Applied Materials Revises FY2012 Business Outlook

Applied Materials, Inc. revised its fiscal year 2012 business outlook due to weaker than expected near-term demand in its semiconductor equipment business, primarily among foundry customers.

For the fiscal year ending Oct. 28, 2012, the company expects net sales to be below the previous outlook of $9.1 billion to $9.5 billion, with non-GAAP earnings per share (EPS) below the previous range of $0.85 to $0.95. The company will provide a new target range during its Aug. 15 earnings call; however, it expects that the demand changes could have a $0.15 to $0.20 impact on full-year non-GAAP EPS results.

Applied expects financial results for the third quarter of fiscal 2012 ending July 29, 2012, to remain within the outlook ranges provided during its second quarter earnings call on May 17. Net sales for the third quarter are expected to be at the low end of the previous outlook of flat-to-down-10% from $2.54 billion in the second quarter. The company expects non-GAAP EPS for the third quarter to be in the lower half of the previous outlook of $0.21-$0.29.

The company also revised its calendar year 2012 industry forecast for wafer fab equipment spending to $30 billion to $33 billion, compared to its previous expectation of $32 billion to $35 billion, in line with the market changes.