Applied Materials Announces Fourth Quarter and Fiscal Year 2012 Results
(Thomson Reuters ONE) -
Expects Orders to Increase in the First Quarter of FY2013
* Fourth quarter net sales of $1.65 billion down 30 percent sequentially; Q4
non-GAAP EPS of 6 cents at high end of expectations; Q4 GAAP loss of 42
cents included a goodwill impairment and restructuring charges
* FY2012 net sales of $8.72 billion down 17 percent; FY2012 non-GAAP EPS of
75 cents down 42 percent; FY2012 GAAP EPS of 9 cents included a goodwill
impairment along with acquisition-related and restructuring charges
* Returned $1.85 billion to stockholders in FY2012 including $1.42 billion in
stock repurchases
SANTA CLARA, Calif., November 15, 2012 - Applied Materials, Inc. (NASDAQ:AMAT),
the global leader in manufacturing solutions for the semiconductor, display and
solar industries, today reported results for its fourth quarter and fiscal year
ended October 28, 2012.
In the fourth quarter, Applied generated orders of $1.47 billion and net sales
of $1.65 billion. The company recorded a goodwill impairment and restructuring
charges totaling $545 million and reported an operating loss of $499 million,
with a net loss of $515 million or 42 cents per diluted share. Non-GAAP
operating income was $114 million, and non-GAAP net income was $70 million or 6
cents per share, at the high end of the company's expectations.
In FY2012, the company reported orders of $8.04 billion, net sales of $8.72
billion, operating income of $411 million, and net income of $109 million or 9
cents per diluted share. Non-GAAP operating income for the year was $1.38
billion, and non-GAAP net income was $960 million or 75 cents per share.
"In our fourth quarter, Applied delivered profit at the high end of our outlook
despite challenging industry conditions in semiconductor, solar and display,"
said Mike Splinter, Chairman and CEO. "Our strong cash flow performance allowed
us to increase our quarterly dividend and share buybacks, returning $1.85
billion to shtockholders in the year."
"We see improving business conditions entering 2013, with orders projected to
increase after bottoming in the fourth quarter," Splinter added.
"Accelerated changes in device technology and the adoption of new materials in
all of the industries we serve provide opportunities for Applied to build on our
leadership and grow our market share."
Quarterly Results Summary
GAAP Results Q4 FY2012 Q3 FY2012 Q4 FY2011
------------------------------- ---------------- --------------- --------------
Net sales $1.65 billion $2.34 billion $2.18 billion
Operating income (loss) $(499) million $322 million $361 million
Net income (loss) $(515) million $218 million $456 million
Diluted earnings (loss) per
share (EPS) $(0.42) $0.17 $0.34
Non-GAAP Results
-------------------------------
Non-GAAP operating income $114 million $431 million $384 million
Non-GAAP net income $70 million $300 million $271 million
Non-GAAP diluted EPS $0.06 $0.24 $0.21
Fourth quarter results included a $421 million goodwill impairment charge
associated with the Energy and Environmental Solutions (EES) segment. The
goodwill impairment reflects the deterioration in solar equipment market
conditions, our customers' financial condition and reduced market valuations,
causing Applied to reassess the recoverability of the segment's goodwill.
Applied also reported $124 million in charges related to previously announced
restructuring plans and the integration of Varian.
Fourth quarter orders for Varian products of $152 million and net sales of $195
million were reported within the Silicon Systems Group (SSG) and Applied Global
Services (AGS) segments. The Varian business contributed approximately one cent
to the company's non-GAAP EPS in the quarter, which excluded acquisition-related
charges equivalent to approximately three cents per share. In FY2012, orders for
Varian products totaled $1.03 billion, and net sales were $1.02 billion. The
Varian business contributed approximately 11 cents to Applied's non-GAAP EPS,
which excluded acquisition-related charges equivalent to approximately 20 cents
per share.
