SANTA CLARA, Calif. (AP) -- Chip manufacturing equipment maker Applied Materials Inc. posted net income of $264 million for its fiscal second quarter, reversing a year-ago loss as revenue more than doubled amid the improving economy.
The company said gains at its silicon and flat panel display businesses drove the quarter's results.
"Global demand for computing and consumer electronics is giving our customers the confidence to make significant capacity additions, fueling what we believe will be a multiyear growth cycle," Mike Splinter, chairman and CEO, said Wednesday in a statement.
For the three months ended May 2, its net income amounted to 20 cents per share, up from a loss of $255.4 million, or 19 cents per share, in the same period a year earlier.
Adjusted earnings were 22 cents per share in the latest quarter.
Revenue jumped to $2.3 billion from $1.02 billion.
Analysts, on average, expectied a profit of 21 cents per share on revenue of $2.24 billion, according to a poll by Thomson Reuters.
For the current quarter, Applied expects adjusted earnings of 22 cents to 26 cents per share. Analysts are expecting 20 cents. The company is forecasting revenue to be in the range of down 2 percent to up 5 percent quarter over quarter. Analysts expect $2.21 billion, a decline of about 4 percent.
Despite the improved results and forecast, Applied Materials shares slipped 27 cents to $12.75 in premarket trading.