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APPLIED MATERIALS ANNOUNCES RECORD RESULTS FOR FIRST FISCAL QUARTER 2000
Record New Orders, Net Sales and Net Income; Two-for-One Stock Split
SANTA CLARA, Calif., February 15, 2000 -- Applied Materials, Inc., the world's largest supplier of wafer fabrication solutions to the semiconductor industry, reported record results for its first fiscal quarter ended January 30, 2000, with net sales of $1.67 billion, up 6 percent from $1.57 billion for the fourth fiscal quarter of 1999, and up 125 percent from $742 million for the first fiscal quarter of 1999. Ongoing net income (net income, excluding one-time items) for the first fiscal quarter of 2000 was $328 million, or $0.80 per diluted share, up from $307 million, or $0.77 per diluted share, for the fourth fiscal quarter of 1999, and up from $46 million, or $0.12 per diluted share, for the first fiscal quarter of 1999.
Record new orders of $2.36 billion for the first fiscal quarter of 2000 increased 43 percent from $1.65 billion for the fourth fiscal quarter of 1999, and increased 129 percent from $1.03 billion for the first fiscal quarter of 1999. Regional distribution of new orders for the first fiscal quarter of 2000 was: Taiwan 26 percent, North America 25 percent, Japan 14 percent, Korea 14 percent, Europe 12 percent, and Southeast Asia and China 9 percent. Backlog at the end of the first fiscal quarter of 2000 increased to $2.34 billion, from $1.66 billion at the end of the fourth fiscal quarter of 1999.
Gross margin for the first fiscal quarter of 2000 was 50.1 percent, compared to 50.1 percent for the fourth fiscal quarter of 1999 and 43.2 percent for the first fiscal quarter of 1999. Ongoing net income as a percentage of net sales increased to a record 19.7 percent for the first fiscal quarter of 2000, from 19.6 percent for the fourth fiscal quarter of 1999, and from 6.2 percent for the first fiscal quarter of 1999. The Company's effective income tax rate was 30 percent for the first fiscal quarter of 2000.
The Company's Board of Directors approved a 100 percent stock dividend in the form of a two-for-one stock split of the Company's common stock. New shares resulting from this split are expected to be distributed on or about March 15, 2000 to stockholders of record as of February 25, 2000. This is the fifth split in the last eight years.
"Strong global demand for semiconductors is driving our customers to increase and accelerate their year 2000 capital spending for expanded capacity and more advanced technologies. Orders were stronger than expected across all geographic regions and product lines, especially for 0.18 micron and below applications," said James C. Morgan, chairman and chief executive officer.
In addition to current wafer fab capacity expansion, customers are increasing research and development investments to support the semiconductor industry's transition to copper technology and 300mm wafer processing. Applied Materials' leading-edge production equipment and services are helping customers address these challenges. For example, the Company's recently introduced Electra Cu? Integrated ECP offers customers a simplified, advanced copper deposition and anneal solution that improves customers' productivity while reducing costs. Applied Materials is also working closely with customers to provide systems that will enable a cost-effective and rapid transition to 300mm wafer processing.
"We expect increasing demand for semiconductors to continue throughout 2000, driven by the growth of applications in telecommunication, internet-related and consumer products. With our advanced technology and service solutions and effective global operating capability, we believe Applied Materials is strategically positioned to benefit from this stronger industry environment," concluded Morgan.
This press release contains certain forward-looking statements, including, but not limited to, those relating to capital spending by customers, semiconductor demand, product applications and customer migration to advanced technologies, that 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. Such risks and uncertainties include, but are not limited to: changes in customer capacity requirements and demand for advanced technologies; the ability of the Company to maintain its technology leadership and improve its market share; the continuing successful and timely development of new markets, products, processes and services; the successful integration of acquired businesses; and those described in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update the information in this press release.
Applied Materials, Inc., a Fortune 500 global growth company, is the world's largest supplier of wafer fabrication solutions to the semiconductor industry. Applied Materials is traded on the Nasdaq National Market under the symbol, "AMAT". Applied Materials' website is appliedmaterials.com. |
