Applied Materials, Inc. (NASDAQ: AMAT) today reported results for
its fourth quarter and fiscal year ended Oct. 27, 2024.
Fourth Quarter Results
Applied generated record revenue of $7.05 billion. On a GAAP
basis, the company reported gross margin of 47.3 percent, record
operating income of $2.05 billion or 29.0 percent of net revenue,
and earnings per share (EPS) of $2.09.
On a non-GAAP basis, the company reported gross margin of 47.5
percent, record operating income of $2.06 billion or 29.3 percent
of net revenue, and record EPS of $2.32.
The company generated $2.58 billion in cash from operations and
distributed $1.77 billion to shareholders including $1.44 billion
in share repurchases and $329 million in dividends.
Full Year Results
In fiscal 2024, Applied generated record revenue of $27.18
billion. On a GAAP basis, the company recorded gross margin of 47.5
percent, record operating income of $7.87 billion or 28.9 percent
of net sales, and record EPS of $8.61.
On a non-GAAP adjusted basis, the company reported gross margin
of 47.6 percent, record operating income of $7.92 billion or 29.2
percent of net sales, and record EPS of $8.65.
The company generated a $8.68 billion in cash from operations
and distributed $5.01 billion to shareholders including $3.82
billion in share repurchases and $1.19 billion in dividends.
“Applied Materials’ technology leadership and strong execution
drove record Q4 and fiscal 2024 performance, our fifth consecutive
year of growth,” said Gary Dickerson, President and CEO. “Our
portfolio of products and services uniquely positions us to enable
our customers in their pursuit of AI and energy-efficient
computing. As these key drivers of semiconductor innovation
continue to grow in importance, the industry’s roadmap is becoming
increasingly dependent on materials engineering, where Applied is
the clear leader.”
Results Summary
| |
|
|
|
|
|
|
|
|
Change |
| |
Q4 FY2024 |
|
Q4 FY2023 |
|
FY2024 |
|
FY2023 |
|
Q4 FY2024vs.Q4
FY2023 |
|
FY2024vs.FY2023 |
| |
(In millions, except per share amounts and percentages) |
|
|
|
Net revenue |
$ |
7,045 |
|
|
$ |
6,723 |
|
|
$ |
27,176 |
|
|
$ |
26,517 |
|
|
5% |
|
2% |
| Gross margin |
|
47.3 |
% |
|
|
47.1 |
% |
|
|
47.5 |
% |
|
|
46.7 |
% |
|
0.2 points |
|
0.8 points |
| Operating margin |
|
29.0 |
% |
|
|
29.3 |
% |
|
|
28.9 |
% |
|
|
28.9 |
% |
|
(0.3) points |
|
— |
| Net income |
$ |
1,731 |
|
|
$ |
2,004 |
|
|
$ |
7,177 |
|
|
$ |
6,856 |
|
|
(14)% |
|
5% |
| Diluted earnings per share |
$ |
2.09 |
|
|
$ |
2.38 |
|
|
$ |
8.61 |
|
|
$ |
8.11 |
|
|
(12)% |
|
6% |
|
Non-GAAP Results |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross margin |
|
47.5 |
% |
|
|
47.3 |
% |
|
|
47.6 |
% |
|
|
46.8 |
% |
|
0.2 points |
|
0.8 points |
| Non-GAAP operating margin |
|
29.3 |
% |
|
|
29.5 |
% |
|
|
29.2 |
% |
|
|
29.1 |
% |
|
(0.2) points |
|
0.1 points |
| Non-GAAP net income |
$ |
1,917 |
|
|
$ |
1,786 |
|
|
$ |
7,210 |
|
|
$ |
6,802 |
|
|
7% |
|
6% |
| Non-GAAP diluted EPS |
$ |
2.32 |
|
|
$ |
2.12 |
|
|
$ |
8.65 |
|
|
$ |
8.05 |
|
|
9% |
|
7% |
| Non-GAAP free cash flow |
$ |
2,168 |
|
|
$ |
1,246 |
|
|
$ |
7,487 |
|
|
$ |
7,594 |
|
|
74% |
|
(1)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of the GAAP and non-GAAP results is provided in
the financial tables included in this release. See also “Use of
Non-GAAP Financial Measures” section.
