How Has Applied’s Revenue Mix Changed In The Last 5 Years?

-2.77%
Downside
208
Market
202
Trefis
AMAT: Applied Materials logo
AMAT
Applied Materials

Over the last 5 years, Applied Materials’ (NYSE:AMAT) revenue from energy and environmental solutions  has declined significantly. This segment manufactures equipment used in the manufacture of solar cells and its fortunes have risen and subsequently fallen witht eh rapid build out of manufacturing capacity, mainly in the US and China.  This can be attributed to the fact that the company restructured its EES segment back in 2010 during an industry downturn in order to make it profitable. As a part of the restructuring initiative, Applied discontinued orders from new customers for its SunFab lines for manufacturing thin film solar panels. Back in 2006, Applied’s entrance into amorphous silicon solar business was expected to boost its revenues significantly. However, within couple of years of starting the manufacturing facilities, this segment proved to be a drag on overall growth of the company, as Applied’s key customers for its solar products ceased purchasing new equipment, given their massively overbuilt capacity. What follows below is a snapshot of how Applied’s revenue mix has changed over the last 5 years:

AMAT_Q&A_3

1) If you like or have any questions about our analysis, please write us back at content@trefis.com. We hope such lean communication sparks thinking, and encourages you to ask questions. The purpose of these analyses is to help you focus only on a few important things. 
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Applied Materials

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