Applied Materials Announces Third Quarter Results
(Thomson Reuters ONE) -
* Non-GAAP adjusted EPS of 18 cents at mid-point of guidance; GAAP EPS of 14
cents
* Strong demand for mobile devices and large-screen TVs drives semiconductor
and display equipment sales
* Spending shift to RD&E to fund profitable growth opportunities in precision
materials engineering
SANTA CLARA, Calif., August 15, 2013 - Applied Materials, Inc. (NASDAQ:AMAT),
the global leader in manufacturing solutions for the semiconductor, display and
solar industries, today reported results for its third quarter of fiscal 2013
ended July 28, 2013.
Applied generated orders of $2.00 billion, down 12 percent from the prior
quarter as a seasonal decline in foundry bookings was partially offset by growth
in memory and logic orders along with higher bookings in the Display Group and
Applied Global Services. Net sales were $1.98 billion, essentially flat
sequentially. The company reported non-GAAP adjusted operating income of $312
million and non-GAAP adjusted net income of $223 million or 18 cents per diluted
share. The company recorded GAAP operating income of $250 million and GAAP net
income of $168 million or 14 cents per diluted share.
"Consumers' appetite for mobile devices and larger TVs is driving healthy demand
for our semiconductor and display equipment," said Mike Splinter, chairman and
chief executive officer. "We are seeing stronger investment by our memory
customers, and our display business booked its highest orders in over two
years."
Quarterly Results Summary
GAAP Results Q3 FY2013 Q2 FY2013 Q3 FY2012
------------------------------- --------------- ---------------- --------------
Net sales $1.98 billion $1.97 billion $2.34 billion
Operating income (loss) $250 million $(68) million $322 million
Net income (loss) $168 million $(129) million $218 million
Diluted earnings (loss) per
share (EPS) $0.14 $(0.11) $0.17
Non-GAAP Adjusted Results
-------------------------------
Non-GAAP adjusted operating
income $312 million $285 million $431 million
Non-GAAP adjusted net income $223 million $199 million $300 million
Non-GAAP adjusted diluted EPS $0.18 $0.16 $0.24
Applied's non-GAAP adjusted results exclude the impact of the following, where
applicable: certain acquisition-related costs; restructuring charges and any
associated adjustments; impairments of assets, goodwill, or investments; gain or
loss on sale of facilities; and certain tax items. 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" below.
Third Quarter Reportable Segment Results and Comparisons to the Prior Quarter
Silicon Systems Group (SSG) orders were $1.20 billion, down 22 percent, due to a
decrease in foundry orders, partially offset by increases in memory and logic
orders. Net sales of $1.27 billion declined 1 percent. Non-GAAP adjusted
operating income decreased to $283 million or 22.2 percent of net sales. GAAP
operating income decreased to $246 million or 19.3 percent of net sales. New
order composition was: foundry 45 percent; flash 24 percent; logic/other 17
percent; and DRAM 14 percent.
Applied Global Services (AGS) orders were $517 million, up 7 percent, reflecting
higher orders for spares and 200mm equipment. Net sales were $497 million down
4 percent. Non-GAAP adjusted operating income was approximately flat at $116
million or 23.3 percent of net sales. GAAP operating income was approximately
flat at $114 million or 22.9 percent of net sales.
Display orders were $256 million, up 31 percent led by a recovery in TV
equipment demand. Net sales were $161 million up 27 percent. Non-GAAP adjusted
operating income increased to $34 million or 21.1 percent of net sales. GAAP
operating income increased to $33 million or 20.5 percent of net sales.
Energy and Environmental Solutions (EES) orders were $19 million, down 51
percent. Net sales were $45 million, up 18 percent. EES had a non-GAAP adjusted
operating loss of $15 million; EES recorded a GAAP operating loss of $27
million, which included restructuring and impairment charges of $10 million.
Additional Quarterly Financial Information
* Backlog was approximately flat sequentially at $2.29 billion including
negative adjustments of $28 million.
* Gross margin was 42.9 percent on a non-GAAP adjusted basis, down slightly
from 43.2 percent in the prior quarter. GAAP gross margin was 40.8 percent.
