Applied Materials Announces Fourth Quarter and Fiscal Year 2013 Results
(Thomson Reuters ONE) -
Expects Strong Growth in Silicon Systems Orders and Silicon Systems Net Sales in
the First Quarter of FY2014
* Fourth quarter orders of $2.09 billion up 5 percent sequentially, led by 16
percent growth in silicon systems orders
* Fourth quarter non-GAAP adjusted EPS of 19 cents in upper end of guidance
range; GAAP EPS of 15 cents
SANTA CLARA, Calif., November 14, 2013 - 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 27, 2013.
In its fourth quarter, Applied generated orders of $2.09 billion, up 5 percent
from the prior quarter led by strengthening demand in the Silicon Systems Group.
Fourth quarter net sales were $1.99 billion, up 1 percent sequentially. Fourth
quarter non-GAAP adjusted gross margin declined approximately 1 point to 42
percent while non-GAAP adjusted operating income grew 4 percent to $323 million
or 16.2 percent. Non-GAAP adjusted net income grew 3 percent in the quarter to
$228 million or 19 cents per diluted share, which was in the upper end of the
guidance range. For the quarter, the company recorded GAAP gross margin of 40
percent, operating income of $211 million or 10.6 percent, and net income of
$183 million or 15 cents per diluted share.
In FY2013, orders grew 5 percent to $8.47 billion, net sales declined 14 percent
to $7.51 billion, non-GAAP adjusted gross margin declined 11 percent to $3.16
billion or 42.1 percent, non-GAAP adjusted operating income declined 25 percent
to $1.03 billion or 13.7 percent, and non-GAAP adjusted net income declined 25
percent to $718 million or 59 cents per diluted share. The company recorded GAAP
gross margin of $2.99 billion or 39.8 percent, operating income of $432 million
or 5.8 percent, and net income of $256 million or 21 cents per diluted share.
Applied returned $701 million to stockholders, including $456 million in
dividends paid and $245 million in stock repurchases.
"This has been a transformative year for Applied Materials as we shaped a more
competitive company, reduced overhead expenses, stepped up investment in product
development and built momentum for profitable growth," said Gary Dickerson,
president and chief executive officer. "As we look ahead to 2014, we expect
stronger investment by our semiconductor and display customers and major
technology inflections in transistor and memory that play to our strengths."
Quarterly Results Summary
GAAP Results Q4 FY2013 Q3 FY2013 Q4 FY2012
------------------------------- --------------- --------------- ---------------
Net sales $1.99 billion $1.98 billion $1.65 billion
Operating income (loss) $211 million $250 million $(499) million
Net income (loss) $183 million $168 million $(515) million
Diluted earnings (loss) per
share (EPS) $0.15 $0.14 $(0.42)
Non-GAAP Adjusted Results
-------------------------------
Non-GAAP adjusted operating
income $323 million $312 million $114 million
Non-GAAP adjusted net income $228 million $222 million $70 million
Non-GAAP adjusted diluted EPS $0.19 $0.18 $0.06
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 strategic investments; 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" section.
Fourth Quarter Reportable Segment Results and Comparisons to the Prior Quarter
Silicon Systems Group (SSG) orders were $1.39 billion, up 16 percent, with
higher orders in foundry, flash and logic, partially offset by decreases in
DRAM. Net sales declined 2 percent to $1.24 billion. Non-GAAP adjusted operating
income declined to $258 million or 20.8 percent of net sales. GAAP operating
income declined to $213 million or 17.1 percent of net sales. New order
composition was: foundry 47 percent; flash 25 percent; logic/other 17 percent;
and DRAM 11 percent.
Applied Global Services (AGS) orders were $548 million, up 6 percent. Net sales
were $538 million up 8 percent. Non-GAAP adjusted operating income was flat at
$116 million or 21.6 percent of net sales. GAAP operating income increased
slightly to $115 million or 21.4 percent of net sales.
Display orders of $114 million were down 55 percent from high levels in the
previous quarter and reflected customer push-outs of orders that are expected to
be recorded in future periods. Net sales were up slightly to $163 million. Non-
GAAP adjusted operating income declined to $20 million or 12.3 percent of net
sales. GAAP operating income declined to $19 million or 11.7 percent of net
sales, including the impact of a $10 million inventory charge.
