Paul and Intel investors...
What's all this bull about a semiconductor slowdown?
More Wall Street analyst baloney?
AMAT looks good eh?
--
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AMAT
72 1/8
+1 9/16
delayed 20 mins - disclaimer
Wednesday August 9, 4:01 pm Eastern Time
Press Release
Applied Materials Announces Record Results For Third Fiscal Quarter 2000
Record New Orders, Net Sales and Net Income
SANTA CLARA, Calif.--(BUSINESS WIRE)--Aug. 9, 2000--Applied Materials, Inc., the world's largest supplier of wafer fabrication solutions to the semiconductor industry, reported record results for its third fiscal quarter ended July 30, 2000. Record net sales were $2.73 billion, up 25 percent from $2.19 billion for the second fiscal quarter of 2000, and up 83 percent from $1.49 billion for the third fiscal quarter of 1999. Record ongoing net income (net income, excluding one-time items) for the third fiscal quarter of 2000 was $604 million, or $0.70 per diluted share, up 32 percent from $459 million, or $0.53 per diluted share, for the second fiscal quarter of 2000, and up 136 percent from $256 million, or $0.31 per diluted share, for the third fiscal quarter of 1999.
Record new orders of $3.28 billion for the third fiscal quarter of 2000 exceeded the $3 billion level for the first time in the Company's history, increasing 12 percent from $2.93 billion for the second fiscal quarter of 2000, and increasing 116 percent from $1.51 billion for the third fiscal quarter of 1999. Regional distribution of new orders for the third fiscal quarter of 2000 was: North America 30 percent, Japan 24 percent, Taiwan 15 percent, Europe 15 percent, Southeast Asia and China 9 percent and Korea 7 percent. Backlog at the end of the third fiscal quarter of 2000 increased to $3.69 billion, from $3.18 billion at the end of the second fiscal quarter of 2000.
Gross margin for the third fiscal quarter of 2000 was 50.9 percent, up from 50.1 percent for the second fiscal quarter of 2000, and up from 48.0 percent for the third fiscal quarter of 1999. Record ongoing net income as a percentage of net sales was 22.1 percent for the third fiscal quarter of 2000, compared to 21.0 percent for the second fiscal quarter of 2000 and 17.2 percent for the third fiscal quarter of 1999.
``Our record results reflect customers' investments in expanded capacity to meet increasing semiconductor demand and in advanced technologies to provide more powerful, portable and affordable semiconductors. Our product portfolio is the strongest in the history of the Company, enabling us to improve our competitive position in all regions,'' said James C. Morgan, chairman and chief executive officer.
During the quarter, Applied Materials announced the largest rollout of new products in the history of the semiconductor equipment industry, introducing 22 new 300mm systems supporting over 80 process applications. The new line of 300mm systems includes factory efficiency technologies that leverage the Company's strengths in process equipment, defect detection and process control software and enhance customers' manufacturing capabilities. The Company received its first significant orders for 300mm products during the quarter.
``The industry outlook continues to be positive. There are significant capital investment requirements in 0.18 micron capacity for Internet, communications and digital devices,'' said Morgan. ``The emerging industry transition to 300mm wafer processing, combined with continued growth of 200mm applications, provides a tremendous opportunity for Applied Materials to supply technologies that will enable our customers to deliver on the promise of the Information Age,'' concluded Morgan.
This press release contains certain forward-looking statements, including, but not limited to, those relating to customers' continued investments in expanded capacity and advanced technologies and the transition to 300mm products. These forward-looking statements 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 semiconductors; the ability of the Company to maintain its technology leadership and product position; the transition to 300mm systems; changes in global economic conditions; and those risks and uncertainties 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 (Nasdaq:AMAT - news) is a leader of the Information Age and the world's largest supplier of products and services to the global semiconductor industry. Applied Materials' web site is appliedmaterials.com.
