SANTA CLARA, Calif., May 14, 2015 - Applied
Materials, Inc. (NASDAQ:AMAT), the global leader in precision
materials engineering solutions for the semiconductor, display and
solar industries, today reported results for its second quarter
ended April 26, 2015.
Second quarter orders were $2.52 billion, up 11
percent sequentially and down 4 percent year over year. Net sales
were $2.44 billion, up 4 percent sequentially and up 4 percent year
over year.
On a non-GAAP adjusted basis, the company reported
gross margin of 43.2 percent, operating income of $476 million, and
net income of $362 million or $0.29 per diluted share. The company
recorded GAAP gross margin of 41.6 percent, operating income of
$416 million, and net income of $364 million or $0.29 per diluted
share.
"Applied posted our highest quarterly revenue in
the past three years and earnings near the top of our guidance
range," said Gary Dickerson, president and CEO. "These results
demonstrate that Applied is delivering the enabling products and
services our customers need as they transition complex new devices
into volume production."
Quarterly Results Summary
|
|
|
|
|
|
|
|
Change |
GAAP Results |
|
Q2 FY2015 |
|
Q1 FY2015 |
|
Q2 FY2014 |
|
Q2 FY2015
vs.
Q1 FY2015 |
|
Q2 FY2015
vs.
Q2 FY2014 |
Net sales |
|
$2.44 billion |
|
$2.36 billion |
|
$2.35 billion |
|
4% |
|
4% |
Gross profit |
|
$1.02 billion |
|
$959 million |
|
$1.00 billion |
|
6% |
|
1% |
Operating income |
|
$416 million |
|
$458 million |
|
$387 million |
|
(9)% |
|
7% |
Net income |
|
$364 million |
|
$348 million |
|
$262 million |
|
5% |
|
39% |
Diluted earnings per share (EPS) |
|
$0.29 |
|
$0.28 |
|
$0.21 |
|
4% |
|
38% |
Non-GAAP Adjusted Results |
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted gross profit |
|
$1.06 billion |
|
$1.00 billion |
|
$1.04 billion |
|
6% |
|
1% |
Non-GAAP adjusted operating income |
|
$476 million |
|
$447 million |
|
$482 million |
|
6% |
|
(1)% |
Non-GAAP adjusted net income |
|
$362 million |
|
$338 million |
|
$348 million |
|
7% |
|
4% |
Non-GAAP adjusted diluted EPS |
|
$0.29 |
|
$0.27 |
|
$0.28 |
|
7% |
|
4% |
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, goodwill, or investments; gain
or loss on sale of strategic investments or facilities; and certain
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.
Second Quarter Reportable Segment
Results and Comparisons to the Prior Quarter
Silicon Systems Group (SSG) orders were $1.70
billion, up 19 percent, with increases in foundry, flash and DRAM
more than offsetting a decline in logic/other. Net sales increased
by 8 percent to $1.56 billion. Non-GAAP adjusted operating income
increased by 19 percent to $418 million or 26.8 percent of net
sales. GAAP operating income increased by 22 percent to $374
million or 24.0 percent of net sales.
SSG new order composition was: foundry 36 percent;
DRAM 31 percent; flash 21 percent; and logic/other 12 percent.
Applied Global Services orders of $641 million
declined 7 percent primarily due to a seasonal decline in service
contract renewals. Net sales of $646 million increased by 11
percent. Operating income increased to $170 million or 26.3 percent
of net sales on both a GAAP and non-GAAP basis.
Display orders of $120 million were up 12 percent
reflecting an increase in TV equipment orders. Net sales declined
41 percent to $163 million, which was in line with expectations.
Operating income decreased to $40 million or 24.5 percent of net
sales on both a GAAP and non-GAAP basis.
Energy and Environmental Solutions orders remained
flat at $50 million, and net sales increased by 33 percent to $73
million. EES reported a non-GAAP adjusted operating loss of $4
million and a GAAP operating loss of $5 million.
Applied's backlog remained essentially flat at
$2.78 billion and included negative adjustments of $69 million,
primarily consisting of order cancellations and other adjustments.
