Applied Materials shows industry in recovery mode

The semiconductor equipment industry's recovery appears well under way as

Applied Materials, the world's largest chip production tool maker, issued a much

stronger than expected second-quarter profit and sales report. New orders were

up 51 per cent from the depressed year-ago levels.

New orders rose to $1.69 billion from $1.12 billion a year ago, blowing away

the $1.5 billion forecast from Wall Street analysts. Applied Materials earned

$52 million, down from the year-ago profit of $318 million. Net sales were $1.16

billion, up 16 percent from the first quarter.






"In the semiconductor industry, we've seen a moderate recovery, driven by
strong consumer-related demand and a strengthening wireless market in Europe and

Asia," said Applied Materials CEO James Morgan.