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- 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, CA, Feb 12, 2015 - (ACN Newswire) - 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
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GAAP Results Q1 FY2015 Q4 FY2014 Q1 FY2014 Q1 FY2015 Q1 FY2015
vs. vs.
Q4 FY2014 Q1 FY2014
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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%
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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%
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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) +1-408-235-4498 kevin_winston@amat.com
Michael Sullivan (financial community) +1-408-986-7977 michael_sullivan@amat.com
Full press release: http://bit.ly/1EZtZhE
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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
Topic: Earnings
Source: Applied Materials, Inc.
https://www.acnnewswire.com
From the Asia Corporate News Network
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