Applied's non-GAAP results exclude the impact of the following, where
applicable: certain discrete tax items; restructuring charges and any associated
adjustments; certain acquisition-related costs; impairments of assets, goodwill,
or investments; and/or gain or loss on sale of facilities. A reconciliation of
the GAAP and non-GAAP results is provided in the financial tables included in
this release. See also "Use of Non-GAAP Financial Measures" below.
Fourth Quarter Reportable Segment Results and Comparisons to the Third Quarter
Silicon Systems Group (SSG) orders were $741 million, down 36 percent, primarily
due to lower orders in foundry and memory, partially offset by increased orders
in logic. Net sales were $870 million, down 44 percent. Non-GAAP operating
income decreased to $95 million or 10.9 percent of net sales. GAAP operating
income decreased to $41 million or 4.7 percent of net sales. New order
composition was: foundry 47 percent, flash 8 percent, logic and other 40
percent, and DRAM 5 percent.
Applied Global Services (AGS) orders were $576 million, up 8 percent driven by
service contract renewals. Net sales were $621 million, up 7 percent, which
included $85 million in sales of a thin film production line. Non-GAAP operating
income increased to $171 million or 27.5 percent of net sales. GAAP operating
income increased to $164 million or 26.4 percent of net sales.
Display orders were $83 million, up 24 percent from low levels. Net sales were
$93 million, down 35 percent. Non-GAAP operating income decreased to $4 million
or 4.3 percent of net sales. GAAP operating income decreased to $3 million or
3.2 percent of net sales.
Energy and Environmental Solutions (EES) orders were $65 million, up 86 percent
from low levels driven by demand for roll-to-roll deposition equipment. Net
sales were $62 million, down 19 percent. EES had a non-GAAP operating loss of
$46 million and a GAAP operating loss of $480 million.
Additional Quarterly Financial Information and Comparisons to the Third Quarter
* Backlog decreased by $215 million to $1.6 billion and included negative
adjustments of $42 million.
* Gross margin was 38.4 percent on a non-GAAP basis, down from 41.6 percent,
reflecting the decrease in net sales. GAAP gross margin was 35.6 percent.
* Operating expenses were $518 million on a non-GAAP basis, down from $543
million, with the decrease primarily reflecting an adjustment in
compensation accruals. GAAP operating expenses were $1.09 billion.
* The effective tax rate was 26.3 percent on a non-GAAP basis. The GAAP
effective tax rate was 3.2 percent.
* Cash, cash equivalents and investments ended the quarter at $3.0 billion.
Full-Year Reportable Segment Results and Comparisons to the Prior Year
SSG orders decreased by 4 percent to $5.29 billion, net sales increased by 2
percent to $5.54 billion, non-GAAP operating income decreased to $1.54 billion
or 27.8 percent of net sales, and operating income decreased to $1.24 billion or
22.5 percent of net sales.
AGS orders decreased by 3 percent to $2.27 billion, net sales decreased by 5
percent to $2.29 billion, non-GAAP operating income increased to $530 million or
23.2 percent of net sales, and operating income increased to $502 million or
22.0 percent of net sales.
Display orders decreased by 57 percent to $274 million, net sales decreased by
32 percent to $473 million, non-GAAP operating income decreased to $32 million
or 6.8 percent of net sales, and operating income decreased to $25 million or
5.3 percent of net sales.
EES orders decreased by 88 percent to $195 million and net sales decreased by
79 percent to $425 million. The business generated a non-GAAP operating loss of
$184 million and a GAAP operating loss of $668 million.
Business Outlook
For the first quarter of fiscal 2013, Applied expects net sales to be flat to
down 15 percent sequentially. The company expects non-GAAP EPS to be in the
range of $0.00 to $0.06. The non-GAAP EPS outlook excludes known charges related
to completed acquisitions of approximately $0.05 per share but does not exclude
other non-GAAP adjustments that may arise subsequent to this release.
Use of Non-GAAP Financial Measures
Management uses non-GAAP results to evaluate the company's operating and
financial performance in light of business objectives and for planning purposes.
