SANTA CLARA, Calif., May 19, 2022 (GLOBE NEWSWIRE) -- Applied Materials, Inc. (NASDAQ: AMAT) today reported results for its second quarter ended May 1, 2022.
Second Quarter Results
Applied generated revenue of $6.25 billion. On a GAAP basis, the company achieved gross margin of 46.9 percent, operating income of $1.89 billion or 30.3 percent of net sales, and earnings per share (EPS) of $1.74.
On a non-GAAP adjusted basis, the company reported gross margin of 47.0 percent, operating income of $1.91 billion or 30.6 percent of net sales, and EPS of $1.85.
The company generated $415 million in cash from operations and returned $2.01 billion to shareholders including $1.80 billion in share repurchases and $211 million in dividends.
“Demand for Applied Materials’ products and services has never been stronger, yet we remain constrained by on-going supply chain issues,” said Gary Dickerson, President and CEO. “Our priority is to work quickly and creatively across the supply chain to bring more industry capacity on-line, while accelerating the technology inflections that we believe will enable Applied to outgrow the semiconductor market in the years ahead.”
Results Summary
Q2 FY2022 | Q2 FY2021 | Change | |||||||
(In millions, except per share amounts and percentages) | |||||||||
Net sales | $ | 6,245 | $ | 5,582 | 12% | ||||
Gross margin | 46.9 | % | 47.5 | % | (0.6) points | ||||
Operating margin | 30.3 | % | 28.3 | % | 2.0 points | ||||
Net income | $ | 1,536 | $ | 1,330 | 15% | ||||
Diluted earnings per share | $ | 1.74 | $ | 1.43 | 22% | ||||
Non-GAAP Adjusted Results | |||||||||
Non-GAAP adjusted gross margin | 47.0 | % | 47.7 | % | (0.7) points | ||||
Non-GAAP adjusted operating margin | 30.6 | % | 31.7 | % | (1.1) points | ||||
Non-GAAP adjusted net income | $ | 1,636 | $ | 1,509 | 8% | ||||
Non-GAAP adjusted diluted EPS | $ | 1.85 | $ | 1.63 | 13% |
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
In the third quarter of fiscal 2022, Applied expects net sales to be approximately $6.25 billion, plus or minus $400 million, which includes the expected impact of ongoing supply chain challenges. Non-GAAP adjusted diluted EPS is expected to be in the range of $1.59 to $1.95.
This outlook for non-GAAP adjusted diluted EPS excludes known charges related to completed acquisitions of $0.01 per share, includes the normalized tax benefit of share-based compensation of $0.02 per share and includes a net income tax benefit related to intra-entity intangible asset transfers of $0.02 per share, but does not reflect any items that are unknown at this time, such as any additional charges related to acquisitions or other non-operational or unusual items, as well as other tax related items, which we are not able to predict without unreasonable efforts due to their inherent uncertainty.
Second Quarter Reportable Segment Information
Semiconductor Systems | Q2 FY2022 | Q2 FY2021 | |||||
(In millions, except percentages) | |||||||
Net sales | $ | 4,458 | $ | 3,972 | |||
Foundry, logic and other | 65 | % | 56 | % | |||
DRAM | 21 | % | 14 | % | |||
Flash memory | 14 | % | 30 | % | |||
Operating income | $ | 1,648 | $ | 1,542 | |||
Operating margin | 37.0 | % | 38.8 | % | |||
Non-GAAP Adjusted Results | |||||||
Non-GAAP adjusted operating income | $ | 1,656 | $ | 1,555 | |||
Non-GAAP adjusted operating margin | 37.1 | % | 39.1 | % |
Applied Global Services | Q2 FY2022 | Q2 FY2021 | |||||
(In millions, except percentages) | |||||||
Net sales | $ | 1,383 | $ | 1,203 | |||
Operating income | $ | 422 | $ | 358 | |||
Operating margin | 30.5 | % | 29.8 | % | |||
Non-GAAP Adjusted Results | |||||||
Non-GAAP adjusted operating income | $ | 422 | $ | 359 | |||
Non-GAAP adjusted operating margin | 30.5 | % | 29.8 | % |
Display and Adjacent Markets | Q2 FY2022 | Q2 FY2021 | |||||
(In millions, except percentages) | |||||||
Net sales | $ | 381 | $ | 375 | |||
Operating income | $ | 81 | $ | 65 | |||
Operating margin | 21.3 | % | 17.3 | % | |||
Non-GAAP Adjusted Results | |||||||
Non-GAAP adjusted operating income | $ | 82 | $ | 66 | |||
Non-GAAP adjusted operating margin | 21.5 | % | 17.6 | % |
Use of Non-GAAP Adjusted Financial Measures
Applied provides investors with certain non-GAAP adjusted financial measures, which are adjusted for the impact of certain costs, expenses, gains and losses, including certain items related to mergers and acquisitions; restructuring and severance charges and any associated adjustments; certain incremental expenses related to COVID-19; impairments of assets; gain or loss on strategic investments; certain income tax items and other discrete adjustments. On a non-GAAP basis, the tax effect related to share-based compensation is recognized ratably over the fiscal year. Reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this release.