Backlog composition by segment was: SSG 53 percent; AGS 29
percent; Display 13 percent; and EES 5 percent.
Business Outlook
For the third quarter of fiscal 2015, Applied
expects net sales to be in the range of up 2 percent to up 6
percent from the previous quarter, the midpoint of which would be
up 12 percent year over year. Non-GAAP adjusted diluted EPS is
expected to be in the range of $0.31 to $0.35, the midpoint of
which would be up 18 percent year over year.
This outlook excludes known charges related to
completed acquisitions of $0.03 per share and does not exclude
other non-GAAP adjustments that may arise subsequent to this
release.
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 third 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 precision 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)
408.235.4498
Michael Sullivan (financial community) 408.986.7977
APPLIED MATERIALS, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
|
|
Three Months Ended |
|
Six Months Ended |
(In millions, except per share amounts) |
|
April 26,
2015 |
|
January 25,
2015 |
|
April 27,
2014 |
|
April 26,
2015 |
|
April 27,
2014 |
Net
sales |
|
$ |
2,442 |
|
|
$ |
2,359 |
|
|
$ |
2,353 |
|
|
$ |
4,801 |
|
|
$ |
4,543 |
|
Cost of
products sold |
|
1,426 |
|
|
1,400 |
|
|
1,352 |
|
|
2,826 |
|
|
2,651 |
|
Gross
profit |
|
1,016 |
|
|
959 |
|
|
1,001 |
|
|
1,975 |
|
|
1,892 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
Research,
development and engineering |
|
365 |
|
|
351 |
|
|
355 |
|
|
716 |
|
|
711 |
|
Marketing
and selling |
|
109 |
|
|
111 |
|
|
107 |
|
|
220 |
|
|
216 |
|
General
and administrative |
|
140 |
|
|
117 |
|
|
129 |
|
|
257 |
|
|
249 |
|
Loss
(gain) on derivatives associated with announced business
combination |
|
(14 |
) |
|
(78 |
) |
|
23 |
|
|
(92 |
) |
|
(1 |
) |
Total
operating expenses |
|
600 |
|
|
501 |
|
|
614 |
|
|
1,101 |
|
|
1,175 |
|
Income
from operations |
|
416 |
|
|
458 |
|
|
387 |
|
|
874 |
|
|
717 |
|
Interest
expense |
|
24 |
|
|
23 |
|
|
23 |
|
|
47 |
|
|
48 |
|
Interest
income and other income (loss), net |
|
(3 |
) |
|
2 |
|
|
1 |
|
|
(1 |
) |
|
11 |
|
Income
before income taxes |
|
389 |
|
|
437 |
|
|
365 |
|
|
826 |
|
|
680 |
|
Provision
for income taxes |
|
25 |
|
|
89 |
|
|
103 |
|
|
114 |
|
|
165 |
|
Net
income |
|
$ |
364 |
|
|
$ |
348 |
|
|
$ |
262 |
|
|
$ |
712 |
|
|
$ |
515 |
|
Earnings
per share: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.30 |
|
|
$ |
0.28 |
|
|
$ |
0.22 |
|
|
$ |
0.58 |
|
|
$ |
0.43 |
|
Diluted |
|
$ |
0.29 |
|
|
$ |
0.28 |
|
|
$ |
0.21 |
|
|
$ |
0.57 |
|
|
$ |
0.42 |
|
Weighted
average number of shares: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
1,230 |
|
|
1,224 |
|
|
1,216 |
|
|
1,227 |
|
|
1,211 |
|
Diluted |
|
1,241 |
|
|
1,240 |
|
|
1,229 |
|
|
1,241 |
|
|
1,227 |
|
APPLIED MATERIALS, INC.
