Applied Materials Announces First Quarter Results
Comunicato Precedente
Comunicato Successivo
- Net sales and non-GAAP EPS up sequentially and in high end of guidance
- Silicon systems net sales up 19% sequentially reflecting strong customer demand for the company's latest technologies for advanced transistors and NAND memory
- Prepares for planned merger with Tokyo Electron
SANTA CLARA, Calif., February 12, 2014 - Applied Materials, Inc. (NASDAQ:AMAT), the global leader in manufacturing solutions for the semiconductor, display and solar industries, today reported results for its first quarter of fiscal 2014 ended January 26, 2014.
Applied generated orders of $2.29 billion, up 9 percent from the prior quarter led by demand for Silicon Systems Group products. Net sales were $2.19 billion, up 10 percent sequentially. Non-GAAP adjusted gross margin increased to 42.5 percent while non-GAAP adjusted operating income grew 18 percent sequentially to $380 million or 17.4 percent of net sales. Non-GAAP adjusted net income grew 22 percent sequentially to $279 million or 23 cents per diluted share. The company recorded GAAP gross margin of 40.7 percent, operating income of $330 million or 15.1 percent of net sales, and net income of $253 million or 21 cents per diluted share.
"In our first fiscal quarter, Applied Materials delivered earnings near the high end of our guidance range, while demonstrating momentum in revenue, orders and market share," said Gary Dickerson, Chief Executive Officer. "This performance reflects healthy investment by our semiconductor and display customers and major technology trends that are playing to our strengths in precision materials engineering."
Quarterly Results Summary
|
GAAP Results |
|
Q1 FY2014 |
|
Q4 FY2013 |
|
Q1 FY2013 |
|
Net sales |
|
$2.19 billion |
|
$1.99 billion |
|
$1.57 billion |
|
Operating income |
|
$330 million |
|
$211 million |
|
$39 million |
|
Net income |
|
$253 million |
|
$183 million |
|
$34 million |
|
Diluted earnings per share (EPS) |
|
$0.21 |
|
$0.15 |
|
$0.03 |
|
Non-GAAP Adjusted Results |
|
|
|
|
|
|
|
Non-GAAP adjusted operating income |
|
$380 million |
|
$323 million |
|
$112 million |
|
Non-GAAP adjusted net income |
|
$279 million |
|
$228 million |
|
$69 million |
|
Non-GAAP adjusted diluted EPS |
|
$0.23 |
|
$0.19 |
|
$0.06 |
Applied's non-GAAP adjusted results exclude the impact of the following, where applicable: certain acquisition-related costs; restructuring charges and any associated adjustments; impairments of assets, goodwill, or investments; gain or loss on sale of facilities and strategic investments; 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 $1.57 billion, up 13 percent, with growth in foundry and flash partially offset by decreases in logic/other and DRAM. Net sales increased 19 percent to $1.48 billion. Non-GAAP adjusted operating income increased to $357 million or 24.1 percent of net sales. GAAP operating income increased to $314 million or 21.2 percent of net sales. New order composition was: foundry 60 percent; flash 27 percent; logic/other 8 percent; and DRAM 5 percent.
Applied Global Services (AGS) orders were $597 million, up 9 percent, primarily due to growth in 200mm equipment and services. Net sales of $507 million were down 6 percent. Non-GAAP adjusted operating income increased to $126 million or 24.9 percent of net sales. GAAP operating income increased to $125 million or 24.7 percent of net sales.
Display orders of $79 million were down 31 percent, while net sales declined slightly to $159 million. Non-GAAP adjusted operating income increased to $27 million or 17.0 percent of net sales. GAAP operating income increased to $26 million or 16.4 percent of net sales.
Energy and Environmental Solutions (EES) orders of $40 million were flat. Net sales declined 9 percent to $40 million. EES had a non-GAAP adjusted operating loss of $10 million and a GAAP operating loss of $11 million.
Backlog grew 3 percent to $2.44 billion including negative adjustments of $32 million, primarily related to currency adjustments. Backlog composition by segment was: SSG 56 percent; AGS 27 percent; Display 12 percent; and EES 5 percent.