Management uses these non-GAAP adjusted financial measures to evaluate the company’s operating and financial performance and for planning purposes, and as performance measures in its executive compensation program. Applied believes these measures enhance an overall understanding of its performance and 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 on a consistent basis by excluding items that management does not believe are indicative of Applied's ongoing operating performance. There are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles, may be different from non-GAAP financial measures used by other companies, and may exclude certain items that may have a material impact upon our reported financial results. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures 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 and related slide presentation 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 anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, technology transitions, our business and financial performance and market share positions, our capital allocation and cash deployment strategies, our investment and growth strategies, our development of new products and technologies, our business outlook for the third quarter of fiscal 2022 and beyond, and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, without limitation: the level of demand for our products, our ability to meet customer demand, and our suppliers' ability to meet our demand requirements; transportation interruptions and logistics constraints; global economic, political and industry conditions, including rising inflation and interest rates; the effects of regional or global health epidemics, including the severity and duration of the ongoing COVID-19 pandemic and government imposed lockdowns and other measures taken in response; global trade issues and changes in trade and export license policies; consumer demand for electronic products; the demand for semiconductors; customers’ technology and capacity requirements; the introduction of new and innovative technologies, and the timing of technology transitions; our ability to develop, deliver and support new products and technologies; the concentrated nature of our customer base; acquisitions, investments and divestitures; changes in income tax laws; our ability to expand our current markets, increase market share and develop new markets; market acceptance of existing and newly developed products; our ability to obtain and protect intellectual property rights in key technologies; our ability to achieve the objectives of operational and strategic initiatives, align our resources and cost structure with business conditions, and attract, motivate and retain key employees; the variability of operating expenses and results among products and segments, and our ability to accurately forecast future results, market conditions, customer requirements and business needs; our ability to ensure compliance with applicable law, rules and regulations; and other risks and uncertainties described in our SEC filings, including our recent Forms 10-Q and 8-K. All forward-looking statements are based on management’s current estimates, projections and assumptions, and we assume no obligation to update them.
About Applied Materials
Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Our expertise in modifying materials at atomic levels and on an industrial scale enables customers to transform possibilities into reality. At Applied Materials, our innovations make possible a better future. Learn more at www.appliedmaterials.com.
Ricky Gradwohl (editorial/media) 408.235.4676Michael Sullivan (financial community) 408.986.7977
APPLIED MATERIALS, INC.UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended | Six Months Ended | |||||||||||
(In millions, except per share amounts) | May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | ||||||||
Net sales | $ | 6,245 | $ | 5,582 | $ | 12,516 | $ | 10,744 | ||||
Cost of products sold | 3,318 | 2,929 | 6,630 | 5,742 | ||||||||
Gross profit | 2,927 | 2,653 | 5,886 | 5,002 | ||||||||
Operating expenses: | ||||||||||||
Research, development and engineering | 686 | 617 | 1,340 | 1,223 | ||||||||
Marketing and selling | 173 | 148 | 340 | 295 | ||||||||
General and administrative | 174 | 149 | 340 | 310 | ||||||||