* On a year-over-year basis, G&A declined by $40 million, or 29 percent, while
RD&E increased by $25 million, or 8 percent. These changes primarily reflect
the impact of ongoing initiatives to reduce company overhead spending and
increase funding of profitable growth opportunities, particularly in the
Silicon Systems Group.
* The effective tax rate was 23.9 percent on a non-GAAP adjusted basis. The
GAAP effective tax rate was 26.3 percent.
* The company paid $120 million in cash dividends, up 11 percent from the
prior quarter, reflecting the quarterly dividend increase announced in March
2013. Applied also used $50 million to repurchase 3 million shares of its
common stock.
* Cash, cash equivalents and investments ended the quarter at $3.03 billion,
up 6 percent from the prior quarter.
Business Outlook
For the fourth quarter of fiscal 2013, Applied expects net sales to be
approximately flat as compared to the previous quarter. The company expects non-
GAAP adjusted operating expenses to be in the range of $525 million, plus or
minus $10 million. Non-GAAP adjusted EPS is expected to be in the range of $0.16
to $0.20. The non-GAAP adjusted operating expenses and EPS outlooks exclude
known charges related to completed acquisitions of approximately $19 million and
$0.04 per share, respectively, but do not exclude other non-GAAP adjustments
that may arise subsequent to this release.
Use of Non-GAAP Adjusted Financial Measures
Management uses non-GAAP adjusted 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. A replay will be available on the website beginning at
5:00 p.m. Pacific Time today.
Forward-Looking Statements
This press release contains forward-looking statements, including those
regarding Applied's performance, end-user and customer demand, spending for
growth, and business outlooks for the fourth quarter of fiscal 2013. These
statements and their underlying assumptions 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, 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) achieve the objectives of operational initiatives,
(iii) plan and manage its resources and production capability, (iv) obtain and
protect intellectual property rights in key technologies, (v) attract, motivate
and retain key employees, and (vi) 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 SEC filings, including its most recent Form 10-Q. 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. Learn more at www.appliedmaterials.com.
Contact:
Kevin Winston (editorial/media) 408.235.4498
Michael Sullivan (financial community) 408.986.7977
APPLIED MATERIALS, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended
-------------------------------------- ----------------------
(In millions,
except per share July 28, April 28, July 29, July 28, July 29,
amounts) 2013 2013 2012 2013 2012
------------- ------------ ----------- ----------- ----------
Net sales $ 1,975 $ 1,973 $ 2,343 $ 5,521 $ 7,073
Cost of products
sold 1,169 1,165 1,413 3,325 4,347
------------- ------------ ----------- ----------- ----------
Gross margin 806 808 930 2,196 2,726
Operating
expenses:
Research,
development
and
engineering 334 344 309 982 933
Marketing and
selling 111 118 118 334 374
General and
administrative 97 126 137 348 465
Impairment of
goodwill and
intangible
assets - 278 - 278 -
Restructuring
charges and
asset
impairments 14 10 44 33 44
------------- ------------ ----------- ----------- ----------
Total operating
expenses 556 876 608 1,975 1,816
Income (loss)
from operations 250 (68 ) 322 221 910
Impairments of
strategic
investments 3 2 - 5 3
Interest and
other expenses 23 24 24 71 72
Interest and
other income, net 4 4 4 11 13
------------- ------------ ----------- ----------- ----------
Income (loss)
before income
taxes 228 (90 ) 302 156 848
Provision for
income taxes 60 39 84 83 224
------------- ------------ ----------- ----------- ----------
Net income (loss) $ 168 $ (129 ) $ 218 $ 73 $ 624
------------- ------------ ----------- ----------- ----------
Earnings (loss)
per share:
Basic $ 0.14 $ (0.11 ) $ 0.17 $ 0.06 $ 0.49
Diluted $ 0.14 $ (0.11 ) $ 0.17 $ 0.06 $ 0.48
Weighted average
number of shares:
Basic 1,203 1,203 1,257 1,201 1,282
Diluted 1,220 1,203 1,268 1,218 1,292
APPLIED MATERIALS, INC.
