Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (78979)

2/14/2018 4:54:38 PM

From: Sam

3 Recommendations

Recommended By
Donald Wennerstrom
Gottfried
Return to Sender

Read Replies (1) | Respond to of 95487

Applied Materials Delivers Strong Year-on-Year Growth in Quarterly Revenue and Operating Profit
Wed February 14, 2018 4:01 PM|GlobeNewswire

Record quarterly revenue of $4.20 billion, up 28 percent year over year

GAAP EPS of $0.13; record non-GAAP EPS of $1.06, up 58 percent year over year

Doubles quarterly dividend and increases share repurchase authorization by $6.0 billion

SANTA CLARA, Calif., Feb. 14, 2018 (GLOBE NEWSWIRE) -- Applied Materials, Inc. ( AMAT) today reported record revenue and operating profit in its first quarter ended January 28, 2018.

First Quarter Results

Compared to the first quarter of fiscal 2017, Applied grew net sales by 28 percent to $4.20 billion. On a GAAP basis, the company increased gross margin by 1.6 points to 45.7 percent, and grew operating income by 48 percent to $1.20 billion or 28.4 percent of net sales. GAAP earnings per share (EPS) declined to $0.13 due to a one-time charge related to recent U.S. tax legislation that reduced EPS by approximately $0.94.

On a non-GAAP adjusted basis, over the same period, the company increased gross margin by 1.3 points to 46.7 percent, grew operating income by 46 percent to $1.25 billion or 29.6 percent of net sales, and increased EPS by 58 percent to $1.06, which excludes the charge related to recent U.S. tax legislation. In addition, non-GAAP EPS included a benefit of $0.04 that was driven by recent changes in U.S. tax legislation that reduced the company's fiscal 2018 tax rate relative to previous expectations.

The company increased cash flow from operations by 85 percent year over year to $1.47 billion and returned $888 million to shareholders through dividends of $106 million and $782 million in share repurchases.

“We see sustainable strength in our markets as large, powerful trends drive a fundamental shift in the demand for semiconductors and displays,” said Gary Dickerson, president and CEO. “Our broad portfolio of capabilities and products puts us in a great position to outperform our markets and we’re confident that each of our three major business segments can deliver strong double-digit growth in 2018.”

Quarterly Results Summary



	Q1 FY2018			Q1 FY2017			Change

	(In millions, except per share amounts and percentages)
Net sales	$	4,204		$	3,278		28%
Gross margin	45.7		%	44.1		%	1.6 points
Operating margin	28.4		%	24.6		%	3.8 points
Net income	$	135		$	703		(81%)
Diluted earnings per share	$	0.13		$	0.65		(80%)
Non-GAAP Adjusted Results
Non-GAAP adjusted gross margin	46.7		%	45.4		%	1.3 points
Non-GAAP adjusted operating margin	29.6		%	26.0		%	3.6 points
Non-GAAP adjusted net income	$	1,135		$	732		55%
Non-GAAP adjusted diluted EPS	$	1.06		$	0.67		58%

A reconciliation of the GAAP and non-GAAP adjusted results is provided in the financial tables included in this release. See also “Use of Non-GAAP Adjusted Financial Measures” section.

Capital Allocation

Applied’s Board of Directors has approved a doubling of the quarterly cash dividend on the company's common stock to $0.20 per share. The Board declared that a dividend of $0.20 per share will be payable on June 14, 2018 to shareholders of record as of May 24, 2018. As previously announced, a cash dividend of $0.10 per share will be paid on March 14, 2018 to shareholders of record as of February 21, 2018.

The Board also approved a new $6.0 billion share repurchase authorization. This new authorization is incremental to $2.8 billion remaining in the previously approved authorization.

“The dividend increase and additional repurchase authorization reflect Applied’s confidence in the underlying strength of our markets along with our company’s technology leadership and strategy to deliver profitable growth and increase shareholder value,” said Dan Durn, Senior Vice President and Chief Financial Officer.

Impact of Recent U.S. Tax Legislation

As a result of the Tax Cuts and Jobs Act, the company recorded a $1.0 billion tax charge, which included an estimate of a one-time transition tax that is payable over 8 years.

Business Outlook

In the second quarter of fiscal 2018, Applied expects net sales to be in the range of $4.35 billion to $4.55 billion; the midpoint of the range would be an increase of approximately 26 percent, year over year. Non-GAAP adjusted diluted EPS is expected to be in the range of $1.10 to $1.18; the midpoint of the range would be an increase of approximately 44 percent, year over year.

This outlook for non-GAAP adjusted diluted EPS excludes known charges related to completed acquisitions of $0.04 per share and includes the normalized tax benefit of share-based compensation of $0.01 per share, but does not reflect any items that are unknown at this time, such as any additional charges related to acquisitions or other non-operational or unusual items, as well as other tax related items, which we are not able to predict without unreasonable efforts due to their inherent uncertainty.

First Quarter Reportable Segment Information

*Semiconductor Systems*	Q1 FY2018			Q1 FY2017

	(In millions, except percentages)
Net sales	$	2,847		$	2,150
Foundry		25	%		50	%
DRAM		25	%		16	%
Flash		37	%		25	%
Logic and other		13	%		9	%
Operating income		995			690
Operating margin		34.9	%		32.1	%
Non-GAAP Adjusted Results
Non-GAAP adjusted operating income	$	1,041		$	736
Non-GAAP adjusted operating margin		36.6	%		34.2	%

*Applied Global Services*	Q1 FY2018			Q1 FY2017

	(In millions, except percentages)
Net sales	$	880		$	676
Operating income		254			178
Operating margin		28.9	%		26.3	%
Non-GAAP Adjusted Results
Non-GAAP adjusted operating income	$	255		$	179
Non-GAAP adjusted operating margin		29.0	%		26.5	%

*Display and Adjacent Markets*	Q1 FY2018			Q1 FY2017

	(In millions, except percentages)
Net sales	$	455		$	422
Operating income		101			115
Operating margin		22.2	%		27.3	%
Non-GAAP Adjusted Results
Non-GAAP adjusted operating income	$	104		$	115
Non-GAAP adjusted operating margin		22.9	%		27.3	%
continues at finance.yahoo.com