These measures are not in accordance with GAAP and may differ from non-GAAP
methods of accounting and reporting used by other companies. Applied believes
these measures 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. The presentation of this additional
information should not be considered a substitute for results prepared in
accordance with GAAP.
Webcast Information
Applied Materials will discuss these results during an earnings call that begins
at 1:30 p.m. Pacific Time today. A live webcast will be available at
www.appliedmaterials.com.
Forward-Looking Statements
This press release contains forward-looking statements, including statements
regarding Applied's performance, industry conditions, technology changes,
opportunities, strategic position, and business outlooks for the first quarter
of fiscal 2013. Forward-looking statements may contain words such as "expect,"
"believe," "may," "can," "should," "will," "anticipate" or similar expressions,
and include the assumptions that underlie such statements. These 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,
including but not limited to: the level of demand for Applied's products, which
is subject to many factors, including uncertain global economic and industry
conditions, end-demand for electronic products and semiconductors, government
renewable energy policies and incentives, and customers' new technology and
capacity requirements; variability of operating expenses and results among the
company's segments caused by differing conditions in the served markets; the
concentrated nature of Applied's customer base; Applied's ability to
(i) develop, deliver and support a broad range of products, expand its markets
and develop new markets, (ii) timely align its cost structure with business
conditions and achieve the intended objectives of cost-reduction activities,
(iii) plan and manage its resources and production capability, (iv) integrate
Varian and realize synergies, (v) obtain and protect intellectual property
rights in key technologies, (vi) attract, motivate and retain key employees, and
(vii) accurately forecast future results, which depends on multiple assumptions
related to, without limitation, market conditions, customer requirements and
business needs; and other risks described in Applied's most recent current and
periodic SEC reports. All forward-looking statements are based on management's
estimates, projections and assumptions as of the date hereof. The company
undertakes no obligation to update any forward-looking statements.
About Applied Materials
Applied Materials, Inc. (Nasdaq:AMAT) is the global leader in providing
innovative equipment, services and software to enable the manufacture of
advanced semiconductor, flat panel display and solar photovoltaic products. Our
technologies help make innovations like smartphones, flat screen TVs and solar
panels more affordable and accessible to consumers and businesses around the
world. At Applied Materials, we turn today's innovations into the industries of
tomorrow. Learn more at www.appliedmaterials.com.
Contact:
Matt Ceniceros (editorial/media) 408.768.8169
Michael Sullivan (financial community) 408.986.7977
APPLIED MATERIALS, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended Twelve Months Ended
--------------------------------------- --------------------------
(In millions,
except per share October 28, July 29, October 30, October 28, October 30,
amounts) 2012 2012 2011 2012 2011
------------- ----------- ------------- ------------- ------------
Net sales $ 1,646 $ 2,343 $ 2,182 $ 8,719 $ 10,517
Cost of products
sold 1,060 1,413 1,330 5,406 6,157
------------- ----------- ------------- ------------- ------------
Gross margin 586 930 852 3,313 4,360
Operating
expenses:
Research,
development
and
engineering 303 309 269 1,237 1,118
Selling,
general and
administrative 237 255 222 1,076 901
Impairment of
goodwill 421 - - 421 -
Restructuring
charges and 124 44 - 168 (30 )
asset
impairments
Gain on sale
of facilities,
net - - - - (27 )
------------- ----------- ------------- ------------- ------------
Total operating
expenses 1,085 608 491 2,902 1,962
Income (loss)
from operations (499 ) 322 361 411 2,398
Impairment of
strategic
investments 14 - 3 17 3
Interest and
other expenses 24 24 24 95 59
Interest and
other income, net 5 4 10 17 42
------------- ----------- ------------- ------------- ------------
Income (loss)
before income
taxes (532 ) 302 344 316 2,378
Provision
(benefit) for
income taxes (17 ) 84 (112 ) 207 452
------------- ----------- ------------- ------------- ------------
Net income (loss) $ (515 ) $ 218 $ 456 $ 109 $ 1,926
------------- ----------- ------------- ------------- ------------
Earnings (loss)
per share:
Basic $ (0.42 ) $ 0.17 $ 0.35 $ 0.09 $ 1.46
Diluted $ (0.42 ) $ 0.17 $ 0.34 $ 0.09 $ 1.45
Weighted average
number of shares:
Basic 1,220 1,257 1,312 1,266 1,319
Diluted 1,220 1,268 1,321 1,277 1,330
APPLIED MATERIALS, INC.
