- Q1 net sales of $2.36
billion up 8% year over year led by growth in Applied Global
Services and Display
- Q1 non-GAAP adjusted operating
income of $447 million up 18% year over year; GAAP operating income
of $458 million up 39% year over year
- Q1 non-GAAP adjusted EPS of
$0.27 up 17% year over year; GAAP EPS of $0.28 up 33% year over
year
SANTA CLARA, Calif., Feb. 11, 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 first quarter
ended January 25, 2015.
First quarter orders were $2.27 billion, up 1
percent sequentially and down 1 percent year over year. Net sales
were $2.36 billion, up 4 percent sequentially and up 8 percent year
over year.
On a non-GAAP adjusted basis, the company reported
gross margin of 42.3 percent, operating income of $447 million, and
net income of $338 million or $0.27 per diluted share. The company
recorded GAAP gross margin of 40.7 percent, operating income of
$458 million, and net income of $348 million or $0.28 per diluted
share.
"Major technology inflections in semiconductor and
display are creating new growth opportunities for Applied's
precision materials engineering products and services," said Gary
Dickerson, president and chief executive officer. "With focus and
execution, we are gaining momentum toward our long-term strategic
goals, and this progress will be accelerated by our planned merger
with Tokyo Electron."
Quarterly Results Summary
|
|
|
|
|
|
|
|
Change |
GAAP Results |
|
Q1 FY2015 |
|
Q4 FY2014 |
|
Q1 FY2014 |
|
Q1 FY2015
vs.
Q4 FY2014 |
|
Q1 FY2015
vs.
Q1 FY2014 |
Net sales |
|
$2.36 billion |
|
$2.26 billion |
|
$2.19 billion |
|
4% |
|
8% |
Gross profit |
|
$959 million |
|
$959 million |
|
$891 million |
|
flat |
|
8% |
Operating income |
|
$458 million |
|
$412 million |
|
$330 million |
|
11% |
|
39% |
Net income |
|
$348 million |
|
$256 million |
|
$253 million |
|
36% |
|
38% |
Diluted earnings per share (EPS) |
|
$0.28 |
|
$0.21 |
|
$0.21 |
|
33% |
|
33% |
Non-GAAP Adjusted Results |
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted gross profit |
|
$1.00 billion |
|
$1.00 billion |
|
$930 million |
|
flat |
|
7% |
Non-GAAP adjusted operating income |
|
$447 million |
|
$442 million |
|
$380 million |
|
1% |
|
18% |
Non-GAAP adjusted net income |
|
$338 million |
|
$338 million |
|
$279 million |
|
flat |
|
21% |
Non-GAAP adjusted diluted EPS |
|
$0.27 |
|
$0.27 |
|
$0.23 |
|
flat |
|
17% |
Applied's non-GAAP adjusted results exclude the
impact of the following, where applicable: certain items related to
acquisitions or the announced business combination; 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.
First Quarter Reportable Segment
Results and Comparisons to the Prior Quarter
Silicon Systems Group (SSG) orders were $1.43
billion, up 7 percent, with increases in DRAM and NAND, and
decreases in foundry and logic/other. Net sales increased by 1
percent to $1.45 billion. Non-GAAP adjusted operating income
decreased by 1 percent to $350 million or 24.2 percent of net
sales. GAAP operating income increased by 1 percent to $307 million
or 21.2 percent of net sales. New order composition was: foundry 34
percent; DRAM 34 percent; flash 18 percent and logic/other 14
percent.
Applied Global Services (AGS) orders of $690
million were the second highest in group history and declined 8
percent from the record set in the previous quarter due to
decreases in semiconductor services and 200mm equipment orders. Net
sales of $583 million declined 2 percent. Non-GAAP adjusted
operating income increased by 5 percent to $154
million or 26.4 percent of net sales. GAAP operating
income increased by 5 percent to $153 million or 26.2 percent of
net sales.
