Applied Materials announce record quarterly revenue on robust demand

Applied Materials Inc posted record quarterly revenue on Wednesday on robust demand for its semiconductor-making equipment from chipmakers, but a weak forecast for the current quarter suggested that supply chain woes will hurt its business.

The company forecast revenue between $6.05 billion and $6.65 billion for the second quarter, the midpoint of which was below analysts’ average estimate of $6.38 billion.

Applied Materials is among the biggest makers of machinery used to manufacture semiconductors and counts among its top customers Taiwan Semiconductor Manufacturing Company, Samsung and Intel Corp.

But shipping delays and shortage of key parts in recent months have made it harder for chipmakers to ramp up production, stopping companies like Applied Materials from fully cashing on a surge in demand.

“While the supply environment remains challenging, Applied Materials is doing everything we can to deliver for our customers and we recorded our highest-ever quarterly revenues,” said CEO Gary Dickerson.

Shares of the California-based company rose 3% in extended trading.

Applied Materials reported first-quarter revenue of $6.27 billion, above analysts’ estimates of $6.16 billion, according to Refinitiv IBES data.

Net income rose to $1.79 billion, or $2 per share, during the quarter ended Jan. 30, from $1.13 billion, or $1.22 per share, a year ago. Market Screener