Business Outlook
For the second quarter of fiscal 2014, Applied expects net sales to be up 3 percent to 10 percent from the previous quarter. Non-GAAP adjusted diluted EPS is expected to be in the range of 25 cents to 29 cents.
Applied's second quarter non-GAAP adjusted diluted EPS outlook excludes known charges related to completed acquisitions and integration costs of 3 cents. The company's second quarter business 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, momentum and opportunities; industry trends; and its business outlook for the second quarter of fiscal 2014. 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 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. 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 26, |
October 27, |
|
January 27, |
|||||||
|
Net sales |
|
$ |
2,190 |
|
|
$ |
1,988 |
|
|
$ |
1,573 |
|
|
Cost of products sold |
|
1,299 |
|
|
1,193 |
|
|
991 |
|
|||
|
Gross margin |
|
891 |
|
|
795 |
|
|
582 |
|
|||
|
Operating expenses: |
|
|
|
|
|
|
||||||
|
Research, development and engineering |
|
356 |
|
|
338 |
|
|
304 |
|
|||
|
Marketing and selling |
|
109 |
|
|
99 |
|
|
105 |
|
|||
|
General and administrative |
|
89 |
|
|
117 |
|
|
125 |
|
|||
|
Restructuring charges and asset impairments |
|
7 |
|
|
30 |
|
|
9 |
|
|||
|
Total operating expenses |
|
561 |
|
|
584 |
|
|
543 |
|
|||
|
Income from operations |
|
330 |
|
|
211 |
|
|
39 |
|
|||
|
Impairment of strategic investments |
|
3 |
|
|
1 |
|
|
- |
|
|||
|
Interest expense |
|
25 |
|
|
24 |
|
|
24 |
|
|||
|
Interest and other income, net |
|
13 |
|
|
8 |
|
|
3 |
|
|||
|
Income before income taxes |
|
315 |
|
|
194 |
|
|
18 |
|
|||
|
Provision (benefit) for income taxes |
|
62 |
|
|
11 |
|
|
(16 |
) |
|||
|
Net income |
|
$ |
253 |
|
|
$ |
183 |
|
|
$ |
34 |
|
|
Earnings per share: |
|
|
|
|
|
|
||||||
|
Basic and diluted |
|
$ |
0.21 |
|
|
$ |
0.15 |
|
|
$ |
0.03 |
|
|
Weighted average number of shares: |
|
|
|
|
|
|
||||||
|
Basic |
|
1,206 |
|
|
1,204 |
|
|
1,198 |
|
|||
|
Diluted |
|
1,225 |
|
|
1,222 |
|
|
1,212 |
|
|||
APPLIED MATERIALS, INC.
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
|
(In millions) |
|
January 26, |
|
October 27, |
|
|||
|
2014 |
2013 |
|
||||||
|
ASSETS |
|
|
|
|
|
|||
|
Current assets: |
|
|
|
|
|
|||
|
Cash and cash equivalents |
|
$ |
2,144 |
|
|
$ |
1,711 |
|
|
Short-term investments |
|
145 |
|
|
180 |
|
||
|
Accounts receivable, net |
|
1,510 |
|
|
1,633 |
|
||
|
Inventories |
|
1,533 |
|
|
1,413 |
|
||
|
Other current assets |
|
682 |
|
|
705 |
|
||
|
Total current assets |
|
6,014 |
|
|
5,642 |
|
||
|
Long-term investments |
|
833 |
|
|
1,005 |
|
||
|
Property, plant and equipment, net |
|
846 |
|
|
850 |
|
||
|
Goodwill |
|
3,294 |
|
|
3,294 |
|
||
|
Purchased technology and other intangible assets, net |
|
1,057 |
|
|
1,103 |
|
||
|
Deferred income taxes and other assets |
|
155 |
|
|
149 |
|
||
|
Total assets |
|
$ |
12,199 |
|
|
$ |
12,043 |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|||
|
Current liabilities: |
|
|
|
|
|
|||
|
Accounts payable and accrued expenses |
|
$ |
1,576 |
|
|
$ |
