Applied Materials posts strong Q3 earnings

Aug 18, 2014
Austin Business Journal

Applied Materials Inc. reported on Thursday a 24 percent increase in third-quarter orders and beat analysts' earnings estimate by a penny


The California-based technology company that employs about 2,500 workers in Austin posted a profit of $301 million, or 24 cents per share, on revenue of $2.2 billion compared with a profit of $168 million, or 14 cents per share, on revenue of $1.9 billion during the same period last year, according to a filing with the U.S. Securities and Exchange Commission


Applied Materials (Nasdaq: AMAT) reported non-adjusted earnings of 28 cents per share compared with analyst estimates of 27 cents per share. Shares increased nearly 6 percent in pre-market trading Friday, up $1.23 per share to $21.15


Applied Materials is the No. 1 developer of semiconductor chipmaking equipment in the world. In June, stockholders approved its proposed $9.39 billion merger with Tokyo Electron Ltd., the Japanese company that is the No. 2 maker of chip production machines and employer of more than 300 workers in Austin


The deal is scheduled to be completed during the second half of the year


The companies reported the deal as a merger of equals, with the new entity being incorporated in the Netherlands. Applied Materials will own 68 percent of the entity. Also, it will retain dual listing on the Nasdaq and the Tokyo Stock Exchange with headquarters in both Santa Clara, Calif., and Tokyo


Also in June, Applied Materials approved a quarterly cash dividend of 10 cents per share of common stock. The dividend is payable on Sept. 11 to stockholders of record as of Aug. 21


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