Severance and related charges | — | 6 | (4 | ) | 158 | |||||||
Deal termination fee | — | 154 | — | 154 | ||||||||
Total operating expenses | 1,033 | 1,074 | 2,016 | 2,140 | ||||||||
Income from operations | 1,894 | 1,579 | 3,870 | 2,862 | ||||||||
Interest expense | 58 | 61 | 115 | 122 | ||||||||
Interest and other income, net | 28 | 27 | 34 | 45 | ||||||||
Income before income taxes | 1,864 | 1,545 | 3,789 | 2,785 | ||||||||
Provision for income taxes | 328 | 215 | 461 | 325 | ||||||||
Net income | $ | 1,536 | $ | 1,330 | $ | 3,328 | $ | 2,460 | ||||
Earnings per share: | ||||||||||||
Basic | $ | 1.75 | $ | 1.45 | $ | 3.77 | $ | 2.68 | ||||
Diluted | $ | 1.74 | $ | 1.43 | $ | 3.74 | $ | 2.66 | ||||
Weighted average number of shares: | ||||||||||||
Basic | 878 | 918 | 883 | 917 | ||||||||
Diluted | 883 | 927 | 890 | 926 |
APPLIED MATERIALS, INC.UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
(In millions) | May 1, 2022 | October 31, 2021 | |||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 3,331 | $ | 4,995 | |
Short-term investments | 591 | 464 | |||
Accounts receivable, net | 4,883 | 4,953 | |||
Inventories | 5,009 | 4,309 | |||
Other current assets | 1,430 | 1,386 | |||
Total current assets | 15,244 | 16,107 | |||
Long-term investments | 2,102 | 2,055 | |||
Property, plant and equipment, net | 2,071 | 1,934 | |||
Goodwill | 3,479 | 3,479 | |||
Purchased technology and other intangible assets, net | 85 | 104 | |||
Deferred income taxes and other assets | 2,478 | 2,146 | |||
Total assets | $ | 25,459 | $ | 25,825 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
Current liabilities: | |||||
Accounts payable and accrued expenses | $ | 4,060 | $ | 4,268 | |
Contract liabilities | 2,590 | 2,076 | |||
Total current liabilities | 6,650 | 6,344 | |||
Long-term debt | 5,455 | 5,452 | |||
Income taxes payable | 962 | 1,090 | |||
Other liabilities | 813 | 692 | |||
Total liabilities | 13,880 | 13,578 | |||
Total stockholders’ equity | 11,579 | 12,247 | |||
Total liabilities and stockholders’ equity | $ | 25,459 | $ | 25,825 |
APPLIED MATERIALS, INC.UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In millions) | Three Months Ended | Six Months Ended | |||||||||||||
May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 1,536 | $ | 1,330 | $ | 3,328 | $ | 2,460 | |||||||
Adjustments required to reconcile net income to cash provided by operating activities: | |||||||||||||||
Depreciation and amortization | 111 | 97 | 213 | 191 | |||||||||||
Severance and related charges | — | 1 | (4 | ) | 149 | ||||||||||
Share-based compensation | 101 | 84 | 219 | 191 | |||||||||||
Deferred income taxes | (257 | ) | (4 | ) | (256 | ) | 24 | ||||||||
Other | (24 | ) | (15 | ) | (8 | ) | (15 | ) | |||||||
Net change in operating assets and liabilities | (1,052 | ) | (306 | ) | (419 | ) | (392 | ) | |||||||
Cash provided by operating activities | 415 | 1,187 | 3,073 | 2,608 | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Capital expenditures | (210 | ) | (204 | ) | (354 | ) | (325 | ) | |||||||
Cash paid for acquisitions, net of cash acquired | — | — | — | (12 | ) | ||||||||||
Proceeds from sales and maturities of investments | 321 | 266 | 639 | 624 | |||||||||||
Purchases of investments | (524 | ) | (281 | ) | (836 | ) | (722 | ) | |||||||
Cash used in investing activities | (413 | ) | (219 | ) | (551 | ) | (435 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Proceeds from common stock issuances | 96 | 86 | 96 | 86 | |||||||||||
Common stock repurchases | (1,800 | ) | (750 | ) | (3,603 | ) | (750 | ) | |||||||
Tax withholding payments for vested equity awards | (21 | ) | (17 | ) | (256 | ) | (159 | ) | |||||||
Payments of dividends to stockholders | (211 | ) | (202 | ) | (425 | ) | (403 | ) | |||||||
Cash used in financing activities | (1,936 | ) | (883 | ) | (4,188 | ) | (1,226 | ) | |||||||
Increase (decrease) in cash, cash equivalents and restricted cash equivalents | (1,934 | ) | 85 | (1,666 | ) | 947 | |||||||||
Cash, cash equivalents and restricted cash equivalents—beginning of period | 5,369 | 6,328 | 5,101 | 5,466 | |||||||||||
Cash, cash equivalents and restricted cash equivalents — end of period | $ | 3,435 | $ | 6,413 | $ | 3,435 | $ | 6,413 | |||||||
Reconciliation of cash, cash equivalents, and restricted cash equivalents | |||||||||||||||
