and the CEO of Tokyo Electron Limited (TEL), Tetsuro (“Terry”) Higashi, announced to the general public the new name for the company that will result in the pending merger of the two companies. The new name is “Eteris”, which, according to the announcement, embodies the concept of “Eternal Innovation for Society”.
At the news conference Dickerson and HIgashi described their vision for the future of the new company. They said their goal for Eteris is to achieve targets of $18.2B in revenues, $4.6B in operating income, a 25% operating margin and $2.50 earnings per share, all by 2017. They will also repurchase stocks in the amount of $3 billion. “Our goal is to hit the ground running on day one”, Dickerson said.
The merger transaction has been approved by both sets of shareholoders, but is still under antitrust review in China and the U.S. Bob Halliday, Applied's chief financial officer, expects that the regulatory approval will take place before the end of this year.
Both CEOs believe that their companies have been instrumental in improving society and expect to continue doing so with Etersis. The new company will focus on precision materials engineering and accelerating materials innovation. “We‘re shooting ahead of the duck,” Dickenson said. “We understand what is going to enable the next generation 3D NAND devices and future FinFET devices. It’s very important to have the capability. The combined team of TEL and Applied Materials gives us an incredible opportunity to get in closer to our customers around these major inflections,” he concluded.