Display orders of $107 million were down 18
percent reflecting a decrease in TV equipment orders. Net sales
increased by 45 percent to $275 million. Non-GAAP adjusted
operating income increased by 40 percent to $73 million or 26.5
percent of net sales. GAAP operating income increased by 38 percent
to $72 million or 26.2 percent of net sales.
Energy and Environmental Solutions (EES) orders
increased by 14 percent to $50 million, and net sales increased by
15 percent to $55 million. EES reported a non-GAAP adjusted
operating loss of $3 million and a GAAP operating loss of $4
million.
Applied's backlog declined by 5 percent to $2.78
billion and included negative adjustments of $53 million, primarily
consisting of currency adjustments. Backlog composition by segment
was: SSG 49 percent; AGS 30 percent; Display 15 percent; and
EES 6 percent.
Business Outlook
For the second quarter of fiscal 2015, Applied
expects net sales to be in the range of flat to up a couple of
percentage points from the previous quarter. Non-GAAP adjusted
diluted EPS is expected to be in the range of $0.26 to
$0.30. This outlook excludes known charges related to
completed acquisitions of $0.03 per share. The outlook 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 Applied's performance, strategies, industry
outlooks, and business outlook for the second quarter of fiscal
2015. These statements and their underlying assumptions are subject
to known and unknown risks and uncertainties that could cause
actual results to differ materially from those expressed or implied
by such statements, including but not limited to: the level of
demand for Applied's products, which is subject to many factors,
including uncertain global economic and industry conditions,
end-demand for electronic products and semiconductors, and
customers' new technology and capacity requirements; the timing and
nature of technology transitions; the concentrated nature of
Applied's customer base; Applied's ability to (i) develop,
deliver and support a broad range of products and expand its
markets, (ii) achieve the objectives of operational and strategic
initiatives, (iii) obtain and protect intellectual property
rights in key technologies, (iv) attract, motivate and retain
key employees, (v) successfully complete the announced business
combination and realize expected benefits and synergies, and
(vi) accurately forecast future results, which depends on
multiple assumptions related to, without limitation, market
conditions, customer requirements and business needs; and other
risks described in Applied's SEC filings, including its most recent
Forms 10-K and 8-K. All forward-looking statements are based on
management's estimates, projections and assumptions as of the date
hereof. The company undertakes no obligation to update any
forward-looking statements.
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 |
(In millions, except per share amounts) |
|
January 25,
2015 |
|
October 26,
2014 |
|
January 26,
2014 |
Net
sales |
|
$ |
2,359 |
|
|
$ |
2,264 |
|
|
$ |
2,190 |
|
Cost of
products sold |
|
1,400 |
|
|
1,305 |
|
|
1,299 |
|
Gross
profit |
|
959 |
|
|
959 |
|
|
891 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Research,
development and engineering |
|
351 |
|
|
360 |
|
|
356 |
|
Marketing
and selling |
|
111 |
|
|
99 |
|
|
109 |
|
General
and administrative |
|
39 |
|
|
88 |
|
|
96 |
|
Total
operating expenses |
|
501 |
|
|
547 |
|
|
561 |
|
Income
from operations |
|
458 |
|
|
412 |
|
|
330 |
|
Interest
expense |
|
23 |
|
|
23 |
|
|
25 |
|
Interest
and other income, net |
|
2 |
|
|
9 |
|
|
10 |
|
Income
before income taxes |
|
437 |
|
|
398 |
|
|
315 |
|
Provision
for income taxes |
|
89 |
|
|
142 |
|
|
62 |
|
Net
income |
|
$ |
348 |
|
|
$ |
256 |
|
|
$ |
253 |
|
Earnings
per share: |
|
|
|
|
|
|
|
|
|
Basic and
diluted |
|
$ |
0.28 |
|
|
$ |
0.21 |
|
|
$ |
0.21 |
|
Weighted
average number of shares: |
|
|
|
|
|
|
|
|
|
Basic |
|
1,224 |
|
|
1,220 |
|
|
1,206 |
|
Diluted |
|
1,240 |
|
|
1,236 |
|
|
1,225 |
|
APPLIED MATERIALS, INC.
