Applied Materials Delivers Record Earnings Per Share
February 15 2017 - 4:01PM
• Generates record orders of $4.24
billion• Delivers record EPS of $0.65 and non-GAAP EPS
of $0.67• Expects record revenue and earnings per
share in the second quarter of FY2017
Applied Materials, Inc. (NASDAQ:AMAT) today reported results for
its first quarter ended January 29, 2017.
First quarter new orders were $4.24 billion, up 86 percent year
over year. Net sales of $3.28 billion were up 45 percent year over
year.
The company recorded first quarter gross margin of 44.1 percent,
up 3.5 points year over year. Operating margin grew 8.9 points year
over year to 24.6 percent, and diluted earnings per share (EPS)
grew by 160 percent year over year to $0.65. On a non-GAAP adjusted
basis, first quarter gross margin increased 3.0 points year over
year to 45.4 percent, operating margin grew 8.2 points year over
year to 26.0 percent, and diluted EPS grew by 158 percent year over
year to $0.67.
The company generated $646 million in cash from operations and
returned $238 million to shareholders through stock repurchases and
cash dividends.
“We set new records for earnings and orders in our first
quarter, and 2017 is shaping up to be an outstanding year for
Applied Materials,” said Gary Dickerson, President and CEO.
“Our inflection-focused innovation strategy is delivering results
and we are increasingly confident that we can maintain our
trajectory of sustainable growth and raise the ceiling on our
performance.”
Quarterly Results Summary
|
|
|
|
|
|
|
Change |
|
Q1 FY2017 |
|
Q4 FY2016 |
|
Q1 FY2016 |
|
Q1 FY2017 vs. Q4 FY2016 |
|
Q1 FY2017 vs. Q1 FY2016 |
|
(In millions, except per share amounts and
percentages) |
New orders |
$ |
4,236 |
|
|
$ |
3,032 |
|
|
$ |
2,275 |
|
|
40 |
% |
|
86 |
% |
Net sales |
$ |
3,278 |
|
|
$ |
3,297 |
|
|
$ |
2,257 |
|
|
(1 |
%) |
|
45 |
% |
Gross margin |
44.1 |
% |
|
42.4 |
% |
|
40.6 |
% |
|
1.7 |
points |
|
3.5 |
points |
Operating margin |
24.6 |
% |
|
23.6 |
% |
|
15.7 |
% |
|
1.0 |
points |
|
8.9 |
points |
Net income |
$ |
703 |
|
|
$ |
610 |
|
|
$ |
286 |
|
|
15 |
% |
|
146 |
% |
Diluted earnings per
share |
$ |
0.65 |
|
|
$ |
0.56 |
|
|
$ |
0.25 |
|
|
16 |
% |
|
160 |
% |
Non-GAAP Adjusted Results |
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted gross
margin |
45.4 |
% |
|
43.7 |
% |
|
42.4 |
% |
|
1.7 |
points |
|
3.0 |
points |
Non-GAAP adjusted
operating margin |
26.0 |
% |
|
25.2 |
% |
|
17.8 |
% |
|
0.8 |
points |
|
8.2 |
points |
Non-GAAP adjusted net
income |
$ |
732 |
|
|
$ |
722 |
|
|
$ |
302 |
|
|
1 |
% |
|
142 |
% |
Non-GAAP adjusted
diluted EPS |
$ |
0.67 |
|
|
$ |
0.66 |
|
|
$ |
0.26 |
|
|
2 |
% |
|
158 |
% |
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
In the second quarter of fiscal 2017, Applied expects net sales
to be in the range of $3.45 billion to $3.60 billion; the midpoint
of the range would be an increase of approximately 44 percent, year
over year. Non-GAAP adjusted diluted EPS is expected to be in the
range of $0.72 to $0.80; the midpoint of the range would be an
increase of approximately 124 percent, year over year.
This outlook for non-GAAP adjusted diluted EPS excludes known
charges related to completed acquisitions of $0.04 per share, but
does not reflect any items that are unknown at this time, such as
any additional charges related to acquisitions or other
non-operational or unusual items, as well as other tax related
items, which we are not able to predict without unreasonable
efforts due to their inherent uncertainty.