Energy and Environmental Solutions (EES) orders increased to $40 million. Net
sales declined 2 percent to $44 million. EES had a non-GAAP adjusted operating
loss of $22 million and a GAAP operating loss of $30 million.
Additional Quarterly Financial Information
* Backlog grew 4 percent to $2.37 billion including negative adjustments of
$21 million.
* Gross margin was 42.0 percent on a non-GAAP adjusted basis, down slightly
from 42.9 percent in the prior quarter. GAAP gross margin declined from
40.8 percent to 40.0 percent.
* On a year-over-year basis, G&A declined by $13 million, or 10 percent, while
RD&E increased by $35 million, or 12 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 24.8 percent on a non-GAAP adjusted basis and
5.7 percent on a GAAP basis.
* The company paid $120 million in cash dividends and used $47 million to
repurchase 3 million shares of its common stock.
* Operating cash flow declined to $19 million, primarily reflecting working
capital requirements to support increasing customer demand. Net accounts
receivable grew 40 percent to $1.63 billion, with a high proportion of
shipments near the end of the period.
* Cash, cash equivalents and investments ended the quarter at $2.90 billion,
down 4 percent from the prior quarter.
Full-Year Reportable Segment Results and Comparisons to the Prior Year
SSG orders increased by 4 percent to $5.51 billion, net sales decreased by 14
percent to $4.78 billion, non-GAAP adjusted operating income decreased to $1.1
billion or 22.0 percent of net sales, and GAAP operating income decreased to
$876 million or 18.3 percent of net sales.
AGS orders decreased by 8 percent to $2.1 billion, net sales decreased by 11
percent to $2.0 billion, non-GAAP adjusted operating income decreased to $443
million or 21.9 percent of net sales, and GAAP operating income decreased to
$436 million or 21.6 percent of net sales. Non-GAAP operating income decreased
in fiscal 2013 from fiscal 2012 reflecting lower sales. Fiscal 2012 results
included $85 million in sales for a thin film solar production line.
Display orders increased by 157 percent to $703 million, reflecting a recovery
in TV equipment demand and share gains in array PVD equipment. Net sales
increased by 14 percent to $538 million, non-GAAP adjusted operating income
increased to $80 million or 14.9 percent of net sales, and GAAP operating income
increased to $74 million or 13.8 percent of net sales.
EES orders decreased by 15 percent to $166 million, and net sales decreased by
59 percent to $173 million, reflecting continued overcapacity conditions in the
global PV solar industry. EES generated a non-GAAP adjusted operating loss of
$115 million. EES reported a GAAP operating loss of $433 million, which included
$278 million in impairment charges recorded in the second quarter of FY2013,
along with $40 million of restructuring charges, asset impairments, and certain
items related to acquisitions.
Business Outlook
For the first quarter of fiscal 2014, Applied expects net sales to be up 3
percent to 10 percent from the previous quarter. The company expects non-GAAP
adjusted operating expenses to be in the range of $540 million, plus or minus
$10 million. Non-GAAP adjusted diluted EPS is expected to be in the range of 20
cents to 24 cents.