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
(In millions) |
|
April 26,
2015 |
|
January 25,
2015 |
|
October 26,
2014 |
ASSETS |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
3,067 |
|
|
$ |
2,929 |
|
|
$ |
3,002 |
|
Short-term investments |
|
163 |
|
|
158 |
|
|
160 |
|
Accounts
receivable, net |
|
1,798 |
|
|
1,580 |
|
|
1,670 |
|
Inventories |
|
1,713 |
|
|
1,641 |
|
|
1,567 |
|
Other
current assets |
|
706 |
|
|
625 |
|
|
568 |
|
Total
current assets |
|
7,447 |
|
|
6,933 |
|
|
6,967 |
|
Long-term
investments |
|
936 |
|
|
930 |
|
|
935 |
|
Property,
plant and equipment, net |
|
887 |
|
|
864 |
|
|
861 |
|
Goodwill |
|
3,304 |
|
|
3,304 |
|
|
3,304 |
|
Purchased
technology and other intangible assets, net |
|
860 |
|
|
905 |
|
|
951 |
|
Deferred
income taxes and other assets |
|
153 |
|
|
137 |
|
|
156 |
|
Total
assets |
|
$ |
13,587 |
|
|
$ |
13,073 |
|
|
$ |
13,174 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts
payable and accrued expenses |
|
$ |
1,822 |
|
|
$ |
1,737 |
|
|
$ |
1,883 |
|
Customer
deposits and deferred revenue |
|
874 |
|
|
784 |
|
|
940 |
|
Total
current liabilities |
|
2,696 |
|
|
2,521 |
|
|
2,823 |
|
Long-term
debt |
|
1,947 |
|
|
1,947 |
|
|
1,947 |
|
Other
liabilities |
|
593 |
|
|
533 |
|
|
536 |
|
Total
liabilities |
|
5,236 |
|
|
5,001 |
|
|
5,306 |
|
Total
stockholders' equity |
|
8,351 |
|
|
8,072 |
|
|
7,868 |
|
Total
liabilities and stockholders' equity |
|
$ |
13,587 |
|
|
$ |
13,073 |
|
|
$ |
13,174 |
|
APPLIED MATERIALS, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In millions) |
Three Months Ended |
|
Six Months Ended |
April 26,
2015 |
|
January 25,
2015 |
|
April 27,
2014 |
April 26,
2015 |
|
April 27,
2014 |
Cash
flows from operating activities: |
|
|
|
|
|
|
|
|
|
Net
income |
$ |
364 |
|
|
$ |
348 |
|
|
$ |
262 |
|
|
$ |
712 |
|
|
$ |
515 |
|
Adjustments required to reconcile net income to cash provided by
operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
90 |
|
|
92 |
|
|
94 |
|
|
182 |
|
|
188 |
|
Share-based compensation |
47 |
|
|
48 |
|
|
42 |
|
|
95 |
|
|
88 |
|
Excess
tax benefits from share-based compensation |
(12 |
) |
|
(39 |
) |
|
(7 |
) |
|
(51 |
) |
|
(25 |
) |
Other |
(8 |
) |
|
36 |
|
|
12 |
|
|
28 |
|
|
21 |
|
Net
change in operating assets and liabilities |
(183 |
) |
|
(425 |
) |
|
34 |
|
|
(608 |
) |
|
22 |
|
Cash
provided by operating activities |
298 |
|
|
60 |
|
|
437 |
|
|
358 |
|
|
809 |
|
Cash
flows from investing activities: |
|
|
|
|
|
|
|
|
|
Capital
expenditures |
(64 |
) |
|
(49 |
) |
|
(65 |
) |
|
(113 |
) |
|
(113 |
) |
Proceeds
from sales and maturities of investments |
177 |
|
|
140 |
|
|
157 |
|
|
317 |
|
|
521 |
|
Purchases
of investments |
(203 |
) |
|
(141 |
) |
|
(161 |
) |
|
(344 |
) |
|
(324 |
) |
Cash
provided by (used in) investing activities |
(90 |
) |
|
(50 |
) |
|
(69 |
) |
|
(140 |
) |
|
84 |
|
Cash
flows from financing activities: |
|
|
|
|