Cash and cash equivalents | $ | 3,331 | $ | 6,305 | $ | 3,331 | $ | 6,305 | |||||||
Restricted cash equivalents included in deferred income taxes and other assets | 104 | 108 | 104 | 108 | |||||||||||
Total cash, cash equivalents, and restricted cash equivalents | $ | 3,435 | $ | 6,413 | $ | 3,435 | $ | 6,413 | |||||||
Supplemental cash flow information: | |||||||||||||||
Cash payments for income taxes | $ | 951 | $ | 299 | $ | 1,031 | $ | 409 | |||||||
Cash refunds from income taxes | $ | 5 | $ | 4 | $ | 128 | $ | 23 | |||||||
Cash payments for interest | $ | 68 | $ | 68 | $ | 102 | $ | 103 |
APPLIED MATERIALS, INC.UNAUDITED SUPPLEMENTAL INFORMATION
Corporate and Other
(In millions) | Q2 FY2022 | Q2 FY2021 | |||||
Unallocated net sales | $ | 23 | $ | 32 | |||
Unallocated cost of products sold and expenses | (179 | ) | (174 | ) | |||
Share-based compensation | (101 | ) | (84 | ) | |||
Severance and related charges | — | (6 | ) | ||||
Deal termination fee | — | (154 | ) | ||||
Total | $ | (257 | ) | $ | (386 | ) |
Additional Information
Q2 FY2022 | Q2 FY2021 | ||||||
Net Sales by Geography (In millions) | |||||||
United States | $ | 702 | $ | 489 | |||
% of Total | 11 | % | 9 | % | |||
Europe | $ | 489 | $ | 229 | |||
% of Total | 8 | % | 4 | % | |||
Japan | $ | 407 | $ | 442 | |||
% of Total | 6 | % | 8 | % | |||
Korea | $ | 968 | $ | 1,428 | |||
% of Total | 16 | % | 25 | % | |||
Taiwan | $ | 1,408 | $ | 1,041 | |||
% of Total | 23 | % | 19 | % | |||
Southeast Asia | $ | 138 | $ | 109 | |||
% of Total | 2 | % | 2 | % | |||
China | $ | 2,133 | $ | 1,844 | |||
% of Total | 34 | % | 33 | % | |||
Employees (In thousands) | |||||||
Regular Full Time | 30.1 | 24.8 |
APPLIED MATERIALS, INC. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
Three Months Ended | Six Months Ended | ||||||||||||||
(In millions, except percentages) | May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | |||||||||||
Non-GAAP Adjusted Gross Profit | |||||||||||||||
Reported gross profit - GAAP basis | $ | 2,927 | $ | 2,653 | $ | 5,886 | $ | 5,002 | |||||||
Certain items associated with acquisitions1 | 7 | 7 | 13 | 15 | |||||||||||
Certain incremental expenses related to COVID-192 | — | — | — | 12 | |||||||||||
Other charges | — | 2 | — | 2 | |||||||||||
Non-GAAP adjusted gross profit | $ | 2,934 | $ | 2,662 | $ | 5,899 | $ | 5,031 | |||||||
Non-GAAP adjusted gross margin | 47.0 | % | 47.7 | % | 47.1 | % | 46.8 | % | |||||||
Non-GAAP Adjusted Operating Income | |||||||||||||||
Reported operating income - GAAP basis | $ | 1,894 | $ | 1,579 | $ | 3,870 | $ | 2,862 | |||||||
Certain items associated with acquisitions1 | 10 | 12 | 19 | 25 | |||||||||||
Acquisition integration and deal costs | 9 | 11 | 13 | 35 | |||||||||||
Certain incremental expenses related to COVID-192 | — | — | — | 24 | |||||||||||
Severance and related charges3 | — | 6 | (4 | ) | 158 | ||||||||||
Deal termination fee | — | 154 | — | 154 | |||||||||||
Other charges | — | 6 | — | 6 | |||||||||||
Non-GAAP adjusted operating income | $ | 1,913 | $ | 1,768 | $ | 3,898 | $ | 3,264 | |||||||
Non-GAAP adjusted operating margin | 30.6 | % | 31.7 | % | 31.1 | % | 30.4 | % | |||||||
Non-GAAP Adjusted Net Income | |||||||||||||||
Reported net income - GAAP basis | $ | 1,536 | $ | 1,330 | $ | 3,328 | $ | 2,460 | |||||||
Certain items associated with acquisitions1 | 10 | 12 | 19 | 25 | |||||||||||
Acquisition integration and deal costs | 12 | 12 | 16 | 36 | |||||||||||
Certain incremental expenses related to COVID-192 | — | — | — | 24 | |||||||||||
Severance and related charges3 | — | 6 | (4 | ) | 158 | ||||||||||
Deal termination fee | — | 154 | — | 154 | |||||||||||
Realized loss (gain) on strategic investments, net | (2 | ) | 6 | — | 4 | ||||||||||
Unrealized loss (gain) on strategic investments, net | (28 | ) | (26 | ) | (33 | ) | (32 | ) | |||||||
Other charges | — | 6 | — | 6 | |||||||||||
Income tax effect of share-based compensation4 | 14 | 6 | (44 | ) | (23 | ) | |||||||||
Income tax effects related to intra-entity intangible asset transfers | 81 | 17 | 99 | 37 | |||||||||||
Resolution of prior years’ income tax filings and other tax items | 7 | (10 | ) | (55 | ) | (13 | ) | ||||||||
Income tax effect of non-GAAP adjustments5 | 6 | (4 | ) | 6 | (45 | ) | |||||||||
Non-GAAP adjusted net income | $ | 1,636 | $ | 1,509 | $ | 3,332 | $ | 2,791 |
