Delaware | 000-06920 | 94-1655526 | ||||||||||||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||
Common Stock, par value $.01 per share | AMAT | The NASDAQ Stock Market LLC |
Emerging Growth Company | ☐ |
Exhibit No. | Description | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL) |
Applied Materials, Inc. (Registrant) |
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Date: | February 15, 2024 | By: | /s/ Teri A. Little | |||||||||||
Teri A. Little | ||||||||||||||
Senior Vice President, Chief Legal Officer and Corporate Secretary |
Q1 FY2024 | Q1 FY2023 | Change | |||||||||||||||
(In millions, except per share amounts and percentages) | |||||||||||||||||
Net revenue | $ | 6,707 | $ | 6,739 | — | ||||||||||||
Gross margin | 47.8 | % | 46.7 | % | 1.1 points | ||||||||||||
Operating margin | 29.3 | % | 29.2 | % | 0.1 points | ||||||||||||
Net income | $ | 2,019 | $ | 1,717 | 18% | ||||||||||||
Diluted earnings per share | $ | 2.41 | $ | 2.02 | 19% | ||||||||||||
Non-GAAP Results | |||||||||||||||||
Non-GAAP gross margin | 47.9 | % | 46.8 | % | 1.1 points | ||||||||||||
Non-GAAP operating margin | 29.5 | % | 29.5 | % | — | ||||||||||||
Non-GAAP net income | $ | 1,782 | $ | 1,724 | 3% | ||||||||||||
Non-GAAP diluted EPS | $ | 2.13 | $ | 2.03 | 5% | ||||||||||||
Non-GAAP free cash flow | $ | 2,096 | $ | 1,983 | 6% |
Semiconductor Systems | Q1 FY2024 | Q1 FY2023 | |||||||||
(In millions, except percentages) | |||||||||||
Net revenue | $ | 4,909 | $ | 5,162 | |||||||
Foundry, logic and other | 62 | % | 77 | % | |||||||
DRAM | 34 | % | 13 | % | |||||||
Flash memory | 4 | % | 10 | % | |||||||
Operating income | $ | 1,744 | $ | 1,855 | |||||||
Operating margin | 35.5 | % | 35.9 | % | |||||||
Non-GAAP Results | |||||||||||
Non-GAAP operating income | $ | 1,754 | $ | 1,864 | |||||||
Non-GAAP operating margin | 35.7 | % | 36.1 | % |
Applied Global Services | Q1 FY2024 | Q1 FY2023 | |||||||||
(In millions, except percentages) | |||||||||||
Net revenue | $ | 1,476 | $ | 1,369 | |||||||
Operating income | $ | 417 | $ | 345 | |||||||
Operating margin | 28.3 | % | 25.2 | % | |||||||
Non-GAAP Results | |||||||||||
Non-GAAP operating income | $ | 417 | $ | 345 | |||||||
Non-GAAP operating margin | 28.3 | % | 25.2 | % |
Display and Adjacent Markets | Q1 FY2024 | Q1 FY2023 | |||||||||
(In millions, except percentages) | |||||||||||
Net revenue | $ | 244 | $ | 167 | |||||||
Operating income | $ | 25 | $ | 3 | |||||||
Operating margin | 10.2 | % | 1.8 | % | |||||||
Non-GAAP Results | |||||||||||
Non-GAAP operating income | $ | 25 | $ | 3 | |||||||
Non-GAAP operating margin | 10.2 | % | 1.8 | % |
Three Months Ended | |||||||||||
(In millions, except per share amounts) | January 28, 2024 |
January 29, 2023 |
|||||||||
Net revenue | $ | 6,707 | $ | 6,739 | |||||||
Cost of products sold | 3,503 | 3,594 | |||||||||
Gross profit | 3,204 | 3,145 | |||||||||
Operating expenses: | |||||||||||
Research, development and engineering | 754 | 771 | |||||||||
Marketing and selling | 207 | 197 | |||||||||
General and administrative | 276 | 207 | |||||||||
Total operating expenses | 1,237 | 1,175 | |||||||||
Income from operations | 1,967 | 1,970 | |||||||||
Interest expense | 59 | 59 | |||||||||
Interest and other income (expense), net | 395 | 50 | |||||||||
Income before income taxes | 2,303 | 1,961 | |||||||||