|
|
|
|
|
Proceeds
from common stock issuances and others, net |
42 |
|
|
- |
|
|
56 |
|
|
42 |
|
|
66 |
|
Excess
tax benefits from share-based compensation |
12 |
|
|
39 |
|
|
7 |
|
|
51 |
|
|
25 |
|
Payments
of dividends to stockholders |
(123 |
) |
|
(122 |
) |
|
(122 |
) |
|
(245 |
) |
|
(242 |
) |
Cash used
in financing activities |
(69 |
) |
|
(83 |
) |
|
(59 |
) |
|
(152 |
) |
|
(151 |
) |
Effect of
exchange rate changes on cash and cash equivalents |
(1 |
) |
|
- |
|
|
- |
|
|
(1 |
) |
|
- |
|
Increase
(decrease) in cash and cash equivalents |
138 |
|
|
(73 |
) |
|
309 |
|
|
65 |
|
|
742 |
|
Cash and
cash equivalents - beginning of period |
2,929 |
|
|
3,002 |
|
|
2,144 |
|
|
3,002 |
|
|
1,711 |
|
Cash and
cash equivalents - end of period |
$ |
3,067 |
|
|
$ |
2,929 |
|
|
$ |
2,453 |
|
|
$ |
3,067 |
|
|
$ |
2,453 |
|
Supplemental cash flow information: |
|
|
|
|
|
|
|
|
|
Cash
payments for income taxes |
$ |
118 |
|
|
$ |
89 |
|
|
$ |
33 |
|
|
$ |
207 |
|
|
$ |
59 |
|
Cash
refunds from income taxes |
$ |
2 |
|
|
$ |
3 |
|
|
$ |
3 |
|
|
$ |
5 |
|
|
$ |
12 |
|
Cash
payments for interest |
$ |
7 |
|
|
$ |
39 |
|
|
$ |
7 |
|
|
$ |
46 |
|
|
$ |
46 |
|
APPLIED MATERIALS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
Reportable Segment
Results
|
|
Q2 FY2015 |
|
Q1 FY2015 |
|
Q2 FY2014 |
(In millions) |
|
New
Orders |
|
Net
Sales |
|
Operating
Income
(Loss) |
|
New
Orders |
|
Net
Sales |
|
Operating
Income
(Loss) |
|
New
Orders |
|
Net
Sales |
|
Operating
Income
(Loss) |
SSG |
|
$ |
1,704 |
|
|
$ |
1,560 |
|
|
$ |
374 |
|
|
$ |
1,426 |
|
|
$ |
1,446 |
|
|
$ |
307 |
|
|
$ |
1,664 |
|
|
$ |
1,584 |
|
|
$ |
391 |
|
AGS |
|
641 |
|
|
646 |
|
|
170 |
|
|
690 |
|
|
583 |
|
|
153 |
|
|
537 |
|
|
534 |
|
|
148 |
|
Display |
|
120 |
|
|
163 |
|
|
40 |
|
|
107 |
|
|
275 |
|
|
72 |
|
|
340 |
|
|
147 |
|
|
26 |
|
EES |
|
50 |
|
|
73 |
|
|
(5 |
) |
|
50 |
|
|
55 |
|
|
(4 |
) |
|
88 |
|
|
88 |
|
|
5 |
|
Corporate |
|
- |
|
|
- |
|
|
(163 |
) |
|
- |
|
|
- |
|
|
(70 |
) |
|
- |
|
|
- |
|
|
(183 |
) |
Con-
solidated |
|
$ |
2,515 |
|
|
$ |
2,442 |
|
|
$ |
416 |
|
|
$ |
2,273 |
|
|
$ |
2,359 |
|
|
$ |
458 |
|
|
$ |
2,629 |
|
|
$ |
2,353 |
|
|
$ |
387 |
|
Corporate Unallocated
Expenses
(In millions) |
|
Q2 FY2015 |
|
Q1 FY2015 |
|
Q2 FY2014 |
Share-based compensation |
|
47 |
|
|
48 |
|
|
42 |
|
Certain items associated with announced business combination |
|
29 |
|
|
20 |
|
|
16 |
|
Loss
(gain) on derivative associated with announced business
combination, net |
|
(14 |
) |
|
(78 |
) |
|
23 |
|
Other
unallocated expenses |
|
101 |
|
|
80 |
|
|
102 |
|
Total
corporate |
|
$ |
163 |
|
|
$ |
70 |
|
|
$ |
183 |
|
APPLIED MATERIALS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
Additional Information
|
|
Q2 FY2015 |
|
Q1 FY2015 |
|
Q2 FY2014 |
New
Orders and Net Sales by Geography |
|
|
|
|
|
|
|
|
|
|
|
|
(In $ millions) |
|
New
Orders |
|
Net
Sales |
|
New
Orders |
|
Net
Sales |
|