1,649 |
|
|
Customer deposits and deferred revenue |
|
901 |
|
|
794 |
|
||
|
Total current liabilities |
|
2,477 |
|
|
2,443 |
|
||
|
Long-term debt |
|
1,946 |
|
|
1,946 |
|
||
|
Other liabilities |
|
535 |
|
|
566 |
|
||
|
Total liabilities |
|
4,958 |
|
|
4,955 |
|
||
|
Total stockholders' equity |
|
7,241 |
|
|
7,088 |
|
||
|
Total liabilities and stockholders' equity |
|
$ |
12,199 |
|
|
$ |
12,043 |
|
APPLIED MATERIALS, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
|
(In millions) |
Three Months Ended |
||||||||||||
|
January 26, |
|
October 27, |
|
January 27, |
|||||||||
|
2014 |
2013 |
2013 |
|||||||||||
|
Cash flows from operating activities: |
|
|
|
|
|
||||||||
|
|
Net income |
$ |
253 |
|
|
$ |
183 |
|
|
$ |
34 |
|
|
|
|
Adjustments required to reconcile net income to cash provided by operating activities: |
|
|
|
|
|
|||||||
|
Depreciation and amortization |
94 |
|
|
98 |
|
|
106 |
|
|||||
|
|
|
Restructuring charges and asset impairments |
7 |
|
|
30 |
|
|
9 |
|
|||
|
|
|
Unrealized loss (gain) on derivative associated with announced business combination |
(24 |
) |
|
7 |
|
|
- |
|
|||
|
|
|
Share-based compensation |
46 |
|
|
41 |
|
|
42 |
|
|||
|
|
|
Other |
(16 |
) |
|
11 |
|
|
(78 |
) |
|||
|
|
|
Net change in operating assets and liabilities |
12 |
|
|
(351 |
) |
|
(97 |
) |
|||
|
Cash provided by operating activities |
372 |
|
|
19 |
|
|
16 |
|
|||||
|
Cash flows from investing activities: |
|
|
|
|
|
||||||||
|
|
Capital expenditures |
(48 |
) |
|
(50 |
) |
|
(49 |
) |
||||
|
|
Proceeds from sales and maturities of investments |
364 |
|
|
276 |
|
|
445 |
|
||||
|
|
Purchases of investments |
(163 |
) |
|
(169 |
) |
|
(143 |
) |
||||
|
Cash provided by investing activities |
153 |
|
|
57 |
|
|
253 |
|
|||||
|
Cash flows from financing activities: |
|
|
|
|
|
||||||||
|
|
Proceeds from common stock issuances and others |
28 |
|
|
57 |
|
|
18 |
|
||||
|
|
Common stock repurchases |
- |
|
|
(47 |
) |
|
(48 |
) |
||||
|
|
Payments of dividends to stockholders |
(120 |
) |
|
(120 |
) |
|
(108 |
) |
||||
|
Cash used in financing activities |
(92 |
) |
|
(110 |
) |
|
(138 |
) |
|||||
|
Increase (decrease) in cash and cash equivalents |
433 |
|
|
(34 |
) |
|
131 |
|
|||||
|
Cash and cash equivalents - beginning of period |
1,711 |
|
|
1,745 |
|
|
1,392 |
|
|||||
|
Cash and cash equivalents - end of period |
$ |
2,144 |
|
|
$ |
1,711 |
|
|
$ |
1,523 |
|
||
|
Supplemental cash flow information: |
|
|
|
|
|
||||||||
|
|
Cash payments for income taxes |
$ |
26 |
|
|
$ |
12 |
|
|
$ |
32 |
|
|
|
|
Cash refunds from income taxes |
$ |
9 |
|
|
$ |
35 |
|
|
$ |
65 |
|
|
|
|
Cash payments for interest |
$ |
39 |
|
|
$ |
7 |
|
|
$ |
39 |
|
|
APPLIED MATERIALS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
Reportable Segment Results
|
|
|
Q1 FY2014 |
|
Q4 FY2013 |
|
Q1 FY2013 |
||||||||||||||||||||||||||||||
|
(In millions) |
|
New |
|
Net |
|
Operating |
|
New |
|
Net |
|
Operating |
|
New |
|
Net |
|
Operating |
||||||||||||||||||
|
Orders |
Sales |
Income |
Orders |
Sales |
Income |
Orders |
Sales |
Income |
||||||||||||||||||||||||||||
