Applied Materials, Inc. (NASDAQ: AMAT) today reported results for
its third quarter ended Jul. 28, 2024.
Third Quarter Results
Applied generated record revenue of $6.78 billion. On a GAAP
basis, the company reported gross margin of 47.3 percent, operating
income of $1.94 billion or 28.7 percent of net revenue, and
earnings per share (EPS) of $2.05.
On a non-GAAP basis, the company reported gross margin of 47.4
percent, operating income of $1.95 billion or 28.8 percent of net
revenue, and EPS of $2.12.
The company generated $2.39 billion in cash from operations and
distributed $1.19 billion to shareholders including $861 million in
share repurchases and $331 million in dividends.
“Applied Materials is delivering strong results in 2024 with
record revenues in our fiscal third quarter and earnings towards
the high end of our guided range,” said Gary Dickerson, President
and CEO. “The race for AI leadership is fueling demand for our
unique and connected portfolio of products and services,
positioning Applied to outperform our markets over the longer
term.”
Results Summary
| |
Q3 FY2024 |
|
Q3 FY2023 |
|
Change |
| |
(In millions, except per share amounts and percentages) |
|
Net revenue |
$ |
6,778 |
|
|
$ |
6,425 |
|
|
5 |
% |
| Gross margin |
|
47.3 |
% |
|
|
46.3 |
% |
|
1.0 point |
| Operating margin |
|
28.7 |
% |
|
|
28.0 |
% |
|
0.7 points |
| Net income |
$ |
1,705 |
|
|
$ |
1,560 |
|
|
9 |
% |
| Diluted earnings per share |
$ |
2.05 |
|
|
$ |
1.85 |
|
|
11 |
% |
|
Non-GAAP Results |
|
|
|
|
|
|
Non-GAAP gross margin |
|
47.4 |
% |
|
|
46.4 |
% |
|
1.0 point |
| Non-GAAP operating margin |
|
28.8 |
% |
|
|
28.3 |
% |
|
0.5 points |
| Non-GAAP net income |
$ |
1,767 |
|
|
$ |
1,600 |
|
|
10 |
% |
| Non-GAAP diluted EPS |
$ |
2.12 |
|
|
$ |
1.90 |
|
|
12 |
% |
| Non-GAAP free cash flow |
$ |
2,088 |
|
|
$ |
2,328 |
|
|
(10 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
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 fourth quarter of fiscal 2024, Applied expects net
revenue to be approximately $6.93 billion, plus or minus $400
million. Non-GAAP diluted EPS is expected to be in the range of
$2.00 to $2.36.
This outlook for non-GAAP diluted EPS excludes known charges
related to completed acquisitions of $0.01 per share and includes
the normalized tax benefit of share-based compensation of $0.01 per
share and includes a net income tax benefit related to intra-entity
intangible asset transfers of $0.02 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.
Third Quarter 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 |
Q3 FY2024 |
|
Q3 FY2023 |
| |
(In millions, except percentages) |
|
Net revenue |
$ |
4,924 |
|
|
$ |
4,676 |
|
|
Foundry, logic and other |
|
72 |
% |
|
|
79 |
% |
|
DRAM |
|
24 |
% |
|
|
17 |
% |
|
Flash memory |
|
4 |
% |
|
|
4 |
% |
| Operating income |
$ |
1,712 |
|
|
$ |
1,568 |
|
| Operating margin |
|
34.8 |
% |
|
|
33.5 |
% |
| Non-GAAP
Results |
|
|
| Non-GAAP operating income |
$ |
1,722 |
|
|
$ |
1,578 |
|
| Non-GAAP operating margin |
|
35.0 |
% |
|
|
33.7 |
% |
| Applied Global
Services |
Q3 FY2024 |
|
Q3 FY2023 |
| |
(In millions, except percentages) |
|
Net revenue |
$ |
1,580 |
|
|
$ |
1,464 |
|
| Operating income |
$ |
467 |
|
|
$ |
399 |
|
| Operating margin |
|
29.6 |
% |
|
|
27.3 |
% |
| Non-GAAP
Results |
|
|
| Non-GAAP operating income |
$ |
467 |
|
|
$ |
399 |
|
| Non-GAAP operating margin |
|
29.6 |
% |
|
|
27.3 |
% |
| Display and Adjacent
Markets |
Q3 FY2024 |
|
Q3 FY2023 |
| |
(In millions, except percentages) |
|
Net revenue |
$ |
251 |
|
|
$ |
235 |
|
| Operating income |
$ |
16 |
|
|
$ |
32 |
|
| Operating margin |
|
6.4 |
% |
|
|
13.6 |
% |
| Non-GAAP
Results |
|
|
| Non-GAAP operating income |
$ |
16 |
|
|
$ |
32 |
|
| Non-GAAP operating margin |
|
6.4 |
% |
|
|
13.6 |
% |
| Corporate
and Other |
| |
| (In millions) |
Q3 FY2024 |
|
Q3 FY2023 |
|
Unallocated net revenue |
$ |
23 |
|
|
$ |
50 |
|
| Unallocated cost of products sold
and expenses |
|
(276 |
) |
|
|
(247 |
) |
| Total |
$ |
(253 |
) |
|
$ |
(197 |
) |
| |
|
|
|
|
|
|
|
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
www.appliedmaterials.com. A replay will be available on the website
beginning at 5:00 p.m. Pacific Time today.
