The Information Technology 100
Every time a chip maker wants to build a new factory or add capacity to existing ones, Applied Materials is on the list of companies to start calling. Considered a bellwether for factory utilization, Applied sells pricey new equipment to leading-edge chip makers such as Intel, Advanced Micro Devices, and Taiwan Semiconductor. It also has a brisk business selling refurbished equipment to Chinese chip manufacturers.
With orders expected to slow for the rest of the year, CEO Michael Splinter is working to better manage the ups and downs of the notoriously cyclical industry by boosting the company's equipment-servicing business. In the past year, revenue from that segment grew from 12% of overall sales to 20%. The Santa Clara (Calif.) giant also has upped the ante in its rivalry with KLA-Tencor by introducing a new laser inspection tool for equipment. Researchers at Deutsche Bank Securities say this could help it gain more share in the coming year.
|Return on Equity||16.2%|
|CORPORATE WEB SITE|
All figures are for the most recent available 12 months.
* Latest available data for the 12-month period ended Dec. 31, Jan. 31, Feb. 29, Mar. 31, or Apr. 30. For companies that do not report quarterly, the most recent annual data were used.
Data provided by Standard & Poor's Compustat, BusinessWeek
Related BW Stories