|
|
|
(Loss) |
|
|
(Loss) |
|
|
(Loss) |
||||||||||||||||||||||||||||
|
SSG |
|
$ |
1,569 |
|
|
$ |
1,484 |
|
|
$ |
314 |
|
|
$ |
1,390 |
|
|
$ |
1,243 |
|
|
$ |
213 |
|
|
$ |
1,363 |
|
|
$ |
969 |
|
|
$ |
134 |
|
|
AGS |
|
597 |
|
|
507 |
|
|
125 |
|
|
548 |
|
|
538 |
|
|
115 |
|
|
544 |
|
|
471 |
|
|
89 |
|
|||||||||
|
Display |
|
79 |
|
|
159 |
|
|
26 |
|
|
114 |
|
|
163 |
|
|
19 |
|
|
138 |
|
|
87 |
|
|
3 |
|
|||||||||
|
EES |
|
40 |
|
|
40 |
|
|
(11 |
) |
|
40 |
|
|
44 |
|
|
(30 |
) |
|
68 |
|
|
46 |
|
|
(54 |
) |
|||||||||
|
Corporate |
|
- |
|
|
- |
|
|
(124 |
) |
|
- |
|
|
- |
|
|
(106 |
) |
|
- |
|
|
- |
|
|
(133 |
) |
|||||||||
|
Consoli- dated |
|
$ |
2,285 |
|
|
$ |
2,190 |
|
|
$ |
330 |
|
|
$ |
2,092 |
|
|
$ |
1,988 |
|
|
$ |
211 |
|
|
$ |
2,113 |
|
|
$ |
1,573 |
|
|
$ |
39 |
|
Corporate Unallocated Expenses
|
(In millions) |
|
Q1 FY2014 |
|
Q4 FY2013 |
|
Q1 FY2013 |
||||||
|
Restructuring charges and asset impairments |
|
$ |
7 |
|
|
$ |
23 |
|
|
$ |
4 |
|
|
Share-based compensation |
|
46 |
|
|
41 |
|
|
42 |
|
|||
|
Other unallocated expenses |
|
71 |
|
|
42 |
|
|
87 |
|
|||
|
Corporate |
|
$ |
124 |
|
|
$ |
106 |
|
|
$ |
133 |
|
APPLIED MATERIALS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
Additional Information
|
|
|
Q1 FY2014 |
|
Q4 FY2013 |
|
Q1 FY2013 |
||||||||||||
|
New Orders and Net Sales by Geography |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
(In $ millions) |
|
New Orders |
|
Net Sales |
|
New Orders |
|
Net Sales |
|
New Orders |
|
Net Sales |
||||||
|
United States |
|
403 |
|
|
280 |
|
|
261 |
|
|
357 |
|
|
391 |
|
|
401 |
|
|
% of Total |
|
18 |
% |
|
13 |
% |
|
12 |
% |
|
18 |
% |
|
19 |
% |
|
25 |
% |
|
Europe |
|
119 |
|
|
164 |
|
|
203 |
|
|
242 |
|
|
134 |
|
|
119 |
|
|
% of Total |
|
5 |
% |
|
7 |
% |
|
10 |
% |
|
12 |
% |
|
6 |
% |
|
8 |
% |
|
Japan |
|
163 |
|
|
164 |
|
|
117 |
|
|
276 |
|
|
181 |
|
|
98 |
|
|
% of Total |
|
7 |
% |
|
8 |
% |
|
6 |
% |
|
14 |
% |
|
9 |
% |
|
6 |
% |
|
Korea |
|
240 |
|
|
201 |
|
|
209 |
|
|
231 |
|
|
198 |
|
|
205 |
|
|
% of Total |
|
11 |
% |
|
9 |
% |
|
10 |
% |
|
12 |
% |
|
9 |
% |
|
13 |
% |
|
Taiwan |
|
984 |
|
|
705 |
|
|
721 |
|
|
589 |
|
|
906 |
|
|
565 |
|
|
% of Total |
|
43 |
% |
|
32 |
% |
|
34 |
% |
|
30 |
% |
|
43 |
% |
|
36 |
% |
|
Southeast Asia |
|
50 |
|
|
87 |
|
|
95 |
|
|
89 |
|
|
65 |
|
|
58 |
|
|
% of Total |
|
2 |
% |
|
4 |
% |
|
5 |
% |
|
4 |
% |
|
3 |
% |
|
4 |
% |
|
China |
|
326 |
|
|
589 |
|
|
486 |
|
|
204 |
|
|
238 |
|
|
127 |
|
|
% of Total |
|
14 |
% |
|
27 |
% |
|
23 |
% |
|
10 |
% |
|
11 |
% |
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Employees (In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Regular Full Time |
|
13.6 |
|
|
13.7 |
|
|
13.7 |
|
|||||||||
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
|
|
|
Three Months Ended |
||||||||||
|
(In millions, except percentages and per share amounts) |
|
January 26, |
|
October 27, |
|
January 27, |
||||||
|
2014 |
2013 |
2013 |
||||||||||
|
Non-GAAP Adjusted Gross Margin |
|
|
|
|
|
|
||||||
|
Reported gross margin - GAAP basis |
|
$ |