Forward-Looking Statement
This 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
fourth quarter of fiscal 2024 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; our ability to
obtain licenses or authorizations on a timely basis, if at all; the
effects of geopolitical turmoil or conflicts; 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; 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) 408.235.4676Michael
Sullivan (financial community) 408.986.7977
|
APPLIED MATERIALS, INC. |
|
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS |
| |
| |
Three Months Ended |
|
Nine Months Ended |
| (In millions, except per share
amounts) |
July 28,2024 |
|
July 30,2023 |
|
July 28,2024 |
|
July 30,2023 |
|
Net revenue |
$ |
6,778 |
|
$ |
6,425 |
|
$ |
20,131 |
|
$ |
19,794 |
| Cost of products sold |
|
3,573 |
|
|
3,449 |
|
|
10,569 |
|
|
10,579 |
| Gross profit |
|
3,205 |
|
|
2,976 |
|
|
9,562 |
|
|
9,215 |
| Operating expenses: |
|
|
|
|
|
|
|
|
Research, development and engineering |
|
836 |
|
|
767 |
|
|
2,375 |
|
|
2,313 |
|
Marketing and selling |
|
205 |
|
|
193 |
|
|
621 |
|
|
584 |
|
General and administrative |
|
222 |
|
|
214 |
|
|
745 |
|
|
635 |
| Total operating expenses |
|
1,263 |
|
|
1,174 |
|
|
3,741 |
|
|
3,532 |
| Income from operations |
|
1,942 |
|
|
1,802 |
|
|
5,821 |
|
|
5,683 |
| Interest expense |
|
63 |
|
|
60 |
|
|
181 |
|
|
180 |
| Interest and other income
(expense), net |
|
81 |
|
|
64 |
|
|
617 |
|
|
41 |
| Income before income taxes |
|
1,960 |
|
|
1,806 |
|
|
6,257 |
|
|
5,544 |
| Provision for income taxes |
|
255 |
|
|
246 |
|
|
811 |
|
|
692 |
| Net income |
$ |
1,705 |
|
$ |
1,560 |
|
$ |
5,446 |
|
$ |
4,852 |
| Earnings per share: |
|
|
|
|
|
|
|
|
Basic |
$ |
2.06 |
|
$ |
1.86 |
|
$ |
6.57 |
|
$ |
5.76 |
|
Diluted |
$ |
2.05 |
|
$ |
1.85 |
|
$ |
6.52 |
|
$ |
5.73 |
| Weighted average number of
shares: |
|
|
|
|
|
|
|
|
Basic |
|
826 |
|
|
838 |
|
|
829 |
|
|
842 |
|
Diluted |
|
833 |
|
|
843 |
|
|
835 |
|
|
846 |
|
APPLIED MATERIALS, INC. |
|
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS |
| |
| (In millions) |
July 28,2024 |
|
October 29,2023 |
| ASSETS |
|
|
|
| Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
8,288 |
|
$ |
6,132 |
|
Short-term investments |
|
815 |
|
|
737 |
|
Accounts receivable, net |
|
4,970 |
|
|
5,165 |
|
Inventories |
|
5,568 |
|
|
5,725 |
|
Other current assets |
|
1,030 |
|
|
1,388 |
| Total current assets |
|
20,671 |
|
|
19,147 |
| Long-term investments |
|
2,981 |
|
|
2,281 |
| Property, plant and equipment,
net |
|
3,100 |
|
|
2,723 |
| Goodwill |
|
3,732 |
|
|
3,732 |
| Purchased technology and other
intangible assets, net |
|
262 |
|
|
294 |
| Deferred income taxes and other
assets |
|
2,901 |
|
|
2,552 |
| Total assets |
$ |
33,647 |
|
$ |
30,729 |
| LIABILITIES AND STOCKHOLDERS’
