Santa Clara, California-based Applied Materials, Inc. (NASDAQ: AMAT – $19.86), reported strong results for its second quarter ended April 26, 2015. Net sales came in at $2.44 billion, up 4% sequentially and year-over-year, and a bit better than analysts’ forecasts of $2.4 billion. Adjusted net income for the period was $362 million or $0.29 per share, a penny above Street estimates and compared to $0.21 last year. Net sales increased by 8% in the Silicon System Group to $1.56 billion and orders were up 19% from the prior quarter. Applied Global Services orders of $641 million declined 7% from the first quarter, primarily due to a seasonal decline in service contract renewals and net sales of $646 million increased 11%. Display orders of $120 million were up 12% reflecting an increase in TV equipment orders. Net sales for the group, however, declined 41%, which was in line with expectations. Energy and Environmental Solutions orders remained flat at $50 million, and net sales increased by 33% to $73 million. Company-wide second quarter orders were $2.52 billion, up 11% sequentially and down 4% from a year ago. For the third quarter of fiscal 2015, the manufacturer of equipment, services and software to the semiconductor, flat panel display and solar photovoltaic industries, expects net sales to be in the range of up 2% to up 6% from the previous quarter, the midpoint of which would be up 12% year over year. Adjusted diluted EPS is expected to be in the range of $0.31 to $0.35, the midpoint of which would be up 18% and within the consensus range. Given the company’s strong underlying fundamentals, aggressive investors may want to keep a lookout for potential re-entry points for AMAT, which has lagged the market since its high of $25.71 late last year. At 16 times full year fiscal 2015 earnings and 13 times fiscal 2016 estimates, the shares are reasonably valued.