Applied Materials reports losses in energy and environmental solutions segment

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The continued deterioration in the solar equipment market conditions has been cited as the primary cause for the US$322 million operating GAAP (Generally accepted accounting principles) loss related to the EES segment. An additional cause was mentioned as the $10 million in charges related to previously announced restructuring plans. EES had a non-GAAP adjusted operating loss of $34 million. The EES orders were also down 43% from the prior quarter at $39 million.

The EES segment backlog was 6% for this quarter. In the fiscal year 2012 for the same quarter, the backlog was 7%.Overall the company’s second quarter net sales were almost $2 billion. The net sales the previous year in the same period were $2.54 billion.

The EES segment designs, manufactures and sells equipment and machinery that is used in PV cell and module production as well as flexible electronics. In March this year there were rumors that Applied Materials was pulling out of the solar business after 2012’s financial results exposed the solar segment as a resource drainer. However President of the company Charlie Gay rebutted the rumours stating that Applied Materials is commited to PV.