By Micah Maidenberg
Applied Materials Inc. reported a stronger quarterly profit and better-than-expected revenues, a performance that comes amid several major deals across the semiconductor industry.
The provider of manufacturing equipment used to fabricate chips and related software and services on Thursday said earnings for its fiscal fourth quarter that ended Oct. 25 rose to $1.13 billion, or $1.23 a share, from $698 million, or 75 cents a share, the year earlier.
The company's adjusted profit of $1.25 a share was 8 cents more than what analysts expected for that metric, according to FactSet.
Sales rose to $4.69 billion from $3.75 billion year over year. The latest performance was ahead of the $4.6 billion analysts were looking for.
Based in Santa Clara, Calif., Applied has reported some pandemic-related challenges, like a disruption to its supply chain earlier this year tied to shelter-in-place orders in the San Francisco Bay Area and in Malaysia. Those disruptions lasted about six weeks, executives said in May.
Applied said Thursday it didn't record any incremental pandemic-related costs tied to Covid-19 in the latest quarter; those expenses totaled $30 million for its full fiscal year.
Meanwhile, Applied's customers are facing a changing landscape. In July, Analog Devices Inc. said it would buy rival Maxim Integrated Products Inc. In October, Marvell Technology Group Ltd. said it would purchase semiconductor maker Inphi Corp., while Intel Corp. agreed to sell its lash-memory manufacturing business to South Korea's SK Hynix Inc.
For its last fiscal year, Intel was Applied's second-largest customer by sales, accounting for 12% of sales, trailing only Taiwan Semiconductor Manufacturing Co., which made up 14% of the company's sales for that year, according to its latest annual report.
Write to Micah Maidenberg at email@example.com
(END) Dow Jones Newswires