Applied Materials Inc. (Santa Clara, CA), a supplier of semiconductor equipment and services, reported that its May quarter net sales rose sequentially 5%, but orders fell both sequentially and year-over-year. The company guided orders for the current August quarter to be down 5% to 10%, with revenue down 10% to 15%, well below expectations.
The company recorded sales of $1.86 billion, up 5% from the prior quarter, but down 8% year-over-year. Net income for the quarter was $305 million, or $0.18 per share, up from the prior quarter's $289 million, or $0.17 per share, but down from net income of $373 million, or $0.22 per share, in the year-ago period. New orders of $1.55 billion for the quarter, Applied's fiscal second-quarter 2005, decreased 7% sequentially and 30% from fiscal second-quarter 2004's $2.21 billion. Applied's gross margin for the quarter was 44% compared to 44.4% in the prior quarter and 46.5% in the year-ago period.
