Applied Materials, a semiconductor manufacturing tools maker, has reported revenue of $6.63 billion (+6 percent) for its second quarter ended April 30, 2023.
Applied Materials has generated revenue of $4,977 million from Semiconductor Systems, $1,428 million from Applied Global Services and $168 million from Display and Adjacent Markets.
Applied Materials expects sales of approximately $6.15 billion, plus or minus $400 million in the third quarter of fiscal 2023.
Applied Materials is targeting revenue of $4.5 billion from Semiconductor Systems, $1.4 billion from Applied Global Services and $170 million from Display and Adjacent Markets.
Applied Materials achieved gross margin of 46.7 percent, operating income of $1.91 billion or 28.8 percent of net sales, and earnings per share (EPS) of $1.86.
“Our longer-term outlook is very positive as semiconductors become a larger and more strategically important market globally and major technology inflections are enabled by materials engineering, creating outsized growth opportunities for Applied,” said Gary Dickerson, President and CEO at Applied Materials.
Applied Materials has reported capital expenditure of $255 million during its second quarter of fiscal 2023.
Applied Materials will be making an announcement about a major investment in a platform on May 22.
Companies such as KLA Corp, Applied Materials and Lam Research Corp are benefiting from subsidies in the United States, Europe and Japan, as well as a rush by China to stock up on tools for making chips with legacy technologies after U.S. export control rules blocked sales of more advanced chipmaking technologies to the country, Reuters news report said.
Gary Dickerson said the company believes about $400 billion in government funding is supporting the chip industry.
“There’s a clear trend towards regionalization of supply chains, as countries seek to build resilient local capacity to support industry verticals that are central to their economies,” Gary Dickerson said on a conference call with investors.