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
(In millions) |
|
January 25,
2015 |
|
October 26,
2014 |
ASSETS |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
2,929 |
|
|
$ |
3,002 |
|
Short-term investments |
|
158 |
|
|
160 |
|
Accounts
receivable, net |
|
1,580 |
|
|
1,670 |
|
Inventories |
|
1,641 |
|
|
1,567 |
|
Other
current assets |
|
625 |
|
|
568 |
|
Total
current assets |
|
6,933 |
|
|
6,967 |
|
Long-term
investments |
|
930 |
|
|
935 |
|
Property,
plant and equipment, net |
|
864 |
|
|
861 |
|
Goodwill |
|
3,304 |
|
|
3,304 |
|
Purchased
technology and other intangible assets, net |
|
905 |
|
|
951 |
|
Deferred
income taxes and other assets |
|
137 |
|
|
156 |
|
Total
assets |
|
$ |
13,073 |
|
|
$ |
13,174 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts
payable and accrued expenses |
|
$ |
1,737 |
|
|
$ |
1,883 |
|
Customer
deposits and deferred revenue |
|
784 |
|
|
940 |
|
Total
current liabilities |
|
2,521 |
|
|
2,823 |
|
Long-term
debt |
|
1,947 |
|
|
1,947 |
|
Other
liabilities |
|
533 |
|
|
536 |
|
Total
liabilities |
|
5,001 |
|
|
5,306 |
|
Total
stockholders' equity |
|
8,072 |
|
|
7,868 |
|
Total
liabilities and stockholders' equity |
|
$ |
13,073 |
|
|
$ |
13,174 |
|
APPLIED MATERIALS, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In millions) |
Three Months Ended |
January 25,
2015 |
|
October 26,
2014 |
|
January 26,
2014 |
Cash
flows from operating activities: |
|
|
|
|
|
|
|
|
Net
income |
$ |
348 |
|
|
$ |
256 |
|
|
$ |
253 |
|
Adjustments required to reconcile net income to cash provided by
operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
92 |
|
|
94 |
|
|
94 |
|
Unrealized loss (gain) on derivative associated with announced
business combination |
(78 |
) |
|
12 |
|
|
(24 |
) |
Share-based compensation |
48 |
|
|
45 |
|
|
46 |
|
Excess
tax benefits from share-based compensation |
(39 |
) |
|
(4 |
) |
|
(18 |
) |
Other |
36 |
|
|
1 |
|
|
9 |
|
Net
change in operating assets and liabilities |
(347 |
) |
|
3 |
|
|
12 |
|
Cash
provided by operating activities |
60 |
|
|
407 |
|
|
372 |
|
Cash
flows from investing activities: |
|
|
|
|
|
|
|
|
Capital
expenditures |
(49 |
) |
|
(63 |
) |
|
(48 |
) |
Cash paid
for acquisition, net of cash acquired |
- |
|
|
(12 |
) |
|
- |
|
Proceeds
from sale of facility |
- |
|
|
25 |
|
|
- |
|
Proceeds
from sales and maturities of investments |
140 |
|
|
176 |
|
|
364 |
|
Purchases
of investments |
(141 |
) |
|
(179 |
) |
|
(163 |
) |
Cash
provided by (used in) investing activities |
(50 |
) |
|
(53 |
) |
|
153 |
|
Cash
flows from financing activities: |
|
|
|
|
|
|
|
|
Proceeds
from common stock issuances and others, net |
- |
|
|
40 |
|
|
10 |
|
Excess