Business Outlook
In the first quarter of fiscal 2025, Applied expects net revenue
to be approximately $7.15 billion, plus or minus $400 million.
Non-GAAP diluted EPS is expected to be approximately $2.29, plus or
minus $0.18.
This outlook for non-GAAP diluted EPS excludes known charges
related to completed acquisitions of $0.01 per share and includes a
net income tax benefit related to intra-entity intangible asset
transfers of $0.09 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.
Fourth Quarter and Fiscal Year
Reportable Segment Information
Effective in the first quarter of fiscal 2024,
management began including share-based compensation expense in the
evaluation of reportable segments' performance. Prior-year numbers
have been recast to conform to the current-year presentation.
| Semiconductor
Systems |
Q4 FY2024 |
|
Q4 FY2023 |
|
FY2024 |
|
FY2023 |
| |
(In millions, except percentages) |
|
Net revenue |
$ |
5,177 |
|
|
$ |
4,883 |
|
|
$ |
19,911 |
|
|
$ |
19,698 |
|
|
Foundry, logic and other |
|
73 |
% |
|
|
69 |
% |
|
|
68 |
% |
|
|
77 |
% |
|
DRAM |
|
23 |
% |
|
|
27 |
% |
|
|
28 |
% |
|
|
17 |
% |
|
Flash memory |
|
4 |
% |
|
|
4 |
% |
|
|
4 |
% |
|
|
6 |
% |
| Operating income |
$ |
1,824 |
|
|
$ |
1,741 |
|
|
$ |
6,981 |
|
|
$ |
6,879 |
|
| Operating margin |
|
35.2 |
% |
|
|
35.7 |
% |
|
|
35.1 |
% |
|
|
34.9 |
% |
| Non-GAAP
Results |
|
|
|
|
|
|
| Non-GAAP operating income |
$ |
1,834 |
|
|
$ |
1,751 |
|
|
$ |
7,021 |
|
|
$ |
6,918 |
|
| Non-GAAP operating margin |
|
35.4 |
% |
|
|
35.9 |
% |
|
|
35.3 |
% |
|
|
35.1 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Applied Global
Services |
Q4 FY2024 |
|
Q4 FY2023 |
|
FY2024 |
|
FY2023 |
| |
(In millions, except percentages) |
|
Net revenue |
$ |
1,639 |
|
|
$ |
1,471 |
|
|
$ |
6,225 |
|
|
$ |
5,732 |
|
| Operating income |
$ |
492 |
|
|
$ |
401 |
|
|
$ |
1,812 |
|
|
$ |
1,529 |
|
| Operating margin |
|
30.0 |
% |
|
|
27.3 |
% |
|
|
29.1 |
% |
|
|
26.7 |
% |
| Non-GAAP
Results |
|
|
|
|
|
|
| Non-GAAP operating income |
$ |
492 |
|
|
$ |
401 |
|
|
$ |
1,812 |
|
|
$ |
1,529 |
|
| Non-GAAP operating margin |
|
30.0 |
% |
|
|
27.3 |
% |
|
|
29.1 |
% |
|
|
26.7 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Display |
Q4 FY2024 |
|
Q4 FY2023 |
|
FY2024 |
|
FY2023 |
| |
(In millions, except percentages) |
|
Net revenue |
$ |
211 |
|
|
$ |
298 |
|
|
$ |
885 |
|
|
$ |
868 |
|
| Operating income |
$ |
5 |
|
|
$ |
63 |
|
|
$ |
51 |
|
|
$ |
114 |
|
| Operating margin |
|
2.4 |
% |
|
|
21.1 |
% |
|
|
5.8 |
% |
|
|
13.1 |
% |
| Non-GAAP
Results |
|
|
|
|
|
|
| Non-GAAP operating income |
$ |
5 |
|
|
$ |
63 |
|
|
$ |
51 |
|
|
$ |
114 |
|
| Non-GAAP operating margin |
|
2.4 |
% |
|
|
21.1 |
% |
|
|
5.8 |
% |
|
|
13.1 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and Other
| (In millions) |
Q4 FY2024 |
|
Q4 FY2023 |
|
FY2024 |
|
FY2023 |
|
Unallocated net revenue |
$ |
18 |
|
|
$ |
71 |
|
|
$ |
155 |
|
|
$ |
219 |
|
| Unallocated cost of products sold
and expenses |
|
(293 |
) |
|
|
(305 |
) |
|
|
(1,132 |
) |
|
|
(1,087 |
) |
| Total |
$ |
(275 |
) |
|
$ |
(234 |
) |
|
$ |
(977 |
) |
|
$ |
(868 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Use of Non-GAAP Financial Measures
Applied provides investors with certain non-GAAP financial
measures, which are adjusted for the impact of certain costs,
expenses, gains and losses, including certain items related to
mergers and acquisitions; restructuring and severance charges and
any associated adjustments; impairments of assets; gain or loss,
dividends and impairments on strategic investments; certain income
tax items and other discrete adjustments. On a non-GAAP basis, the
tax effect related to share-based compensation is recognized
ratably over the fiscal year. 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 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 its 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
management does not believe are indicative of Applied's 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
and related slide presentation will be available at
https://ir.appliedmaterials.com. A replay will be available on the
website beginning at 5:00 p.m. Pacific Time today.