First Quarter Reportable Segment
Information
Semiconductor
Systems |
Q1 FY2017 |
|
Q4 FY2016 |
|
Q1 FY2016 |
|
(In millions, except percentages) |
New orders |
$ |
2,757 |
|
|
$ |
1,833 |
|
|
$ |
1,275 |
|
Foundry |
41 |
% |
|
64 |
% |
|
38 |
% |
DRAM |
14 |
% |
|
10 |
% |
|
29 |
% |
Flash |
37 |
% |
|
16 |
% |
|
22 |
% |
Logic and
other |
8 |
% |
|
10 |
% |
|
11 |
% |
Net sales |
2,150 |
|
|
2,127 |
|
|
1,373 |
|
Operating income |
690 |
|
|
667 |
|
|
265 |
|
Operating margin |
32.1 |
% |
|
31.4 |
% |
|
19.3 |
% |
Non-GAAP Adjusted Results |
|
|
|
|
Non-GAAP adjusted
operating income |
$ |
736 |
|
|
$ |
713 |
|
|
$ |
312 |
|
Non-GAAP adjusted
operating margin |
34.2 |
% |
|
33.5 |
% |
|
22.7 |
% |
Applied Global
Services |
Q1 FY2017 |
|
Q4 FY2016 |
|
Q1 FY2016 |
|
(In millions, except percentages) |
New orders |
$ |
826 |
|
|
$ |
794 |
|
|
$ |
755 |
|
Net sales |
676 |
|
|
693 |
|
|
606 |
|
Operating income |
178 |
|
|
193 |
|
|
149 |
|
Operating margin |
26.3 |
% |
|
27.8 |
% |
|
24.6 |
% |
Non-GAAP Adjusted Results |
|
|
|
|
Non-GAAP adjusted
operating income |
$ |
179 |
|
|
$ |
193 |
|
|
$ |
149 |
|
Non-GAAP adjusted
operating margin |
26.5 |
% |
|
27.8 |
% |
|
24.6 |
% |
Display and
Adjacent Markets |
Q1 FY2017 |
|
Q4 FY2016 |
|
Q1 FY2016 |
|
(In millions, except percentages) |
New orders |
$ |
632 |
|
|
$ |
387 |
|
|
$ |
208 |
|
Net sales |
422 |
|
|
452 |
|
|
254 |
|
Operating income |
115 |
|
|
103 |
|
|
48 |
|
Operating margin |
27.3 |
% |
|
22.8 |
% |
|
18.9 |
% |
Non-GAAP Adjusted Results |
|
|
|
|
Non-GAAP adjusted
operating income |
$ |
115 |
|
|
$ |
103 |
|
|
$ |
48 |
|
Non-GAAP adjusted
operating margin |
27.3 |
% |
|
22.8 |
% |
|
18.9 |
% |
Use of Non-GAAP Adjusted Financial Measures
Applied provides investors with certain non-GAAP
adjusted financial measures, which are adjusted to exclude the
impact of certain costs, expenses, gains and losses, including
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; income
tax items and certain other discrete adjustments. Reconciliations
of these non-GAAP measures to the most directly comparable
financial measures calculated and presented in accordance with GAAP
are provided in the financial tables included in this release.
Management uses these non-GAAP adjusted financial measures to
evaluate the company’s operating and financial performance and for
planning purposes, and as performance measures in its executive
compensation program. Applied believes these measures enhance an
overall understanding of our performance and 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 on a consistent basis by excluding items
that we do not believe are indicative of our ongoing operating
performance. There are limitations in using non-GAAP financial
measures because the non-GAAP financial measures are not prepared
in accordance with generally accepted accounting principles, may be
different from non-GAAP financial measures used by other companies,
and may exclude certain items that may have a material impact upon
our reported financial results. The presentation of this additional
information is not meant to be considered in isolation or as a
substitute for the directly comparable financial measures 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 business and financial performance and market share positions,
our development of new products and technologies, our business
outlook for the second quarter of fiscal 2017, 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-K 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 leader in materials
engineering solutions used to produce virtually every new chip and
advanced display in the world. Our expertise in modifying materials
at atomic levels and on an industrial scale enables customers to
transform possibilities into reality. At Applied Materials, our
innovations make possible the technology shaping the future. Learn
more at www.appliedmaterials.com.