tax benefits from share-based compensation |
39 |
|
|
4 |
|
|
18 |
|
Payments
of dividends to stockholders |
(122 |
) |
|
(122 |
) |
|
(120 |
) |
Cash used
in financing activities |
(83 |
) |
|
(78 |
) |
|
(92 |
) |
Increase
(decrease) in cash and cash equivalents |
(73 |
) |
|
276 |
|
|
433 |
|
Cash and
cash equivalents - beginning of period |
3,002 |
|
|
2,726 |
|
|
1,711 |
|
Cash and
cash equivalents - end of period |
$ |
2,929 |
|
|
$ |
3,002 |
|
|
$ |
2,144 |
|
Supplemental cash flow information: |
|
|
|
|
|
|
|
|
Cash
payments for income taxes |
$ |
89 |
|
|
$ |
87 |
|
|
$ |
26 |
|
Cash
refunds from income taxes |
$ |
3 |
|
|
$ |
78 |
|
|
$ |
9 |
|
Cash
payments for interest |
$ |
39 |
|
|
$ |
7 |
|
|
$ |
39 |
|
APPLIED MATERIALS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
Reportable Segment
Results
|
|
Q1 FY2015 |
|
Q4 FY2014 |
|
Q1 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 |
|
$ |
1,426 |
|
|
$ |
1,446 |
|
|
$ |
307 |
|
|
$ |
1,334 |
|
|
$ |
1,434 |
|
|
$ |
305 |
|
|
$ |
1,569 |
|
|
$ |
1,484 |
|
|
$ |
314 |
|
AGS |
|
690 |
|
|
583 |
|
|
153 |
|
|
747 |
|
|
592 |
|
|
146 |
|
|
597 |
|
|
507 |
|
|
125 |
|
Display |
|
107 |
|
|
275 |
|
|
72 |
|
|
130 |
|
|
190 |
|
|
52 |
|
|
79 |
|
|
159 |
|
|
26 |
|
EES |
|
50 |
|
|
55 |
|
|
(4 |
) |
|
44 |
|
|
48 |
|
|
(3 |
) |
|
40 |
|
|
40 |
|
|
(11 |
) |
Corporate |
|
- |
|
|
- |
|
|
(70 |
) |
|
- |
|
|
- |
|
|
(88 |
) |
|
- |
|
|
- |
|
|
(124 |
) |
Consoli-
dated |
|
$ |
2,273 |
|
|
$ |
2,359 |
|
|
$ |
458 |
|
|
$ |
2,255 |
|
|
$ |
2,264 |
|
|
$ |
412 |
|
|
$ |
2,285 |
|
|
$ |
2,190 |
|
|
$ |
330 |
|
Corporate Unallocated
Expenses
(In millions) |
|
Q1 FY2015 |
|
Q4 FY2014 |
|
Q1 FY2014 |
Share-based compensation |
|
48 |
|
|
45 |
|
|
46 |
|
Certain items associated with announced business combination |
|
20 |
|
|
23 |
|
|
11 |
|
Gain
on derivative associated with announced business combination,
net |
|
(78 |
) |
|
(39 |
) |
|
(24 |
) |
Restructuring charges and asset impairments |
|
- |
|
|
(2 |
) |
|
7 |
|
Gain on
sale of facility |
|
- |
|
|
(4 |
) |
|
- |
|
Other
unallocated expenses |
|
80 |
|
|
65 |
|
|
84 |
|
Total
corporate |
|
$ |
70 |
|
|
$ |
88 |
|
|
$ |
124 |
|
APPLIED MATERIALS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
Additional Information
|
|
Q1 FY2015 |
|
Q4 FY2014 |
|
Q1 FY2014 |
New
Orders and Net Sales by Geography |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In $ millions) |
|
New
Orders |
|
Net
Sales |
|
New
Orders |
|
Net
Sales |
|
New
Orders |
|
Net
Sales |
United
States |
|
411 |
|
|
529 |
|
|
596 |
|
|
633 |
|
|
403 |
|
|
280 |
|
% of
Total |
|
18 |
% |
|
22 |
% |
|
26 |
% |
|
28 |
% |
|
18 |
% |
|
13 |
% |
Europe |
|
148 |
|
|
143 |
|
|
198 |
|
|