891 |
|
|
$ |
795 |
|
|
$ |
582 |
|
|
Certain items associated with acquisitions(1) |
|
39 |
|
|
40 |
|
|
43 |
|
|||
|
Acquisition integration and deal costs |
|
- |
|
|
- |
|
|
1 |
|
|||
|
Non-GAAP adjusted gross margin |
|
$ |
930 |
|
|
$ |
835 |
|
|
$ |
626 |
|
|
Non-GAAP adjusted gross margin percent (% of net sales) |
|
42.5 |
% |
|
42.0 |
% |
|
39.8 |
% |
|||
|
Non-GAAP Adjusted Operating Income |
|
|
|
|
|
|
||||||
|
Reported operating income - GAAP basis |
|
$ |
330 |
|
|
$ |
211 |
|
|
$ |
39 |
|
|
Certain items associated with acquisitions(1) |
|
45 |
|
|
47 |
|
|
54 |
|
|||
|
Acquisition integration and deal costs |
|
11 |
|
|
11 |
|
|
10 |
|
|||
|
Unrealized loss (gain) on derivative associated with announced business combination |
|
(24 |
) |
|
7 |
|
|
- |
|
|||
|
Certain items associated with announced business combination(2) |
|
11 |
|
|
17 |
|
|
- |
|
|||
|
Restructuring charges and asset impairments(3), (4), (5) |
|
7 |
|
|
30 |
|
|
9 |
|
|||
|
Non-GAAP adjusted operating income |
|
$ |
380 |
|
|
$ |
323 |
|
|
$ |
112 |
|
|
Non-GAAP adjusted operating margin percent (% of net sales) |
|
17.4 |
% |
|
16.2 |
% |
|
7.1 |
% |
|||
|
Non-GAAP Adjusted Net Income |
|
|
|
|
|
|
||||||
|
Reported net income - GAAP basis |
|
$ |
253 |
|
|
$ |
183 |
|
|
$ |
34 |
|
|
Certain items associated with acquisitions(1) |
|
45 |
|
|
47 |
|
|
54 |
|
|||
|
Acquisition integration and deal costs |
|
11 |
|
|
11 |
|
|
10 |
|
|||
|
Unrealized loss (gain) on derivative associated with announced business combination |
|
(24 |
) |
|
7 |
|
|
- |
|
|||
|
Certain items associated with announced business combination(2) |
|
11 |
|
|
17 |
|
|
- |
|
|||
|
Restructuring charges and asset impairments(3), (4), (5) |
|
7 |
|
|
30 |
|
|
9 |
|
|||
|
Impairment (gain on sale) of strategic investments, net |
|
(5 |
) |
|
(3 |
) |
|
- |
|
|||
|
Reinstatement of federal R&D tax credit |
|
- |
|
|
- |
|
|
(10 |
) |
|||
|
Resolution of prior years' income tax filings and other tax items |
|
(15 |
) |
|
(10 |
) |
|
(11 |
) |
|||
|
Income tax effect of non-GAAP adjustments |
|
(4 |
) |
|
(54 |
) |
|
(17 |
) |
|||
|
Non-GAAP adjusted net income |
|
$ |
279 |
|
|
$ |
228 |
|
|
$ |
69 |
|
|
1 |
These items are incremental charges attributable to completed acquisitions, consisting of inventory fair value adjustments on products sold, and 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 costs. |
|
|
|
|
3 |
Results for the three months ended January 26, 2014 included employee-related costs of $7 million related to the restructuring program announced on October 3, 2012. |
|
|
|
|
4 |
Results for the three months ended October 27, 2013 included $27 million of employee-related costs related to the restructuring program announced on October 3, 2012, and restructuring and asset impairment charges of $7 million related to the restructuring program announced on May 10, 2012, partially offset by a favorable adjustment of $4 million in restructuring charges related to other restructuring plans. |
|
|
|
|
5 |