Contact:
Kevin Winston (editorial/media) 408.235.4498Michael Sullivan
(financial community) 408.986.7977
APPLIED MATERIALS, INC. |
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF
OPERATIONS |
|
|
Three Months Ended |
(In millions, except
per share amounts) |
January 29, 2017 |
|
October 30, 2016 |
|
January 31, 2016 |
Net sales |
$ |
3,278 |
|
|
$ |
3,297 |
|
|
$ |
2,257 |
|
Cost of products
sold |
1,833 |
|
|
1,898 |
|
|
1,341 |
|
Gross profit |
1,445 |
|
|
1,399 |
|
|
916 |
|
Operating
expenses: |
|
|
|
|
|
Research,
development and engineering |
417 |
|
|
394 |
|
|
374 |
|
Marketing
and selling |
118 |
|
|
114 |
|
|
106 |
|
General
and administrative |
103 |
|
|
114 |
|
|
82 |
|
Total operating
expenses |
638 |
|
|
622 |
|
|
562 |
|
Income from
operations |
807 |
|
|
777 |
|
|
354 |
|
Interest expense |
38 |
|
|
38 |
|
|
42 |
|
Interest and other
income, net |
2 |
|
|
1 |
|
|
2 |
|
Income before income
taxes |
771 |
|
|
740 |
|
|
314 |
|
Provision for income
taxes |
68 |
|
|
130 |
|
|
28 |
|
Net income |
$ |
703 |
|
|
$ |
610 |
|
|
$ |
286 |
|
Earnings per
share: |
|
|
|
|
|
Basic and
diluted |
$ |
0.65 |
|
|
$ |
0.56 |
|
|
$ |
0.25 |
|
Weighted average number
of shares: |
|
|
|
|
|
Basic |
1,078 |
|
|
1,081 |
|
|
1,146 |
|
Diluted |
1,089 |
|
|
1,093 |
|
|
1,154 |
|
APPLIED MATERIALS, INC. |
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS |
|
(In millions) |
January 29, 2017 |
|
October 30, 2016 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
3,491 |
|
|
$ |
3,406 |
|
Short-term investments |
656 |
|
|
343 |
|
Accounts
receivable, net |
2,369 |
|
|
2,279 |
|
Inventories |
2,281 |
|
|
2,050 |
|
Other
current assets |
297 |
|
|
275 |
|
Total current
assets |
9,094 |
|
|
8,353 |
|
Long-term
investments |
909 |
|
|
929 |
|
Property, plant and
equipment, net |
949 |
|
|
937 |
|
Goodwill |
3,316 |
|
|
3,316 |
|
Purchased technology
and other intangible assets, net |
527 |
|
|
575 |
|
Deferred income taxes
and other assets1 |
449 |
|
|
460 |
|
Total assets |
$ |
15,244 |
|
|
$ |
14,570 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable, notes payable and accrued expenses |
2,139 |
|
|
2,256 |
|
Customer
deposits and deferred revenue |
1,669 |
|
|
1,376 |
|
Total current
liabilities |
3,808 |
|
|
3,632 |
|
Long-term debt1 |
3,125 |
|
|
3,125 |
|
Other liabilities |
624 |
|
|
596 |
|
Total liabilities |
7,557 |
|
|
7,353 |
|
Total stockholders’
equity |
7,687 |
|
|
7,217 |
|
Total liabilities and
stockholders’ equity |
$ |
15,244 |
|
|
$ |
14,570 |
|
1 Balances reflect the
effects of the retrospective adoption of the authoritative guidance
in the first quarter of fiscal 2017, which required debt issuance
costs to be presented as a direct reduction from the carrying
amount of the related debt liability. These amounts were originally
recorded under Other Assets. |
APPLIED MATERIALS, INC. |
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH
FLOWS |
|
(In
millions) |
Three Months Ended |
January 29, 2017 |
|
October 30, 2016 |
|
January 31, 2016 |
