Boston, MA 05\/20\/2014 (wallstreetpr) \u2013 The $24 billion provider of semiconductor equipment and services Applied Materials, Inc. (NASDAQ:AMAT)<\/b> intends to purchase Tokyo Electron. The company has convened a special stockholder meeting next month to discuss the planned acquisition that it expects to expand its footprint in Asia.<\/p>\n
The company is ready to offer $9.3 billion to Tokyo Electron in a takeover bid. If the deal succeeds, it will be AMAT\u2019s biggest takeover transaction in history. It has called stockholders to a special meeting on June 23, during which it hopes to get approval for its planned acquisition.<\/p>\n
Shares of Tokyo Electron surged on the news that Applied Materials, Inc. (NASDAQ:AMAT) was plotting a takeover.<\/p>\n
Improving market condition<\/b><\/p>\n
The plan to acquire Tokyo Electron comes a time when Applied Materials noted that business was starting to improve across its various segments, and it expects the trend to continue into the long-term future. In addition to the strong demand for new semiconductor equipment that can meet the emerging needs, Applied Materials, Inc. (NASDAQ:AMAT) said prices have also stabilized while its margins are strong.<\/p>\n
As such, the company expects to realize strong revenue and profit growth if only it can enhance its capacity, expand market share and initiate more aggressive cost-saving measures. Therefore, the planned acquisition of Tokyo Electron is considered a step in the right direction.<\/p>\n
Encouraging 2Q financial results<\/b><\/p>\n
Applied Materials, Inc. (NASDAQ:AMAT) reported 2Q2014 results that showed significant performance improvement from a year ago. It expects the future to deliver even better results as it implements its growth strategies.<\/p>\n
The company saw its revenue up 19 percent while profit hit a new high in recent times. In the three months period to April 27, AMAT generated revenue of $2.35 billion, up from $1.97 billion in 2Q2013. The increase in revenue had its corresponding impact on the bottom-line as profit shot to $262 million or $0.21 per share, against a loss of $129 million or $0.11 per share.<\/p>\n
Future outlook<\/b><\/p>\n
Buoyed by a strong 2Q, Applied Materials, Inc. (NASDAQ:AMAT) forecast positively for the current quarter. The company expects earnings per share to come between $0.25 and $0.29. However, it expects revenue to remain flat or drop 5 percent sequentially.<\/p>\n
According to CEO Gary Dickerson, Applied Materials, Inc. (NASDAQ:AMAT) benefited in 2Q from the rise in demand for new machines as chipmakers seek to deliver high-performance but low-power chips. The CEO expects the demand for such machines to remain strong in 2014 and beyond.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 05\/20\/2014 (wallstreetpr) \u2013 The $24 billion provider of semiconductor equipment and services Applied Materials, Inc. (NASDAQ:AMAT) intends to purchase Tokyo Electron. The company […]<\/p>\n","protected":false},"author":32,"featured_media":4420,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[3630,855],"stock_ticker":[],"class_list":["post-22912","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-applied-materials-inc-nasdaqamat","tag-nasdaqamat","entry"],"acf":[],"yoast_head":"\n