Applied's first quarter outlook for non-GAAP adjusted operating expenses
excludes known charges related to completed acquisitions, integration and deal
costs of approximately $28 million. The first quarter non-GAAP adjusted diluted
EPS outlook excludes known charges related to completed acquisitions,
integration and deal costs of 4 cents. The company's first quarter business
outlook does 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, strategies and initiatives, growth
opportunities, customer investment, industry inflections, and business outlook
for the first quarter of fiscal 2014. 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 and strategic 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 Forms 10-Q and 8-K. 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 Twelve Months Ended
--------------------------------------- --------------------------
(In millions,
except per October 27, July 28, October 28, October 27, October 28,
share amounts) 2013 2013 2012 2013 2012
------------- ----------- ------------- ------------- ------------
Net sales $ 1,988 $ 1,975 $ 1,646 $ 7,509 $ 8,719
Cost of
products sold 1,193 1,169 1,060 4,518 5,406
------------- ----------- ------------- ------------- ------------
Gross margin 795 806 586 2,991 3,313
Operating
expenses:
Research,
development
and
engineering 338 334 303 1,320 1,237
Marketing and
selling 99 111 107 433 481
General and
administrative 117 97 130 465 595
Impairment of
goodwill and
intangible
assets - - 421 278 421
Restructuring
charges and
asset
impairments 30 14 124 63 168
------------- ----------- ------------- ------------- ------------
Total
operating
expenses 584 556 1,085 2,559 2,902
Income (loss)
from
operations 211 250 (499 ) 432 411
Impairment of
strategic
investments 1 3 14 6 17
Interest
expense 24 23 24 95 95
Interest and
other income,
net 8 4 5 19 17
------------- ----------- ------------- ------------- ------------
Income (loss)
before income
taxes 194 228 (532 ) 350 316
Provision
(benefit) for
income taxes 11 60 (17 ) 94 207
------------- ----------- ------------- ------------- ------------
Net income
(loss) $ 183 $ 168 $ (515 ) $ 256 $ 109
------------- ----------- ------------- ------------- ------------
Earnings
(loss) per
share:
Basic $ 0.15 $ 0.14 $ (0.42 ) $ 0.21 $ 0.09
Diluted $ 0.15 $ 0.14 $ (0.42 ) $ 0.21 $ 0.09
Weighted
average number
of shares:
Basic 1,204 1,203 1,220 1,202 1,266
Diluted 1,222 1,220 1,220 1,219 1,277
APPLIED MATERIALS, INC.
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
October 27, July 28, October 28,
(In millions) 2013 2013 2012
------------- ------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 1,711 $ 1,745 $ 1,392
Short-term investments 180 230 545
Accounts receivable, net 1,633 1,170 1,220
Inventories 1,413 1,358 1,272
Other current assets 705 734 673
------------- ------------ ------------
Total current assets 5,642 5,237 5,102
Long-term investments 1,005 1,055 1,055
Property, plant and equipment, net 850 872 910
Goodwill 3,294 3,294 3,518
Purchased technology and other
intangible assets, net 1,103 1,148 1,355
Deferred income taxes and other
assets 149 145 162
------------- ------------ ------------
Total assets $ 12,043 $ 11,751 $ 12,102
------------- ------------ ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 1,649 $ 1,446 $ 1,510
Customer deposits and deferred
revenue 794 756 755
------------- ------------ ------------
Total current liabilities 2,443 2,202 2,265
Long-term debt 1,946 1,946 1,946
Other liabilities 566 649 656
------------- ------------ ------------
Total liabilities 4,955 4,797 4,867
------------- ------------ ------------
Total stockholders' equity 7,088 6,954 7,235
------------- ------------ ------------
Total liabilities and stockholders'
equity $ 12,043 $ 11,751 $ 12,102
------------- ------------ ------------
APPLIED MATERIALS, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
Three Months Ended Twelve Months Ended
--------------------------------------- --------------------------
