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Applied Materials Announces Fourth Quarter And Fiscal Year 2015 Results

The following excerpt is from the company's SEC filing.

Company delivered year-over-year growth in orders, net sales and earnings per share

FY2015 cash returns to shareholders increased by

$1.33 billion

year over year to

$1.81 billion

SANTA CLARA, Calif., Nov. 12, 2015 - Applied Materials, Inc. (NASDAQ:AMAT), the global leader in materials engineering solutions for the semiconductor, display and solar industries, today reported results for its fourth quarter and fiscal year ended October 25, 2015.

Fourth quarter orders were

$2.42 billion

, down

16 percent

sequentially and up

7 percent
< br> year over year. Net sales were

$2.37 billion

5 percent

On a non-GAAP adjusted basis, the company reported fourth-quarter gross margin of

42.2 percent

, operating margin of

19.3 percent

, and net income of

$347 million

per diluted share. The company recorded GAAP gross margin of

40.5 percent

17.9 percent

$336 million

The company generated

$471 million

in cash from operations during the fourth quarter, paid dividends of

$119 million

and used

$700 million

to repurchase

44 million

shares of common stock at an average price of


Full Year Results

In fiscal 2015, orders grew

$10.10 billion

, net sales increased

$9.66 billion

, non-GAAP adjusted gross margin declined 1.2 percentage points to

42.9 percent

, non-GAAP adjusted operating margin remained at

19.6 percent

, and non-GAAP adjusted net income increased by

percent to

$1.46 billion

40.9 percent

, operating income of

$1.69 billion

or 17.5 percent of net sales, and net income of

$1.38 billion

$1.16 billion

in cash from operations in fiscal 2015, paid dividends of

$487 million

76 million

shares of common stock.

“In fiscal 2015, Applied Materials delivered year-over-year growth across our semiconductor, display and service businesses resulting in our highest earnings in four years,” said Gary Dickerson, president and CEO. “We have positioned the company for sustainable profitable growth and we are winning share, growing our service business and expanding our available market.”

Quarterly Results Summary


Q4 FY2015

Q3 FY2015

Q4 FY2014

(In millions, except per share amounts and percentages)

New orders







Gross margin

(0.4) points

(1.9) points

Operating margin

2.0 points

(0.3) points

Net income

Diluted earnings per share (EPS)

Page 2 of 13

Non-GAAP Adjusted Results

Non-GAAP adjusted gross margin

(1.7) points

(2.0) points

Non-GAAP adjusted operating margin

(1.5) points

(0.2) points

Non-GAAP adjusted net income

Non-GAAP adjusted diluted EPS

Applied's non-GAAP adjusted results exclude the impact of the following, where applicable: certain items related to mergers and acquisitions; restructuring charges and any associated adjustments; impairments of assets, or investments; gain or loss on sale of strategic investments; and certain discrete adjustments and 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.

Business Outlook

For the first quarter of fiscal 2016, Applied expects net sales to be down 2 percent to 9 percent sequentially. Non-GAAP adjusted diluted EPS is expected to be in the range of $0.23 to $0.27.

This outlook excludes known charges related to completed acquisitions of $0.04 per share and does not exclude other non-GAAP adjustments that may arise subsequent to this release.

Fourth Quarter and Fiscal Year Reportable Segment Information

Silicon Systems

(In millions, except percentages)


Logic and other

Operating income

Non-GAAP adjusted operating income

Page 3 of 13

Applied Global Services


Energy and Environmental Solutions

Operating income (loss)


Non-GAAP adjusted operating income (loss)

Backlog Information

Applied's backlog remained essentially flat at

$3.14 billion

and included negative adjustments of $13 million. Backlog composition by reportable segment was as follows:

Page 4 of 13

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.