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
October 28, October 30,
(In millions) 2012 2011
------------- ------------
ASSETS
Current assets:
Cash and cash equivalents $ 1,392 $ 5,960
Short-term investments 545 283
Accounts receivable, net 1,220 1,532
Inventories 1,272 1,701
Deferred income taxes, net 369 580
Other current assets 304 299
------------- ------------
Total current assets 5,102 10,355
Long-term investments 1,055 931
Property, plant and equipment, net 910 866
Goodwill 3,518 1,335
Purchased technology and other intangible assets,
net 1,355 211
Deferred income taxes and other assets 162 163
------------- ------------
Total assets $ 12,102 $ 13,861
------------- ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 1,436 $ 1,520
Customer deposits and deferred revenue 755 1,116
Income taxes payable 74 158
------------- ------------
Total current liabilities 2,265 2,794
Long-term debt 1,946 1,947
Deferred income taxes and income taxes payable 341 104
Employee benefits and other liabilities 315 216
------------- ------------
Total liabilities 4,867 5,061
------------- ------------
Total stockholders' equity 7,235 8,800
------------- ------------
Total liabilities and stockholders' equity $ 12,102 $ 13,861
------------- ------------
APPLIED MATERIALS, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
Three Months Ended Twelve Months Ended
--------------------------- --------------------------
October 28, October 30, October 28, October 30,
(In millions) 2012 2011 2012 2011
------------- ------------- ------------- ------------
Cash flows from
operating activities:
Net income (loss) $ (515 ) $ 456 $ 109 $ 1,926
Adjustments required
to reconcile net
income (loss) to cash
provided by operating
activities:
Depreciation and
amortization 97 59 422 246
Net loss (gain) on
dispositions and (4 ) 10 7 (13 )
fixed asset
retirements
Provision for bad
debts 5 5 14 5
Impairment of
goodwill 421 - 421 -
Restructuring
charges and asset
impairments 124 - 168 (30 )
Deferred income
taxes 56 222 161 122
Net loss on
investments and 7 6 23 19
amortization on
debt securities
Impairment of
strategic
investments 14 - 17 -
Share-based
compensation 44 37 182 146
Net change in
operating assets
and liabilities, 162 (96 ) 327 5
net of amounts
acquired
------------- ------------- ------------- ------------
Cash provided by
operating activities 411 699 1,851 2,426
------------- ------------- ------------- ------------
Cash flows from
investing activities:
Capital expenditures (41 ) (73 ) (162 ) (209 )
Cash paid for
acquisition, net of
cash acquired (1 ) - (4,190 ) -
Proceeds from sale of
facilities and
dispositions - 4 - 130
Proceeds from sales
and maturities of
investments 254 754 1,019 1,926
Purchases of
investments (175 ) (192 ) (1,327 ) (1,137 )
------------- ------------- ------------- ------------
Cash provided by (used 37 493
in) investing activities (4,660 ) 710
------------- ------------- ------------- ------------
Cash flows from
financing activities:
Debt borrowings
(repayments), net - - (1 ) 1,744
Payments of debt
issuance costs - - - (14 )
Proceeds from common
stock issuances 45 31 97 95
Common stock
repurchases (516 ) (175 ) (1,416 ) (468 )
Payments of dividends
to stockholders (111 ) (106 ) (434 ) (397 )
------------- ------------- ------------- ------------
Cash provided by (used (582 ) (250 )
in) financing activities (1,754 ) 960
------------- ------------- ------------- ------------