Forward-Looking StatementsThis press release
contains forward-looking statements, including those regarding
anticipated growth and trends in our businesses and markets,
industry outlooks and demand drivers, technology transitions, our
business and financial performance and market share positions, our
capital allocation and cash deployment strategies, our investment
and growth strategies, our development of new products and
technologies, our business outlook for the first quarter of fiscal
2025 and beyond, 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, political and industry conditions, including
changes in interest rates and prices for goods and services; the
implementation of additional export regulations and license
requirements and their interpretation, and their impact on our
ability to export products and provide services to customers and on
our results of operations; global trade issues and changes in trade
and export license policies and our ability to obtain licenses or
authorizations on a timely basis, if at all; the effects of
geopolitical turmoil or conflicts; demand for semiconductor chips
and electronic devices; 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; our ability to
meet customer demand, and our suppliers' ability to meet our demand
requirements; 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; cybersecurity incidents
affecting our information systems or information contained in them,
or affecting our operations, suppliers, customers or vendors; 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
effects of regional or global health epidemics; acquisitions,
investments and divestitures; changes in income tax laws; 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; 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.
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 a better future. Learn
more at www.appliedmaterials.com.
Contact:
Ricky Gradwohl (editorial/media) 408.235.4676Liz
Morali (financial community) 408.986.7977
APPLIED MATERIALS, INC.UNAUDITED CONSOLIDATED
CONDENSED STATEMENTS OF OPERATIONS
| |
Three Months Ended |
|
Twelve Months Ended |
| (In millions, except per share
amounts) |
October 27,2024 |
|
October 29,2023 |
|
October 27,2024 |
|
October 29,2023 |
|
Net revenue |
$ |
7,045 |
|
|
$ |
6,723 |
|
$ |
27,176 |
|
$ |
26,517 |
| Cost of products sold |
|
3,710 |
|
|
|
3,554 |
|
|
14,279 |
|
|
14,133 |
| Gross profit |
|
3,335 |
|
|
|
3,169 |
|
|
12,897 |
|
|
12,384 |
| Operating expenses: |
|
|
|
|
|
|
|
|
Research, development and engineering |
|
858 |
|
|
|
789 |
|
|
3,233 |
|
|
3,102 |
|
Marketing and selling |
|
215 |
|
|
|
192 |
|
|
836 |
|
|
776 |
|
General and administrative |
|
216 |
|
|
|
217 |
|
|
961 |
|
|
852 |
| Total operating expenses |
|
1,289 |
|
|
|
1,198 |
|
|
5,030 |
|
|
4,730 |
| Income from operations |
|
2,046 |
|
|
|
1,971 |
|
|
7,867 |
|
|
7,654 |
| Interest expense |