1 | These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. |
2 | Temporary incremental employee compensation during the COVID-19 pandemic. |
3 | The severance and related charges primarily related to a one-time voluntary retirement program offered to certain eligible employees. |
4 | GAAP basis tax benefit related to share-based compensation is recognized ratably over the fiscal year on a non-GAAP basis. |
5 | Adjustment to provision for income taxes related to non-GAAP adjustments reflected in income before income taxes. |
APPLIED MATERIALS, INC.UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
Three Months Ended | Six Months Ended | ||||||||||||||
(In millions, except per share amounts) | May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | |||||||||||
Non-GAAP Adjusted Earnings Per Diluted Share | |||||||||||||||
Reported earnings per diluted share - GAAP basis | $ | 1.74 | $ | 1.43 | $ | 3.74 | $ | 2.66 | |||||||
Certain items associated with acquisitions | 0.01 | 0.01 | 0.02 | 0.02 | |||||||||||
Acquisition integration and deal costs | 0.01 | 0.01 | 0.02 | 0.03 | |||||||||||
Certain incremental expenses related to COVID-19 | — | — | — | 0.02 | |||||||||||
Severance and related charges | — | 0.01 | — | 0.13 | |||||||||||
Deal termination fee | — | 0.17 | — | 0.17 | |||||||||||
Realized loss (gain) on strategic investments, net | — | 0.01 | — | — | |||||||||||
Unrealized loss (gain) on strategic investments, net | (0.03 | ) | (0.03 | ) | (0.04 | ) | (0.02 | ) | |||||||
Income tax effect of share-based compensation | 0.02 | 0.01 | (0.05 | ) | (0.02 | ) | |||||||||
Income tax effects related to intra-entity intangible asset transfers | 0.09 | 0.02 | 0.11 | 0.04 | |||||||||||
Resolution of prior years’ income tax filings and other tax items | 0.01 | (0.01 | ) | (0.06 | ) | (0.01 | ) | ||||||||
Non-GAAP adjusted earnings per diluted share | $ | 1.85 | $ | 1.63 | $ | 3.74 | $ | 3.02 | |||||||
Weighted average number of diluted shares | 883 | 927 | 890 | 926 |
APPLIED MATERIALS, INC.UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS
Three Months Ended | Six Months Ended | ||||||||||||||
(In millions, except percentages) | May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | |||||||||||
Semiconductor Systems Non-GAAP Adjusted Operating Income | |||||||||||||||
Reported operating income - GAAP basis | $ | 1,648 | $ | 1,542 | $ | 3,419 | $ | 2,803 | |||||||
Certain items associated with acquisitions1 | 8 | 10 | 15 | 20 | |||||||||||
Acquisition integration costs | — | — | — | (2 | ) | ||||||||||
Certain incremental expenses related to COVID-192 | — | — | — | 12 | |||||||||||
Other charges | — | 3 | — | 3 | |||||||||||
Non-GAAP adjusted operating income | $ | 1,656 | $ | 1,555 | $ | 3,434 | $ | 2,836 | |||||||
Non-GAAP adjusted operating margin | 37.1 | % | 39.1 | % | 38.0 | % | 37.7 | % | |||||||
AGS Non-GAAP Adjusted Operating Income | |||||||||||||||
Reported operating income - GAAP basis | $ | 422 | $ | 358 | $ | 825 | $ | 690 | |||||||
Certain incremental expenses related to COVID-192 | — | — | — | 8 | |||||||||||
Other charges | — | 1 | — | 1 | |||||||||||
Non-GAAP adjusted operating income | $ | 422 | $ | 359 | $ | 825 | $ | 699 | |||||||
Non-GAAP adjusted operating margin | 30.5 | % | 29.8 | % | 30.5 | % | 29.6 | % | |||||||
Display and Adjacent Markets Non-GAAP Adjusted Operating Income | |||||||||||||||
Reported operating income - GAAP basis | $ | 81 | $ | 65 | $ | 157 | $ | 130 | |||||||
Certain items associated with acquisitions1 | 1 | 1 | 2 | 2 | |||||||||||
Certain incremental expenses related to COVID-192 | — | — | — | 1 | |||||||||||
Severance and related charges3 | — | — | — | 8 | |||||||||||
Non-GAAP adjusted operating income | $ | 82 | $ | 66 | $ | 159 | $ | 141 | |||||||
Non-GAAP adjusted operating margin | 21.5 | % | 17.6 | % | 21.3 | % | 17.9 | % |
1 | These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. |
2 | Temporary incremental employee compensation during the COVID-19 pandemic. |
3 | The severance and related charges related to workforce reduction actions globally across the Display and Adjacent Markets business. |
Note: The reconciliation of GAAP and non-GAAP adjusted segment results above does not include certain revenues, costs of products sold and operating expenses that are reported within corporate and other and included in consolidated operating income.
