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Posts Tagged ‘revenues’

Slowdown in Equipment Business Hits Applied’s Quarterly Results

Friday, February 19th, 2016

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By Jeff Dorsch, Contributing Editor

Applied Materials reported net income of $286 million on revenue of $2.257 billion for the fiscal first quarter ended January 31, compared with net income of $348 million on revenue of $2.359 billion in the same quarter of a year ago.  Orders in Q1 were $2.275 billion, flat with $2.273 billion a year earlier.

Applied said foundry customers accounted for 38 percent of orders in the first quarter of fiscal 2016, while DRAM manufacturers represented 29 percent, flash memory suppliers 22 percent, and logic/others 11 percent. One year ago, orders were evenly split between foundry and DRAM customers, at 34 percent for each segment.

The 4 percent reduction in Q1 revenue, year over year, reflects the current softness in the semiconductor equipment business. SEMI’s book-to-bill ratio for North American equipment suppliers has been below parity for the last three months, with a preliminary figure of 0.99 in January, subject to revision.

“As the market moves into the sweet spot for Applied’s materials engineering technology, we see strong demand for our semiconductor, display and service businesses,” Gary Dickerson, Applied’s president and chief executive officer, said in a statement. “We are maintaining a positive outlook for 2016 as our customers make strategic, inflection-driven investments that play to our strengths.”

Dickerson told analysts Wednesday, “We are growing beyond semiconductor.” Applied’s display business is being driven by the industry’s move to organic light-emitting diode displays, he said.

An OLED fabrication facility represents three times the potential spending on equipment for an amorphous silicon liquid crystal display plant, according to Dickerson. “I am confident about our growth,” he said. The company’s etch and chemical vapor deposition businesses are “making significant gains,” the CEO added.

While there are “global economic risks” in 2016, similar to those in 2015, 10-nanometer chips and 3D NAND flash memory devices are creating demand for production equipment, along with “increased spending in China” by domestic and foreign companies, Dickerson said. “There is a fierce battle for leadership in these new device categories,” he commented.

Capital spending at the silicon foundries in 2016 will be at “levels more or less the same as last year,” Dickerson added. Their capital expenditures for 10nm ICs is expected to pick up in the second half of calendar 2016, he predicted.

NAND flash investment will be up 25 percent from 2015, particularly for 3D NAND, Dickerson said. The “heavy DRAM investment” of 2015 will cool off this year, falling about 20 percent in 2016, he added.  Logic spending will be “relatively flat, year over year,” he said.

Bob Halliday, the company’s senior vice president and chief financial officer, forecast net income in the fiscal second quarter would be in the range of 30 to 34 cents per share, compared with 25 cents per share in Q1 and 28 cents per share in the first quarter of fiscal 2015. Thomson Reuters I/B/E/S said analysts were expecting an average of 26 cents per share for Q2.

Worldwide spending on wafer fabrication equipment will be flat in 2016, compared with 2015, Halliday said. “We expect our share to increase,” he added.

The Applied Global Services business is in its third year of growth and display is in its fourth year of growth, the CFO noted.

AMD Net Loss Widens in 2015 on Lower Revenue

Wednesday, January 20th, 2016

By Jeff Dorsch, Contributing Editor

Advanced Micro Devices on Tuesday reported a net loss of $660 million on revenue of $3.99 billion for 2015, compared with a net loss of $403 million on revenue of $5.51 billion in 2014.

In the fourth quarter, the fabless semiconductor company posted a net loss of $102 million on revenue of $958 million. A year ago, AMD had a net loss of $364 million on revenue of $1.24 billion.

“AMD closed 2015 with solid execution fueled by the second straight quarter of double-digit percentage revenue growth in our Computing and Graphics segment and record annual semi-custom unit shipments,” AMD President and Chief Executive Officer Lisa Su said in a statement. She added, “While 2015 was challenging from a financial perspective, key R&D investments and a sharpened focus on innovation position us well to deliver great products, improved financial results and share gains in 2016.”