Provision for income taxes | 284 | 244 | |||||||||
Net income | $ | 2,019 | $ | 1,717 | |||||||
Earnings per share: | |||||||||||
Basic | $ | 2.43 | $ | 2.03 | |||||||
Diluted | $ | 2.41 | $ | 2.02 | |||||||
Weighted average number of shares: | |||||||||||
Basic | 831 | 845 | |||||||||
Diluted | 837 | 849 |
(In millions) | January 28, 2024 |
October 29, 2023 |
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ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 6,854 | $ | 6,132 | |||||||
Short-term investments | 638 | 737 | |||||||||
Accounts receivable, net | 4,700 | 5,165 | |||||||||
Inventories | 5,646 | 5,725 | |||||||||
Other current assets | 1,344 | 1,388 | |||||||||
Total current assets | 19,182 | 19,147 | |||||||||
Long-term investments | 2,910 | 2,281 | |||||||||
Property, plant and equipment, net | 2,826 | 2,723 | |||||||||
Goodwill | 3,732 | 3,732 | |||||||||
Purchased technology and other intangible assets, net | 283 | 294 | |||||||||
Deferred income taxes and other assets | 2,607 | 2,552 | |||||||||
Total assets | $ | 31,540 | $ | 30,729 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Short-term debt | $ | 100 | $ | 100 | |||||||
Accounts payable and accrued expenses | 3,829 | 4,297 | |||||||||
Contract liabilities | 3,147 | 2,975 | |||||||||
Total current liabilities | 7,076 | 7,372 | |||||||||
Long-term debt | 5,462 | 5,461 | |||||||||
Income taxes payable | 850 | 833 | |||||||||
Other liabilities | 723 | 714 | |||||||||
Total liabilities | 14,111 | 14,380 | |||||||||
Total stockholders’ equity | 17,429 | 16,349 | |||||||||
Total liabilities and stockholders’ equity | $ | 31,540 | $ | 30,729 |
(In millions) | Three Months Ended | ||||||||||
January 28, 2024 |
January 29, 2023 |
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Cash flows from operating activities: | |||||||||||
Net income | $ | 2,019 | $ | 1,717 | |||||||
Adjustments required to reconcile net income to cash provided by operating activities: | |||||||||||
Depreciation and amortization | 91 | 120 | |||||||||
Share-based compensation | 170 | 148 | |||||||||
Deferred income taxes | (72) | (21) | |||||||||
Other | (235) | 7 | |||||||||
Net change in operating assets and liabilities | 352 | 299 | |||||||||
Cash provided by operating activities | 2,325 | 2,270 | |||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (229) | (287) | |||||||||
Cash paid for acquisitions, net of cash acquired | — | (20) | |||||||||
Proceeds from sales and maturities of investments | 531 | 414 | |||||||||
Purchases of investments | (749) | (406) | |||||||||
Cash used in investing activities | (447) | (299) | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from commercial paper | 100 | 298 | |||||||||
Repayments of commercial paper | (100) | (100) | |||||||||
Common stock repurchases | (700) | (250) | |||||||||
Tax withholding payments for vested equity awards | (192) | (136) | |||||||||
Payments of dividends to stockholders | (266) | (220) | |||||||||
Repayments of principal on finance leases | 1 | (10) | |||||||||
Cash used in financing activities | (1,157) | (418) | |||||||||
Increase (decrease) in cash, cash equivalents and restricted cash equivalents | 721 | 1,553 | |||||||||
Cash, cash equivalents and restricted cash equivalents—beginning of period | 6,233 | 2,100 | |||||||||