Results for the three months ended January 27, 2013 included $4 million of employee-related costs related to the restructuring program announced on October 3, 2012, asset impairment charges of $3 million related to the restructuring program announced on May 10, 2012 and severance charges of $2 million related to the integration of Varian. |
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
|
|
|
Three Months Ended |
||||||||||
|
(In millions except per share amounts) |
|
January 26, |
|
October 27, |
|
January 27, |
||||||
|
Non-GAAP Adjusted Earnings Per Diluted Share |
|
|
|
|
|
|
||||||
|
Reported earnings per diluted share - GAAP basis |
|
$ |
0.21 |
|
|
$ |
0.15 |
|
|
$ |
0.03 |
|
|
Certain items associated with acquisitions |
|
0.03 |
|
|
0.03 |
|
|
0.03 |
|
|||
|
Acquisition integration and deal costs |
|
0.01 |
|
|
- |
|
|
0.01 |
|
|||
|
Unrealized gain on derivative associated with announced business combination |
|
(0.01 |
) |
|
- |
|
|
- |
|
|||
|
Certain items associated with announced business combination |
|
- |
|
|
0.01 |
|
|
- |
|
|||
|
Restructuring charges and asset impairments |
|
- |
|
|
0.01 |
|
|
0.01 |
|
|||
|
Reinstatement of federal R&D tax credit and resolution of prior years' income tax filings and other tax items |
|
(0.01 |
) |
|
(0.01 |
) |
|
(0.02 |
) |
|||
|
Non-GAAP adjusted earnings per diluted share |
|
$ |
0.23 |
|
|
$ |
0.19 |
|
|
$ |
0.06 |
|
|
Weighted average number of diluted shares |
|
1,225 |
|
|
1,222 |
|
|
1,212 |
|
|||
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
|
|
|
Three Months Ended |
||||||||||
|
(In millions, except percentages) |
|
January 26, |
|
October 27, |
|
January 27, |
||||||
|
SSG Non-GAAP Adjusted Operating Income |
|
|
|
|
|
|
||||||
|
Reported operating income - GAAP basis |
|
$ |
314 |
|
|
$ |
213 |
|
|
$ |
134 |
|
|
Certain items associated with acquisitions(1) |
|
42 |
|
|
44 |
|
|
44 |
|
|||
|
Acquisition integration and deal costs, net |
|
1 |
|
|
1 |
|
|
1 |
|
|||
|
Restructuring charges and asset impairments(3) |
|
- |
|
|
- |
|
|
1 |
|
|||
|
Non-GAAP adjusted operating income |
|
$ |
357 |
|
|
$ |
258 |
|
|
$ |
180 |
|
|
Non-GAAP adjusted operating margin percent (% of net sales) |
|
24.1 |
% |
|
20.8 |
% |
|
18.6 |
% |
|||
|
AGS Non-GAAP Adjusted Operating Income |
|
|
|
|
|
|
||||||
|
Reported operating income - GAAP basis |
|
$ |
125 |
|
|
$ |
115 |
|
|
$ |
89 |
|
|
Certain items associated with acquisitions(1) |
|
1 |
|
|
1 |
|
|
1 |
|
|||
|
Restructuring charges and asset impairments(3) |
|
- |
|
|
- |
|
|
1 |
|
|||
|
Non-GAAP adjusted operating income |
|
$ |
126 |
|
|
$ |
116 |
|
|
$ |
91 |
|
|
Non-GAAP adjusted operating margin percent (% of net sales) |
|
24.9 |
% |
|
21.6 |
% |
|
19.3 |
% |
|||
|
Display Non-GAAP Adjusted Operating Income |
|
|
|
|
|
|
||||||
|
Reported operating income - GAAP basis |
|
$ |
26 |
|
|
$ |
19 |
|
|
$ |
3 |
|
|
Certain items associated with acquisitions(1) |
|
1 |
|
|
1 |
|
|
2 |
|
|||
|
Non-GAAP adjusted operating income |
|
$ |
27 |
|
|
$ |
20 |
|
|
$ |
5 |
|
|
Non-GAAP adjusted operating margin percent (% of net sales) |
|
17.0 |
% |
|
12.3 |
% |
|
5.7 |
% |
|||
|
EES Non-GAAP Adjusted Operating Loss |