Effect of exchange rate
changes (3 ) - (5 ) 6
on cash and cash
equivalents
------------- ------------- ------------- ------------
Increase (decrease) in (137 ) 942
cash and cash
equivalents (4,568 ) 4,102
Cash and cash
equivalents - beginning
of period 1,529 5,018 5,960 1,858
------------- ------------- ------------- ------------
Cash and cash $ 1,392 $ 5,960
equivalents - end of
period $ 1,392 $ 5,960
------------- ------------- ------------- ------------
Supplemental cash flow
information:
Cash payments for
income taxes $ 10 $ 100 $ 243 $ 761
Cash refunds from
income taxes $ 74 $ 285 $ 79 $ 289
Cash payments for
interest $ 7 $ 7 $ 94 $ 14
APPLIED MATERIALS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
Reportable Segment Results
Q4 FY2012 Q3 FY2012 Q4 FY2011
----------------------------------- ----------------------------------- ----------------------------------
Operating Operating Operating
(In New Net Income New Net Income New Net Income
millions) Orders Sales (Loss) Orders Sales (Loss) Orders Sales (Loss)
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------
SSG $ 741 $ 870 $ 41 $ 1,166 $ 1,545 $ 427 $ 925 $ 1,067 $ 278
AGS 576 621 164 531 579 122 564 629 160
Display 83 93 3 67 142 10 20 171 31
EES 65 62 (480 ) 35 77 (102 ) 86 315 17
Corporate - - (227 ) - - (135 ) - - (125 )
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------
Consolidated $ 1,465 $ 1,646 $ (499 ) $ 1,799 $ 2,343 $ 322 $ 1,595 $ 2,182 $ 361
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------
FY 2012 FY 2011
----------------------------------- ------------------------------------
Operating Operating
(In New Net Income New Net Income
millions) Orders Sales (Loss) Orders Sales (Loss)
----------- ----------- ----------- ------------ ------------ ----------
SSG $ 5,294 $ 5,536 $ 1,243 $ 5,489 $ 5,415 $ 1,764
AGS 2,274 2,285 502 2,333 2,413 482
Display 274 473 25 636 699 147
EES 195 425 (668 ) 1,684 1,990 453
Corporate - - (691 ) - - (448 )
----------- ----------- ----------- ------------ ------------ ----------
Consolidated $ 8,037 $ 8,719 $ 411 $ 10,142 $ 10,517 $ 2,398
----------- ----------- ----------- ------------ ------------ ----------
Corporate Unallocated Expenses
Q4 Q3 Q4
(In millions) FY2012 FY2012 FY2011 FY 2012 FY 2011
--------- --------- --------- --------- --------
Restructuring charges and
asset impairments, net $ 111 $ - $ - $ 111 $ (21 )
Share-based compensation 44 42 36 182 146
Gain on sale of facilities - - - - (27 )
Other unallocated expenses 72 93 89 398 350
--------- --------- --------- --------- --------
Corporate $ 227 $ 135 $ 125 $ 691 $ 448
--------- --------- --------- --------- --------
APPLIED MATERIALS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
Additional Information
Q4 FY2012 Q3 FY2012 Q4 FY2011
---------------- ---------------- ---------------
New Orders and Net Sales by
Geography
New Net New Net New Net
(In $ millions) Orders Sales Orders Sales Orders Sales
-------- ------- -------- ------- -------- ------
North America 435 373 420 441 324 434
% of Total 30 % 23 % 23 % 19 % 20 % 20 %
Europe 165 271 172 184 176 271
% of Total 11 % 16 % 9 % 8 % 11 % 12 %
Japan 184 129 128 189 173 255
% of Total 12 % 8 % 7 % 8 % 11 % 12 %
Korea 115 127 299 392 330 363
% of Total 8 % 8 % 17 % 17 % 21 % 17 %
Taiwan 390 457 588 811 283 353
% of Total 27 % 28 % 33 % 34 % 18 % 16 %
Southeast Asia 74 97 91 72 98 98
% of Total 5 % 6 % 5 % 3 % 6 % 4 %
