Weak solar demand fails to impact Applied Materials Q1 results

The Energy and Environment Solutions business, which supplies the solar industry, reported significantly reduced sales of $33 million, down 62 percent. The solar business segment, meanwhile, had a non-GAAP operating loss of $17 million.
Applied Materials’ total gross margin from the quarter was 40.7 percent, up from 39.5 percent in the Q4 2011. After the company acquired the Varian business in the quarter, cash and equivalents decreased to $2.95 billion.
"Applied delivered net sales and earnings above the high end of our expectations," said George Davis, Chief Financial Officer. The company has forecast earnings to increase by five percent in the second quarter of the year.