178 |
|
|
119 |
|
|
164 |
|
% of
Total |
|
6 |
% |
|
6 |
% |
|
9 |
% |
|
8 |
% |
|
5 |
% |
|
7 |
% |
Japan |
|
242 |
|
|
231 |
|
|
287 |
|
|
209 |
|
|
163 |
|
|
164 |
|
% of
Total |
|
11 |
% |
|
10 |
% |
|
13 |
% |
|
9 |
% |
|
7 |
% |
|
8 |
% |
Korea |
|
546 |
|
|
464 |
|
|
251 |
|
|
187 |
|
|
240 |
|
|
201 |
|
% of
Total |
|
24 |
% |
|
20 |
% |
|
11 |
% |
|
8 |
% |
|
11 |
% |
|
9 |
% |
Taiwan |
|
545 |
|
|
519 |
|
|
599 |
|
|
618 |
|
|
984 |
|
|
705 |
|
% of
Total |
|
24 |
% |
|
22 |
% |
|
27 |
% |
|
27 |
% |
|
43 |
% |
|
32 |
% |
Southeast
Asia |
|
85 |
|
|
85 |
|
|
113 |
|
|
136 |
|
|
50 |
|
|
87 |
|
% of
Total |
|
4 |
% |
|
4 |
% |
|
5 |
% |
|
6 |
% |
|
2 |
% |
|
4 |
% |
China |
|
296 |
|
|
388 |
|
|
211 |
|
|
303 |
|
|
326 |
|
|
589 |
|
% of
Total |
|
13 |
% |
|
16 |
% |
|
9 |
% |
|
14 |
% |
|
14 |
% |
|
27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees (In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regular
Full Time |
|
14.1 |
|
|
14.0 |
|
|
13.6 |
|
APPLIED MATERIALS,
INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
|
|
Three Months Ended |
(In millions, except percentages) |
|
January 25,
2015 |
|
October 26,
2014 |
|
January 26,
2014 |
Non-GAAP
Adjusted Gross Profit |
|
|
|
|
|
|
|
|
|
Reported
gross profit - GAAP basis |
|
$ |
959 |
|
|
$ |
959 |
|
|
$ |
891 |
|
Certain
items associated with acquisitions1 |
|
40 |
|
|
42 |
|
|
39 |
|
Non-GAAP
adjusted gross profit |
|
$ |
999 |
|
|
$ |
1,001 |
|
|
$ |
930 |
|
Non-GAAP
adjusted gross margin (% of net sales) |
|
42.3 |
% |
|
44.2 |
% |
|
42.5 |
% |
Non-GAAP
Adjusted Operating Income |
|
|
|
|
|
|
|
|
|
Reported
operating income - GAAP basis |
|
$ |
458 |
|
|
$ |
412 |
|
|
$ |
330 |
|
Certain
items associated with acquisitions1 |
|
46 |
|
|
48 |
|
|
45 |
|
Acquisition integration costs |
|
1 |
|
|
4 |
|
|
11 |
|
Gain on
derivative associated with announced business combination, net |
|
(78 |
) |
|
(39 |
) |
|
(24 |
) |
Certain
items associated with announced business combination2 |
|
20 |
|
|
23 |
|
|
11 |
|
Restructuring charges and asset impairments3 |
|
- |
|
|
(2 |
) |
|
7 |
|
Gain on
sale of facility |
|
- |
|
|
(4 |
) |
|
- |
|
Non-GAAP
adjusted operating income |
|
$ |
447 |
|
|
$ |
442 |
|
|
$ |
380 |
|
Non-GAAP
adjusted operating margin (% of net sales) |
|
18.9 |
% |
|
19.5 |
% |
|
17.4 |
% |
Non-GAAP
Adjusted Net Income |
|
|
|
|
|
|
|
|
|
Reported
net income - GAAP basis |
|
$ |
348 |
|
|
$ |
256 |
|
|
$ |
253 |
|
Certain
items associated with acquisitions1 |
|
46 |
|
|
48 |
|
|
45 |
|
Acquisition integration costs |
|
1 |
|
|
4 |
|
|
11 |
|
Gain on
derivative associated with announced business combination, net |
|
(78 |
) |
|
(39 |
) |
|
(24 |
) |
Certain