October 27, July 28, October 28, October 27, October 28,
(In millions) 2013 2013 2012 2013 2012
------------- ----------- ------------- ------------- ------------
Cash flows
from
operating
activities:
Net income
(loss) $ 183 $ 168 $ (515 ) $ 256 $ 109
Adjustments
required to
reconcile net
income (loss)
to cash
provided by
operating
activities:
Depreciation
and
amortization 98 100 97 410 422
Impairment of
goodwill and
intangible
assets - - 421 278 421
Restructuring
charges and
asset
impairments 30 14 124 63 168
Deferred
income taxes
and other 11 (56 ) 78 (91 ) 222
Share-based
compensation 41 40 44 162 182
Net change in
operating
assets and
liabilities,
net of
amounts
acquired (344 ) 98 162 (455 ) 327
------------- ----------- ------------- ------------- ------------
Cash provided 19 364 411
by operating
activities 623 1,851
------------- ----------- ------------- ------------- ------------
Cash flows
from
investing
activities:
Capital
expenditures (50 ) (40 ) (41 ) (190 ) (162 )
Cash paid for
acquisition,
net of cash
acquired - - (1 ) (1 ) (4,190 )
Proceeds from
sales and
maturities of
investments 276 134 254 1,013 1,019
Purchases of
investments (169 ) (128 ) (175 ) (607 ) (1,327 )
------------- ----------- ------------- ------------- ------------
Cash provided 57 (34 ) 37
by (used in)
investing
activities 215 (4,660 )
------------- ----------- ------------- ------------- ------------
Cash flows
from
financing
activities:
Proceeds from
common stock
issuances and
others, net 57 40 45 182 96
Common stock
repurchases (47 ) (50 ) (516 ) (245 ) (1,416 )
Payments of
dividends to
stockholders (120 ) (120 ) (111 ) (456 ) (434 )
------------- ----------- ------------- ------------- ------------
Cash used in (110 ) (130 ) (582 )
financing
activities (519 ) (1,754 )
------------- ----------- ------------- ------------- ------------
Effect of
exchange rate
changes
on cash and
cash
equivalents - - (3 ) - (5 )
------------- ----------- ------------- ------------- ------------
Increase (34 ) 200 (137 )
(decrease) in
cash and cash
equivalents 319 (4,568 )
Cash and cash
equivalents -
beginning of
period 1,745 1,545 1,529 1,392 5,960
------------- ----------- ------------- ------------- ------------
Cash and cash $ 1,711 $ 1,745 $ 1,392
equivalents -
end of period $ 1,711 $ 1,392
------------- ----------- ------------- ------------- ------------
Supplemental
cash flow
information:
Cash payments
for income
taxes $ 12 $ 30 $ 10 $ 196 $ 243
Cash refunds
from income
taxes $ 35 $ - $ 74 $ 102 $ 79
Cash payments
for interest $ 7 $ 39 $ 7 $ 92 $ 94
APPLIED MATERIALS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
Reportable Segment Results
Q4 FY2013 Q3 FY2013 Q4 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 $ 1,390 $ 1,243 $ 213 $ 1,203 $ 1,272 $ 246 $ 741 $ 870 $ 41
AGS 548 538 115 517 497 114 576 621 164
Display 114 163 19 256 161 33 83 93 3
EES* 40 44 (30 ) 19 45 (27 ) 65 62 (480 )
Corporate - - (106 ) - - (116 ) - - (227 )
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------
Consolidated $ 2,092 $ 1,988 $ 211 $ 1,995 $ 1,975 $ 250 $ 1,465 $ 1,646 $ (499 )
----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------
FY 2013 FY 2012
----------------------------------- ----------------------------------
Operating Operating
(In New Net Income New Net Income
millions) Orders Sales (Loss) Orders Sales (Loss)
----------- ----------- ----------- ----------- ----------- ----------
SSG $ 5,507 $ 4,775 $ 876 $ 5,294 $ 5,536 $ 1,243
AGS 2,090 2,023 436 2,274 2,285 502
Display 703 538 74 274 473 25
EES* 166 173 (433 ) 195 425 (668 )
Corporate - - (521 ) - - (691 )
----------- ----------- ----------- ----------- ----------- ----------
Consolidated $ 8,466 $ 7,509 $ 432 $ 8,037 $ 8,719 $ 411
----------- ----------- ----------- ----------- ----------- ----------
* Operating loss for FY2013 included $278 million in goodwill and intangible
asset impairment charges, while operating loss for the fourth quarter of FY2012
and FY2012 included $421 million of goodwill impairment charges.