New
Orders |
|
Net
Sales |
United
States |
|
368 |
|
|
632 |
|
|
411 |
|
|
529 |
|
|
521 |
|
|
370 |
|
% of
Total |
|
15 |
% |
|
26 |
% |
|
18 |
% |
|
22 |
% |
|
20 |
% |
|
16 |
% |
Europe |
|
131 |
|
|
150 |
|
|
148 |
|
|
143 |
|
|
199 |
|
|
156 |
|
% of
Total |
|
5 |
% |
|
6 |
% |
|
6 |
% |
|
6 |
% |
|
7 |
% |
|
7 |
% |
Japan |
|
365 |
|
|
257 |
|
|
242 |
|
|
231 |
|
|
203 |
|
|
215 |
|
% of
Total |
|
15 |
% |
|
10 |
% |
|
11 |
% |
|
10 |
% |
|
8 |
% |
|
9 |
% |
Korea |
|
607 |
|
|
449 |
|
|
546 |
|
|
464 |
|
|
378 |
|
|
351 |
|
% of
Total |
|
24 |
% |
|
18 |
% |
|
24 |
% |
|
20 |
% |
|
14 |
% |
|
15 |
% |
Taiwan |
|
589 |
|
|
455 |
|
|
545 |
|
|
519 |
|
|
660 |
|
|
781 |
|
% of
Total |
|
23 |
% |
|
19 |
% |
|
24 |
% |
|
22 |
% |
|
25 |
% |
|
33 |
% |
Southeast
Asia |
|
103 |
|
|
87 |
|
|
85 |
|
|
85 |
|
|
72 |
|
|
52 |
|
% of
Total |
|
4 |
% |
|
4 |
% |
|
4 |
% |
|
4 |
% |
|
3 |
% |
|
2 |
% |
China |
|
352 |
|
|
412 |
|
|
296 |
|
|
388 |
|
|
596 |
|
|
428 |
|
% of
Total |
|
14 |
% |
|
17 |
% |
|
13 |
% |
|
16 |
% |
|
23 |
% |
|
18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees (In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Regular
Full Time |
|
14.3 |
|
|
14.1 |
|
|
13.7 |
|
APPLIED MATERIALS,
INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
|
|
Three Months Ended |
|
Six Months Ended |
(In millions, except percentages) |
|
April 26,
2015 |
|
January 25,
2015 |
|
April 27,
2014 |
|
April 26,
2015 |
|
April 27,
2014 |
Non-GAAP
Adjusted Gross Profit |
|
|
|
|
|
|
|
|
|
|
Reported
gross profit - GAAP basis |
|
$ |
1,016 |
|
|
$ |
959 |
|
|
$ |
1,001 |
|
|
$ |
1,975 |
|
|
$ |
1,892 |
|
Certain
items associated with acquisitions1 |
|
39 |
|
|
40 |
|
|
39 |
|
|
79 |
|
|
78 |
|
Acquisition integration costs |
|
- |
|
|
- |
|
|
1 |
|
|
- |
|
|
1 |
|
Non-GAAP
adjusted gross profit |
|
$ |
1,055 |
|
|
$ |
999 |
|
|
$ |
1,041 |
|
|
$ |
2,054 |
|
|
$ |
1,971 |
|
Non-GAAP
adjusted gross margin |
|
43.2 |
% |
|
42.3 |
% |
|
44.2 |
% |
|
42.8 |
% |
|
43.4 |
% |
Non-GAAP
Adjusted Operating Income |
|
|
|
|
|
|
|
|
|
|
Reported
operating income - GAAP basis |
|
$ |
416 |
|
|
$ |
458 |
|
|
$ |
387 |
|
|
$ |
874 |
|
|
$ |
717 |
|
Certain
items associated with acquisitions1 |
|
45 |
|
|
46 |
|
|
46 |
|
|
91 |
|
|
91 |
|
Acquisition integration costs |
|
- |
|
|
1 |
|
|
10 |
|
|
1 |
|
|
21 |
|
Loss
(gain) on derivatives associated with announced business
combination, net |
|
(14 |
) |
|
(78 |
) |
|
23 |
|
|
(92 |
) |
|
(1 |
) |
Certain
items associated with announced business combination2 |
|
29 |
|
|
20 |
|
|
16 |
|
|
49 |
|
|
27 |
|
Restructuring charges and asset impairments3 |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
7 |
|
Non-GAAP
adjusted operating income |
|
$ |
476 |
|
|
$ |
447 |
|
|
$ |
482 |
|
|
$ |
923 |
|
|
$ |
862 |
|
Non-GAAP
adjusted operating margin |
|
19.5 |
% |
|
18.9 |
% |
|
20.5 |
% |
|
19.2 |
% |
|
19.0 |
% |
Non-GAAP
Adjusted Net Income |