APPLIED MATERIALS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
---------------------------------------------------------------------
(In thousands, except August 1, July 30, August 1, July 30,
per share amounts) 1999 2000 1999 2000
---------------------------------------------------------------------
Net sales $1,490,695 $2,732,028 $3,482,732 $6,644,249
Cost of
products sold 775,025 1,340,126 1,863,973 3,297,428
---------- ---------- ---------- ----------
Gross margin 715,670 1,391,902 1,618,759 3,346,821
Operating expenses:
Research, development
and engineering 185,796 303,946 523,991 780,509
Marketing and
selling 91,561 128,426 247,597 340,718
General and
administrative 105,689 133,291 258,105 343,998
Non-recurring items 2,515 -- 7,515 40,000
---------- ---------- ---------- ----------
Income from
operations 330,109 826,239 581,551 1,841,596
Non-recurring income -- -- 20,000 68,158
Interest expense 11,952 12,665 35,328 38,154
Interest income 26,736 48,970 77,440 127,962
---------- ---------- ---------- ----------
Income before taxes
and equity in net
income/(loss) of
joint venture 344,893 862,544 643,663 1,999,562
Provision for
income taxes 106,637 258,763 199,761 599,807
---------- ---------- ---------- ----------
Income before equity
in net income/(loss)
of joint venture 238,256 603,781 443,902 1,399,755
Equity in net
income/(loss)
of joint venture 9,773 -- 12,048 --
---------- ---------- ---------- ----------
Income from continuing
operations 248,029 603,781 455,950 1,399,755
Provision for
discontinuance of
joint venture (9,773) -- (12,048) --
---------- ---------- ---------- ----------
Net income $ 238,256 $ 603,781 $ 443,902 $1,399,755
---------- ---------- ---------- ----------
Earnings per share:
Basic - continuing
operations $ 0.31 $ 0.75 $ 0.59 $ 1.74
Basic - discontinued
operations (0.01) -- (0.02) --
---------- ---------- ---------- ----------
Total basic $ 0.30 $ 0.75 $ 0.57 $ 1.74
---------- ---------- ---------- ----------
Diluted - continuing
operations $ 0.30 $ 0.70 $ 0.56 $ 1.63
Diluted -
discontinued
operations (0.01) -- (0.02) --
---------- ---------- ---------- ----------
Total diluted $ 0.29 $ 0.70 $ 0.54 $ 1.63
---------- ---------- ---------- ----------
Weighted average number of shares:
Basic 781,554 809,345 775,444 804,532
Diluted 824,248 862,071 816,946 858,585
---------------------------------------------------------------------
Historical amounts have been restated to reflect a two-for-one stock
split in the form of a 100 percent stock dividend, effective March 15,
2000, and the acquisition of Etec, which was completed on March 29,
2000 and accounted for as a pooling-of-interests.
APPLIED MATERIALS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS(a)
----------------------------------------------------------------
October 31, July 30,
(In thousands) 1999 2000
----------------------------------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 868,121 $ 1,342,835
Short-term investments 1,951,254 2,404,493
Accounts receivable, net 1,268,146 2,162,251
Inventories 727,107 1,132,625
Deferred income taxes 341,668 330,889
Other current assets 154,424 179,270
----------- -----------
Total current assets 5,310,720 7,552,363
Property, plant
and equipment, net 1,278,269 1,280,137
Other assets 425,521 386,323
----------- -----------
Total assets $ 7,014,510 $ 9,218,823
----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $ 5,789 $ 40,409
Current portion of
long-term debt 36,484 41,512
Accounts payable
and accrued expenses 1,442,718 1,899,550
Income taxes payable 246,506 397,153
----------- -----------
Total current liabilities 1,731,497 2,378,624
Long-term debt 584,357 574,336
Deferred income taxes
and other liabilities 123,398 135,879
----------- -----------
Total liabilities 2,439,252 3,088,839
----------- -----------
Stockholders' equity:
Common stock 7,932 8,111
Additional paid-in capital 1,443,723 1,614,615
Retained earnings 3,122,337 4,521,384
Accumulated other
comprehensive income/(loss) 1,266 (14,126)
----------- -----------
Total stockholders' equity 4,575,258 6,129,984
----------- -----------
Total liabilities and
stockholders' equity $ 7,014,510 $ 9,218,823
----------------------------------------------------------------
Historical amounts have been restated to reflect a two-for-one stock
split in the form of a 100 percent stock dividend, effective March 15,
2000, and the acquisition of Etec, which was completed on March 29,
2000 and accounted for as a pooling-of-interests.
(a) Amounts as of July 30, 2000 are unaudited. Amounts as of October
31, 1999 are audited. |
