Applied Materials profit triples, shares rise

By Scott Hillis

SAN FRANCISCO (Reuters) - Applied Materials Inc. (AMAT.O), the top supplier of equipment for making microchips, on Tuesday said first-quarter profit nearly tripled and that second-quarter revenue could rise as much as 5 percent, sending its shares up 4.5 percent.

The profit topped analysts' forecasts, despite revenue that was weaker than expected, and the company's anticipation of persistent strength in memory chip demand and a rebound later this year in the flat-panel display market helped allay two recent concerns of investors.

"Memory orders were strong," Chief Executive Mike Splinter told a conference call. "We expect the overall memory business to remain relatively strong and balanced over the year."

The company expects to earn 27 cents, or 28 cents per share, in the second quarter, with revenue staying flat or rising as much as 5 percent from the first quarter, Chief Financial Officer George Davis said.

That would put sales at $2.28 billion to $2.39 billion.

Analysts, on average, had been looking for a profit of 27 cents on revenue of $2.35 billion, according to Reuters Estimates.

Applied Materials said net profit for its first fiscal quarter ended January 28 was $403.5 million, or 29 cents per share, compared with $142.8 million, or 9 cents per share, a year earlier.

Analysts expected Applied Materials to earn 27 cents per share.