|
|
|
|
|
|
|
|
|
|
Reported
net income - GAAP basis4 |
|
$ |
364 |
|
|
$ |
348 |
|
|
$ |
262 |
|
|
$ |
712 |
|
|
$ |
515 |
|
Certain
items associated with acquisitions1 |
|
45 |
|
|
46 |
|
|
46 |
|
|
91 |
|
|
91 |
|
Acquisition integration costs |
|
- |
|
|
1 |
|
|
10 |
|
|
1 |
|
|
21 |
|
Loss
(gain) on derivatives associated with announced business
combination, net |
|
(14 |
) |
|
(78 |
) |
|
23 |
|
|
(92 |
) |
|
(1 |
) |
Certain
items associated with announced business combination2 |
|
29 |
|
|
20 |
|
|
16 |
|
|
49 |
|
|
27 |
|
Restructuring charges and asset impairments3 |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
7 |
|
Impairment (gain on sale) of strategic investments, net |
|
6 |
|
|
1 |
|
|
2 |
|
|
7 |
|
|
(3 |
) |
Reinstatement of federal R&D tax credit, resolution of prior
years' income tax filings and other tax items4 |
|
(54 |
) |
|
(17 |
) |
|
12 |
|
|
(71 |
) |
|
(3 |
) |
Income
tax effect of non-GAAP adjustments |
|
(14 |
) |
|
17 |
|
|
(23 |
) |
|
3 |
|
|
(27 |
) |
Non-GAAP
adjusted net income |
|
$ |
362 |
|
|
$ |
338 |
|
|
$ |
348 |
|
|
$ |
700 |
|
|
$ |
627 |
|
1 |
These items are incremental charges attributable to
completed acquisitions, consisting of amortization of purchased
intangible assets. |
|
|
2 |
These items are incremental charges related to the
announced business combination agreement with Tokyo Electron
Limited, consisting of acquisition-related and integration planning
costs. |
|
|
3 |
Results for the six months ended April 27, 2014
included a $7 million of employee-related costs related to the
restructuring program announced on October 3, 2012. |
|
|
4 |
Amounts for the three and six months ended April 26,
2015 included an adjustment to decrease the provision for income
taxes by $39 million and $35 million, respectively, with a
corresponding increase in net income and diluted earnings per share
of $0.03. The adjustment was excluded in Applied's non-GAAP
adjusted results and was made primarily to correct an error in the
recognition of cost of sales in the U.S. related to intercompany
sales, which resulted in overstating profitability in the U.S. and
the provision for income taxes in immaterial amounts in each year
since fiscal 2010. |
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
|
|
Three Months Ended |
|
Six Months Ended |
(In millions except per share amounts) |
|
April 26,
2015 |
|
January 25,
2015 |
|
April 27,
2014 |
|
April 26,
2015 |
|
April 27,
2014 |
Non-GAAP
Adjusted Earnings Per Diluted Share |
|
|
|
|
|
|
|
|
|
|
Reported
earnings per diluted share - GAAP basis1 |
|
$ |
0.29 |
|
|
$ |
0.28 |
|
|
$ |
0.21 |
|
|
$ |
0.57 |
|
|
$ |
0.42 |
|
Certain
items associated with acquisitions |
|
0.03 |
|
|
0.03 |
|
|
0.03 |
|
|
0.07 |
|
|
0.06 |
|
Acquisition integration costs |
|
- |
|
|
- |
|
|
0.01 |
|
|
- |
|
|
0.01 |
|
Certain
items associated with announced business combination |
|
0.02 |
|
|
0.01 |
|
|
0.01 |