|
66 |
|
|
|
58 |
|
|
247 |
|
|
238 |
| Interest and other income
(expense), net |
|
(85 |
) |
|
|
259 |
|
|
532 |
|
|
300 |
| Income before income taxes |
|
1,895 |
|
|
|
2,172 |
|
|
8,152 |
|
|
7,716 |
| Provision for income taxes |
|
164 |
|
|
|
168 |
|
|
975 |
|
|
860 |
| Net income |
$ |
1,731 |
|
|
$ |
2,004 |
|
$ |
7,177 |
|
$ |
6,856 |
| Earnings per share: |
|
|
|
|
|
|
|
|
Basic |
$ |
2.11 |
|
|
$ |
2.40 |
|
$ |
8.68 |
|
$ |
8.16 |
|
Diluted |
$ |
2.09 |
|
|
$ |
2.38 |
|
$ |
8.61 |
|
$ |
8.11 |
| Weighted average number of
shares: |
|
|
|
|
|
|
|
|
Basic |
|
822 |
|
|
|
836 |
|
|
827 |
|
|
840 |
|
Diluted |
|
828 |
|
|
|
842 |
|
|
834 |
|
|
845 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APPLIED MATERIALS, INC.UNAUDITED CONSOLIDATED
CONDENSED BALANCE SHEETS
| (In millions) |
October 27,2024 |
|
October 29,2023 |
| ASSETS |
|
|
|
| Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
8,022 |
|
$ |
6,132 |
|
Short-term investments |
|
1,449 |
|
|
737 |
|
Accounts receivable, net |
|
5,234 |
|
|
5,165 |
|
Inventories |
|
5,421 |
|
|
5,725 |
|
Other current assets |
|
1,094 |
|
|
1,388 |
| Total current assets |
|
21,220 |
|
|
19,147 |
| Long-term investments |
|
2,787 |
|
|
2,281 |
| Property, plant and equipment,
net |
|
3,339 |
|
|
2,723 |
| Goodwill |
|
3,732 |
|
|
3,732 |
| Purchased technology and other
intangible assets, net |
|
249 |
|
|
294 |
| Deferred income taxes and other
assets |
|
3,082 |
|
|
2,552 |
| Total assets |
$ |
34,409 |
|
$ |
30,729 |
| LIABILITIES AND STOCKHOLDERS’
EQUITY |
|
|
|
| Current liabilities: |
|
|
|
|
Short-term debt |
$ |
799 |
|
$ |
100 |
|
Accounts payable and accrued expenses |
|
4,820 |
|
|
4,297 |
|
Contract liabilities |
|
2,849 |
|
|
2,975 |
| Total current liabilities |
|
8,468 |
|
|
7,372 |
| Long-term debt |
|
5,460 |
|
|
5,461 |
| Income taxes payable |
|
670 |
|
|
833 |
| Other liabilities |
|
810 |
|
|
714 |
| Total liabilities |
|
15,408 |
|
|
14,380 |
| Total stockholders’ equity |
|
19,001 |
|
|
16,349 |
| Total liabilities and
stockholders’ equity |
$ |
34,409 |
|
$ |
30,729 |
| |
|
|
|
|
|
APPLIED MATERIALS, INC.UNAUDITED CONSOLIDATED
CONDENSED STATEMENTS OF CASH FLOWS
| (In millions) |
Three Months Ended |
|
Twelve Months Ended |
|
October 27,2024 |
|
October 29,2023 |
October 27,2024 |
|
October 29,2023 |
| Cash flows from operating
activities: |
|
|
|
|
|
|
|
|
Net income |
$ |
1,731 |
|
|
$ |
2,004 |
|
|
$ |
7,177 |
|
|
$ |
6,856 |
|
|
Adjustments required to reconcile net income to cash provided by
operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
110 |
|
|
|
130 |
|
|
|
392 |
|
|
|
515 |
|
|
Share-based compensation |
|
141 |
|
|
|
115 |
|
|
|
577 |
|
|
|
490 |
|
|
Deferred income taxes |
|
(248 |
) |
|
|
198 |
|
|
|
(633 |
) |
|
|
24 |
|
|
Other |
|
246 |
|
|
|
(149 |
) |
|
|
47 |
|
|
|
40 |
|
|
Net change in operating assets and liabilities |
|
595 |
|
|
|
(743 |
) |
|
|
