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Overall revenues are expected to be flat, down 5 percent for Applied Materials' next financial quarter due to memory manufacturers' CapEx spending declining. With little boost in spending coming from the major foundries, the ray of sunshine is coming from the company's thin-film solar equipment sales, according to Michael Splinter, President and Chief Executive Officer of Applied Materials.
"Our solar customers are increasingly more confident that thin film technology is the lowest cost per watt solution and has a major role in the solar technology landscape. The number of thin film production line contracts continues to increase. Therefore, we are raising our 2007 goal from greater than $400 million to greater then $600 million," Splinter noted in prepared notes during a conference call with financial analysts.
The solar cell orders have remained strong this year with three more major contracts signed in recent months as well as its recent acquisition of HCT. However, revenue recognition from solar contracts are not expected until the first half of 2008 as these contracts include set-up and running before sign-off by customers.