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
July April October
(In millions) 28, 2013 28, 2013 28, 2012
------------ ------------ -------------
ASSETS
Current assets:
Cash and cash equivalents $ 1,745 $ 1,545 $ 1,392
Short-term investments 230 225 545
Accounts receivable, net 1,170 1,275 1,220
Inventories 1,358 1,318 1,272
Other current assets 734 750 673
------------ ------------ -------------
Total current assets 5,237 5,113 5,102
Long-term investments 1,055 1,080 1,055
Property, plant and equipment, net 872 886 910
Goodwill 3,294 3,294 3,518
Purchased technology and other
intangible assets, net 1,148 1,194 1,355
Deferred income taxes and other
assets 145 128 162
------------ ------------ -------------
Total assets $ 11,751 $ 11,695 $ 12,102
------------ ------------ -------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
expenses $ 1,446 $ 1,462 $ 1,510
Customer deposits and deferred
revenue 756 739 755
------------ ------------ -------------
Total current liabilities 2,202 2,201 2,265
Long-term debt 1,946 1,946 1,946
Other liabilities 649 650 656
------------ ------------ -------------
Total liabilities 4,797 4,797 4,867
------------ ------------ -------------
Total stockholders' equity 6,954 6,898 7,235
------------ ------------ -------------
Total liabilities and stockholders'
equity $ 11,751 $ 11,695 $ 12,102
------------ ------------ -------------
APPLIED MATERIALS, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
Three Months Ended Nine Months Ended
------------------------------------ ----------------------
July April July July July
(In millions) 28, 2013 28, 2013 29, 2012 28, 2013 29, 2012
----------- ------------ ----------- ----------- ----------
Cash flows from
operating
activities:
Net income (loss) $ 168 $ (129 ) $ 218 $ 73 $ 624
Adjustments
required to
reconcile net
income (loss) to
cash provided by
operating
activities:
Depreciation
and
amortization 100 106 105 312 325
Impairment of
goodwill and
intangible
assets - 278 - 278 -
Restructuring
charges and
asset
impairments 14 10 44 33 44
Deferred income
taxes and other (56 ) 32 91 (102 ) 144
Share-based
compensation 40 39 42 121 138
Net change in
operating
assets and
liabilities,
net of amounts
acquired 98 (112 ) 156 (111 ) 165
----------- ------------ ----------- ----------- ----------
Cash provided by 364 224 656
operating
activities 604 1,440
----------- ------------ ----------- ----------- ----------
Cash flows from
investing
activities:
Capital
expenditures, net (40 ) (51 ) (45 ) (140 ) (121 )
Cash paid for
acquisition, net
of cash acquired - (1 ) (3 ) (1 ) (4,189 )
Proceeds from
sales and
maturities of
investments 134 158 205 737 765
Purchases of
investments (128 ) (167 ) (438 ) (438 ) (1,152 )
----------- ------------ ----------- ----------- ----------
Cash provided by (34 ) (61 ) (281 )
(used in) investing
activities 158 (4,697 )
----------- ------------ ----------- ----------- ----------
Cash flows from
financing
activities:
Proceeds from
common stock
issuances and
others, net 40 67 6 125 51
Common stock
repurchases (50 ) (100 ) (500 ) (198 ) (900 )
Payments of
dividends to
stockholders (120 ) (108 ) (115 ) (336 ) (323 )
----------- ------------ ----------- ----------- ----------
Cash used in (130 ) (141 ) (609 )
financing
activities (409 ) (1,172 )
----------- ------------ ----------- ----------- ----------
Effect of exchange
rate changes on
cash and cash
equivalents - - 2 - (2 )
----------- ------------ ----------- ----------- ----------
Increase (decrease) 200 22 (232 )
in cash and cash
equivalents 353 (4,431 )
Cash and cash
equivalents -
beginning of period 1,545 1,523 1,761 1,392 5,960
----------- ------------ ----------- ----------- ----------
Cash and cash $ 1,745 $ 1,545 $ 1,529
equivalents - end
of period $ 1,745 $ 1,529
----------- ------------ ----------- ----------- ----------
Supplemental cash
flow information:
Cash payments for
income taxes $ 30 $ 122 $ 54 $ 184 $ 233
Cash refunds from
income taxes $ - $ 2 $ 1 $ 67 $ 5
Cash payments for
interest $ 39 $ 7 $ 39 $ 85 $ 87
APPLIED MATERIALS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
Reportable Segment Results
Q3 FY2013 Q2 FY2013 Q3 FY2012
----------------------------------- ----------------------------------- ----------------------------------
Operating Operating Operating
(In New Net Income New Net Income New Net Income
millions) Orders Sales (Loss) Orders Sales (Loss) Orders Sales (Loss)
