Applied Materials has reported positive results while also revealing that it has diverted resources away from its solar operations.
The company plans to merge with Tokyo Electric soon and the company’s executives indicated during a conference call to announce the results, that its solar division is becoming less of a priority.
“Beginning with spending, we have reallocated dollars from solar to semi and from overhead to products. For example, we reduced solar spending by about US$120 million in 2013, and we shifted that spending plus another US$40 million in overhead savings to R&D programs within SSG [the company’s advanced chip group],” said CFO Bob Halliday.
“Yes, in solar as we mentioned, we've reduced the operating expenses in the last year by about US$120 million,” said Gary Dickerson, president and CEO, Applied Materials.
“Certainly our goal is to, while we're in this period of time where the demand is soft, continue to reduce the earnings drag and we see additional opportunities to do that,” added Dickerson.
“There is some incremental improvement, we see a couple of opportunities that could get us much closer to breakeven in the EES businesses in 2014. But really we think 2014 is going to remain relatively soft in EES overall, and we continue to look for ways to cut cost,” he concluded.
Applied Materials’ Energy and Environmental Solutions (EES) group, which houses the solar division saw sales slide by 59% to US$173 million. It’s GAAP operating loss was US$433 million.
The company as a whole recorded revenue for the fourth quarter of US$1.99 billion, up from US$1.65 billion in the same period last year.