EQUITY |
|
|
|
| Current liabilities: |
|
|
|
|
Short-term debt |
$ |
99 |
|
$ |
100 |
|
Accounts payable and accrued expenses |
|
4,387 |
|
|
4,297 |
|
Contract liabilities |
|
2,742 |
|
|
2,975 |
| Total current liabilities |
|
7,228 |
|
|
7,372 |
| Long-term debt |
|
6,158 |
|
|
5,461 |
| Income taxes payable |
|
671 |
|
|
833 |
| Other liabilities |
|
750 |
|
|
714 |
| Total liabilities |
|
14,807 |
|
|
14,380 |
| Total stockholders’ equity |
|
18,840 |
|
|
16,349 |
| Total liabilities and
stockholders’ equity |
$ |
33,647 |
|
$ |
30,729 |
|
APPLIED MATERIALS, INC. |
|
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS |
| |
| (In millions) |
Three Months Ended |
|
Nine Months Ended |
|
July 28,2024 |
|
July 30,2023 |
July 28,2024 |
|
July 30,2023 |
| Cash flows from operating
activities: |
|
|
|
|
|
|
|
|
Net income |
$ |
1,705 |
|
|
$ |
1,560 |
|
|
$ |
5,446 |
|
|
$ |
4,852 |
|
|
Adjustments required to reconcile net income to cash provided by
operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
95 |
|
|
|
136 |
|
|
|
282 |
|
|
|
385 |
|
|
Share-based compensation |
|
132 |
|
|
|
114 |
|
|
|
436 |
|
|
|
375 |
|
|
Deferred income taxes |
|
(179 |
) |
|
|
(38 |
) |
|
|
(385 |
) |
|
|
(174 |
) |
|
Other |
|
48 |
|
|
|
15 |
|
|
|
(199 |
) |
|
|
189 |
|
|
Net change in operating assets and liabilities |
|
584 |
|
|
|
796 |
|
|
|
522 |
|
|
|
1,518 |
|
| Cash provided by operating
activities |
|
2,385 |
|
|
|
2,583 |
|
|
|
6,102 |
|
|
|
7,145 |
|
| Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
(297 |
) |
|
|
(255 |
) |
|
|
(783 |
) |
|
|
(797 |
) |
|
Cash paid for acquisitions, net of cash acquired |
|
— |
|
|
|
(7 |
) |
|
|
— |
|
|
|
(25 |
) |
|
Proceeds from sales and maturities of investments |
|
382 |
|
|
|
302 |
|
|
|
1,495 |
|
|
|
971 |
|
|
Purchases of investments |
|
(745 |
) |
|
|
(465 |
) |
|
|
(1,968 |
) |
|
|
(1,195 |
) |
| Cash used in investing
activities |
|
(660 |
) |
|
|
(425 |
) |
|
|
(1,256 |
) |
|
|
(1,046 |
) |
| Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
Debt borrowings, net of issuance costs |
|
694 |
|
|
|
— |
|
|
|
694 |
|
|
|
— |
|
|
Proceeds from issuance of commercial paper |
|
100 |
|
|
|
297 |
|
|
|
300 |
|
|
|
892 |
|
|
Repayments of commercial paper |
|
(100 |
) |
|
|
(300 |
) |
|
|
(300 |
) |
|
|
(700 |
) |
|
Proceeds from common stock issuances |
|
— |
|
|
|
— |
|
|
|
119 |
|
|
|
111 |
|
|
Common stock repurchases |
|
(861 |
) |
|
|
(439 |
) |
|
|
(2,381 |
) |
|
|
(1,489 |
) |
|
Tax withholding payments for vested equity awards |
|
(25 |
) |
|
|
(11 |
) |
|
|
(258 |
) |
|
|
(165 |
) |
|
Payments of dividends to stockholders |
|
(331 |
) |
|
|
(268 |
) |
|
|
(863 |
) |
|
|
(707 |
) |
|
Repayments of principal on finance leases |
|
1 |
|
|
|
1 |
|
|
|
(12 |
) |
|
|
(8 |
) |
| Cash used in financing
activities |
|
(522 |
) |
