AMAT: 4Q sales, income down; charges hurt

November 17, 2003 – Applied Materials, Santa Clara, CA, reported 4Q03 revenues of $1.22 billion and a net income of $15.5 million, compared with $1.45 billion and $147.2 million one year ago, and $1.09 billion and a $37 million loss in 3Q03. Restructuring charges of $113.5 million factored into 4Q03 performance. New orders were down 18% from 4Q02 and 30% for the year, but were up more than 20% sequentially, reflecting customers’ increased investment in 300mm manufacturing capacity, according to CEO Mike Splinter.

For the year, Applied reported revenues of $4.48 billion, down 12% from 2002, and a net loss of $149 million compared with a net loss of $269 in 2002. CFO Joseph Bronson told analysts that he expects a 5%-8% increase in sales and earnings in 1Q04 and a 20% increase in orders, and said that Applied would be increasing its capex in 2004.


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