Corporate Unallocated Expenses
Q4 Q3 Q4
(In millions) FY2013 FY2013 FY2012 FY 2013 FY 2012
--------- --------- --------- --------- --------
Restructuring charges and
asset impairments $ 23 $ 4 $ 111 $ 35 $ 111
Share-based compensation 41 40 44 162 182
Gain on sale of facility - (4 ) - (4 ) -
Other unallocated expenses 42 76 72 328 398
--------- --------- --------- --------- --------
Corporate $ 106 $ 116 $ 227 $ 521 $ 691
--------- --------- --------- --------- --------
APPLIED MATERIALS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
Additional Information
Q4 FY2013 Q3 FY2013 Q4 FY2012
---------------- ---------------- ---------------
New Orders and Net Sales by
Geography
New Net New Net New Net
(In $ millions) Orders Sales Orders Sales Orders Sales
-------- ------- -------- ------- -------- ------
United States 261 357 369 353 435 373
% of Total 12 % 18 % 19 % 18 % 30 % 23 %
Europe 203 242 225 175 165 271
% of Total 10 % 12 % 11 % 9 % 11 % 16 %
Japan 117 276 333 154 184 129
% of Total 6 % 14 % 17 % 8 % 12 % 8 %
Korea 209 231 249 262 115 127
% of Total 10 % 12 % 12 % 13 % 8 % 8 %
Taiwan 721 589 356 658 390 457
% of Total 34 % 30 % 18 % 33 % 27 % 28 %
Southeast Asia 95 89 124 100 74 97
% of Total 5 % 4 % 6 % 5 % 5 % 6 %
China 486 204 339 273 102 192
% of Total 23 % 10 % 17 % 14 % 7 % 11 %
Employees (In thousands)
Regular Full Time 13.7 13.7 14.5
FY 2013 FY 2012
------------------- ------------------
New Orders and Net Sales by Geography
New Net New Net
(In $ millions) Orders Sales Orders Sales
--------- --------- --------- --------
United States 1,419 1,473 1,995 1,749
% of Total 17 % 20 % 25 % 20 %
Europe 735 680 817 863
% of Total 8 % 9 % 10 % 10 %
Japan 822 685 600 704
% of Total 10 % 9 % 7 % 8 %
Korea 915 924 1,784 1,897
% of Total 11 % 12 % 22 % 22 %
Taiwan 2,885 2,640 2,155 2,411
% of Total 34 % 35 % 27 % 28 %
Southeast Asia 351 320 283 312
% of Total 4 % 4 % 4 % 3 %
China 1,339 787 403 783
% of Total 16 % 11 % 5 % 9 %
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
Three Months Ended Twelve Months Ended
-------------------------------------- --------------------------
(In millions,
except October 27, July 28, October 28, October 27, October 28,
percentages) 2013 2013 2012 2013 2012
------------- ---------- ------------- ------------- ------------
Non-GAAP
Adjusted Gross
Margin
Reported gross
margin - GAAP
basis $ 795 $ 806 $ 586 $ 2,991 $ 3,313
Certain items
associated with
acquisitions(1) 40 40 46 166 253
Acquisition
integration and
deal costs - 1 - 3 -
------------- ---------- ------------- ------------- ------------
Non-GAAP
adjusted gross
margin $ 835 $ 847 $ 632 $ 3,160 $ 3,566
------------- ---------- ------------- ------------- ------------
Non-GAAP
adjusted gross
margin percent
(% of net
sales) 42.0 % 42.9 % 38.4 % 42.1 % 40.9 %
Non-GAAP
Adjusted
Operating
Income
Reported
operating
income (loss) -
GAAP basis $ 211 $ 250 $ (499 ) $ 432 $ 411
Impairment of
goodwill and
intangible
assets - - 421 278 421
Certain items
associated with
acquisitions(1) 47 47 55 201 298
Acquisition
integration and
deal costs 11 5 13 38 81
Certain items
associated with
announced
business
combination(7) 24 - - 24 -
Restructuring
charges and
asset
impairments(2,
3, 4, 5, 6) 30 14 124 63 168
Gain on sale of
facility - (4 ) - (4 ) -
------------- ---------- ------------- ------------- ------------
Non-GAAP
adjusted
operating
income $ 323 $ 312 $ 114 $ 1,032 $ 1,379
------------- ---------- ------------- ------------- ------------
Non-GAAP
adjusted
operating
margin percent
(% of net
sales) 16.2 % 15.8 % 6.9 % 13.7 % 15.8 %
Non-GAAP
Adjusted Net
Income
Reported net
income (loss) -
GAAP basis $ 183 $ 168 $ (515 ) $ 256 $ 109
Impairment of
goodwill and
intangible
assets - - 421 278 421
Certain items
associated with
acquisitions(1) 47 47 55 201 298
Acquisition
integration and
deal costs 11 5 13 38 81
Certain items
associated with
announced
business
combination(7) 24 - - 24 -
Restructuring
charges and
asset
impairments(2,
3, 4, 5, 6) 30 14 124 63 168
Gain on sale of
facility - (4 ) - (4 ) -
Impairment
(gain on sale)
of strategic
investments (3 ) 2 14 1 17
Reinstatement
of federal R&D
tax credit - - - (13 ) -
Resolution of
prior years'
income tax
filings and
other tax items (10 ) (3 ) (5 ) (24 ) (22 )
Income tax
effect of non-
GAAP
adjustments (54 ) (7 ) (37 ) (102 ) (112 )
------------- ---------- ------------- ------------- ------------
Non-GAAP
adjusted net
income $ 228 $ 222 $ 70 $ 718 $ 960
------------- ---------- ------------- ------------- ------------
1 These items are incremental charges attributable to completed acquisitions,
consisting of inventory fair value adjustments on products sold, and
amortization of purchased intangible assets.