|
|
(720 |
) |
|
|
(2,701 |
) |
|
|
(2,066 |
) |
| Increase (decrease) in cash, cash
equivalents and restricted cash equivalents |
|
1,203 |
|
|
|
1,438 |
|
|
|
2,145 |
|
|
|
4,033 |
|
| Cash, cash equivalents and
restricted cash equivalents—beginning of period |
|
7,175 |
|
|
|
4,695 |
|
|
|
6,233 |
|
|
|
2,100 |
|
| Cash, cash equivalents and
restricted cash equivalents — end of period |
$ |
8,378 |
|
|
$ |
6,133 |
|
|
$ |
8,378 |
|
|
$ |
6,133 |
|
| |
|
|
|
|
|
|
|
| Reconciliation of cash, cash
equivalents, and restricted cash equivalents |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
8,288 |
|
|
$ |
6,025 |
|
|
$ |
8,288 |
|
|
$ |
6,025 |
|
|
Restricted cash equivalents included in deferred income taxes and
other assets |
|
90 |
|
|
|
108 |
|
|
|
90 |
|
|
|
108 |
|
| Total cash, cash equivalents, and
restricted cash equivalents |
$ |
8,378 |
|
|
$ |
6,133 |
|
|
$ |
8,378 |
|
|
$ |
6,133 |
|
| |
|
|
|
|
|
|
|
| Supplemental cash flow
information: |
|
|
|
|
|
|
|
|
Cash payments for income taxes |
$ |
213 |
|
|
$ |
197 |
|
|
$ |
819 |
|
|
$ |
418 |
|
|
Cash refunds from income taxes |
$ |
2 |
|
|
$ |
— |
|
|
$ |
7 |
|
|
$ |
51 |
|
|
Cash payments for interest |
$ |
35 |
|
|
$ |
35 |
|
|
$ |
137 |
|
|
$ |
137 |
|
| Additional
Information |
| |
| |
Q3 FY2024 |
|
Q3 FY2023 |
| Net Revenue by Geography (In
millions) |
|
|
United States |
$ |
1,053 |
|
|
$ |
1,039 |
|
|
% of Total |
|
16 |
% |
|
|
16 |
% |
| Europe |
$ |
339 |
|
|
$ |
661 |
|
|
% of Total |
|
5 |
% |
|
|
10 |
% |
| Japan |
$ |
555 |
|
|
$ |
478 |
|
|
% of Total |
|
8 |
% |
|
|
8 |
% |
| Korea |
$ |
1,102 |
|
|
$ |
988 |
|
|
% of Total |
|
16 |
% |
|
|
15 |
% |
| Taiwan |
$ |
1,148 |
|
|
$ |
1,345 |
|
|
% of Total |
|
17 |
% |
|
|
21 |
% |
| Southeast Asia |
$ |
428 |
|
|
$ |
180 |
|
|
% of Total |
|
6 |
% |
|
|
3 |
% |
| China |
$ |
2,153 |
|
|
$ |
1,734 |
|
|
% of Total |
|
32 |
% |
|
|
27 |
% |
| |
|
|
|
| Employees (In
thousands) |
|
|
|
| Regular Full Time |
|
35.2 |
|
|
|
34.5 |
|
|
APPLIED MATERIALS, INC. |
|
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS |
| |
| |
Three Months Ended |
|
Nine Months Ended |
| (In millions, except
percentages) |
July 28,2024 |
|
July 30,2023 |
|
July 28,2024 |
|
July 30,2023 |
| Non-GAAP Gross Profit |
|
|
|
|
|
|
|
|
GAAP reported gross profit |
$ |
3,205 |
|
|
$ |
2,976 |
|
|
$ |
9,562 |
|
|
$ |
9,215 |
|
| Certain items associated with
acquisitions1 |
|
6 |
|
|
|
7 |
|
|
|
20 |
|
|
|
21 |
|
| Non-GAAP gross profit |
$ |
3,211 |
|
|
$ |
2,983 |
|
|
$ |
9,582 |
|
|
$ |
9,236 |
|
| Non-GAAP gross margin |
|
47.4 |
% |
|
|
46.4 |
% |
|
|
47.6 |
% |
|
|
46.7 |
% |
| Non-GAAP Operating Income |
|
|
|
|
|
|
|
| GAAP reported operating
income |
$ |
1,942 |
|
|
$ |
1,802 |
|
|
$ |
5,821 |
|
|
$ |
5,683 |
|
| Certain items associated with
acquisitions1 |
|
10 |
|
|
