February 18, 2004 – Applied Materials, Santa Clara, CA, reported growing earnings and revenues in 1Q04, amid strong growth in orders and customers “regained confidence” in expanding capacity.

1Q04 revenues were $1.56 billion, a 27% increase sequentially and up 48% from a year ago. The company posted a net profit of $82.4 million, compared with a net income of $15.5 million in 4Q03, and a net loss of $65.7 million in 1Q03. The results include a pre-tax realignment charge of $167 million, primarily for facilities consolidation.

New orders were $1.68 billion, up 32% sequentially and 66% year-on-year, with double-digit growth in all regions led by the Southeast Asia and China (25% of orders), Taiwan (18%), and North America and Japan (17%).

Customers who underinvested in capacity and held back on orders during the downturn “have regained their confidence” and are investing once again in capacity for 300mm fabs and other facilities, said CEO Mike Splinter.

The company is projecting 2Q sequential revenue growth of 20% with earnings of 17¢-19¢/share, with 30% sequential growth in orders.