Applied down as memory slumps - Slim pickings

By Examiner Staff @ Wednesday, May 14, 2008 4:21 AM

Section - Business/Financials

Semiconductor equipment supplier Applied Materials said its profits dropped by just over a quarter, year on year. The reason is the dire state of the memory market.

The firm turned in net profit of $302.5 million for its second quarter on revenues of $2.15 billion, with new orders for equipment also taking a hit in the quarter.

But on the bright side, its solar panel business doubled, although this is a tiny part of Applied's main business, supplying kit to the Intels and Texas Instruments of this world.

The memory business is a sad tale and has been for well over a year. The DRAM manufacturers found themselves in a classic semiconductor trap, with over capacity tied to falling prices. Investing in memory manufacturing isn't small change. X