AH, AMAT is enjoying an upside bounce so far
>>Applied Materials Announces Results for Second Fiscal Quarter 2006
May 16, 2006 16:16:16 (ET)
SANTA CLARA, Calif., May 16, 2006 (BUSINESS WIRE) -- Applied Materials, Inc. (AMAT, Trade):
-- Net Sales: $2.25 billion (21% increase quarter over quarter; 21% increase year over year)
-- Net Income: $413 million (189% increase quarter over quarter; 35% increase year over year), including charges for equity-based compensation
-- EPS: $0.26 ($0.17 increase quarter over quarter; $0.08 increase year over year), including charges for equity-based compensation
-- New Orders: $2.49 billion (22% increase quarter over quarter; 60% increase year over year)
Applied Materials, Inc., reported results for its second fiscal quarter ended April 30, 2006. Net sales were $2.25 billion, up 21 percent from $1.86 billion for the first fiscal quarter of 2006, and up 21 percent from $1.86 billion for the second fiscal quarter of 2005. Gross margin for the second fiscal quarter of 2006 was 46.5 percent, up from 45.1 percent for the first fiscal quarter of 2006, and up from 44.0 percent for the second fiscal quarter of 2005. Net income for the second fiscal quarter of 2006 was $413 million, or $0.26 per share, up from net income of $143 million, or $0.09 per share, for the first fiscal quarter of 2006, and up from net income of $305 million, or $0.18 per share, for the second fiscal quarter of 2005.
Non-GAAP net income was $453 million, or $0.29 per share, for the second fiscal quarter of 2006. Non-GAAP adjustments consisted principally of $55 million of equity-based compensation charges before tax, or $0.03 per diluted share after tax.
New orders of $2.49 billion for the second fiscal quarter of 2006 increased 22 percent from $2.04 billion for the first fiscal quarter of 2006, and increased 60 percent from $1.55 billion for the second fiscal quarter of 2005. Regional distribution of new orders for the second fiscal quarter of 2006 was: Korea 22 percent, Taiwan 19 percent, North America 18 percent, Japan 17 percent, Southeast Asia and China 14 percent, and Europe 10 percent. Backlog at the end of the second fiscal quarter of 2006 was $2.93 billion, compared to $2.73 billion at the end of the first fiscal quarter of 2006.
"Demand for Applied Materials' leading-edge nanomanufacturing technology in the second quarter was strong and broad-based, contributing to our excellent results," said Mike Splinter, president and chief executive officer. "We are delivering on Applied's strategy to grow our core business, expand into adjacent markets and pursue exciting new opportunities such as solar. As we extend our product portfolio, we are further positioning the company to outgrow and outperform the industry."
The company continued to return value to stockholders through stock repurchases and cash dividends. During the second fiscal quarter of 2006, the company repurchased approximately 28 million shares of common stock at an average price of $18.16 per share for an aggregate purchase price of $500 million and paid $48 million in dividends.
This press release includes financial measures that are not in accordance with GAAP, consisting of non-GAAP net income and non-GAAP earnings per share (EPS). Management uses non-GAAP net income and non-GAAP EPS to evaluate the company's operating and financial performance in light of business objectives and for planning purposes. Applied believes that these measures are useful to investors because they 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. These non-GAAP measures exclude charges related to (i) equity-based compensation, and (ii) asset impairment and restructuring activities. These financial measures are not in accordance with GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The presentation of this additional information should not be considered a substitute for net income or EPS prepared in accordance with GAAP. Reconciliations of reported net income and reported EPS to non-GAAP net income and non-GAAP EPS, respectively, are included at the end of this press release.>> |