Cash flows from
operating activities: |
|
|
|
|
|
Net
income |
$ |
703 |
|
|
$ |
610 |
|
|
$ |
286 |
|
Adjustments required to reconcile net income to cash provided by
operating activities: |
|
|
|
|
|
Depreciation and amortization |
97 |
|
|
100 |
|
|
96 |
|
Share-based compensation |
54 |
|
|
51 |
|
|
54 |
|
Excess
tax benefits from share-based compensation |
(44 |
) |
|
(5 |
) |
|
(10 |
) |
Deferred
income taxes |
25 |
|
|
7 |
|
|
15 |
|
Other |
9 |
|
|
18 |
|
|
10 |
|
Net
change in operating assets and liabilities |
(198 |
) |
|
16 |
|
|
(244 |
) |
Cash provided by
operating activities |
646 |
|
|
797 |
|
|
207 |
|
Cash flows from
investing activities: |
|
|
|
|
|
Capital
expenditures |
(64 |
) |
|
(88 |
) |
|
(68 |
) |
Cash paid
for acquisitions, net of cash acquired |
— |
|
|
(11 |
) |
|
— |
|
Proceeds
from sales and maturities of investments |
286 |
|
|
553 |
|
|
241 |
|
Purchases
of investments |
(589 |
) |
|
(443 |
) |
|
(282 |
) |
Cash provided by (used
in) investing activities |
(367 |
) |
|
11 |
|
|
(109 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
Debt
repayments, net of issuance costs |
— |
|
|
— |
|
|
(1,205 |
) |
Proceeds
from common stock issuances and others |
— |
|
|
44 |
|
|
2 |
|
Common
stock repurchases |
(130 |
) |
|
(171 |
) |
|
(625 |
) |
Excess
tax benefits from share-based compensation |
44 |
|
|
5 |
|
|
10 |
|
Payments
of dividends to stockholders |
(108 |
) |
|
(108 |
) |
|
(115 |
) |
Cash used in financing
activities |
(194 |
) |
|
(230 |
) |
|
(1,933 |
) |
Increase (decrease) in
cash and cash equivalents |
85 |
|
|
578 |
|
|
(1,835 |
) |
Cash and cash
equivalents — beginning of period |
3,406 |
|
|
2,828 |
|
|
4,797 |
|
Cash and cash
equivalents — end of period |
$ |
3,491 |
|
|
$ |
3,406 |
|
|
$ |
2,962 |
|
Supplemental cash flow
information: |
|
|
|
|
|
Cash
payments for income taxes |
$ |
35 |
|
|
$ |
13 |
|
|
$ |
44 |
|
Cash
refunds from income taxes |
$ |
2 |
|
|
$ |
9 |
|
|
$ |
5 |
|
Cash
payments for interest |
$ |
34 |
|
|
$ |
41 |
|
|
$ |
34 |
|
APPLIED MATERIALS, INC. |
UNAUDITED SUPPLEMENTAL INFORMATION |
|
Corporate and Other |
|
(In millions) |
Q1 FY2017 |
|
Q4 FY2016 |
|
Q1 FY2016 |
New orders |
$ |
21 |
|
|
$ |
18 |
|
|
$ |
37 |
|
|
|
|
|
|
|
Unallocated net
sales |
$ |
30 |
|
|
$ |
25 |
|
|
$ |
24 |
|
Unallocated cost of
products sold and expenses |
(152 |
) |
|
(160 |
) |
|
(78 |
) |
Share-based
compensation |
(54 |
) |
|
(51 |
) |
|
(54 |
) |
Total |
$ |
(176 |
) |
|
$ |
(186 |
) |
|
$ |
(108 |
) |
Additional Information
|
Q1 FY2017 |
|
Q4 FY2016 |
|
Q1 FY2016 |
New Orders and Net
Sales by Geography |
|
|
(In $ millions) |
NewOrders |
|
NetSales |
|
NewOrders |
|
NetSales |
|
NewOrders |
|
NetSales |
United States |
478 |
|
|
317 |
|
|
221 |
|
|
289 |
|
|
369 |
|
|
293 |
|
% of
Total |
11 |
% |
|
10 |
% |
|
7 |
% |
|
9 |
% |
|
16 |
% |
|
13 |
% |
Europe |
221 |
|
|
209 |
|
|
212 |
|
|
256 |
|
|
156 |
|
|
138 |
|
% of
Total |
5 |
% |
|
6 |
% |
|
7 |
% |
|
8 |
% |
|
7 |
% |
|
6 |
% |
Japan |
445 |
|
|
235 |
|
|
262 |
|
|
364 |