|
10 |
|
|
|
31 |
|
|
|
32 |
|
| Acquisition integration and deal
costs |
|
1 |
|
|
|
6 |
|
|
|
9 |
|
|
|
20 |
|
| Non-GAAP operating income |
$ |
1,953 |
|
|
$ |
1,818 |
|
|
$ |
5,861 |
|
|
$ |
5,735 |
|
| Non-GAAP operating margin |
|
28.8 |
% |
|
|
28.3 |
% |
|
|
29.1 |
% |
|
|
29.0 |
% |
| Non-GAAP Net Income |
|
|
|
|
|
|
|
| GAAP reported net income |
$ |
1,705 |
|
|
$ |
1,560 |
|
|
$ |
5,446 |
|
|
$ |
4,852 |
|
| Certain items associated with
acquisitions1 |
|
10 |
|
|
|
10 |
|
|
|
31 |
|
|
|
32 |
|
| Acquisition integration and deal
costs |
|
1 |
|
|
|
6 |
|
|
|
9 |
|
|
|
20 |
|
| Realized loss (gain), dividends
and impairments on strategic investments, net |
|
16 |
|
|
|
(4 |
) |
|
|
12 |
|
|
|
109 |
|
| Unrealized loss (gain) on
strategic investments, net |
|
25 |
|
|
|
6 |
|
|
|
(275 |
) |
|
|
13 |
|
| Income tax effect of
share-based compensation2 |
|
8 |
|
|
|
5 |
|
|
|
(7 |
) |
|
|
(6 |
) |
| Income tax effects related to
intra-entity intangible asset transfers |
|
17 |
|
|
|
9 |
|
|
|
57 |
|
|
|
25 |
|
| Resolution of prior years’ income
tax filings and other tax items |
|
(11 |
) |
|
|
10 |
|
|
|
22 |
|
|
|
(22 |
) |
| Income tax effect of non-GAAP
adjustments3 |
|
(4 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(7 |
) |
| Non-GAAP net income |
$ |
1,767 |
|
|
$ |
1,600 |
|
|
$ |
5,293 |
|
|
$ |
5,016 |
|
|
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 |
|
Nine Months Ended |
| (In millions, except per share
amounts) |
July 28,2024 |
|
July 30,2023 |
|
July 28,2024 |
|
July 30,2023 |
| Non-GAAP Earnings Per Diluted
Share |
|
|
|
|
|
|
|
|
GAAP reported earnings per diluted share |
$ |
2.05 |
|
|
$ |
1.85 |
|
$ |
6.52 |
|
|
$ |
5.73 |
|
| Certain items associated with
acquisitions |
|
0.01 |
|
|
|
0.01 |
|
|
0.04 |
|
|
|
0.04 |
|
| Acquisition integration and deal
costs |
|
— |
|
|
|
0.01 |
|
|
0.01 |
|
|
|
0.02 |
|
| Realized loss (gain), dividends
and impairments on strategic investments, net |
|
0.01 |
|
|
|
— |
|
|
0.01 |
|
|
|
0.13 |
|
| Unrealized loss (gain) on
strategic investments, net |
|
0.03 |
|
|
|
— |
|
|
(0.33 |
) |
|
|
0.01 |
|
| Income tax effect of
share-based compensation |
|
0.01 |
|
|
|
0.01 |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
| Income tax effects related to
intra-entity intangible asset transfers |
|
0.02 |
|
|
|
0.01 |
|
|
0.07 |
|
|
|
0.03 |
|
| Resolution of prior years’ income
tax filings and other tax items |
|
(0.01 |
) |
|
|
0.01 |
|
|
0.03 |
|
|
|
(0.02 |
) |
| Non-GAAP earnings per diluted
share |
$ |
2.12 |
|
|
$ |
1.90 |
|
$ |
6.34 |
|
|
$ |
5.93 |
|
| Weighted average number of
diluted shares |
|
833 |
|
|
|
843 |
|
|
835 |
|
|
|
846 |
|
|
APPLIED MATERIALS, INC. |
|
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS |
| |
| |
Three Months Ended |
|
Nine Months Ended |
| (In millions, except