|
|
|
|
|
|
||||||
|
Reported operating loss - GAAP basis |
|
$ |
(11 |
) |
|
$ |
(30 |
) |
|
$ |
(54 |
) |
|
Certain items associated with acquisitions(1) |
|
1 |
|
|
1 |
|
|
7 |
|
|||
|
Restructuring charges and asset impairments(2), (3) |
|
- |
|
|
7 |
|
|
3 |
|
|||
|
Non-GAAP adjusted operating loss |
|
$ |
(10 |
) |
|
$ |
(22 |
) |
|
$ |
(44 |
) |
|
Non-GAAP adjusted operating margin percent (% of net sales) |
|
(25.0 |
)% |
|
(50.0 |
)% |
|
(95.7 |
)% |
|||
|
1 |
These items are incremental charges attributable to completed acquisitions, consisting of inventory fair value adjustments on products sold, and amortization of purchased intangible assets. |
|
|
|
|
2 |
Results for the three months ended October 27, 2013 included restructuring and asset impairment charges of $7 million related to the restructuring program announced on May 10, 2012. |
|
|
|
|
3 |
Results for the three months ended January 27, 2013 included asset impairment charges of $3 million related to the restructuring program announced on May 10, 2012 and severance charges of $2 million related to the integration of Varian. |
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED OPERATING EXPENSES
|
|
Three Months Ended |
||||||
|
(In millions) |
January 26, 2014 |
|
October 27, 2013 |
||||
|
|
|
|
|
||||
|
Operating expenses - GAAP basis |
$ |
561 |
|
|
$ |
584 |
|
|
Unrealized gain (loss) on derivative associated with announced business combination |
24 |
|
|
(7 |
) |
||
|
Restructuring charges and asset impairments |
(7 |
) |
|
(30 |
) |
||
|
Certain items associated with acquisitions |
(6 |
) |
|
(7 |
) |
||
|
Acquisition integration costs |
(11 |
) |
|
(11 |
) |
||
|
Certain items associated with announced business combination |
(11 |
) |
|
(17 |
) |
||
|
Non-GAAP adjusted operating expenses |
$ |
550 |
|
|
$ |
512 |
|
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED EFFECTIVE INCOME TAX RATE
|
|
Three Months Ended |
||
|
(In millions, except percentages) |
January 26, 2014 |
||
|
|
|
||
|
Provision for income taxes - GAAP basis (a) |
$ |
62 |
|
|
Resolutions of prior years' income tax filings and other tax items |
15 |
|
|
|
Income tax effect of non-GAAP adjustments |
4 |
|
|
|
Non-GAAP adjusted provision for income taxes (b) |
$ |
81 |
|
|
|
|
||
|
Income before income taxes - GAAP basis (c) |
$ |
315 |
|
|
Certain items associated with acquisitions |
45 |
|
|
|
Restructuring charges and asset impairments |
7 |
|
|
|
Acquisition integration costs |
11 |
|
|
|
Unrealized gain on derivative associated with announced business combination |
(24 |
) |
|
|
Certain items associated with announced business combination |
11 |
|
|
|
Gain on sale strategic investments, net |
(5 |
) |
|
|
Non-GAAP adjusted income before income taxes (d) |
$ |
360 |
|
|
|
|
||
|
Effective income tax rate - GAAP basis (a/c) |
19.7 |
% |
|
|
|
|
||
|
Non-GAAP adjusted effective income tax rate (b/d) |
22.5 |
% |
|
Copyright GlobeNewswire
Regulatory News
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: %s via Globenewswire
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