|
|
109 |
|
|
334 |
|
% of
Total |
11 |
% |
|
7 |
% |
|
9 |
% |
|
11 |
% |
|
5 |
% |
|
15 |
% |
Korea |
1,029 |
|
|
670 |
|
|
432 |
|
|
632 |
|
|
373 |
|
|
273 |
|
% of
Total |
24 |
% |
|
20 |
% |
|
14 |
% |
|
19 |
% |
|
17 |
% |
|
12 |
% |
Taiwan |
1,205 |
|
|
1,103 |
|
|
1,170 |
|
|
1,154 |
|
|
534 |
|
|
637 |
|
% of
Total |
28 |
% |
|
34 |
% |
|
39 |
% |
|
35 |
% |
|
23 |
% |
|
28 |
% |
Southeast Asia |
106 |
|
|
97 |
|
|
84 |
|
|
161 |
|
|
232 |
|
|
87 |
|
% of
Total |
3 |
% |
|
3 |
% |
|
3 |
% |
|
5 |
% |
|
10 |
% |
|
4 |
% |
China |
752 |
|
|
647 |
|
|
651 |
|
|
441 |
|
|
502 |
|
|
495 |
|
% of
Total |
18 |
% |
|
20 |
% |
|
21 |
% |
|
13 |
% |
|
22 |
% |
|
22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Employees (In
thousands) |
|
|
|
|
|
|
|
|
|
|
|
Regular Full Time |
|
|
16.0 |
|
|
|
|
15.6 |
|
|
14.6 |
|
APPLIED MATERIALS, INC. |
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED
RESULTS |
|
|
Three Months Ended |
(In millions, except
percentages) |
January 29, 2017 |
|
October 30, 2016 |
|
January 31, 2016 |
Non-GAAP Adjusted Gross
Profit |
|
|
|
|
|
Reported gross profit -
GAAP basis |
$ |
1,445 |
|
|
$ |
1,399 |
|
|
$ |
916 |
|
Certain items
associated with acquisitions1 |
42 |
|
|
42 |
|
|
42 |
|
Inventory reversals
related to restructuring2 |
— |
|
|
— |
|
|
(1 |
) |
Non-GAAP adjusted gross
profit |
$ |
1,487 |
|
|
$ |
1,441 |
|
|
$ |
957 |
|
Non-GAAP adjusted gross
margin |
45.4 |
% |
|
43.7 |
% |
|
42.4 |
% |
Non-GAAP Adjusted
Operating Income |
|
|
|
|
|
Reported operating
income - GAAP basis |
$ |
807 |
|
|
$ |
777 |
|
|
$ |
354 |
|
Certain items
associated with acquisitions1 |
47 |
|
|
47 |
|
|
48 |
|
Acquisition integration
costs |
1 |
|
|
— |
|
|
— |
|
Inventory reversals
related to restructuring, net2 |
— |
|
|
— |
|
|
(1 |
) |
Other gains, losses or
charges, net3 |
(3 |
) |
|
8 |
|
|
— |
|
Non-GAAP adjusted
operating income |
$ |
852 |
|
|
$ |
832 |
|
|
$ |
401 |
|
Non-GAAP adjusted
operating margin |
26.0 |
% |
|
25.2 |
% |
|
17.8 |
% |
Non-GAAP Adjusted Net
Income |
|
|
|
|
|
Reported net income -
GAAP basis |
$ |
703 |
|
|
$ |
610 |
|
|
$ |
286 |
|
Certain items
associated with acquisitions1 |
47 |
|
|
47 |
|
|
48 |
|
Acquisition integration
costs |
1 |
|
|
— |
|
|
— |
|
Inventory reversals
related to restructuring, net2 |
— |
|
|
— |
|
|
(1 |
) |
Impairment (gain on
sale) of strategic investments, net |
5 |
|
|
6 |
|
|
(2 |
) |
Loss on early
extinguishment of debt |
— |
|
|
— |
|
|
5 |
|
Other gains, losses or
charges, net3 |
(3 |
) |
|
8 |
|
|
— |
|
Reinstatement of
federal R&D tax credit, resolution of prior years’ income tax
filings and other tax items |
(16 |
) |
|
57 |
|
|
(29 |
) |
Income tax effect of
non-GAAP adjustments4 |
(5 |
) |
|
(6 |
) |
|
(5 |
) |
Non-GAAP adjusted net
income |
$ |
732 |
|
|
$ |
722 |
|
|
$ |
302 |
|
1 |
These
items are incremental charges attributable to completed
acquisitions, consisting of amortization of purchased intangible
assets. |
|
|
2 |
Results for the three months ended January 31, 2016 included a
