Applied Materials’ Sales Shortfall Linked to Cyberattack at MKS
(Bloomberg) -- A “cybersecurity incident” that Applied Materials Inc. warned would hurt its sales this quarter was linked to a ransomware attack disclosed by MKS Instruments Inc. earlier this month.
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Though Applied Materials didn’t name the company when it warned of the problem Thursday, it said a breach at one of its suppliers would shave $250 million from second-quarter sales. That suggests Applied Materials is referring to MKS, a vendor that said a ransomware incident would force it to delay the release of quarterly results.
“Very recently, one of our major suppliers encountered a disruption that will impact our second-quarter shipments,” Applied Materials Chief Executive Officer Gary Dickerson said on a conference call. The company expects to be able to get the lost revenue back in the future.
In its own filing, MKS said that the ransomware event had a material impact on its “ability to process orders, ship products and provide service to customers” in its vacuum and photonics divisions.
MKS also supplies Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co., the world’s two largest chipmakers, according to Bloomberg supply-chain analysis. Intel Corp. and ASML Holding NV are also customers.
A representative for MKS Instruments wasn’t immediately available for comment. The company’s website was down as of Thursday afternoon.
--With assistance from Katrina Manson.
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