China 102 192 101 254 211 408
% of Total 7 % 11 % 6 % 11 % 13 % 19 %
Employees (In thousands)
Regular Full Time 14.5 14.6 12.9
FY 2012 FY 2011
------------------- ------------------
New Orders and Net Sales by
Geography
New Net New Net
(In $ millions) Orders Sales Orders Sales
--------- --------- --------- --------
North America 1,995 1,749 2,069 1,963
% of Total 25 % 20 % 20 % 19 %
Europe 817 863 1,022 1,120
% of Total 10 % 10 % 10 % 11 %
Japan 600 704 1,001 912
% of Total 7 % 8 % 10 % 9 %
Korea 1,784 1,897 1,286 1,263
% of Total 22 % 22 % 13 % 12 %
Taiwan 2,155 2,411 2,235 2,093
% of Total 27 % 28 % 22 % 20 %
Southeast Asia 283 312 463 592
% of Total 4 % 3 % 5 % 5 %
China 403 783 2,066 2,574
% of Total 9 % 24 %
5 % 20 %
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS
Three Months Ended Twelve Months Ended
-------------------------------------- --------------------------
(In millions,
except October 28, July 29, October 30, October 28, October 30,
percentages) 2012 2012 2011 2012 2011
------------- ---------- ------------- ------------- ------------
Non-GAAP Gross
Margin
Reported gross
margin (GAAP
basis) $ 586 $ 930 $ 852 $ 3,313 $ 4,360
Certain items
associated with
acquisitions(1) 46 44 10 253 37
------------- ---------- ------------- ------------- ------------
Non-GAAP gross
margin $ 632 $ 974 $ 862 $ 3,566 $ 4,397
------------- ---------- ------------- ------------- ------------
Non-GAAP gross
margin percent
(% of net
sales) 38.4 % 41.6 % 39.5 % 40.9 % 41.8 %
Non-GAAP
Operating
Income
Reported
operating
income (loss)
(GAAP basis) $ (499 ) $ 322 $ 361 $ 411 $ 2,398
Certain items
associated with
acquisitions(1) 55 57 13 298 51
Acquisition
integration and
deal costs 13 8 10 81 19
Impairment of
goodwill 421 - - 421 -
Restructuring
charges and
asset
impairments(2,
3, 4, 5) 124 44 - 168 (30 )
Gain on sale of
facilities, net - - - - (27 )
------------- ---------- ------------- ------------- ------------
Non-GAAP
operating
income $ 114 $ 431 $ 384 $ 1,379 $ 2,411
------------- ---------- ------------- ------------- ------------
Non-GAAP
operating
margin percent
(% of net
sales) 6.9 % 18.4 % 17.6 % 15.8 % 22.9 %
Non-GAAP Net
Income
Reported net
income (loss)
(GAAP basis) $ (515 ) $ 218 $ 456 $ 109 $ 1,926
Certain items
associated with
acquisitions(1) 55 57 13 298 51
Acquisition
integration and
deal costs 13 8 10 81 19
Impairment of
goodwill 421 - - 421 -
Restructuring
charges and
asset
impairments(2,
3, 4, 5) 124 44 - 168 (30 )
Impairment of
strategic
investments 14 - 3 17 3
Gain on sale of
facilities, net - - - - (27 )
Reinstatement
of federal R&D
tax credit - - - - (13 )
Resolution of
audits of prior
years' income
tax filings (5 ) (10 ) (203 ) (22 ) (203 )
Income tax
effect of non-
GAAP
adjustments (37 ) (17 ) (8 ) (112 ) (3 )
------------- ---------- ------------- ------------- ------------
Non-GAAP net
income $ 70 $ 300 $ 271 $ 960 $ 1,723
------------- ---------- ------------- ------------- ------------
1 These items are incremental charges attributable to acquisitions,
consisting of inventory fair value adjustments on products sold, and
amortization of purchased intangible assets.
2 Results for the three months ended July 29, 2012 included severance charges
of $24 million and asset impairment charges of $11 million related to the
restructuring program announced on May 10, 2012 and severance charges of $9
million related to the integration of Varian.