benefit from sales of solar equipment tools for which inventory had
been previously reserved. |
|
|
3 |
Results for the three months ended October 30, 2016 included a loss
of $8 million due to discontinuance of cash flow hedges that were
probable not to occur by the end of the originally specified time
period. |
|
|
4 |
These
amounts represent non-GAAP adjustments above multiplied by the
effective tax rate within the jurisdictions the adjustments
affect. |
APPLIED MATERIALS, INC. |
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED
RESULTS |
|
|
Three Months Ended |
(In millions, except
per share amounts) |
January 29, 2017 |
|
October 30, 2016 |
|
January 31, 2016 |
Non-GAAP Adjusted
Earnings Per Diluted Share |
|
|
|
|
|
Reported earnings per
diluted share - GAAP basis |
$ |
0.65 |
|
|
$ |
0.56 |
|
|
$ |
0.25 |
|
Certain items
associated with acquisitions |
0.04 |
|
|
0.04 |
|
|
0.04 |
|
Other gains, losses or
charges, net |
— |
|
|
0.01 |
|
|
— |
|
Reinstatement of
federal R&D tax credit, resolution of prior years’ income tax
filings and other tax items |
(0.02 |
) |
|
0.05 |
|
|
(0.03 |
) |
Non-GAAP adjusted
earnings per diluted share |
$ |
0.67 |
|
|
$ |
0.66 |
|
|
$ |
0.26 |
|
Weighted average number
of diluted shares |
1,089 |
|
|
1,093 |
|
|
1,154 |
|
APPLIED MATERIALS, INC. |
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED
RESULTS |
|
|
Three Months Ended |
(In millions, except
percentages) |
January 29, 2017 |
|
October 30, 2016 |
|
January 31, 2016 |
Semiconductor Systems
Non-GAAP Adjusted Operating Income |
|
|
|
|
|
Reported operating
income - GAAP basis |
$ |
690 |
|
|
$ |
667 |
|
|
$ |
265 |
|
Certain items
associated with acquisitions1 |
46 |
|
|
46 |
|
|
47 |
|
Non-GAAP adjusted
operating income |
$ |
736 |
|
|
$ |
713 |
|
|
$ |
312 |
|
Non-GAAP adjusted
operating margin |
34.2 |
% |
|
33.5 |
% |
|
22.7 |
% |
AGS Non-GAAP Adjusted
Operating Income |
|
|
|
|
|
Reported operating
income - GAAP basis |
$ |
178 |
|
|
$ |
193 |
|
|
$ |
149 |
|
Acquisition integration
costs |
1 |
|
|
— |
|
|
— |
|
Non-GAAP adjusted
operating income |
$ |
179 |
|
|
$ |
193 |
|
|
$ |
149 |
|
Non-GAAP adjusted
operating margin |
26.5 |
% |
|
27.8 |
% |
|
24.6 |
% |
Display and Adjacent
Markets Non-GAAP Adjusted Operating Income |
|
|
|
|
|
Reported operating
income - GAAP basis |
$ |
115 |
|
|
$ |
103 |
|
|
$ |
48 |
|
Certain items
associated with acquisitions1 |
— |
|
|
— |
|
|
— |
|
Non-GAAP adjusted
operating income |
$ |
115 |
|
|
$ |
103 |
|
|
$ |
48 |
|
Non-GAAP adjusted
operating margin |
27.3 |
% |
|
22.8 |
% |
|
18.9 |
% |
1 |
These
items are incremental charges attributable to completed
acquisitions, consisting of amortization of purchased intangible
assets. |
Note: The reconciliation of GAAP and non-GAAP
adjusted segment results above does not include certain revenues,
costs of products sold and operating expenses that are reported
within corporate and other and included in consolidated operating
income.
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