|
|
0.03 |
|
|
0.02 |
|
Loss
(gain) on derivative associated with announced business
combination, net |
|
(0.01 |
) |
|
(0.04 |
) |
|
0.01 |
|
|
(0.05 |
) |
|
- |
|
Reinstatement of federal R&D tax credit, resolution of prior
years' income tax filings and other tax items1 |
|
(0.04 |
) |
|
(0.01 |
) |
|
0.01 |
|
|
(0.06 |
) |
|
- |
|
Non-GAAP
adjusted earnings per diluted share |
|
$ |
0.29 |
|
|
$ |
0.27 |
|
|
$ |
0.28 |
|
|
$ |
0.56 |
|
|
$ |
0.51 |
|
Weighted
average number of diluted shares |
|
1,241 |
|
|
1,240 |
|
|
1,229 |
|
|
1,241 |
|
|
1,227 |
|
1 |
Amounts for the three and six months ended April 26,
2015 included an adjustment to decrease the provision for income
taxes by $39 million and $35 million, respectively, with a
corresponding increase in net income and diluted earnings per share
of $0.03. The adjustment was excluded in Applied's non-GAAP
adjusted results and was made primarily to correct an error in the
recognition of cost of sales in the U.S. related to intercompany
sales, which resulted in overstating profitability in the U.S. and
the provision for income taxes in immaterial amounts in each year
since fiscal 2010. |
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
|
|
Three Months Ended |
|
Six Months Ended |
(In millions, except percentages) |
|
April 26,
2015 |
|
January 25,
2015 |
|
April 27,
2014 |
|
April 26,
2015 |
|
April 27,
2014 |
SSG
Non-GAAP Adjusted Operating Income |
|
|
|
|
|
|
|
|
|
|
Reported
operating income - GAAP basis |
|
$ |
374 |
|
|
$ |
307 |
|
|
$ |
391 |
|
|
$ |
681 |
|
|
$ |
705 |
|
Certain
items associated with acquisitions1 |
|
44 |
|
|
43 |
|
|
42 |
|
|
87 |
|
|
84 |
|
Acquisition integration costs |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
1 |
|
Non-GAAP
adjusted operating income |
|
$ |
418 |
|
|
$ |
350 |
|
|
$ |
433 |
|
|
$ |
768 |
|
|
$ |
790 |
|
Non-GAAP
adjusted operating margin |
|
26.8 |
% |
|
24.2 |
% |
|
27.3 |
% |
|
25.5 |
% |
|
25.7 |
% |
AGS
Non-GAAP Adjusted Operating Income |
|
|
|
|
|
|
|
|
|
|
Reported
operating income - GAAP basis |
|
$ |
170 |
|
|
$ |
153 |
|
|
$ |
148 |
|
|
$ |
323 |
|
|
$ |
273 |
|
Certain
items associated with acquisitions1 |
|
- |
|
|
1 |
|
|
2 |
|
|
1 |
|
|
3 |
|
Non-GAAP
adjusted operating income |
|
$ |
170 |
|
|
$ |
154 |
|
|
$ |
150 |
|
|
$ |
324 |
|
|
$ |
276 |
|
Non-GAAP
adjusted operating margin |
|
26.3 |
% |
|
26.4 |
% |
|
28.1 |
% |
|
26.4 |
% |
|
26.5 |
% |
Display
Non-GAAP Adjusted Operating Income |
|
|
|
|
|
|
|
|
|
|
Reported
operating income - GAAP basis |
|
$ |
40 |
|
|
$ |
72 |
|
|
$ |
26 |
|
|
$ |
112 |
|
|
$ |
52 |
|
Certain items associated with acquisitions1 |
|
- |
|
|
1 |
|
|
- |
|
|
1 |
|
|
1 |
|
Non-GAAP
adjusted operating income |
|
$ |
40 |
|
|
$ |
73 |
|
|
$ |
26 |
|
|
$ |
113 |
|
|
$ |
53 |
|
Non-GAAP
adjusted operating margin |
|
24.5 |
% |
|
26.5 |
% |
|
17.7 |
% |
|
25.8 |
% |
|
17.3 |
% |
EES
Non-GAAP Adjusted Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
