Applied Materials Spends $5 Billion on Varian Semiconductor Today

Applied Materials (NASDAQ:AMAT) announced a deal today to acquire Varian Semiconductor Equipment Associates, Inc. (NASDAQ:VSEA) for $5 billion.

Following is some information about the two companies:

Applied Materials (NASDAQ:AMAT):The stock has traded in a 52-week range of $10.27 to $16.93, and most recently traded at $15.08, down $0.16 on the day.  Its market capitalization is $19.8 billion, its trailing price-to-earnings ratio is 14.8, it earned $1.02 per share last year, and it paid a dividend of $0.32 per share.  Its forward price-to-earnings ratio is 9.81, its 5-year expected price-to-earnings growth ratio is 0.96, and its price-to-book value ratio is 2.57.

The company generated $10.3 billion in revenue last year, or revenue per share of $7.78.  Quarterly revenue growth year-over-year was 45% and quarterly earnings growth year-over-year was 509%.  The company has $205 million in debt compared to $2.75 billion in cash, a current ratio of 2.45, and a book value per share of 5.94.  26.3 million shares are sold short, and the short ratio is 1.7.

About the company: Applied Materials, Inc. develops, manufactures, markets, and services semiconductor wafer fabrication equipment and related spare parts for the worldwide semiconductor industry.  The Company’s customers include semiconductor wafer and integrated circuit manufacturers, flat panel liquid crystal displays, solar photovoltaic cells and modules and other electronic devices manufacturers.

Varian Semiconductor Equipment Associates, Inc. (NASDAQ:VSEA): The stock has traded in a 52-week range of $24.40 to $61.43, and most recently traded at $61.26, up $20.71 on the day.  Its market capitalization is $4.6 billion, its trailing price-to-earnings ratio is 21.5, its forward price-to-earnings ratio is 16.5, its 5-year expected price-to-earnings growth ratio is 0.69, and its price-to-book value is 3.88.  The company generated $973 million in revenue last year, or $13.06 per share.  Quarterly revenue growth for the year-over-year period was 100%, and quarterly earnings growth for the year-over-year period was 332%.

The company holds $392 million in cash compared to $1.43 million in total debt, its current ratio is 5.79, and its book value per share is 10.46.

About the company: Varian Semiconductor Equipment Associates, Inc. designs, manufactures, markets and services semiconductor processing equipment used in the fabrication of integrated circuits.  The Company supplies ion implantation systems used to manufacture semiconductor chips.

Other companies that operate in this industry include: Axcelis Technologies (NASDAQ:ACLS), Amtech Systems, Inc. (NASDAQ:ASYS), Lam Research Corporation (NASDAQ:LRCX), Intel (NASDAQ:INTC), Novellus Systems, Inc. (NASDAQ:NVLS), KLA-Tencor Corporation (NASDAQ:KLAC), Tegal Corporation (NASDAQ:TGAL), Mattson Technology, Inc. (NASDAQ:MTSN), ASML Holding N.V. (NASDAQ:ASML), and FSI International, Inc. (NASDAQ:FSII).

Note: Financial data is taken from Yahoo! Finance.  Selected other data is taken from Google Finance and publicly available SEC filings.  All data are assumed to be accurate.

Don’t Miss Everything You Need to Know About Earnings Season>>