1,117 |
|
|
|
775 |
|
| Cash provided by operating
activities |
|
2,575 |
|
|
|
1,555 |
|
|
|
8,677 |
|
|
|
8,700 |
|
| Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
(407 |
) |
|
|
(309 |
) |
|
|
(1,190 |
) |
|
|
(1,106 |
) |
|
Cash paid for acquisitions, net of cash acquired |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(25 |
) |
|
Proceeds from sales and maturities of investments |
|
956 |
|
|
|
297 |
|
|
|
2,451 |
|
|
|
1,268 |
|
|
Purchases of investments |
|
(1,620 |
) |
|
|
(477 |
) |
|
|
(3,588 |
) |
|
|
(1,672 |
) |
| Cash used in investing
activities |
|
(1,071 |
) |
|
|
(489 |
) |
|
|
(2,327 |
) |
|
|
(1,535 |
) |
| Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
Debt borrowings, net of issuance costs |
|
— |
|
|
|
— |
|
|
|
694 |
|
|
|
— |
|
|
Proceeds from issuance of commercial paper |
|
101 |
|
|
|
99 |
|
|
|
401 |
|
|
|
991 |
|
|
Repayments of commercial paper |
|
(100 |
) |
|
|
(200 |
) |
|
|
(400 |
) |
|
|
(900 |
) |
|
Proceeds from common stock issuances |
|
124 |
|
|
|
116 |
|
|
|
243 |
|
|
|
227 |
|
|
Common stock repurchases |
|
(1,442 |
) |
|
|
(700 |
) |
|
|
(3,823 |
) |
|
|
(2,189 |
) |
|
Tax withholding payments for vested equity awards |
|
(33 |
) |
|
|
(14 |
) |
|
|
(291 |
) |
|
|
(179 |
) |
|
Payments of dividends to stockholders |
|
(329 |
) |
|
|
(268 |
) |
|
|
(1,192 |
) |
|
|
(975 |
) |
|
Repayments of principal on finance leases |
|
(90 |
) |
|
|
1 |
|
|
|
(102 |
) |
|
|
(7 |
) |
| Cash used in financing
activities |
|
(1,769 |
) |
|
|
(966 |
) |
|
|
(4,470 |
) |
|
|
(3,032 |
) |
| Increase (decrease) in cash, cash
equivalents and restricted cash equivalents |
|
(265 |
) |
|
|
100 |
|
|
|
1,880 |
|
|
|
4,133 |
|
| Cash, cash equivalents and
restricted cash equivalents — beginning of period |
|
8,378 |
|
|
|
6,133 |
|
|
|
6,233 |
|
|
|
2,100 |
|
| Cash, cash equivalents and
restricted cash equivalents — end of period |
$ |
8,113 |
|
|
$ |
6,233 |
|
|
$ |
8,113 |
|
|
$ |
6,233 |
|
| |
|
|
|
|
|
|
|
| Reconciliation of cash, cash
equivalents, and restricted cash equivalents |
|
|
|
|
|
|
|
| Cash and cash equivalents |
$ |
8,022 |
|
|
$ |
6,132 |
|
|
$ |
8,022 |
|
|
$ |
6,132 |
|
|
Restricted cash equivalents included in deferred income taxes and
other assets |
|
91 |
|
|
|
101 |
|
|
|
91 |
|
|
|
101 |
|
| Total cash, cash equivalents, and
restricted cash equivalents |
$ |
8,113 |
|
|
$ |
6,233 |
|
|
$ |
8,113 |
|
|
$ |
6,233 |
|
| |
|
|
|
|
|
|
|
| Supplemental cash flow
information: |
|
|
|
|
|
|
|
|
Cash payments for income taxes |
$ |
138 |
|
|
$ |
588 |
|
|
$ |
957 |
|
|
$ |
1,006 |
|
|
Cash refunds from income taxes |
$ |
8 |
|
|
$ |
2 |
|
|
$ |
15 |
|
|
$ |
53 |
|
|
Cash payments for interest |
$ |
68 |
|
|
$ |
68 |
|
|
$ |
205 |
|
|
$ |
205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional Information
| |
Q4 FY2024 |
|
Q4 FY2023 |
|
FY2024 |
|
FY2023 |
| Net Revenue by Geography (In
millions) |
