The application of Applied Films material purchase to enter the solar cell

The day before, applied materials (Applied Materials Inc) announced a $464 million cash acquisition of Applied Films company, successfully entered the solar cell and related equipment market.

The acquisition is quite surprising to the industry, through the acquisition of Applied Films, the giant line of equipment giant application materials company's product line has been expanded. Applied Films is a supplier of thin film deposition equipment, which is used in the manufacture of flat panel displays, solar cells, flexible electronics and energy efficient glass.

Applied materials, Inc. is the world's largest supplier of chip equipment, in the flat panel display device is also a major manufacturer, but before the company has not yet entered the field of solar cells. According to analysts, the application of materials has been low-key in the internal development of solar cell equipment.

Allegedly, Applied Films's physical vapor deposition (PVD) equipment can fill the existing product line of Applied Materials company. Applied Materials Inc. is a chemical vapor deposition (CVD) and test equipment supplier, while Applied Films is a recognized leader in the field of display color filtration systems and has extensive experience in developing PVD.

Splinter, President and chief executive officer of applied materials, Mike said: "the color filter products to expand our flat panel display business product line, while opening up the rapid growth of our solar cell market." Mark, senior vice president and chief technology officer of applied materials, said: "in the solar cell manufacturing process, we look forward to helping customers improve production while reducing production costs."

Applied Films has more than 720 employees worldwide, the company's revenue for the first quarter of fiscal year 2006 was $62 million, an increase of $38.1% compared to $44 million 900 thousand in the same quarter in 2005. 2006 fiscal quarter, the company's net loss based on GAAP calculated at $800 thousand, $0.05 per share. In the same quarter of 2005, the company earned $2 million 900 thousand, $0.19 per share.

Analysts believe that, in addition to optimistic about the solar cell market, the application of materials into the new market there is an important reason: the company is losing some chip equipment market share. It is said that the giant chip device has been engaged in the development of solar cell equipment, but it is unclear whether those products will be introduced. Maxim Group analyst Darice Liu, said: we understand that the application materials company has been developing LLC products for the solar cell market PVD."

At the same time, Applied Films has entered the industry gate. Applied Films has a PVD solar cell called Aton, and is estimated to have sold about 7 to 10 sets of test tools, Liu said." The two companies have strong power in the display industry, the analyst estimates, in the color filter PVD market, Applied Films in the sixth generation of the factory to occupy more than 80% market share."