Although the results disappointed analysts, orders were up $1.05 billion, or 9 percent, from $971 million in the second quarter. The total was down, however, 41 percent from $1.78 billion for the third quarter of 2002.

A pre-tax realignment charge of $164 million contributed to the net loss in third fiscal quarter although it was less than the net loss of $62 million in the previous quarter. Realignment activities included inventory write offs, layoffs and the consolidation of facilities.

Sales were slightly down from $1.11 billion in the second quarter and substantially down from the $1.46 billion in the third quarter. Net profit totaled $115 million.

Regional distribution of new orders for the third fiscal quarter of 2003 was: Taiwan, 36 percent; North America, 20 percent; Japan, 18 percent; South Korea, 10 percent; Europe, 10 percent; and Southeast Asia and China 6 percent.

Backlog at the end of the third quarter decreased to $2.53 billion from $2.76 billion at the end of the second quarter.

"We are pleased with our financial performance this quarter, particularly the increase in new orders as we focus the company on renewed growth," Mike Splinter, president and chief executive officer of Applied Materials, said in a statement.

"Although semiconductor manufacturers continue to be cautious in their capital spending, we see positive indicators emerging. An improved global economy and higher fab utilization are giving customers the confidence to gradually invest in new technology for the transition to advanced chip designs and 300mm wafer production," Splinter added.

By: DocMemory
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