The company's CEO, Gary Dickerson, stated that the company has outperformed the wider semiconductor market for five consecutive years. The company's status as a supplier of complex chipmaking equipment to major chipmakers positions it as a key indicator of future demand in the chipmaking industry. The company also reported that revenue from China doubled from a year earlier, accounting for 45% of its total sales. However, the company is under investigation by the U.S. Justice Department regarding its dealings with China’s biggest semiconductor maker, Semiconductor Manufacturing International Corp.
Key takeaways:
- Applied Materials Inc. reported fiscal first-quarter earnings and revenue that exceeded analysts’ expectations, with a net profit of $2.01 billion, up 18% from the previous year.
- The company's stock gained more than 12% in the extended trading session following the report, with CEO Gary Dickerson highlighting the company's outperformance in the semiconductor market for five consecutive years.
- Despite restrictions on what it can ship to China, Applied Materials has seen rapid growth in the Chinese market, with revenue from China doubling from a year earlier and accounting for 45% of its total sales.
- However, the company is under investigation by the U.S. Justice Department regarding its dealings with China’s biggest semiconductor maker, Semiconductor Manufacturing International Corp, over allegations of shipping equipment without the appropriate export licenses.