|
Reported
operating income (loss) - GAAP basis |
|
$ |
(5 |
) |
|
$ |
(4 |
) |
|
$ |
5 |
|
|
$ |
(9 |
) |
|
$ |
(6 |
) |
Certain
items associated with acquisitions1 |
|
1 |
|
|
1 |
|
|
2 |
|
|
2 |
|
|
3 |
|
Non-GAAP
adjusted operating income (loss) |
|
$ |
(4 |
) |
|
$ |
(3 |
) |
|
$ |
7 |
|
|
$ |
(7 |
) |
|
$ |
(3 |
) |
Non-GAAP
adjusted operating margin |
|
(5.5 |
)% |
|
(5.5 |
)% |
|
8.0 |
% |
|
(5.5 |
)% |
|
(2.3 |
)% |
1 |
These items are incremental charges attributable to
completed acquisitions, consisting of amortization of purchased
intangible assets. |
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO
NON-GAAP ADJUSTED OPERATING EXPENSES
|
Three Months Ended |
(In millions) |
April 26, 2015 |
|
January 25, 2015 |
|
|
|
|
Operating
expenses - GAAP basis |
$ |
600 |
|
|
$ |
501 |
|
Gain
on derivative associated with announced business combination,
net |
14 |
|
|
78 |
|
Certain
items associated with acquisitions |
(6 |
) |
|
(6 |
) |
Acquisition integration costs |
- |
|
|
(1 |
) |
Certain
items associated with announced business combination |
(29 |
) |
|
(20 |
) |
Non-GAAP
adjusted operating expenses |
$ |
579 |
|
|
$ |
552 |
|
UNAUDITED RECONCILIATION OF GAAP TO
NON-GAAP ADJUSTED EFFECTIVE INCOME TAX RATE
|
Three Months Ended |
(In millions, except percentages) |
April 26, 2015 |
|
|
Provision
for income taxes - GAAP basis1 (a) |
$ |
25 |
|
Reinstatement of federal R&D tax credit, resolutions of prior
years' income tax filings and other tax items |
54 |
|
Income
tax effect of non-GAAP adjustments1 |
14 |
|
Non-GAAP
adjusted provision for income taxes (b) |
$ |
93 |
|
|
|
Income
before income taxes - GAAP basis (c) |
$ |
389 |
|
Certain
items associated with acquisitions |
45 |
|
Gain on
derivative associated with announced business combination |
(14 |
) |
Certain
items associated with announced business combination |
29 |
|
Impairment of strategic investments, net |
6 |
|
Non-GAAP
adjusted income before income taxes (d) |
$ |
455 |
|
|
|
Effective
income tax rate - GAAP basis1 (a/c) |
6.4 |
% |
|
|
Non-GAAP
adjusted effective income tax rate (b/d) |
20.4 |
% |
1 |
Amounts for the three months ended April 26, 2015
included an adjustment to decrease the provision for income taxes
by $39 million, with a corresponding increase in net income and
diluted earnings per share of $0.03. The adjustment was excluded in
Applied's non-GAAP adjusted results and was made primarily to
correct an error in the recognition of cost of sales in the U.S.
related to intercompany sales, which resulted in overstating
profitability in the U.S. and the provision for income taxes in
immaterial amounts in each year since fiscal 2010. |
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
HUG#1921623
Applied Materials (NASDAQ:AMAT)
Historical Stock Chart
From Feb 2024 to Mar 2024
Applied Materials (NASDAQ:AMAT)
Historical Stock Chart
From Mar 2023 to Mar 2024