2 Results for the three months ended October 27, 2013 included $27 million of
employee-related costs related to the restructuring program announced on
October 3, 2012, and restructuring and asset impairment charges of $7
million related to the restructuring program announced on May 10, 2012,
partially offset by a favorable adjustment of $4 million in restructuring
charges related to other restructuring plans.
3 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.
4 Results for the three months ended October 28, 2012 included employee-
related costs 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.
5 Results for the twelve months ended October 27, 2013 included $39 million
of employee-related costs, net, related to the restructuring program
announced on October 3, 2012, and restructuring and asset impairment
charges of $26 million related to the restructuring program announced on
May 10, 2012, partially offset by a favorable adjustment of $2 million
related to other restructuring plans.
6 Results for the twelve months ended October 28, 2012 included employee-
related costs 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.
7 These items are incremental charges related to the announced business
combination agreement with Tokyo Electron Limited, consisting of
acquisition-related costs and other charges.
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
Three Months Ended Twelve Months Ended
-------------------------------------- --------------------------
(In millions
except per
share October 27, July 28, October 28, October 27, October 28,
amounts) 2013 2013 2012 2013 2012
------------- ---------- ------------- ------------- ------------
Non-GAAP
Adjusted
Earnings Per
Diluted Share
Reported
earnings
(loss) per
diluted share
- GAAP basis $ 0.15 $ 0.14 $ (0.42 ) $ 0.21 $ 0.09
Impairment of
goodwill and
intangible
assets - - 0.34 0.21 0.33
Certain items
associated
with
acquisitions 0.03 0.03 0.04 0.14 0.19
Acquisition
integration
and deal
costs - - 0.01 0.02 0.05
Certain items
associated
with
announced
business
combination 0.01 - - 0.01 -
Restructuring
charges and
asset
impairments 0.01 0.01 0.08 0.03 0.10
Impairment of
strategic
investments - - 0.01 - 0.01
Reinstatement
of federal
R&D tax
credit and
resolution of
prior years'
income tax
filings and
other tax
items (0.01 ) - - (0.03 ) (0.02 )
------------- ---------- ------------- ------------- ------------
Non-GAAP
adjusted
earnings per
diluted share $ 0.19 $ 0.18 $ 0.06 $ 0.59 $ 0.75
------------- ---------- ------------- ------------- ------------
Weighted
average
number of
diluted
shares 1,222 1,220 1,234 1,219 1,277
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
Three Months Ended Twelve Months Ended
-------------------------------------- --------------------------
(In millions,
except October 27, July 28, October 28, October 27, October 28,
percentages) 2013 2013 2012 2013 2012
------------- ---------- ------------- ------------- ------------
SSG Non-GAAP
Adjusted
Operating
Income
Reported
operating
income - GAAP
basis $ 213 $ 246 $ 41 $ 876 $ 1,243
Certain items
associated with
acquisitions(1) 44 42 45 175 253
Acquisition
integration and
deal costs, net 1 (5 ) 6 (2 ) 37
Restructuring
charges and
asset
impairments(4,
5, 6) - - 3 1 4
------------- ---------- ------------- ------------- ------------
Non-GAAP
adjusted
operating
income $ 258 $ 283 $ 95 $ 1,050 $ 1,537
------------- ---------- ------------- ------------- ------------
Non-GAAP
adjusted
operating
margin percent
(% of net
sales) 20.8 % 22.2 % 10.9 % 22.0 % 27.8 %
AGS Non-GAAP
Adjusted
Operating
Income
Reported
operating
income - GAAP
basis $ 115 $ 114 $ 164 $ 436 $ 502
Certain items
associated with
acquisitions(1) 1 2 3 5 13
Restructuring
charges and
asset
impairments(4,
5, 6) - - 4 2 15
------------- ---------- ------------- ------------- ------------
Non-GAAP
adjusted
operating
income $ 116 $ 116 $ 171 $ 443 $ 530
------------- ---------- ------------- ------------- ------------