items associated with announced business combination2 |
|
20 |
|
|
23 |
|
|
11 |
|
Restructuring charges and asset impairments3 |
|
- |
|
|
(2 |
) |
|
7 |
|
Gain on
sale of facility |
|
- |
|
|
(4 |
) |
|
- |
|
Impairment (gain on sale) of strategic investments, net |
|
1 |
|
|
(5 |
) |
|
(5 |
) |
Reinstatement of federal R&D tax credit, resolution of prior
years' income tax filings and other tax items |
|
(17 |
) |
|
50 |
|
|
(15 |
) |
Income
tax effect of non-GAAP adjustments |
|
17 |
|
|
7 |
|
|
(4 |
) |
Non-GAAP
adjusted net income |
|
$ |
338 |
|
|
$ |
338 |
|
|
$ |
279 |
|
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 three months ended October 26, 2014
and January 26, 2014 included a $2 million favorable adjustment of
restructuring reserve and $7 million of employee-related costs,
respectively, related to the restructuring program announced on
October 3, 2012. |
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
|
|
Three Months Ended |
(In millions except per share amounts) |
|
January 25,
2015 |
|
October 26,
2014 |
|
January 26,
2014 |
Non-GAAP
Adjusted Earnings Per Diluted Share |
|
|
|
|
|
|
|
|
|
Reported
earnings per diluted share - GAAP basis |
|
$ |
0.28 |
|
|
$ |
0.21 |
|
|
$ |
0.21 |
|
Certain
items associated with acquisitions |
|
0.03 |
|
|
0.04 |
|
|
0.03 |
|
Acquisition integration costs |
|
- |
|
|
- |
|
|
0.01 |
|
Certain
items associated with announced business combination |
|
0.01 |
|
|
0.01 |
|
|
- |
|
Gain on
derivative associated with announced business combination, net |
|
(0.04 |
) |
|
(0.02 |
) |
|
(0.01 |
) |
Reinstatement of federal R&D tax credit, resolution of prior
years' income tax filings and other tax items |
|
(0.01 |
) |
|
0.03 |
|
|
(0.01 |
) |
Non-GAAP
adjusted earnings per diluted share |
|
$ |
0.27 |
|
|
$ |
0.27 |
|
|
$ |
0.23 |
|
Weighted
average number of diluted shares |
|
1,240 |
|
|
1,236 |
|
|
1,225 |
|
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
|
|
Three Months Ended |
(In millions, except percentages) |
|
January 25,
2015 |
|
October 26,
2014 |
|
January 26,
2014 |
SSG
Non-GAAP Adjusted Operating Income |
|
|
|
|
|
|
|
|
|
Reported
operating income - GAAP basis |
|
$ |
307 |
|
|
$ |
305 |
|
|
$ |
314 |
|
Certain
items associated with acquisitions1 |
|
43 |
|
|
46 |
|
|
42 |
|
Acquisition integration costs |
|
- |
|
|
1 |
|
|
1 |
|
Non-GAAP
adjusted operating income |
|
$ |
350 |
|
|
$ |
352 |
|
|
$ |
357 |
|
Non-GAAP
adjusted operating margin (% of net sales) |
|
24.2 |
% |
|
24.5 |
% |
|
24.1 |
% |
AGS
Non-GAAP Adjusted Operating Income |
|
|
|
|
|
|
|
|
|
Reported
operating income - GAAP basis |
|
$ |
153 |
|
|
$ |
146 |
|
|
$ |
125 |
|
Certain
items associated with acquisitions1 |
|
