Net income reported for the first quarter of fiscal 2011 was $506 million as against $83 million in the same quarter last year. Net revenue rose to $2.69 billion from $1.89 billion in the first quarter of 2010.
The backlog for orders increased by $292 million to $3.54 billion at the end of the first quarter. Gross margin was 42.3%, marginally higher than 42.2% reported in the fourth quarter of fiscal 2010.Looking ahead, Mike Splinter, CEO of Applied, said, "We see momentum building in our end markets and expect our company's fiscal year revenue to be more than $11 billion, exceeding our previous record by over a billion dollars. We now expect wafer fab equipment spending to be up 10% to 15% from approximately $31 billion in calendar 2010, with crystalline silicon solar equipment spending rising by more than 30% year over year." Cash and cash equivalents increased to $4.1 billion at the end of the quarter. Analysts have 36% buy ratings and expect the stock to deliver 30% over the next year. The stock is trading at 8.8 times its estimated 2011 earnings.