Applied Materials' First Fiscal Quarter 2001 Results to be Below Expectations.Business/Technology Editors SANTA CLARA Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. , Calif.--(BUSINESS WIRE)--Jan. 30, 2001 Applied Materials Applied Materials, Inc. NASDAQ: AMAT (HKSE: 4336 ) is the global leader in nanomanufacturing technology solutions with a broad portfolio of innovative equipment, service and software products for the fabrication of semiconductor chips, flat panel solar displays, solar , Inc. today announced that it expects its financial results for the first fiscal quarter ending January 28, 2001 to be below the targets provided during its earnings conference call on November 15, 2000. Applied Materials will release its financial results for the first fiscal quarter on February 13, 2001, after the close of the U.S. stock market. "Demand for semiconductors began to slow late in the fourth quarter of 2000," said James C. Morgan, chairman and chief executive officer of Applied Materials. "Inventory buildups in telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. products, slower than expected PC sales and slower global economic growth are now causing customers to reevaluate their capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. plans. Since the beginning of January, a number of our customers have been revising the timing of their capital spending and rescheduling or cancelling existing backlog, resulting in the postponement in delivery of equipment. Therefore, we expect orders and revenue to be below our original targets." Revenue is expected to be 7-10 percent below the $2.9 - $2.95 billion revenue target issued by the Company on its November 15, 2000 earnings conference call. First quarter revenue will include only those 300mm system shipments that have been accepted by customers, and 300mm revenue is in line with original estimates. Due to the expected revenue shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. , earnings per share are not expected to reach the target set by the company. Orders are expected to be below a 1.0 book to bill ratio for the quarter. "We will continue to assess the impact of these industry factors on our business and share our outlook with investors on our February 13, 2001 earnings conference call," concluded Morgan. This press release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. In addition to the possible exacerbation ex·ac·er·ba·tion n. An increase in the severity of a disease or in any of its signs or symptoms. ex·ac of the factors discussed above, such risks and uncertainties include, but are not limited to, changes in customer capacity requirements and demand for semiconductors; changes in the timing and amount of capital equipment purchases by customers; Applied Materials' ability to develop new markets and products in a highly competitive industry characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by increasingly rapid technological changes; the risks associated with operating a global business and other risks described in Applied Materials' filings with the Securities and Exchange Commission. The Company assumes no obligation to update the information in this press release. Note to Editors: Applied Materials (Nasdaq: AMAT AMAT Applied Materials (stock symbol) AMAT Average Memory Access Time AMAT Automatic Message Accounting Transmitter AMAT Anti-Materiel (bomb or mine) AMAT Ageing Management Assessment Team ) is a leader of the Information Age and the world's largest supplier of products and services to the global semiconductor industry. Applied Materials' website is at http://www.appliedmaterials.com. |
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