Applied Materials Announces Results for First Fiscal Quarter 2001
New Orders of $2.43 Billion
Net Sales of $2.73 Billion
SANTA CLARA, Calif.--(BUSINESS WIRE)--Feb. 13, 2001--Applied Materials, Inc., the world's largest supplier of wafer fabrication solutions to the semiconductor industry, reported results for its first fiscal quarter ended January 28, 2001. Net sales were $2.73 billion, down 6 percent from $2.92 billion for the fourth fiscal quarter of 2000, and up 59 percent from $1.72 billion for the first fiscal quarter of 2000. Ongoing net income (net income, excluding one-time items) for the first fiscal quarter of 2001 was $558 million, or $0.66 per diluted share, down 16 percent from $664 million, or $0.77 per diluted share, for the fourth fiscal quarter of 2000, and up 71 percent from $327 million, or $0.39 per diluted share, for the first fiscal quarter of 2000.
New orders were $2.43 billion for the first fiscal quarter of 2001, decreasing 33 percent from $3.60 billion for the fourth fiscal quarter of 2000, and decreasing 1 percent from $2.45 billion for the first fiscal quarter of 2000. Regional distribution of new orders for the first fiscal quarter of 2001 was: North America 29 percent, Taiwan 20 percent, Japan 19 percent, Europe 16 percent, Southeast Asia and China 11 percent and Korea 5 percent. Backlog at the end of the first fiscal quarter of 2001 decreased to $3.90 billion, from $4.38 billion at the end of the fourth fiscal quarter of 2000.
Gross margin for the first fiscal quarter of 2001 was 48.8 percent, down from 51.7 percent for the fourth fiscal quarter of 2000, and down from 49.8 percent for the first fiscal quarter of 2000. Operating income as a percentage of net sales was 27.5 percent for the first fiscal quarter of 2001, compared to 31.0 percent for the fourth fiscal quarter of 2000 and 25.6 percent for the first fiscal quarter of 2000. Ongoing net income as a percentage of net sales was 20.4 percent for the first fiscal quarter of 2001, compared to 22.7 percent for the fourth fiscal quarter of 2000 and 19.0 percent for the first fiscal quarter of 2000.
``Slowing worldwide semiconductor sales resulted in a rapid decline in demand for manufacturing equipment late in January. Despite these changing conditions, Applied Materials delivered excellent profitability for our first fiscal quarter,'' said James C. Morgan, chairman and chief executive officer. ``We are taking steps to effectively manage the Company through the near-term uncertainty of this business cycle.''
On January 30, 2001, the Company adjusted its targets for the first fiscal quarter of 2001, citing delays in customers' capital spending due to inventory buildups in telecommunication products, slower than expected PC sales and slower global economic growth.
``Historically, the Company has used slow periods in the industry as an opportunity to strengthen its market position and prepare its infrastructure to take advantage of the long-term growth potential of the semiconductor industry. We are working closely with our customers to enable their product transitions to 300mm, copper and advanced process technologies for 0.13 micron and below device geometries,'' continued Morgan.
``As a core information infrastructure company, Applied Materials is strategically positioned to capitalize on the next wave of industry growth by enabling our customers to make more powerful, portable and affordable chips,'' concluded Morgan.
This press release contains certain forward-looking statements, including, but not limited to, those relating to customers' transitions to advanced technologies and the next wave of industry growth. 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; changes in the timing and amount of capital equipment purchases by customers; Applied Materials' ability to develop new markets and products in a highly competitive industry characterized by increasingly rapid technological changes; the risks associated with operating a global business and other risks described in Applied Materials' filings with the Securities and Exchange Commission. The Company assumes no obligation to update the information in this press release.
Applied Materials will be discussing its first fiscal quarter results, along with its outlook for the second fiscal quarter of 2001, on a conference call today beginning at 1:30 p.m. PST. A webcast of the conference call will be available on Applied Materials' Web site at appliedmaterials.com under the ``Investors'' section.
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, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
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Three Months Ended
(In thousands, except January 30, January 28,
per share amounts) 2000 2001
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Net sales $1,722,190 $2,731,132
Cost of products sold 864,869 1,398,481
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Gross margin 857,321 1,332,651
Operating expenses:
Research, development
and engineering 223,280 336,312
Marketing and selling 100,712 143,457
General and administrative 91,817 102,349
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Income from operations 441,512 750,533
Interest expense 12,230 12,375
Interest income 37,920 59,138
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Income from continuing
operations
before income taxes 467,202 797,296
Provision for income taxes 140,099 239,189
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Net income $ 327,103 $ 558,107
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Earnings per share:
Basic $ 0.41 $ 0.69
Diluted $ 0.39 $ 0.66
Weighted average
number of shares:
Basic 798,096 810,437
Diluted 849,010 844,893
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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(1)
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October 29, January 28,
(In thousands) 2000 2001
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ASSETS
Current assets:
Cash and cash equivalents $ 1,647,604 $ 1,648,966
Short-term investments 2,580,435 2,285,036
Accounts receivable, net 2,351,379 2,470,454
Inventories 1,503,751 1,709,176
Deferred income taxes 549,108 545,716
Other current assets 206,870 323,455
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Total current assets 8,839,147 8,982,803
Property, plant and
equipment, net 1,366,782 1,441,028
Other assets 339,801 349,188
------------ ------------
Total assets $ 10,545,730 $ 10,773,019
------------ ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $ 94,676 $ 145,553
Current portion of long-term debt 11,621 10,244
Accounts payable and
accrued expenses 2,268,608 2,018,840
Income taxes payable 384,806 385,636
------------ ------------
Total current liabilities 2,759,711 2,560,273
Long-term debt 573,126 569,502
Deferred income taxes and
other liabilities 108,545 124,442
------------ ------------
Total liabilities 3,441,382 3,254,217
------------ ------------
Stockholders' equity:
Common stock 8,125 8,100
Additional paid-in capital 1,930,212 1,756,850
Retained earnings 5,185,181 5,743,288
Accumulated other comprehensive
income/(loss) (19,170) 10,564
------------ ------------
Total stockholders' equity 7,104,348 7,518,802
------------ ------------
Total liabilities and
stockholders' equity $ 10,545,730 $ 10,773,019 |