Cash, cash equivalents and restricted cash equivalents — end of period | $ | 6,954 | $ | 3,653 | |||||||
Reconciliation of cash, cash equivalents, and restricted cash equivalents | |||||||||||
Cash and cash equivalents | $ | 6,854 | $ | 3,547 | |||||||
Restricted cash equivalents included in deferred income taxes and other assets | 100 | 106 | |||||||||
Total cash, cash equivalents, and restricted cash equivalents | $ | 6,954 | $ | 3,653 | |||||||
Supplemental cash flow information: | |||||||||||
Cash payments for income taxes | $ | 139 | $ | 69 | |||||||
Cash refunds from income taxes | $ | 2 | $ | 4 | |||||||
Cash payments for interest | $ | 34 | $ | 34 |
(In millions) | Q1 FY2024 | Q1 FY2023 | |||||||||
Unallocated net revenue | $ | 78 | $ | 41 | |||||||
Unallocated cost of products sold and expenses | (297) | (274) | |||||||||
Total | $ | (219) | $ | (233) |
Q1 FY2024 | Q1 FY2023 | ||||||||||
Net Revenue by Geography (In millions) |
|||||||||||
United States | $ | 759 | $ | 1,051 | |||||||
% of Total | 11 | % | 16 | % | |||||||
Europe | $ | 410 | $ | 573 | |||||||
% of Total | 6 | % | 8 | % | |||||||
Japan | $ | 565 | $ | 456 | |||||||
% of Total | 9 | % | 7 | % | |||||||
Korea | $ | 1,231 | $ | 1,293 | |||||||
% of Total | 18 | % | 19 | % | |||||||
Taiwan | $ | 559 | $ | 1,968 | |||||||
% of Total | 8 | % | 29 | % | |||||||
Southeast Asia | $ | 186 | $ | 253 | |||||||
% of Total | 3 | % | 4 | % | |||||||
China | $ | 2,997 | $ | 1,145 | |||||||
% of Total | 45 | % | 17 | % | |||||||
Employees (In thousands) |
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Regular Full Time | 34.5 | 33.9 |
Three Months Ended | |||||||||||
(In millions, except percentages) | January 28, 2024 |
January 29, 2023 |
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Non-GAAP Gross Profit | |||||||||||
GAAP reported gross profit | $ | 3,204 | $ | 3,145 | |||||||
Certain items associated with acquisitions1 |
7 | 7 | |||||||||
Non-GAAP gross profit | $ | 3,211 | $ | 3,152 | |||||||
Non-GAAP gross margin | 47.9 | % | 46.8 | % | |||||||
Non-GAAP Operating Income | |||||||||||
GAAP reported operating income | $ | 1,967 | $ | 1,970 | |||||||
Certain items associated with acquisitions1 |
11 | 11 | |||||||||
Acquisition integration and deal costs | 3 | 6 | |||||||||
Non-GAAP operating income | $ | 1,981 | $ | 1,987 | |||||||
Non-GAAP operating margin | 29.5 | % | 29.5 | % | |||||||
Non-GAAP Net Income | |||||||||||
GAAP reported net income | $ | 2,019 | $ | 1,717 | |||||||
Certain items associated with acquisitions1 |
11 | 11 | |||||||||
Acquisition integration and deal costs | 3 | 6 | |||||||||
Realized loss (gain), dividends and impairments on strategic investments, net | (1) | (4) | |||||||||
Unrealized loss (gain) on strategic investments, net | (280) | (4) | |||||||||
Income tax effect of share-based compensation2 |
(26) | (14) | |||||||||
Income tax effects related to intra-entity intangible asset transfers | 22 | 17 | |||||||||
Resolution of prior years’ income tax filings and other tax items | 33 | (5) | |||||||||
Income tax effect of non-GAAP adjustments3 |
1 | — | |||||||||
Non-GAAP net income | $ | 1,782 | $ | 1,724 |
1 | These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. | ||||
2 | GAAP basis tax benefit related to share-based compensation is recognized ratably over the fiscal year on a non-GAAP basis. | ||||