|
|
|
|
|
|
United States |
$ |
1,153 |
|
|
$ |
803 |
|
|
$ |
3,818 |
|
|
$ |
4,006 |
|
|
% of Total |
|
16 |
% |
|
|
12 |
% |
|
|
14 |
% |
|
|
15 |
% |
| Europe |
$ |
405 |
|
|
$ |
441 |
|
|
$ |
1,443 |
|
|
$ |
2,152 |
|
|
% of Total |
|
6 |
% |
|
|
7 |
% |
|
|
5 |
% |
|
|
8 |
% |
| Japan |
$ |
581 |
|
|
$ |
681 |
|
|
$ |
2,154 |
|
|
$ |
2,075 |
|
|
% of Total |
|
8 |
% |
|
|
10 |
% |
|
|
8 |
% |
|
|
8 |
% |
| Korea |
$ |
1,172 |
|
|
$ |
745 |
|
|
$ |
4,493 |
|
|
$ |
4,609 |
|
|
% of Total |
|
17 |
% |
|
|
11 |
% |
|
|
17 |
% |
|
|
18 |
% |
| Taiwan |
$ |
1,284 |
|
|
$ |
922 |
|
|
$ |
4,010 |
|
|
$ |
5,670 |
|
|
% of Total |
|
18 |
% |
|
|
14 |
% |
|
|
15 |
% |
|
|
21 |
% |
| Southeast Asia |
$ |
314 |
|
|
$ |
168 |
|
|
$ |
1,141 |
|
|
$ |
758 |
|
|
% of Total |
|
5 |
% |
|
|
2 |
% |
|
|
4 |
% |
|
|
3 |
% |
| China |
$ |
2,136 |
|
|
$ |
2,963 |
|
|
$ |
10,117 |
|
|
$ |
7,247 |
|
|
% of Total |
|
30 |
% |
|
|
44 |
% |
|
|
37 |
% |
|
|
27 |
% |
| |
|
|
|
|
|
|
|
| Employees (In thousands) |
|
|
|
|
|
|
|
| Regular Full Time |
|
35.7 |
|
|
|
34.3 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
APPLIED MATERIALS, INC. UNAUDITED RECONCILIATION
OF GAAP TO NON-GAAP RESULTS
| |
Three Months Ended |
|
Twelve Months Ended |
| (In millions, except
percentages) |
October 27,2024 |
|
October 29,2023 |
|
October 27,2024 |
|
October 29,2023 |
| Non-GAAP Gross Profit |
|
|
|
|
|
|
|
|
GAAP reported gross profit |
$ |
3,335 |
|
|
$ |
3,169 |
|
|
$ |
12,897 |
|
|
$ |
12,384 |
|
| Certain items associated with
acquisitions1 |
|
6 |
|
|
|
8 |
|
|
|
26 |
|
|
|
29 |
|
| Impairment of long-lived
assets |
|
3 |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
| Non-GAAP gross profit |
$ |
3,344 |
|
|
$ |
3,177 |
|
|
$ |
12,926 |
|
|
$ |
12,413 |
|
| Non-GAAP gross margin |
|
47.5 |
% |
|
|
47.3 |
% |
|
|
47.6 |
% |
|
|
46.8 |
% |
| Non-GAAP Operating Income |
|
|
|
|
|
|
|
| GAAP reported operating
income |
$ |
2,046 |
|
|
$ |
1,971 |
|
|
$ |
7,867 |
|
|
$ |
7,654 |
|
| Certain items associated with
acquisitions1 |
|
11 |
|
|
|
11 |
|
|
|
42 |
|
|
|
43 |
|
| Acquisition integration and deal
costs |
|
3 |
|
|
|
2 |
|
|
|
12 |
|
|
|
22 |
|
| Impairment of long-lived
assets |
|
3 |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
| Non-GAAP operating income |
$ |
2,063 |
|
|
$ |
1,984 |
|
|
$ |
7,924 |
|
|
$ |
7,719 |
|
| Non-GAAP operating margin |
|
29.3 |
% |
|
|
29.5 |
% |
|
|
29.2 |
% |
|
|
29.1 |
% |
| Non-GAAP Net Income |
|
|
|
|
|
|
|
| GAAP reported net income |
$ |
1,731 |
|
|
$ |
2,004 |
|
|
$ |
7,177 |
|
|
$ |
6,856 |
|
| Certain items associated with
acquisitions1 |
|
11 |
|
|
|
11 |
|
|
|
42 |
|
|
|
43 |
|
| Acquisition integration and deal
costs |
|
3 |
|
|
|
2 |
|
|
|
12 |
|
|
|
22 |
|
| Impairment of long-lived
assets |
|
3 |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
| Realized loss (gain), dividends
and impairments on strategic investments, net |