3 Results for the three months ended October 28, 2012 included severance and
other charges of $106 million related to the restructuring program
announced on October 3, 2012, restructuring and asset impairment charges of
$12 million related to the restructuring program announced on May
10, 2012, and severance charges of $6 million related to the integration of
Varian.
4 Results for the twelve months ended October 28, 2012 included severance and
other charges of $106 million related to the restructuring program
announced on October 3, 2012, restructuring and asset impairment charges of
$48 million related to the restructuring program announced on May
10, 2012, and severance charges of $14 million related to the integration
of Varian.
5 Results for the twelve months ended October 30, 2011 included favorable
adjustments of $36 million related to a restructuring program announced on
July 21, 2010, $19 million related to a restructuring program announced on
November 11, 2009, and $5 million related to a restructuring program
announced on November 12, 2008, partially offset by asset impairment
charges of $30 million primarily related to certain fixed and intangible
assets.
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS
Three Months Ended Twelve Months Ended
-------------------------------------- --------------------------
(In millions
except per
share October 28, July 29, October 30, October 28, October 30,
amounts) 2012 2012 2011 2012 2011
------------- ---------- ------------- ------------- ------------
Non-GAAP
Earnings Per
Diluted Share
Reported
earnings
(loss) per
diluted share
(GAAP basis) $ (0.42 ) $ 0.17 $ 0.34 $ 0.09 $ 1.45
Certain items
associated
with
acquisitions 0.04 0.04 0.01 0.19 0.03
Acquisition
integration
and deal
costs 0.01 0.01 0.01 0.05 0.01
Impairment of
goodwill 0.34 - - 0.33 -
Restructuring
charges and
asset
impairments 0.08 0.03 - 0.10 (0.01 )
Impairment of
strategic
investments 0.01 - - 0.01 -
Gain on sale
of
facilities,
net - - - - (0.02 )
Reinstatement
of federal
R&D tax
credit and
resolution of
audits of
prior years'
income tax
filings - (0.01 ) (0.15 ) (0.02 ) (0.16 )
------------- ---------- ------------- ------------- ------------
Non-GAAP
earnings per
diluted share $ 0.06 $ 0.24 $ 0.21 $ 0.75 $ 1.30
------------- ---------- ------------- ------------- ------------
Weighted
average
number of
diluted
shares 1,234 1,268 1,321 1,277 1,330
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP RESULTS
Three Months Ended Twelve Months Ended
--------------------------------------- --------------------------
(In millions,
except October 28, July 29, October 30, October 28, October 30,
percentages) 2012 2012 2011 2012 2011
------------- ----------- ------------- ------------- ------------
Non-GAAP SSG
Operating Income
Reported operating
income (GAAP
basis) $ 41 $ 427 $ 278 $ 1,243 $ 1,764
Certain items
associated with
acquisitions(1) 45 47 4 253 12
Acquisition
integration and
deal costs 6 7 3 37 3
Restructuring
charges and asset
impairments(2,3,4) 3 1 - 4 -
------------- ----------- ------------- ------------- ------------
Non-GAAP operating
income $ 95 $ 482 $ 285 $ 1,537 $ 1,779
------------- ----------- ------------- ------------- ------------
Non-GAAP operating
margin percent (%
of net sales) 10.9 % 31.2 % 26.7 % 27.8 % 32.9 %
Non-GAAP AGS
Operating Income
Reported operating
income (GAAP
basis) $ 164 $ 122 $ 160 $ 502 $ 482
Certain items
associated with
acquisitions(1) 3 2 2 13 7
Restructuring
charges and asset
impairments(2,
3, 4, 5) 4 11 - 15 24
------------- ----------- ------------- ------------- ------------
Non-GAAP operating
income $ 171 $ 135 $ 162 $ 530 $ 513
------------- ----------- ------------- ------------- ------------
Non-GAAP operating
margin percent (%
of net sales) 27.5 % 23.3 % 25.8 % 23.2 % 21.3 %
Non-GAAP Display
Operating Income
Reported operating
income (GAAP
basis) $ 3 $ 10 $ 31 $ 25 $ 147
Certain items