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED EFFECTIVE INCOME TAX RATE
Three Months Ended | |||
(In millions, except percentages) | May 1, 2022 | ||
Provision for income taxes - GAAP basis (a) | $ | 328 | |
Income tax effect of share-based compensation | (14 | ) | |
Income tax effects related to intra-entity intangible asset transfers | (81 | ) | |
Resolutions of prior years’ income tax filings and other tax items | (7 | ) | |
Income tax effect of non-GAAP adjustments | (6 | ) | |
Non-GAAP adjusted provision for income taxes (b) | $ | 220 | |
Income before income taxes - GAAP basis (c) | $ | 1,864 | |
Certain items associated with acquisitions | 10 | ||
Acquisition integration and deal costs | 12 | ||
Realized loss (gain) on strategic investments, net | (2 | ) | |
Unrealized loss (gain) on strategic investments, net | (28 | ) | |
Non-GAAP adjusted income before income taxes (d) | $ | 1,856 | |
Effective income tax rate - GAAP basis (a/c) | 17.6 | % | |
Non-GAAP adjusted effective income tax rate (b/d) | 11.9 | % |
САНТА-КЛАРА, Калифорния, 19 мая 2022 года (GLOBE NEWSWIRE) -- Applied Materials, Inc. (NASDAQ: AMAT) сегодня сообщила о результатах за второй квартал, закончившийся 1 мая 2022 года.
Результаты второго квартала
Выручка Applied составила 6,25 миллиарда долларов. На основе GAAP компания достигла валовой прибыли в размере 46,9 процента, операционной прибыли в размере 1,89 миллиарда долларов, или 30,3 процента от чистых продаж, и прибыли на акцию (EPS) в размере 1,74 доллара.
На основе, скорректированной без учета GAAP, компания сообщила о валовой прибыли в размере 47,0 процента, операционной прибыли в размере 1,91 миллиарда долларов, или 30,6 процента от чистых продаж, и прибыли на акцию в размере 1,85 доллара.
Компания получила 415 миллионов долларов наличными от операционной деятельности и вернула акционерам 2,01 миллиарда долларов, включая 1,80 миллиарда долларов в виде выкупа акций и 211 миллионов долларов в виде дивидендов.
“Спрос на продукты и услуги Applied Materials никогда не был таким высоким, однако мы по-прежнему ограничены текущими проблемами в цепочке поставок”, - сказал Гэри Дикерсон, президент и главный исполнительный директор. “Наш приоритет - быстро и творчески работать по всей цепочке поставок, чтобы задействовать больше производственных мощностей в режиме онлайн, одновременно ускоряя технологические изменения, которые, по нашему мнению, позволят Applied перерасти рынок полупроводников в ближайшие годы”.
Краткое изложение результатов
Q2 FY2022 | Q2 FY2021 | Change | |||||||
(In millions, except per share amounts and percentages) | |||||||||
Net sales | $ | 6,245 | $ | 5,582 | 12% | ||||
Gross margin | 46.9 | % | 47.5 | % | (0.6) points | ||||
Operating margin | 30.3 | % | 28.3 | % | 2.0 points | ||||
Net income | $ | 1,536 | $ | 1,330 | 15% | ||||
Diluted earnings per share | $ | 1.74 | $ | 1.43 | 22% | ||||
Non-GAAP Adjusted Results | |||||||||
Non-GAAP adjusted gross margin | 47.0 | % | 47.7 | % | (0.7) points | ||||
Non-GAAP adjusted operating margin | 30.6 | % | 31.7 | % | (1.1) points | ||||
Non-GAAP adjusted net income | $ | 1,636 | $ | 1,509 | 8% | ||||
Non-GAAP adjusted diluted EPS | $ | 1.85 | $ | 1.63 | 13% |
Сверка результатов, скорректированных по ОПБУ и не скорректированных по ОПБУ, приведена в финансовых таблицах, включенных в этот выпуск. См. также раздел “Использование финансовых показателей, скорректированных не по ОПБУ”.