|
(1 |
) |
|
|
(2 |
) |
|
|
11 |
|
|
|
107 |
|
| Unrealized loss (gain) on
strategic investments, net |
|
244 |
|
|
|
(147 |
) |
|
|
(31 |
) |
|
|
(134 |
) |
| Earn-out |
|
— |
|
|
|
(15 |
) |
|
|
— |
|
|
|
(15 |
) |
| Income tax effect of
share-based compensation2 |
|
7 |
|
|
|
6 |
|
|
|
— |
|
|
|
— |
|
| Income tax effects related to
intra-entity intangible asset transfers |
|
(33 |
) |
|
|
(65 |
) |
|
|
24 |
|
|
|
(40 |
) |
| Resolution of prior years’ income
tax filings and other tax items |
|
(47 |
) |
|
|
(9 |
) |
|
|
(25 |
) |
|
|
(31 |
) |
| Income tax effect of non-GAAP
adjustments3 |
|
(1 |
) |
|
|
1 |
|
|
|
(3 |
) |
|
|
(6 |
) |
| Non-GAAP net income |
$ |
1,917 |
|
|
$ |
1,786 |
|
|
$ |
7,210 |
|
|
$ |
6,802 |
|
|
1 |
These items are incremental charges attributable to completed
acquisitions, consisting of amortization of purchased intangible
assets. |
| |
|
| 2 |
GAAP basis tax benefit related
to share-based compensation is recognized ratably over the fiscal
year on a non-GAAP basis. |
| |
|
| 3 |
Adjustment to provision for
income taxes related to non-GAAP adjustments reflected in income
before income taxes. |
| |
|
APPLIED MATERIALS, INC.UNAUDITED RECONCILIATION
OF GAAP TO NON-GAAP RESULTS
| |
Three Months Ended |
|
Twelve Months Ended |
| (In millions, except per share
amounts) |
October 27,2024 |
|
October 29,2023 |
|
October 27,2024 |
|
October 29,2023 |
| Non-GAAP Earnings Per Diluted
Share |
|
|
|
|
|
|
|
|
GAAP reported earnings per diluted share |
$ |
2.09 |
|
|
$ |
2.38 |
|
|
$ |
8.61 |
|
|
$ |
8.11 |
|
| Certain items associated with
acquisitions |
|
0.01 |
|
|
|
0.01 |
|
|
|
0.05 |
|
|
|
0.05 |
|
| Acquisition integration and deal
costs |
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.02 |
|
| Realized loss (gain), dividends
and impairments on strategic investments, net |
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.13 |
|
| Unrealized loss (gain) on
strategic investments, net |
|
0.30 |
|
|
|
(0.18 |
) |
|
|
(0.03 |
) |
|
|
(0.16 |
) |
| Earn-out |
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.01 |
) |
| Income tax effect of
share-based compensation |
|
0.01 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
| Income tax effects related to
intra-entity intangible asset transfers |
|
(0.04 |
) |
|
|
(0.08 |
) |
|
|
0.03 |
|
|
|
(0.05 |
) |
| Resolution of prior years’ income
tax filings and other tax items |
|
(0.05 |
) |
|
|
(0.01 |
) |
|
|
(0.03 |
) |
|
|
(0.04 |
) |
| Non-GAAP earnings per diluted
share |
$ |
2.32 |
|
|
$ |
2.12 |
|
|
$ |
8.65 |
|
|
$ |
8.05 |
|
| Weighted average number of
diluted shares |
|
828 |
|
|
|
842 |
|
|
|
834 |
|
|
|
845 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APPLIED MATERIALS, INC.UNAUDITED RECONCILIATION
OF GAAP TO NON-GAAP RESULTS
| |
Three Months Ended |
|
Twelve Months Ended |
| (In millions, except
percentages) |
October 27,2024 |
|
October 29,2023 |