Non-GAAP
adjusted
operating
margin percent
(% of net
sales) 21.6 % 23.3 % 27.5 % 21.9 % 23.2 %
Display Non-
GAAP Adjusted
Operating
Income
Reported
operating
income - GAAP
basis $ 19 $ 33 $ 3 $ 74 $ 25
Certain items
associated with
acquisitions(1) 1 1 1 6 7
------------- ---------- ------------- ------------- ------------
Non-GAAP
adjusted
operating
income $ 20 $ 34 $ 4 $ 80 $ 32
------------- ---------- ------------- ------------- ------------
Non-GAAP
adjusted
operating
margin percent
(% of net
sales) 12.3 % 21.1 % 4.3 % 14.9 % 6.8 %
EES Non-GAAP
Adjusted
Operating Loss
Reported
operating loss
- GAAP basis $ (30 ) $ (27 ) $ (480 ) $ (433 ) $ (668 )
Impairment of
goodwill and
intangible
assets - - 421 278 421
Certain items
associated with
acquisitions(1) 1 2 7 15 25
Restructuring
charges and
asset
impairments(2,
3, 4, 5, 6) 7 10 6 25 38
------------- ---------- ------------- ------------- ------------
Non-GAAP
adjusted
operating loss $ (22 ) $ (15 ) $ (46 ) $ (115 ) $ (184 )
------------- ---------- ------------- ------------- ------------
Non-GAAP
adjusted
operating
margin percent
(% of net
sales) (50.0 )% (33.3 )% (74.2 )% (66.5 )% (43.3 )%
1 These items are incremental charges attributable to completed acquisitions,
consisting of inventory fair value adjustments on products sold, and
amortization of purchased intangible assets.
2 Results for the three months ended October 27, 2013 included restructuring
and asset impairment charges of $7 million related to the restructuring
program announced on May 10, 2012.
3 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.
4 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.
5 Results for the twelve months ended October 27, 2013 included restructuring
and asset impairment charges of $26 million related to the restructuring
program announced on May 10, 2012 and severance charges of $2 million
related to the integration of Varian.
6 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.
APPLIED MATERIALS, INC.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED OPERATING EXPENSES
Three Months Ended
-------------------------
October 27, July 28,
(In millions) 2013 2013
-------------- ----------
Operating expenses - GAAP basis $ 584 $ 556
Restructuring charges and asset impairments (30 ) (14 )
Certain items associated with acquisitions (7 ) (7 )
Acquisition integration costs (11 ) (4 )
Certain items associated with announced business
combination (24 ) -
Gain on sale of facility - 4
-------------- ----------
Non-GAAP adjusted operating expenses $ 512 $ 535
-------------- ----------
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED EFFECTIVE INCOME TAX RATE
Three Months
Ended
October 27,
(In millions, except percentages) 2013
---------------
Provision for income taxes - GAAP basis (a) $ 11
Resolutions of prior years' income tax filings and other tax
items 10
Income tax effect of non-GAAP adjustments 54
---------------
Non-GAAP adjusted provision for income taxes (b) $ 75
---------------
Income before income taxes - GAAP basis (c) $ 194
Certain items associated with acquisitions 47
Restructuring charges and asset impairments 30
Acquisition integration costs 11
Certain items associated with announced business combination 24
Gain on sale strategic investments, net (3 )
---------------
Non-GAAP adjusted income before income taxes (d) $ 303
---------------
Effective income tax rate - GAAP basis (a/c) 5.7 %
---------------
Non-GAAP adjusted effective income tax rate (b/d) 24.8 %
---------------
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#1743114]
Unternehmensinformation / Kurzprofil:
Datum: 14.11.2013 - 22:02 Uhr
Sprache: Deutsch
News-ID 316986
Anzahl Zeichen: 55394
contact information:
Town:
Santa Clara
Kategorie:
Business News
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"Applied Materials Announces Fourth Quarter and Fiscal Year 2013 Results"
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