The IC design company’s Computing and Graphics segment had Q4 revenue of $470 million, down 29 percent from a year earlier while growing 11 percent from the third quarter, largely due to higher sales of notebook processors. AMD’s Enterprise, Embedded and Semi-Custom segment posted revenue of $488 million in Q4, down 15 percent from a year ago due to lower game-console royalties and decreased sales in embedded and server chips.  Q4 revenue in that segment fell 23 percent from Q3 owing to seasonally lower sales of semi-custom system-on-a-chip devices.

AMD forecast revenue in the first quarter of this year will be down 14 percent from Q4, to about $824 million.

Matthew Ramsay, an analyst for Canaccord Genuity, said of AMD’s financial results, “Overall, we believe AMD’s diversification strategy continues to show gradual progress and a refreshed roadmap could position the company for more defensible long-term sales beginning 2H/16 as the roadmap moves to FinFET, crossing a significant competitive hurdle for the company. While Q4/15 results marked the second consecutive quarter of sequential growth for the C&S business where the roadmap is now more competitive, Q1/16 guidance was disappointing and management’s commentary regarding the macro environment was less than encouraging given a recent decline in channel and OEM forecasts in China. Looking forward to 2016, we anticipate stronger GPU sales as Polaris GPUs launch midyear, solid unit growth of console sales largely offset by ASP declines, and new semi-custom wins to contribute to 2H/16 growth, leaving GPU or semi-custom sales catalyzed by virtual reality as upside to our estimates. We are starting to see the righting of the ship at AMD, but remain on the sidelines for now given the decidedly uncertain macro environment.”

ASML Has Record Revenue for 2015; Will Raise Dividend, Buy Back More Stock

Wednesday, January 20th, 2016

By Jeff Dorsch, Contributing Editor

ASML Holding today reported net income of about $1.5 billion on revenue of $6.855 billion for 2015. That compared with 2014’s net income of $1.3 billion on revenue of $6.385 billion.

In the fourth quarter, the company posted net income of $318.3 million on revenue of $1.563 billion. Those figures were lower than the third quarter.

ASML said it sold 144 new lithography systems last year, up from 116 in 2014. It also sold 25 used systems, against 20 units a year earlier.

The 2015 sales represented a record for the supplier of advanced lithography equipment. ASML forecast sales for 2016’s first quarter would exceed $1.4 billion.

The company said it would raise its annual dividend to shareholders by 50 percent, to 1.05 euros per share, and will spend an additional $1.09 billion in 2016-2017 repurchasing its shares.

“As we indicated three months ago, we expect our logic customers to take shipments of our leading-edge immersion tools in the second quarter in preparation of their 10-nanometer node ramp. As a result, we expect second-quarter sales to increase significantly from the first-quarter level,” ASML President and Chief Executive Officer Peter Wennink said in a statement.

ASML stated that its extreme-ultraviolet lithography line “met its 2015 productivity and availability targets. We had already achieved a productivity of more than 1,000 wafers per day early in 2015 on the NXE:3300B system and improved this to more than 1,250 wafers per day in the fourth quarter on the successor system, the NXE:3350B. In addition, the availability of systems in the field improved, with the majority of systems achieving a four-week availability of more than 70 percent in recent months; the best result was more than 80 percent over four weeks. We also shipped two of our latest NXE:3350B EUV systems and started shipping the third in 2015. They will be used in our customers’ fabs for preparing the introduction of EUV into volume production. Our goals for 2016 are to continue improving productivity and availability and shipping six to seven EUV systems.”

Regarding deep-ultraviolet lithography systems, “we began ramping shipments of the TWINSCAN NXT:1980, our most advanced immersion system, in the fourth quarter, shipping five systems. The installation of the first systems is complete,” ASML stated.

Holistic lithography “grew by over 20 percent in revenue in 2015; we saw increased adoption of our latest metrology systems and control software at both logic and memory customers. These applications play a more and more critical role in helping our customers achieve the best possible patterning performance on advanced nodes,” the company added.

“The first-quarter outlook disappoints,” SNS Securities analyst Edwin de Jong told Bloomberg News. “It is good that you return cash to shareholders, but you need to improve operationally.”