Applied Materials Revises Fourth Quarter of Fiscal 2022 Business Outlook
October 12 2022 - 4:05PM
Applied Materials, Inc. is revising its business outlook for the
fourth quarter of fiscal 2022, ending Oct. 30, 2022.
On Oct. 7, 2022, the United States government announced new
export regulations for U.S. semiconductor technology sold in China,
including wafer fabrication equipment and related parts and
services. Applied currently estimates that the new regulations will
reduce its fourth-quarter net sales by approximately $400 million,
plus or minus $150 million.
Applied is revising its fourth-quarter business outlook for net
sales to approximately $6.4 billion, plus or minus $250 million,
which compares to the prior outlook of $6.65 billion, plus or minus
$400 million. The revised net sales outlook reflects the impact of
the new export regulations partially offset by supply chain
performance improvements.
Applied now expects fourth-quarter non-GAAP adjusted diluted EPS
to be in the range of $1.54 to $1.78, which compares to the prior
range of $1.82 to $2.18. The revised EPS outlook includes the
impact of lower expected revenue along with a preliminary estimated
impact of approximately $0.23 primarily for inventory and
remanufacturing charges related to the new export regulations.
Applied is pursuing additional export licenses and
authorizations where needed. The company currently expects the new
regulations will impact net sales in the first quarter of fiscal
2023 by a similar amount as in the current quarter. Additional
information will be provided during the company’s next earnings
webcast.
Applied Materials is a global business with customers, suppliers
and operations located in many countries around the world.
Applied’s business depends on international trade, and the company
is committed to complying with all applicable trade
regulations.
Forward-Looking Statements This press release
contains forward-looking statements, including those regarding our
business and financial outlook for the fourth quarter of fiscal
2022 and beyond, the impact of new export regulations on our
ability to export products and provide services to customers and on
our results of operations, our intent to seek additional licenses
pursuant to new export regulations, 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, our ability to meet customer demand, and our
suppliers’ ability to meet our demand requirements; global
economic, political and industry conditions; the interpretation and
implementation of new export regulations and license requirements
as well as accounting rules; global trade issues and changes in
trade and export regulations and policies; our ability to obtain
licenses or authorizations on a timely basis, if at all;
transportation interruptions and logistics constraints; the effects
of regional or global health epidemics; 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 accurately forecast future results, market conditions,
customer requirements and business needs; our ability to ensure
compliance with applicable law, rules and regulations; and other
risks and uncertainties described in our SEC filings, including our
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.
Non-GAAP Financial MeasuresThis outlook
for non-GAAP adjusted diluted EPS excludes known charges related to
completed acquisitions of $0.01 per share, includes the normalized
tax benefit of share-based compensation of $0.02 per share and
includes a net income tax benefit related to intra-entity
intangible asset transfers of $0.03 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.
About Applied MaterialsApplied 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 a better future. Learn more at
www.appliedmaterials.com.
Contact:Ricky Gradwohl (editorial/media)
408.235.4676Michael Sullivan (financial community) 408.986.7977
Applied Materials (NASDAQ:AMAT)
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