percentages) |
July 28,2024 |
|
July 30,2023 |
|
July 28,2024 |
|
July 30,2023 |
| Semiconductor Systems Non-GAAP
Operating Income |
|
|
|
|
|
|
|
|
GAAP reported operating income |
$ |
1,712 |
|
|
$ |
1,568 |
|
|
$ |
5,157 |
|
|
$ |
5,138 |
|
| Certain items associated with
acquisitions1 |
|
10 |
|
|
|
10 |
|
|
|
30 |
|
|
|
29 |
|
| Non-GAAP operating income |
$ |
1,722 |
|
|
$ |
1,578 |
|
|
$ |
5,187 |
|
|
$ |
5,167 |
|
| Non-GAAP operating margin |
|
35.0 |
% |
|
|
33.7 |
% |
|
|
35.2 |
% |
|
|
34.9 |
% |
| Applied Global Services Non-GAAP
Operating Income |
|
|
|
|
|
|
|
| GAAP reported operating
income |
$ |
467 |
|
|
$ |
399 |
|
|
$ |
1,320 |
|
|
$ |
1,128 |
|
| Non-GAAP operating income |
$ |
467 |
|
|
$ |
399 |
|
|
$ |
1,320 |
|
|
$ |
1,128 |
|
| Non-GAAP operating margin |
|
29.6 |
% |
|
|
27.3 |
% |
|
|
28.8 |
% |
|
|
26.5 |
% |
| Display and Adjacent Markets
Non-GAAP Operating Income |
|
|
|
|
|
|
|
| GAAP reported operating
income |
$ |
16 |
|
|
$ |
32 |
|
|
$ |
46 |
|
|
$ |
51 |
|
| Non-GAAP operating income |
$ |
16 |
|
|
$ |
32 |
|
|
$ |
46 |
|
|
$ |
51 |
|
| Non-GAAP operating margin |
|
6.4 |
% |
|
|
13.6 |
% |
|
|
6.8 |
% |
|
|
8.9 |
% |
| 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 MonthsEnded |
| (In millions, except
percentages) |
July 28, 2024 |
| |
|
|
GAAP provision for income taxes (a) |
$ |
255 |
|
| Income tax effect of share-based
compensation |
|
(8 |
) |
| Income tax effects related to
intra-entity intangible asset transfers |
|
(17 |
) |
| Resolutions of prior years’
income tax filings and other tax items |
|
11 |
|
| Income tax effect of non-GAAP
adjustments |
|
4 |
|
| Non-GAAP provision for income
taxes (b) |
$ |
245 |
|
| |
|
| GAAP income before income
taxes (c) |
$ |
1,960 |
|
| Certain items associated with
acquisitions |
|
10 |
|
| Acquisition integration and deal
costs |
|
1 |
|
| Realized loss (gain), dividends
and impairments on strategic investments, net |
|
16 |
|
| Unrealized loss (gain) on
strategic investments, net |
|
25 |
|
| Non-GAAP income before income
taxes (d) |
$ |
2,012 |
|
| |
|
| GAAP effective income tax
rate (a/c) |
|
13.0 |
% |
| |
|
| Non-GAAP effective income tax
rate (b/d) |
|
12.2 |
% |
|
UNAUDITED RECONCILIATION OF NON-GAAP FREE CASH FLOW |
| |
| |
Three Months Ended |
|
Nine Months Ended |
| (In millions) |
July 28,2024 |
|
July 30,2023 |
|
July 28,2024 |
|
July 30,2023 |
|
Cash provided by operating activities |
$ |
2,385 |
|
|
$ |
2,583 |
|
|
$ |
6,102 |
|
|
$ |
7,145 |
|
| Capital expenditures |
|
(297 |
) |
|
|
(255 |
) |
|
|
(783 |
) |
|
|
(797 |
) |
| Non-GAAP free cash flow |
$ |
2,088 |
|
|
$ |
2,328 |
|
|
$ |
5,319 |
|
|
$ |
6,348 |
|
Grafico Azioni Applied Materials (NASDAQ:AMAT)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Applied Materials (NASDAQ:AMAT)
Storico
Da Gen 2024 a Gen 2025