Перспективы бизнеса
В третьем квартале 2022 финансового года Applied ожидает, что чистый объем продаж составит примерно 6,25 миллиарда долларов, плюс-минус 400 миллионов долларов, что включает ожидаемое влияние текущих проблем в цепочке поставок. Ожидается, что скорректированная разводненная прибыль на акцию без учета GAAP составит от 1,59 до 1,95 доллара США.
Данный прогноз по скорректированной разводненной прибыли на акцию, не относящейся к GAAP, исключает известные расходы, связанные с завершенными приобретениями, в размере 0,01 доллара США на акцию, включает нормализованную налоговую выгоду в виде компенсации на основе акций в размере 0,02 доллара США на акцию и включает льготу по налогу на чистую прибыль, связанную с передачей нематериальных активов внутри компании, в размере 0,02 доллара США на акцию, но не не отражать какие-либо неизвестные на данный момент статьи, такие как любые дополнительные расходы, связанные с приобретениями или другими нерабочими или необычными статьями, а также другие статьи, связанные с налогообложением, которые мы не можем предсказать без необоснованных усилий из-за присущей им неопределенности.
Отчетная информация по сегментам за Второй Квартал
Semiconductor Systems | Q2 FY2022 | Q2 FY2021 | |||||
(In millions, except percentages) | |||||||
Net sales | $ | 4,458 | $ | 3,972 | |||
Foundry, logic and other | 65 | % | 56 | % | |||
DRAM | 21 | % | 14 | % | |||
Flash memory | 14 | % | 30 | % | |||
Operating income | $ | 1,648 | $ | 1,542 | |||
Operating margin | 37.0 | % | 38.8 | % | |||
Non-GAAP Adjusted Results | |||||||
Non-GAAP adjusted operating income | $ | 1,656 | $ | 1,555 | |||
Non-GAAP adjusted operating margin | 37.1 | % | 39.1 | % |
Applied Global Services | Q2 FY2022 | Q2 FY2021 | |||||
(In millions, except percentages) | |||||||
Net sales | $ | 1,383 | $ | 1,203 | |||
Operating income | $ | 422 | $ | 358 | |||
Operating margin | 30.5 | % | 29.8 | % | |||
Non-GAAP Adjusted Results | |||||||
Non-GAAP adjusted operating income | $ | 422 | $ | 359 | |||
Non-GAAP adjusted operating margin | 30.5 | % | 29.8 | % |
Display and Adjacent Markets | Q2 FY2022 | Q2 FY2021 | |||||
(In millions, except percentages) | |||||||
Net sales | $ | 381 | $ | 375 | |||
Operating income | $ | 81 | $ | 65 | |||
Operating margin | 21.3 | % | 17.3 | % | |||
Non-GAAP Adjusted Results | |||||||
Non-GAAP adjusted operating income | $ | 82 | $ | 66 | |||
Non-GAAP adjusted operating margin | 21.5 | % | 17.6 | % |
Использование финансовых показателей, Скорректированных не по ОПБУ
Applied предоставляет инвесторам определенные финансовые показатели, скорректированные не по GAAP, которые корректируются с учетом влияния определенных затрат, расходов, прибылей и убытков, включая определенные статьи, связанные со слияниями и поглощениями; выплаты по реструктуризации и выходным пособиям и любые связанные с ними корректировки; определенные дополнительные расходы, связанные с COVID-19; обесценение активов; прибыль или убытки от стратегических инвестиций; определенные статьи подоходного налога и другие отдельные корректировки. На основе, отличной от GAAP, налоговый эффект, связанный с компенсацией на основе акций, признается пропорционально в течение финансового года. Сверки этих показателей, не относящихся к GAAP, с наиболее непосредственно сопоставимыми финансовыми показателями, рассчитанными и представленными в соответствии с GAAP, представлены в финансовых таблицах, включенных в этот выпуск.
