SANTA CLARA, CA, Aug 14, 2015 - (ACN Newswire) - Applied Materials, Inc. (NASDAQ:AMAT), the global leader in materials engineering solutions for the semiconductor, display and solar industries, today reported results for its third quarter ended July 26, 2015.
Third quarter orders were $2.89 billion, up 15 percent sequentially and up 17 percent year over year. Net sales were $2.49 billion, up 2 percent sequentially and up 10 percent year over year.
On a non-GAAP adjusted basis, the company reported gross margin of 43.9 percent, operating margin of 20.8 percent, and net income of $410 million or $0.33 per diluted share. The company recorded GAAP gross margin of 40.9 percent, operating margin of 15.9 percent, and net income of $329 million or $0.27 per diluted share. The GAAP results included the effect of cost reduction actions in the solar business consisting of $34 million of inventory charges and $17 million of restructuring and asset impairment charges.
The company generated $334 million in cash from operations, paid dividends of $123 million and used $625 million to repurchase 32 million shares of common stock.
"Applied is focused on profitable growth and the results show in our third-quarter performance when we delivered our highest ever 300mm semiconductor equipment orders and record revenue in services," said Gary Dickerson, president and CEO. "Our highly differentiated materials engineering products help customers accelerate major technology inflections including 3D NAND, and this quarter we generated the highest flash memory orders in our history."
Quarterly Results Summary
(In millions, except per share amounts and percentages)
---------------------------------------------------------------------------
Change
Q3 FY2015 Q2 FY2015 Q3 FY2014 Q3 FY2015 Q3 FY2015
vs. vs.
Q2 FY2015 Q3 FY2014
---------------------------------------------------------------------------
New orders $2,892 $2,515 $2,479 15% 17%
Net sales $2,490 $2,442 $2,265 2% 10%
Gross margin 40.9% 41.6% 43.8% (0.7) points (2.9) points
Operating margin
15.9% 17.0% 17.3% (1.1) points (1.4) points
Net income $329 $364 $301 (10)% 9%
Diluted earnings per share (EPS)
$0.27 $0.29 $0.24 (7)% 13%
---------------------------------------------------------------------------
Non-GAAP Adjusted Results
(In millions, except per share amounts and percentages)
---------------------------------------------------------------------------
Change
Q3 FY2015 Q2 FY2015 Q3 FY2014 Q3 FY2015 Q3 FY2015
vs. vs.
Q2 FY2015 Q3 FY2014
---------------------------------------------------------------------------
Non-GAAP adjusted gross margin
43.9% 43.2% 45.5% 0.7 points (1.6) points
Non-GAAP adjusted operating margin
20.8% 19.5% 21.1% 1.3 points (0.3) points
Non-GAAP adjusted net income
$410 $362 $349 13% 17%
Non-GAAP adjusted diluted EPS
$0.33 $0.29 $0.28 14% 18%
---------------------------------------------------------------------------
Applied's non-GAAP adjusted results exclude the impact of the following, where applicable: certain items related to mergers and acquisitions; restructuring charges and any associated adjustments; impairments of assets, or investments; gain or loss on sale of strategic investments; and certain discrete adjustments and tax items. A reconciliation of the GAAP and non-GAAP adjusted results is provided in the financial tables included in this release. See also "Use of Non-GAAP Adjusted Financial Measures" section.
Business Outlook
For the fourth quarter of fiscal 2015, Applied expects net sales to be in the range of flat to down 7 percent from the previous quarter, and non-GAAP adjusted diluted EPS is expected to be in the range of $0.27 to $0.31.
This outlook excludes known charges related to completed acquisitions of $0.04 per share and does not exclude other non-GAAP adjustments that may arise subsequent to this release.