associated with
acquisitions(1) 1 2 2 7 7
------------- ----------- ------------- ------------- ------------
Non-GAAP operating
income $ 4 $ 12 $ 33 $ 32 $ 154
------------- ----------- ------------- ------------- ------------
Non-GAAP operating
margin percent (%
of net sales) 4.3 % 8.5 % 19.3 % 6.8 % 22.0 %
Non-GAAP EES
Operating Income
Reported operating
income (loss)
(GAAP basis) $ (480 ) $ (102 ) $ 17 $ (668 ) $ 453
Certain items
associated with
acquisitions(1) 7 6 6 25 25
Impairment of
goodwill 421 - - 421 -
Restructuring
charges and asset
impairments(2,
3, 4, 5) 6 32 - 38 (34 )
------------- ----------- ------------- ------------- ------------
Non-GAAP operating
income (loss) $ (46 ) $ (64 ) $ 23 $ (184 ) $ 444
------------- ----------- ------------- ------------- ------------
Non-GAAP operating
margin percent (%
of net sales) (74.2 )% (83.1 )% 7.3 % (43.3 )% 22.3 %
1 These items are incremental charges attributable to acquisitions,
consisting of inventory fair value adjustments on products sold, and
amortization of purchased intangible assets.
2 Results for the three months ended July 29, 2012 included severance charges
of $24 million and asset impairment charges of $11 million related to the
restructuring program announced on May 10, 2012 and severance charges of $9
million related to the integration of Varian.
3 Results for the three months ended October 28, 2012 included restructuring
and asset impairment charges of $7 million related to the restructuring
program announced on May 10, 2012, and severance charges of $6 million
related to the integration of Varian.
4 Results for the twelve months ended October 28, 2012 included restructuring
and asset impairment charges of $43 million related to the restructuring
program announced on May 10, 2012 and severance charges of $14 million
related to the integration of Varian.
5 Results for the twelve months ended October 30, 2011 included favorable
adjustments of $36 million related to a restructuring program announced on
July 21, 2010, partially offset by asset impairment charges of $26 million
primarily related to certain fixed and intangible assets.
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP OPERATING EXPENSES
Three Months Ended
(In millions) October 28, 2012
---------------------
Operating expenses (GAAP basis) $ 1,085
Certain items associated with acquisitions (9 )
Acquisition integration and deal costs (13 )
Impairment of goodwill (421 )
Restructuring charges and asset impairments (124 )
---------------------
Non-GAAP operating expenses $ 518
---------------------
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP EFFECTIVE INCOME TAX RATE
Three Months
Ended
October 28,
(In millions, except percentages) 2012
---------------
Provision (benefit) for income taxes (GAAP basis) (a) $ (17 )
Income tax effect of non-GAAP adjustments 37
Resolutions from audits of prior years' income tax filings 5
---------------
Non-GAAP provision for income taxes (b) $ 25
---------------
Income (loss) before income taxes (GAAP basis) (c) $ (532 )
Certain items associated with acquisitions 55
Acquisition integration and deal costs 13
Impairment of goodwill 421
Restructuring charges and asset impairments 124
Impairment of strategic investments 14
---------------
Non-GAAP income before income taxes (d) $ 95
---------------
Effective income tax rate (GAAP basis) (a/c) 3.2 %
---------------
Non-GAAP effective income tax rate (b/d) 26.3 %
---------------
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Applied Materials via Thomson Reuters ONE
[HUG#1657722]
Unternehmensinformation / Kurzprofil:
Datum: 15.11.2012 - 22:11 Uhr
Sprache: Deutsch
News-ID 204481
Anzahl Zeichen: 52908
contact information:
Town:
Santa Clara
Kategorie:
Business News
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"Applied Materials Announces Fourth Quarter and Fiscal Year 2012 Results"
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