Applied Materials profit tops Street forecasts

By Duncan Martell

SAN FRANCISCO (Reuters) - Applied Materials Inc's (AMAT.O: Quote, Profile, Research) quarterly profit topped analysts estimates, helped by good flat-panel display demand, even as revenue declined 8 percent amid a slump in semiconductor equipment manufacturing.

Shares of the company, the biggest producer of chipmaking equipment, climbed more than 4 percent.

In a statement, Chief Executive Mike Splinter noted strength in new orders paced by demand for its display products and orders for its first SunFab Thin Film Line, used in the manufacture of solar panels.

Net income for its first fiscal quarter declined to $262.4 million, or 19 cents per share, from $403.5 million, or 29 cents per share, a year ago. Revenue fell to $2.09 billion from $2.28 billion.

Earnings excluding stock-based compensation expenses and other charges were 23 cents per share, beating the average analyst forecast of 20 cents, according to Reuters Estimates. Analysts had expected revenue of $2.08 billion, on average.

Chief Financial Officer George Davis said on a conference call on Tuesday he expects second-quarter earnings per share of 18 cents to 22 cents. He said revenue should be flat to up 5 percent in the second quarter versus the first period.

"It's really display this quarter that had record equipment orders by a large margin," Davis said by telephone. "We're seeing LCD customers pull in their capacity into the first half of the year in terms of orders."

Analysts expect a second-quarter profit of 22 cents per share, on average, on revenue of $2.07 billion.