Third Quarter Reportable Segment Information
Silicon Systems Group
(In millions, except percentages)
---------------------------------------------------------------------------
Q3 FY2015 Q2 FY2015 Q3 FY2014
---------------------------------------------------------------------------
New orders $ 2,007 $ 1,704 $ 1,565
Foundry 32% 36% 50%
DRAM 18% 31% 14%
Flash 39% 21% 22%
Logic and other 11% 12% 14%
Net sales 1,635 1,560 1,476
Operating income 411 374 381
Operating margin 25.1% 24.0% 25.8%
---------------------------------------------------------------------------
Non-GAAP Adjusted Results
Non-GAAP adjusted operating income
$ 455 $ 418 $ 423
Non-GAAP adjusted operating margin
27.8% 26.8% 28.7%
---------------------------------------------------------------------------
Applied Global Services
(In millions, except percentages)
---------------------------------------------------------------------------
Q3 FY2015 Q2 FY2015 Q3 FY2014
---------------------------------------------------------------------------
New orders $ 561 $ 641 $ 552
Net sales 665 646 567
Operating income 170 170 154
Operating margin 25.6% 26.3% 27.2%
---------------------------------------------------------------------------
Non-GAAP Adjusted Results
Non-GAAP adjusted operating income
$ 173 $ 170 $ 154
Non-GAAP adjusted operating margin
26.0% 26.3% 27.2%
---------------------------------------------------------------------------
Display
(In millions, except percentages)
---------------------------------------------------------------------------
Q3 FY2015 Q2 FY2015 Q3 FY2014
---------------------------------------------------------------------------
New orders $ 295 $ 120 $ 296
Net sales 151 163 119
Operating income 25 40 25
Operating margin 16.6% 24.5% 21.0%
---------------------------------------------------------------------------
Non-GAAP Adjusted Results
Non-GAAP adjusted operating income
$ 26 $ 40 $ 26
Non-GAAP adjusted operating margin
17.2% 24.5% 21.8%
---------------------------------------------------------------------------
Energy and Environmental Solutions
(In millions, except percentages)
---------------------------------------------------------------------------
Q3 FY2015 Q2 FY2015 Q3 FY2014
---------------------------------------------------------------------------
New orders $ 29 $ 50 $ 66
Net sales 39 73 103
Operating income (loss) (52) (5) 24
Operating margin (133.3)% (6.8)% 23.3%
---------------------------------------------------------------------------
Non-GAAP Adjusted Results
Non-GAAP adjusted operating income (loss)
$ (2) $ (4) $ 25
Non-GAAP adjusted operating margin
(5.1)% (5.5)% 24.3%
---------------------------------------------------------------------------
Backlog Information
Applied's backlog grew 11 percent sequentially to $3.10 billion and included negative adjustments of $84 million, primarily consisting of order cancellations from a foundry customer. Backlog composition by reportable segment was as follows:
---------------------------------------------------------------------------
Silicon Systems Group 57%
Applied Global Services 22%
Display 17%
Energy and Environmental Solutions 4%
---------------------------------------------------------------------------
Use of Non-GAAP Adjusted Financial Measures
Management uses non-GAAP adjusted results to evaluate the company's operating and financial performance in light of business objectives and for planning purposes. These measures are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. Applied believes these measures enhance investors' ability to review the company's business from the same perspective as the company's management and facilitate comparisons of this period's results with prior periods. The presentation of this additional information should not be considered a substitute for results prepared in accordance with GAAP.
Webcast Information
Applied Materials will discuss these results during an earnings call that begins at 1:30 p.m. Pacific Time today. A live webcast will be available at www.appliedmaterials.com. A replay will be available on the website beginning at 5:00 p.m. Pacific Time today.
Forward-Looking Statements
This press release contains forward-looking statements, including those regarding anticipated growth and trends in our businesses and markets, industry outlooks, technology transitions, our financial performance and market share positions, our business outlook for the fourth quarter of fiscal 2015, and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products; global economic and industry conditions; consumer demand for electronic products; the demand for semiconductors; customers' technology and capacity requirements; the introduction of new and innovative technologies, and the timing of technology transitions; our ability to develop, deliver and support new products and technologies; the concentrated nature of our customer base; our ability to expand our current markets, increase market share and develop new markets; market acceptance of existing and newly developed products; our ability to obtain and protect intellectual property rights in key technologies; our ability to achieve the objectives of operational and strategic initiatives, align our resources and cost structure with business conditions, and attract, motivate and retain key employees; the variability of operating expenses and results among products and segments, and our ability to accurately forecast future results, market conditions, customer requirements and business needs; and other risks and uncertainties described in our SEC filings, including our most recent Forms 10-Q and 8-K. All forward-looking statements are based on management's current estimates, projections and assumptions, and we assume no obligation to update them.
About Applied Materials
Applied Materials, Inc. (Nasdaq:AMAT) is the global leader in materials engineering solutions for the semiconductor, flat panel display and solar photovoltaic industries. Our technologies help make innovations like smartphones, flat screen TVs and solar panels more affordable and accessible to consumers and businesses around the world. Learn more at www.appliedmaterials.com.
Contact:
Kevin Winston (editorial/media) +1-408-235-4498
Michael Sullivan (financial community) +1-408-986-7977
Press release: http://bit.ly/1J3oE5Z
###
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Applied Materials via Globenewswire
Topic: Earnings
Source: Applied Materials, Inc.
https://www.acnnewswire.com
From the Asia Corporate News Network
Copyright © 2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
|