3 | Adjustment to provision for income taxes related to non-GAAP adjustments reflected in income before income taxes. | ||||
Three Months Ended | |||||||||||
(In millions, except per share amounts) | January 28, 2024 |
January 29, 2023 |
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Non-GAAP Earnings Per Diluted Share | |||||||||||
GAAP reported earnings per diluted share | $ | 2.41 | $ | 2.02 | |||||||
Certain items associated with acquisitions | 0.01 | 0.01 | |||||||||
Acquisition integration and deal costs | — | 0.01 | |||||||||
Unrealized loss (gain) on strategic investments, net | (0.33) | — | |||||||||
Income tax effect of share-based compensation | (0.03) | (0.02) | |||||||||
Income tax effects related to intra-entity intangible asset transfers | 0.03 | 0.02 | |||||||||
Resolution of prior years’ income tax filings and other tax items | 0.04 | (0.01) | |||||||||
Non-GAAP earnings per diluted share | $ | 2.13 | $ | 2.03 | |||||||
Weighted average number of diluted shares | 837 | 849 |
Three Months Ended | |||||||||||
(In millions, except percentages) | January 28, 2024 |
January 29, 2023 |
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Semiconductor Systems Non-GAAP Operating Income | |||||||||||
GAAP reported operating income | $ | 1,744 | $ | 1,855 | |||||||
Certain items associated with acquisitions1 |
10 | 9 | |||||||||
Non-GAAP operating income | $ | 1,754 | $ | 1,864 | |||||||
Non-GAAP operating margin | 35.7 | % | 36.1 | % | |||||||
Applied Global Services Non-GAAP Operating Income | |||||||||||
GAAP reported operating income | $ | 417 | $ | 345 | |||||||
Non-GAAP operating income | $ | 417 | $ | 345 | |||||||
Non-GAAP operating margin | 28.3 | % | 25.2 | % | |||||||
Display and Adjacent Markets Non-GAAP Operating Income | |||||||||||
GAAP reported operating income | $ | 25 | $ | 3 | |||||||
Non-GAAP operating income | $ | 25 | $ | 3 | |||||||
Non-GAAP operating margin | 10.2 | % | 1.8 | % | |||||||
1 | These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. | ||||
Three Months Ended | |||||
(In millions, except percentages) | January 28, 2024 | ||||
GAAP provision for income taxes (a) |
$ | 284 | |||
Income tax effect of share-based compensation | 26 | ||||
Income tax effects related to intra-entity intangible asset transfers | (22) | ||||
Resolutions of prior years’ income tax filings and other tax items | (33) | ||||
Income tax effect of non-GAAP adjustments | (1) | ||||
Non-GAAP provision for income taxes (b) |
$ | 254 | |||
GAAP income before income taxes (c) |
$ | 2,303 | |||
Certain items associated with acquisitions | 11 | ||||
Acquisition integration and deal costs | 3 | ||||
Realized loss (gain), dividends and impairments on strategic investments, net | (1) | ||||
Unrealized loss (gain) on strategic investments, net | (280) | ||||
Non-GAAP income before income taxes (d) |
$ | 2,036 | |||
GAAP effective income tax rate (a/c) |
12.3 | % | |||
Non-GAAP effective income tax rate (b/d) |
12.5 | % |
Three Months Ended | |||||||||||
(In millions) | January 28, 2024 |
January 29, 2023 |
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Cash provided by operating activities | $ | 2,325 | $ | 2,270 | |||||||
Capital expenditures | (229) | (287) | |||||||||
Non-GAAP free cash flow | $ | 2,096 | $ | 1,983 |