1 |
|
|
- |
|
|
1 |
|
Non-GAAP
adjusted operating income |
|
$ |
154 |
|
|
$ |
146 |
|
|
$ |
126 |
|
Non-GAAP
adjusted operating margin (% of net sales) |
|
26.4 |
% |
|
24.7 |
% |
|
24.9 |
% |
Display
Non-GAAP Adjusted Operating Income |
|
|
|
|
|
|
|
|
|
Reported
operating income - GAAP basis |
|
$ |
72 |
|
|
$ |
52 |
|
|
$ |
26 |
|
Certain items associated with acquisitions1 |
|
1 |
|
|
- |
|
|
1 |
|
Non-GAAP
adjusted operating income |
|
$ |
73 |
|
|
$ |
52 |
|
|
$ |
27 |
|
Non-GAAP
adjusted operating margin (% of net sales) |
|
26.5 |
% |
|
27.4 |
% |
|
17.0 |
% |
EES
Non-GAAP Adjusted Operating Loss |
|
|
|
|
|
|
|
|
|
Reported
operating loss - GAAP basis |
|
$ |
(4 |
) |
|
$ |
(3 |
) |
|
$ |
(11 |
) |
Certain
items associated with acquisitions1 |
|
1 |
|
|
2 |
|
|
1 |
|
Non-GAAP
adjusted operating loss |
|
$ |
(3 |
) |
|
$ |
(1 |
) |
|
$ |
(10 |
) |
Non-GAAP
adjusted operating margin (% of net sales) |
|
(5.5 |
)% |
|
(2.1 |
)% |
|
(25.0 |
)% |
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) |
January 25, 2015 |
|
October 26, 2014 |
|
|
|
|
|
|
Operating
expenses - GAAP basis |
$ |
501 |
|
|
$ |
547 |
|
Gain
on derivative associated with announced business combination,
net |
78 |
|
|
39 |
|
Restructuring charges and asset impairments |
- |
|
|
2 |
|
Certain
items associated with acquisitions |
(6 |
) |
|
(6 |
) |
Acquisition integration costs |
(1 |
) |
|
(4 |
) |
Certain
items associated with announced business combination |
(20 |
) |
|
(23 |
) |
Gain on
sale of facility |
- |
|
|
4 |
|
Non-GAAP
adjusted operating expenses |
$ |
552 |
|
|
$ |
559 |
|
UNAUDITED RECONCILIATION OF GAAP TO
NON-GAAP ADJUSTED EFFECTIVE INCOME TAX RATE
|
Three Months Ended |
(In millions, except percentages) |
January 25, 2015 |
|
|
|
Provision
for income taxes - GAAP basis (a) |
$ |
89 |
|
Reinstatement of federal R&D tax credit, resolutions of prior
years' income tax filings and other tax items |
17 |
|
Income
tax effect of non-GAAP adjustments |
(17 |
) |
Non-GAAP
adjusted provision for income taxes (b) |
$ |
89 |
|
|
|
|
Income
before income taxes - GAAP basis (c) |
$ |
437 |
|
Certain
items associated with acquisitions |
46 |
|
Acquisition integration costs |
1 |
|
Gain on
derivative associated with announced business combination |
(78 |
) |
Certain
items associated with announced business combination |
20 |
|
Impairment of strategic investments |
1 |
|
Non-GAAP
adjusted income before income taxes (d) |
$ |
427 |
|
|
|
|
Effective
income tax rate - GAAP basis (a/c) |
20.4 |
% |
|
|
|
Non-GAAP
adjusted effective income tax rate (b/d) |
20.8 |
% |
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#1893466
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