OT: >9 box trades...$4700 realized gain$<
The Pizza is on Jan tonight! We will have to wait on AD for beer unless we want to drink it warm.
Great trading Jan! I agree on AMAT btw. I think this run in the market will ultimately pullback enough for our short positions to be profitable as well.
And then AD will be buying us some cold beer.
<gg> RtS AMAT Earnings Report Below
Applied Materials Announces Results for Third Fiscal Quarter 2003
Tuesday August 12, 4:03 pm ET
New Orders Increase to $1.05 Billion
Net Sales of $1.09 Billion
biz.yahoo.com
SANTA CLARA, Calif.--(BUSINESS WIRE)--Aug. 12, 2003--Applied Materials, Inc. (Nasdaq:AMAT - News), the world's largest supplier of wafer fabrication solutions to the semiconductor industry, reported results for its third fiscal quarter ended July 27, 2003. Net sales were $1.09 billion, down one percent from $1.11 billion for the second fiscal quarter of 2003, and down 25 percent from $1.46 billion for the third fiscal quarter of 2002. Gross margin for the third fiscal quarter of 2003 was 31.7 percent, down from 33.7 percent for the second fiscal quarter of 2003 and 41.5 percent for the third fiscal quarter of 2002. The net loss for the third fiscal quarter of 2003 was $37 million, or $0.02 per share, compared to a loss of $62 million, or $0.04 per share, for the second fiscal quarter of 2003, and down from net income of $115 million, or $0.07 per share, for the third fiscal quarter of 2002.
A pre-tax realignment charge of $164 million, or $0.07 per share, resulted in the net loss for the third fiscal quarter of 2003. Realignment activities consisted of inventory write-offs as a result of the implementation of the global spares distribution system, refocused product efforts (which included the Etec mask pattern products), a reduction in the workforce and the consolidation of facilities. Excluding the charges associated with realignment activities, the company would have reported ongoing gross margin of 40.2 percent for the third fiscal quarter, an increase from 38.1 percent for the second fiscal quarter, and ongoing net income of $78 million, or $0.05 per share, for the third fiscal quarter, an increase from $45 million, or $0.03 per share, for the second fiscal quarter.
New orders of $1.05 billion for the third fiscal quarter of 2003 increased nine percent from $971 million for the second fiscal quarter of 2003, and decreased 41 percent from $1.78 billion for the third fiscal quarter of 2002. Regional distribution of new orders for the third fiscal quarter of 2003 was: Taiwan 36 percent, North America 20 percent, Japan 18 percent, Korea 10 percent, Europe 10 percent, and Southeast Asia and China six percent. Backlog at the end of the third fiscal quarter of 2003 decreased to $2.53 billion from $2.76 billion at the end of the second fiscal quarter of 2003.
"We are pleased with our financial performance this quarter, particularly the increase in new orders as we focus the company on renewed growth," said Mike Splinter, president and CEO of Applied Materials. "These results reflect Applied Materials' technology and market leadership, customer focus and improved cost structure.
"Although semiconductor manufacturers continue to be cautious in their capital spending, we see positive indicators emerging. An improved global economy and higher fab utilization are giving customers the confidence to gradually invest in new technology for the transition to advanced chip designs and 300mm wafer production."
In the quarter, Applied Materials extended its leadership in 300mm technologies for 90nm and below devices with eight new products for copper interconnect and transistor applications, including advanced systems for etch, decoupled plasma nitridation, electrochemical plating, wafer inspection, epitaxy, and chemical mechanical polishing. In addition, Applied Materials' Black Diamond CVD film became the first low-k solution to reach volume production in multiple manufacturing sites.
"My first 90 days at Applied Materials have reinforced my belief in its great people, outstanding product portfolio, strong financial management and commitment to our customers. Our entire organization is focused on delivering the next generation technologies that our customers need. Applied Materials is well positioned to take advantage of the opportunities ahead," concluded Splinter.
Reconciliations of reported results of operations under U.S. Generally Accepted Accounting Principles (GAAP) to the pro forma amounts have been included as a supplement to this press release. Due to the amount of charges incurred with realignment activities, Applied Materials believes that reconciliation to ongoing operations facilitates meaningful comparison with prior periods. To supplement the consolidated condensed financial statements prepared under GAAP, the company uses a pro forma measure of net income that is GAAP net income, adjusted to exclude costs associated with realignment activities. The company believes that pro forma net income reports baseline performance before charges associated with realignment activities. In addition, pro forma net income is the primary indicator management uses to plan and forecast future periods. These measures are not in accordance with, or are an alternative for, GAAP, and may be materially different from pro forma methods of accounting and reporting used by other companies. The presentation of this additional information should not be considered as a substitute for net income prepared in accordance with GAAP.
This press release contains forward-looking statements, including, but not limited to, those relating to the impact of realignment activities, the company's strategic position, customers' investments in new technology, the global economy, the rate of fab utilization and the semiconductor equipment and semiconductor industries' outlook. These forward-looking statements are based on management's estimates, projections and assumptions as of the date hereof. Forward-looking statements may contain words such as "expects," "anticipates," "believes," "may," "should," "will," "estimates," "forecasts," or similar expressions, and include the assumptions that underlie such statements. 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: the company's ability to conduct the realignment activities according to the timetable and to the extent anticipated; the impact of the realignment activities on the company's net sales and profitability; the company's ability to maintain effective cost controls and to timely align its cost structure with market conditions; the length and severity of the economic and industry downturn; continuing uncertainties in global economic conditions; changes in management; geopolitical uncertainties; changes in opportunities for growth; changes in demand for electronic products and semiconductors; customer capacity requirements, including capacity utilizing the latest technology; the timing, rate, amount and sustainability of increases in capital spending for new technology, such as 300mm and 90nm and below applications; the company's ability to develop, deliver and support a broad range of products and services on a timely basis; the company's successful and timely development of new markets, products, processes and services and other risks described in Applied Materials' Forms 10-K, 10-Q and other 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 third fiscal quarter results, along with its outlook for the fourth fiscal quarter of 2003, on a conference call today beginning at 1:30 p.m. Pacific Time. A webcast of the conference call will be available on Applied Materials' web site under the "Investors" section.
Applied Materials (Nasdaq:AMAT - News), the largest supplier of products and services to the global semiconductor industry, is one of the world's leading information infrastructure providers. Applied Materials enables Information for Everyone(TM) by helping semiconductor manufacturers produce more powerful, portable and affordable chips. |