|
October 27,2024 |
|
October 29,2023 |
| Semiconductor Systems Non-GAAP
Operating Income |
|
|
|
|
|
|
|
|
GAAP reported operating income |
$ |
1,824 |
|
|
$ |
1,741 |
|
|
$ |
6,981 |
|
|
$ |
6,879 |
|
| Certain items associated with
acquisitions1 |
|
10 |
|
|
|
10 |
|
|
|
40 |
|
|
|
39 |
|
| Non-GAAP operating income |
$ |
1,834 |
|
|
$ |
1,751 |
|
|
$ |
7,021 |
|
|
$ |
6,918 |
|
| Non-GAAP operating margin |
|
35.4 |
% |
|
|
35.9 |
% |
|
|
35.3 |
% |
|
|
35.1 |
% |
| Applied Global Services Non-GAAP
Operating Income |
|
|
|
|
|
|
|
| GAAP reported operating
income |
$ |
492 |
|
|
$ |
401 |
|
|
$ |
1,812 |
|
|
$ |
1,529 |
|
| Non-GAAP operating income |
$ |
492 |
|
|
$ |
401 |
|
|
$ |
1,812 |
|
|
$ |
1,529 |
|
| Non-GAAP operating margin |
|
30.0 |
% |
|
|
27.3 |
% |
|
|
29.1 |
% |
|
|
26.7 |
% |
| Display Non-GAAP Operating
Income |
|
|
|
|
|
|
|
| GAAP reported operating
income |
$ |
5 |
|
|
$ |
63 |
|
|
$ |
51 |
|
|
$ |
114 |
|
| Non-GAAP operating income |
$ |
5 |
|
|
$ |
63 |
|
|
$ |
51 |
|
|
$ |
114 |
|
| Non-GAAP operating margin |
|
2.4 |
% |
|
|
21.1 |
% |
|
|
5.8 |
% |
|
|
13.1 |
% |
|
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
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.
APPLIED MATERIALS, INC.UNAUDITED RECONCILIATION
OF GAAP TO NON-GAAP EFFECTIVE INCOME TAX RATE
| |
Three Months Ended |
| (In millions, except
percentages) |
October 27, 2024 |
| |
|
|
GAAP provision for income taxes(a) |
$ |
164 |
|
| Income tax effect of share-based
compensation |
|
(7 |
) |
| Income tax effects related to
intra-entity intangible asset transfers |
|
33 |
|
| Resolutions of prior years’
income tax filings and other tax items |
|
47 |
|
| Income tax effect of non-GAAP
adjustments |
|
1 |
|
| Non-GAAP provision for income
taxes(b) |
$ |
238 |
|
| |
|
| GAAP income before income
taxes(c) |
$ |
1,895 |
|
| Certain items associated with
acquisitions |
|
11 |
|
| Acquisition integration and deal
costs |
|
3 |
|
| Impairment of long-lived
assets |
|
3 |
|
| Realized loss (gain), dividends
and impairments on strategic investments, net |
|
(1 |
) |
| Unrealized loss (gain) on
strategic investments, net |
|
244 |
|
| Non-GAAP income before income
taxes(d) |
$ |
2,155 |
|
| |
|
| GAAP effective income tax
rate(a/c) |
|
8.7 |
% |
| |
|
| Non-GAAP effective income tax
rate(b/d) |
|
11.0 |
% |
| |
|
|
|
UNAUDITED RECONCILIATION OF NON-GAAP FREE CASH
FLOW
| |
Three Months Ended |
|
Twelve Months Ended |
| (In millions) |
October 27,2024 |
|
October 29,2023 |
|
October 27,2024 |
|
October 29,2023 |
|
Cash provided by operating activities |
$ |
2,575 |
|
|
$ |
1,555 |
|
|
$ |
8,677 |
|
|
$ |
8,700 |
|
| Capital expenditures |
|
(407 |
) |
|
|
(309 |
) |
|
|
(1,190 |
) |
|
|
(1,106 |
) |
| Non-GAAP free cash flow |
$ |
2,168 |
|
|
$ |
1,246 |
|
|
$ |
7,487 |
|
|
$ |
7,594 |
|
Applied Materials (NASDAQ:AMAT)
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