|
| Wednesday, 25 May 2011, 05:46 HKT/SGT | |
| |
|
|
|
|
- Net sales of $2.86 billion up 25 percent year over year and up 7 percent sequentially
- Q2 EPS of $0.37; Q2 non-GAAP EPS of $0.38 |
SANTA CLARA, CA, May 25, 2011 - (ACN Newswire) - Applied Materials, Inc. (NASDAQ: AMAT), the world's leading supplier of manufacturing solutions for the semiconductor, display and solar industries, today reported results for its second quarter of fiscal 2011 ended May 1, 2011. Applied generated orders of $3.19 billion, net sales of $2.86 billion, operating income of $677 million, and net income of $489 million or $0.37 per share. Non-GAAP operating income was $685 million, and non-GAAP net income was $501 million or $0.38 per share.
"Applied delivered one of the best quarters in the company's history, including record net sales in our solar business," said Mike Splinter, chairman and chief executive officer. "While near-term economic conditions have tempered our growth expectations, our outlook for the year remains strong driven by our customers' plans to invest in the advanced technologies needed to meet growing demand for mobile devices and consumer electronics."
Splinter added, "Earlier this month, we announced the planned acquisition of Varian Semiconductor to strengthen our leadership in the semiconductor industry and deliver value to our customers, shareholders and employees worldwide."
"We exceeded our guidance for net sales in the second quarter and delivered earnings per share at the high end of the range," said George Davis, chief financial officer. "During the quarter, we also raised our dividend by 14 percent to 8 cents per share and generated operating cash flow of more than $700 million."
Financial Results Summary
----------------------------------------------------------------------
GAAP Results Q2 FY2011 Q1 FY2011 Q2 FY2010
----------------------------------------------------------------------
Net sales $2.86 billion $2.69 billion $2.30 billion
----------------------------------------------------------------------
Operating income $677 million $674 million $386 million
----------------------------------------------------------------------
Net income $489 million $506 million $264 million
----------------------------------------------------------------------
Earnings per share $0.37 $0.38 $0.20
----------------------------------------------------------------------
Non-GAAP Results
----------------------------------------------------------------------
Non-GAAP operating income $685 million $659 million $425 million
----------------------------------------------------------------------
Non-GAAP net income $501 million $484 million $292 million
----------------------------------------------------------------------
Non-GAAP earnings per share $0.38 $0.36 $0.22
----------------------------------------------------------------------
The non-GAAP results exclude the impact of the following, where applicable: restructuring and asset impairment charges and any associated adjustment related to restructuring actions, certain discrete tax items, certain acquisition-related costs, investment impairments, and gain or loss on sale of facilities.
A reconciliation of the GAAP and non-GAAP results is provided in the financial statements included in this release. See also "Use of Non-GAAP Financial Measures" below.
Fiscal Second Quarter Reportable Segment Results
Silicon Systems Group (SSG) orders were $1.71 billion, up 7 percent sequentially. Net sales were $1.45 billion, down 3 percent sequentially. Operating income decreased 10 percent sequentially to $491 million or 34 percent of net sales on a weaker mix. New order composition was: foundry 47 percent, logic and other 25 percent, flash 16 percent, and DRAM 12 percent.
Applied Global Services (AGS) orders were $603 million, up 9 percent sequentially. Net sales were a record $614 million, up 8 percent sequentially, led by higher shipments of 200mm equipment. Operating income increased to $91 million or 15 percent of net sales and included $24 million in intangible asset impairment charges.
Display orders were $255 million, up 80 percent sequentially driven primarily by growth in equipment for producing touch panels and advanced mobile device displays. Net sales were $158 million, up 7 percent sequentially. Operating income increased to $31 million or 19 percent of net sales.
Energy and Environmental Solutions (EES) orders were $612 million, down 8 percent sequentially. Net sales set a record at $637 million, up 34 percent sequentially. Operating income increased to $170 million or 27 percent of net sales.
Additional Quarterly Financial Information
- Backlog increased by $344 million to $3.88 billion.
- Gross margin was 41.5 percent, down from 42.3 percent in the first quarter.
- The effective tax rate was 28.8 percent.
- Operating cash flow was $704 million or 25 percent of net sales.
- Cash dividend payments totaled $93 million.
- The company used $118 million to repurchase 7.6 million shares of its common stock.
- Cash, cash equivalents and investments increased to $4.58 billion at quarter end.
