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Applied Materials CEO Michael Splinter on the company’s outlook for growth and its acquisition of Varian.
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News bad news for applied materials the company reported after the bell yesterday that quarterly results actually beat the street but shares are down about 7% today.
After the company lowered its outlook.
For the next quarter yet still said second half of 2012 -- look pretty good so let's get the real story joining us now out of Fox Business exclusive.
Live from Santa Clara California Mike Splinter the chairman CEO and president.
Of applied materials -- Mike nice to see you you know what let's just get to.
How this is -- you say you'll have a weak quarter at the moment week beginning of the first up from 2012 -- look better what will make it look better in the second half.
Well -- we and we had a very good ends of the year and overall a very good 2011.
Our fiscal year ended at the end of October.
I think than the big thing that.
Is affecting our our price and investors today is about the in our display equipment business.
What we said was that it's this would be the bottom for orders and our Q4 and bottom for revenue in our Q1 we would see growth coming back to the company.
Throughout the rest of the year.
Doesn't surprising that people still don't understand your business that it is highly cyclical -- -- we understand it but we also now look at what's going on in the solar world but.
Just to let people know you make the equipment that goes into a lot of photovoltaic solar panels etc.
but.
-- people looking at a -- right now because the Chinese.
Are not just manufacturing this stuff like they're pumping it out like cookies.
What's the future of these things does that just become come monetized -- the price just -- so precipitously that it's hard for you to make any money.
Well I think what's what's happening today and one thing the solar industry has been focused on for a long time is driving the price down.
We have to get this market and the cost of solar panels.
To be competitive without incentives.
From really any government around the world that's been on the thrust for a long time.
Applied materials really has been delivering that technology.
To solar companies around the world and so that's got to be the key thrust for everybody it is going to be a commodity.
So you have to be competitive and keep that treadmill going.
The very -- you made that acquisition it's going through pretty much analysts -- -- saying to us you know what we think the five billion dollar price tag was a lot.
What do you say to analysts -- think you may be over paid and what does it really become accretive to your bottom line.
Well it'll be a creative non-GAAP this year that's one of the things we're so excited about but bringing these two great companies together with the great products and people.
I think this is gonna do wonderful things for our customers this that the combination of the companies.
Makes us really the the best company and the industry for transistor technology.
And boy this is exactly where our customers are going to need to improve over the next few generations of technology.
Well it's a high tech world and that your company has been at the forefront of supplying chip equipment chipmakers with the equipment which is not -- thank you Michael for joining us today.
-- excellence Mike splinters chairman CEO and president of applied materials that are net sales were up about 10% year over year record full year revenue would see how they do in twenty.
