news/AMAT/2023.02.16/Applied Materials positive on Q2 on resilient demand for automotive, AI chips.txt

Feb 16 (Reuters) - Applied Materials Inc on
Thursday projected quarterly revenue broadly above estimates as
it fills a backlog of orders and benefits from resilient demand
for its tools used to make chips for the automotive and
artificial intelligence industries.The results from one of the biggest producers of chip-making
equipment are welcome news for an industry that has in recent
months been buffeted by worries over slowing demand.Applied Materials expects second-quarter revenue of $6.40
billion, plus or minus $400 million. The midpoint of the range
was higher than the $6.29 billion estimated by analysts,
according to Refinitiv.The outlook, which sent Applied Materials' shares 2% higher
in extended trading, was in contrast to weak forecasts from
peers Lam Research Corp and KLA Corp.While consumer-driven markets such as smartphones and
personal computers are weaker, demand from AI, automotive and
industrial automation industries remains resilient, Applied
Materials Chief Executive Gary Dickerson said on a post-earnings
call.The company is also benefiting from easing supply chain
constraints, allowing it to fill an order backlog that had built
up during the pandemic."We think that more than half of that backlog will be
executed this year," said finance chief Brice Hill, adding the
company was still working to meet some orders from last year.Applied Materials said its second-quarter revenue outlook
includes a negative estimated adjustment of $250 million related
to a recent cybersecurity event at one of its suppliers.The company expects to recover all of this revenue, with the
majority of it set to be booked in the third quarter.For the first quarter, Applied Materials reported revenue of
$6.74 billion that was higher than expectations of $6.69
billion. The company's adjusted profit also beat expectations.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Shinjini
Ganguli)