Business Outlook
For the third quarter of fiscal 2011, Applied expects net sales to be down in the range of 3 percent to 10 percent sequentially. The company expects non-GAAP EPS to be in the range of $0.31 to $0.37. The non-GAAP EPS outlook excludes known charges related to completed acquisitions of approximately $0.01 per share, but does not exclude other non-GAAP adjustments that may arise subsequent to this release. The non-GAAP EPS outlook includes the potential cost of long-term financing related to the planned Varian acquisition of approximately $0.01 per share.
Use of Non-GAAP Financial Measures
Management uses non-GAAP 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 Materials 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 .
Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding Applied's performance and full-year outlook, customers' investments, the planned acquisition of Varian Semiconductor Equipment Associates, Inc. (Varian) and associated benefits, and the business outlook for the third quarter of fiscal 2011. Forward-looking statements may contain words such as "expect," "believe," "may," "can," "should," "will," "forecast," "anticipate" or similar expressions, and include the assumptions that underlie such statements. These statements 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, business and consumer spending, demand for electronic products and semiconductors, government renewable energy policies and incentives, and customers' utilization rates and new technology and capacity requirements; variability of operating expenses and results among the company's segments caused by differing conditions in the served markets; Applied's ability to (i) develop, deliver and support a broad range of products, expand its markets and develop new markets, (ii) timely align its cost structure with business conditions, (iii) plan and manage its resources and production capability, including its supply chain, (iv) implement initiatives that enhance global operations and efficiencies, (v) consummate the proposed merger with Varian in a timely manner or at all, which depends on satisfaction of conditions precedent, including receipt of certain regulatory approvals and approval by Varian's stockholders, (vi) complete anticipated financing arrangements, (vii) integrate Varian's operations, product lines, technology and employees and realize synergies from the proposed merger, (viii) obtain and protect intellectual property rights in key technologies, (ix) attract, motivate and retain key employees, and (x) accurately forecast future operating and financial results, which depends on multiple assumptions related to, without limitation, market conditions, customer requirements and business needs; and other risks described in Applied Materials' SEC filings. 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 providing innovative equipment, services and software to enable the manufacture of advanced semiconductor, flat panel display and solar photovoltaic products. Our technologies help make innovations like smartphones, flat screen TVs and solar panels more affordable and accessible to consumers and businesses around the world. At Applied Materials, we turn today's innovations into the industries of tomorrow. Learn more at www.appliedmaterials.com .
Contact:
Howard Clabo (editorial/media) 1.408.748.5775
Michael Sullivan (financial community) 1.408.986.7977
This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Applied Materials via Thomson Reuters ONE
HUG#1518489
Copyright (c) Thomson Reuters 2011. All rights reserved.
Topic: Earnings
Sectors: Electronics
https://www.acnnewswire.com
From the Asia Corporate News Network
Copyright © 2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
|
|
|
|
|
|
|
| |
Latest Press Releases
LANGHAM BEAUTY Green Vitality 
Nov 27, 2024 22:05 HKT/SGT
|
|
|
GMG's THERMAL-XR(R) Awarded Product of the Year at the AIRAH 2024 Awards
Nov 27, 2024 21:59 HKT/SGT
|
|
|
EdgePoint Infrastructure Inks Strategic Partnership with CelcomDigi to expand connectivity in Malaysia at TowerXchange Meet Up Asia 2024
Nov 27, 2024 21:30 HKT/SGT
|
|
|
Step Into the World of Jean-Michel Basquiat
Nov 27, 2024 20:00 HKT/SGT
|
|
|
Expert Systems Announces FY25 Interim Results
Nov 27, 2024 19:50 HKT/SGT
|
|
|
Kingworld-Longde Life and Health Industrial Park Grand Opening
Nov 27, 2024 19:40 HKT/SGT
|
|
|
Swire Coca-Cola Hong Kong Leverages SAP S/4HANA and SAP Services to Drive Digital Transformation
Nov 27, 2024 19:30 HKT/SGT
|
|
|
Cropmate Berhad IPO Oversubscribed by 84.88 Times
Nov 27, 2024 18:00 HKT/SGT
|
|
|
Quranium Launches QSafe Wallet with Core Layer (L1) Testnet: The Uncrackable Solution for Blockchain Security
Nov 27, 2024 17:20 HKT/SGT
|
|
|
Survey: New Opportunities in Cross-border E-commerce
Nov 27, 2024 17:11 HKT/SGT
|
|
|
|
|
More Press release >> |
|
|
|