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------
SSG $ 1,203 $ 1,272 $ 246 $ 1,551 $ 1,291 $ 283 $ 1,166 $ 1,545 $ 427
AGS 517 497 114 481 517 118 531 579 122
Display 256 161 33 195 127 19 67 142 10
EES* 19 45 (27 ) 39 38 (322 ) 35 77 (102 )
Corporate - - (116 ) - - (166 ) - - (135 )
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------
Consol-
idated $ 1,995 $ 1,975 $ 250 $ 2,266 $ 1,973 $ (68 ) $ 1,799 $ 2,343 $ 322
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------
* Operating loss for the second quarter of fiscal 2013 included $278 million in
goodwill and intangible asset impairment charges
Corporate Unallocated Expenses
Q3 Q2 Q3
(In millions) FY2013 FY2013 FY2012
--------- --------- --------
Restructuring charges and asset impairments $ 4 $ 4 $ -
Share-based compensation 40 39 42
Gain on sale of facility (4 ) - -
Other unallocated expenses 76 123 93
--------- --------- --------
Corporate $ 116 $ 166 $ 135
--------- --------- --------
APPLIED MATERIALS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
Additional Information
Q3 FY2013 Q2 FY2013 Q3 FY2012
---------------- ---------------- ---------------
New Orders and Net Sales by
Geography
New Net New Net New Net
(In $ millions) Orders Sales Orders Sales Orders Sales
-------- ------- -------- ------- -------- ------
United States 369 353 398 362 420 441
% of Total 19 % 18 % 18 % 18 % 23 % 19 %
Europe 225 175 173 144 172 184
% of Total 11 % 9 % 8 % 7 % 9 % 8 %
Japan 333 154 191 157 128 189
% of Total 17 % 8 % 8 % 8 % 7 % 8 %
Korea 249 262 259 226 299 392
% of Total 12 % 13 % 11 % 12 % 17 % 17 %
Taiwan 356 658 902 828 588 811
% of Total 18 % 33 % 40 % 42 % 33 % 34 %
Southeast Asia 124 100 67 73 91 72
% of Total 6 % 5 % 3 % 4 % 5 % 3 %
China 339 273 276 183 101 254
% of Total 17 % 14 % 12 % 9 % 6 % 11 %
Employees (In thousands)
Regular Full Time 13.7 13.6 14.6
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
Three Months Ended Nine Months Ended
------------------------------------ ----------------------
(In millions,
except July April July July July
percentages) 28, 2013 28, 2013 29, 2012 28, 2013 29, 2012
----------- ------------ ----------- ----------- ----------
Non-GAAP Adjusted
Gross Margin
Reported gross
margin (GAAP
basis) $ 806 $ 808 $ 930 $ 2,196 $ 2,726
Certain items
associated with
acquisitions(1) 40 43 44 126 209
Acquisition
integration and
deal costs 1 1 - 3 -
----------- ------------ ----------- ----------- ----------
Non-GAAP adjusted
gross margin $ 847 $ 852 $ 974 $ 2,325 $ 2,935
----------- ------------ ----------- ----------- ----------
Non-GAAP adjusted
gross margin
percent (% of net
sales) 42.9 % 43.2 % 41.6 % 42.1 % 41.5 %
Non-GAAP Adjusted
Operating Income
Reported
operating income
(loss) (GAAP
basis) $ 250 $ (68 ) $ 322 $ 221 $ 910
Impairment of
goodwill and
intangible assets - 278 - 278 -
Certain items
associated with
acquisitions(1) 47 53 57 154 242
Acquisition
integration and
deal costs 5 12 8 27 70
Restructuring
charges and asset
impairments(2,
3, 4, 5) 14 10 44 33 44
Gain on sale of
facility (4 ) - - (4 ) -
----------- ------------ ----------- ----------- ----------
Non-GAAP adjusted
operating income $ 312 $ 285 $ 431 $ 709 $ 1,266
----------- ------------ ----------- ----------- ----------
Non-GAAP adjusted
operating margin
percent (% of net
sales) 15.8 % 14.4 % 18.4 % 12.8 % 17.9 %
Non-GAAP Adjusted
Net Income
Reported net
income (loss)
(GAAP basis) $ 168 $ (129 ) $ 218 $ 73 $ 624
Impairment of
goodwill and
intangible assets - 278 - 278 -
Certain items
associated with
acquisitions(1) 47 53 57 154 242
Acquisition
integration and
deal costs 5 12 8 27 70
Restructuring
charges and asset
impairments(2,
3, 4, 5) 14 10 44 33 44
Gain on sale of
facility (4 ) - - (4 ) -
Impairment of
strategic
investments 3 2 - 5 3
Reinstatement of
federal R&D tax
credit - (3 ) - (13 ) -
Resolution of
prior years'
income tax
filings (3 ) - (10 ) (14 ) (17 )
Income tax effect
of non-GAAP
adjustments (7 ) (24 ) (17 ) (48 ) (77 )
----------- ------------ ----------- ----------- ----------
Non-GAAP adjusted
net income $ 223 $ 199 $ 300 $ 491 $ 889
----------- ------------ ----------- ----------- ----------
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 28, 2013 included $4 million of
employee-related costs related to the restructuring program announced on
October 3, 2012 and restructuring and asset impairment charges of $10
million related to the restructuring program announced on May 10, 2012.
