Boston, MA 02/13/2014 (wallstreetpr) – Applied materials, Inc. (NASDAQ:AMAT) which specializes in the business of manufacturing equipment, services and software to the global semiconductor, has announced that it expects sales growth of 10% for the second quarter of the current fiscal year. The company is currently engaged in factory upgrades that should enable, the sudden increase in the projected sales.
Applied Material Q2 expected earnings
Applied materials, Inc. (NASDAQ:AMAT) expects revenue for the second quarter to increase by 3% to highs of 10% compared to the first quarter earnings. The company projects revenue for the second quarter to be between the ranges of $2.26-$2.41 billion as a result of the increased sales. Analysts had earlier projected revenues to come in at $2.32billion for the second quarter with a profit of 27 cents. The company seem to be getting its confidence in the market back considering orders for the first period rose by 9% to clock revenues of $2.29 billion.
The expected increase in sales has been attributed to the massive increase in demand for semiconductors that are used to make mobile phones and from made to order chipmakers. With the increasing competition in the smartphone and tablet industry, the demand is expected to go even up, something that will highly benefit applied materials in terms of increased sales.
Gary Dickerson the Chief Executive Officer of the company was heard as saying “A growing list of companies will spend more to keep up on new techniques required to stay competitive in producing chips used in mobile devices”.
In a phone interview the chief executive officer also commented “We think there’ll be stronger spend at some of the other foundry customers, If these companies don’t make these investments, they are going to continue to lose share.”
Applied materials, Inc. (NASDAQ:AMAT) traded marginally on Wednesday with its stock moving up by 0.73% to close the day at a high of $17.91 a share
