Applied Materials Inc. reported its fiscal first quarter results Wednesday (Feb. 11) attributing its growth in the quarter to new opportunities from technology inflections happening in the chip and display markets.
First quarter revenues for Applied amounted to $2.36 billion, up 4 percent sequentially and 8 percent year-over-year. Applied said it had first quarter orders of $2.27 billion, up sequentially but down 1 percent from the same period in 2014. Gross margins for the quarter were 42.3 percent, operating income was $447 million and net income was $338 million, all on a non-GAAP basis.
Accelerated by the planned merger with Tokyo Electron, Gary Dickerson, president and CEO of Applied Materials, said in a statement the company is gaining momentum toward its strategic goals and major technology inflections in the semiconductor and display market “are creating new growth opportunities” for Applied’s products.
Among the semiconductor equipment vendor’s different segments, its Silicon Systems Group (SSG) orders were $1.43 for the quarter, up 7 percent. The Applied Global Services (AGS) orders were $690 million and display orders were $107 million. Meanwhile, the Energy and Environmental Solutions (EES) business increased orders 14 percent in the quarter to $50 million.
The outlook for the second fiscal quarter for Applied Materials is expected to be flat or up a few percentage points from the previous quarter.