3 Results for the three months ended April 28, 2013 included $4 million of
employee-related costs related to the restructuring program announced on
October 3, 2012 and restructuring and asset impairment charges of $6
million related to the restructuring program announced on May 10, 2012.
4 Results for the three and nine months ended July 29, 2012 included $35
million of restructuring and asset impairment charges related to the
restructuring program announced on May 10, 2012 and severance charges of $9
million related to the integration of Varian.
5 Results for the nine months ended July 28, 2013 included $12 million of
employee-related costs, net, related to the restructuring program announced
on October 3, 2012, restructuring and asset impairment charges of $19
million related to the restructuring program announced on May 10, 2012 and
severance charges of $2 million related to the integration of Varian.
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
Three Months Ended Nine Months Ended
------------------------------------ ----------------------
(In millions
except per share July April July July July
amounts) 28, 2013 28, 2013 29, 2012 28, 2013 29, 2012
----------- ------------ ----------- ----------- ----------
Non-GAAP Adjusted
Earnings Per
Diluted Share
Reported earnings
(loss) per
diluted share
(GAAP basis) $ 0.14 $ (0.11 ) $ 0.17 $ 0.06 $ 0.48
Impairment of
goodwill and
intangible assets - 0.22 - 0.22 -
Certain items
associated with
acquisitions 0.03 0.04 0.04 0.10 0.15
Acquisition
integration and
deal costs - 0.01 0.01 0.02 0.04
Restructuring
charges and asset
impairments 0.01 - 0.03 0.02 0.03
Reinstatement of
federal R&D tax
credit and
resolution of
prior years'
income tax
filings - - (0.01 ) (0.02 ) (0.01 )
----------- ------------ ----------- ----------- ----------
Non-GAAP adjusted
earnings per
diluted share $ 0.18 $ 0.16 $ 0.24 $ 0.40 $ 0.69
----------- ------------ ----------- ----------- ----------
Weighted average
number of diluted
shares 1,220 1,217 1,268 1,218 1,292
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
Three Months Ended Nine Months Ended
------------------------------------ -----------------------
(In millions,
except July April July July July
percentages) 28, 2013 28, 2013 29, 2012 28, 2013 29, 2012
----------- ------------ ----------- ----------- -----------
SSG Non-GAAP
Adjusted
Operating Income
Reported
operating income
(GAAP basis) $ 246 $ 283 $ 427 $ 663 $ 1,202
Certain items
associated with
acquisitions(1) 42 45 47 131 208
Acquisition
integration and
deal costs, net (5 ) 1 7 (3 ) 31
Restructuring
charges and
asset
impairments(4,
5) - - 1 1 1
----------- ------------ ----------- ----------- -----------
Non-GAAP
adjusted
operating income $ 283 $ 329 $ 482 $ 792 $ 1,442
----------- ------------ ----------- ----------- -----------
Non-GAAP
adjusted
operating margin
percent (% of
net sales) 22.2 % 25.5 % 31.2 % 22.4 % 30.9 %
AGS Non-GAAP
Adjusted
Operating Income
Reported
operating income
(GAAP basis) $ 114 $ 118 $ 122 $ 321 $ 338
Certain items
associated with
acquisitions(1) 2 1 2 4 10
Restructuring
charges and
asset
impairments(3,
4, 5) - 1 11 2 11
----------- ------------ ----------- ----------- -----------
Non-GAAP
adjusted
operating income $ 116 $ 120 $ 135 $ 327 $ 359
----------- ------------ ----------- ----------- -----------
Non-GAAP
adjusted
operating margin
percent (% of
net sales) 23.3 % 23.2 % 23.3 % 22.0 % 21.6 %
Display Non-GAAP
Adjusted
Operating Income
Reported
operating income
(GAAP basis) $ 33 $ 19 $ 10 $ 55 $ 23
Certain items
associated with
acquisitions(1) 1 2 2 5 6
----------- ------------ ----------- ----------- -----------
Non-GAAP
adjusted
operating income $ 34 $ 21 $ 12 $ 60 $ 29
----------- ------------ ----------- ----------- -----------
Non-GAAP
adjusted
operating margin
percent (% of
net sales) 21.1 % 16.5 % 8.5 % 16.0 % 7.6 %
EES Non-GAAP
Adjusted
Operating Loss
Reported
operating loss
(GAAP basis) $ (27 ) $ (322 ) $ (102 ) $ (403 ) $ (188 )
Impairment of
goodwill and
intangible
assets - 278 - 278 -
Certain items
associated with
acquisitions(1) 2 5 6 14 18
Restructuring
charges and
asset
impairments(2,
3, 4, 5) 10 5 32 18 32
----------- ------------ ----------- ----------- -----------
Non-GAAP
adjusted
operating loss $ (15 ) $ (34 ) $ (64 ) $ (93 ) $ (138 )
----------- ------------ ----------- ----------- -----------
Non-GAAP
adjusted
operating margin
percent (% of
net sales) (33.3 )% (89.5 )% (83.1 )% (72.1 )% (38.0 )%
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 28, 2013 included restructuring and
asset impairment charges of $10 million related to the restructuring
program announced on May 10, 2012.
3 Results for the three months ended April 28, 2013 included restructuring
and asset impairment charges of $6 million related to the restructuring
program announced on May 10, 2012.
4 Results for the three and nine months ended July 29, 2012 included
restructuring and asset impairment charges of $35 million related to the
restructuring program announced on May 10, 2012 and severance charges of $9
million related to the integration of Varian.
5 Results for the nine months ended July 28, 2013 included restructuring and
asset impairment charges of $19 million related to the restructuring
program announced on May 10, 2012 and severance charges of $2 million
related to the integration of Varian.
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED OPERATING EXPENSES
Three Months Ended
-----------------------
July 28, April 28,
(In millions) 2013 2013
----------- -----------
Operating expenses (GAAP basis) $ 556 $ 876
Restructuring charges and asset impairments (14 ) (10 )
Certain items associated with acquisitions (7 ) (10 )
Acquisition integration costs (4 ) (11 )
Gain on sale of facility 4 -
Impairment of goodwill and intangible assets - (278 )
----------- -----------
Non-GAAP adjusted operating expenses $ 535 $ 567
----------- -----------
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED EFFECTIVE INCOME TAX RATE
Three Months Ended
(In millions, except percentages) July 28, 2013
---------------------
Provision for income taxes (GAAP basis) (a) $ 60
Resolutions of prior years' income tax filings 3
Income tax effect of non-GAAP adjustments 7
---------------------
Non-GAAP adjusted provision for income taxes (b) $ 70
---------------------
Income before income taxes (GAAP basis) (c) $ 228
Certain items associated with acquisitions 47
Restructuring charges and asset impairments 14
Acquisition integration costs 5
Impairment of strategic investments 3
Gain on sale of facility (4 )
---------------------
Non-GAAP adjusted income before income taxes (d) $ 293
---------------------
Effective income tax rate (GAAP basis) (a/c) 26.3 %
---------------------
Non-GAAP adjusted effective income tax rate (b/d) 23.9 %
---------------------
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#1723166]
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Datum: 15.08.2013 - 22:04 Uhr
Sprache: Deutsch
News-ID 288425
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contact information:
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