Руководство использует эти финансовые показатели, скорректированные не по GAAP, для оценки операционных и финансовых показателей компании, а также для целей планирования, а также в качестве показателей эффективности в своей программе вознаграждения руководителей. Applied считает, что эти меры улучшают общее понимание ее результатов и способность инвесторов оценивать бизнес компании с той же точки зрения, что и руководство компании, и облегчают сравнение результатов этого периода с предыдущими периодами на постоянной основе путем исключения статей, которые, по мнению руководства, не свидетельствуют о продолжающейся деятельности Applied. эксплуатационные характеристики. Существуют ограничения в использовании финансовых показателей, не относящихся к GAAP, поскольку финансовые показатели, не относящиеся к GAAP, не подготовлены в соответствии с общепринятыми принципами бухгалтерского учета, могут отличаться от финансовых показателей, не относящихся к GAAP, используемых другими компаниями, и могут исключать определенные статьи, которые могут оказать существенное влияние на наши отчетные финансовые результаты. Представление этой дополнительной информации не предназначено для рассмотрения изолированно или в качестве замены непосредственно сопоставимых финансовых показателей, подготовленных в соответствии с GAAP.
Информация о веб-трансляции
Applied Materials обсудит эти результаты во время звонка о доходах, который начнется сегодня в 1:30 вечера по тихоокеанскому времени. Прямая веб-трансляция и соответствующая слайд-презентация будут доступны по адресу www.appliedmaterials.com . Повтор будет доступен на веб-сайте, начиная с 17:00 вечера по тихоокеанскому времени сегодня.
Прогнозные заявления
Этот пресс-релиз содержит заявления о перспективах, в том числе касающиеся ожидаемого роста и тенденций в нашем бизнесе и на рынках, перспектив отрасли и факторов спроса, технологических изменений, наших деловых и финансовых показателей и позиций на рынке, наших стратегий распределения капитала и использования денежных средств, наших стратегий инвестирования и роста, нашей разработки новых продуктов и технологий, наш бизнес-прогноз на третий квартал 2022 финансового года и последующий период, а также другие заявления, которые не являются историческими фактами. Эти заявления и лежащие в их основе допущения подвержены рискам и неопределенностям и не являются гарантией будущих результатов. Факторы, которые могут вызвать фактические результаты могут существенно отличаться от выраженных или подразумеваемых в таких заявлениях включают, без ограничения: уровень спроса на нашу продукцию, наши возможности для удовлетворения спроса клиентов, и нашим поставщикам возможность для удовлетворения наших потребностей требования; транспорт перерывов и материально-технического характера; мировые экономические, политические и отраслевые условия, включая рост инфляции и процентных ставок; влияние региональных или глобальных эпидемий здоровья, в том числе тяжесть и продолжительность текущего COVID-19 пандемией, и правительство ввело строгой изоляции и других мер, принимаемых в ответ; глобальные торговые вопросы и изменения в торговой и экспортной лицензии политики; потребительский спрос на электронные продукты; спрос на полупроводники; клиентам технологии и мощности; внедрение новых и инновационных технологий, а также сроки технологического перехода; наши возможности в разработке, проведении и поддержке новых продуктов и технологий; высокая степень концентрации клиентской базы; приобретения, инвестирования и выбытия; изменения в налоговые законы; нам возможность расширить наши текущие рынки, увеличение доли рынка и осваивать новые рынки; принятие рынком существующих и вновь разработанных продуктов; нашу способность получать и защиты прав интеллектуальной собственности в ключевых технологий, наша способность к достижению целей оперативного и стратегических инициатив, выровнять наши ресурсы и структура затрат с условиями ведения бизнеса и привлечения, мотивации и удержания ключевых сотрудников; изменчивость эксплуатационных затрат и результатов по видам продукции и сегментам, и наша способность точно прогнозировать будущие результаты, рыночных условиях, требования клиентов и потребностей бизнеса; нам возможность обеспечить соблюдение требований действующего законодательства, норм и правил; и другие риски и неопределенности, описанные в нашем сек заявок, в том числе наши последние формам 10-Q и 8-к. Все прогнозные заявления основаны на текущих оценках, прогнозах и предположениях руководства, и мы не берем на себя никаких обязательств по их обновлению.
Об Applied Materials
Applied Materials, Inc. (Nasdaq: AMAT) является лидером в области разработки материалов, используемых для производства практически всех новых чипов и современных дисплеев в мире. Наш опыт в модификации материалов на атомном уровне и в промышленных масштабах позволяет заказчикам превращать возможности в реальность. В Applied Materials наши инновации делают возможным лучшее будущее. Узнайте больше на сайте www.appliedmaterials.com .
Рики Грэдвол (редакция/СМИ) 408.235.4676Майкл Салливан (финансовое сообщество) 408.986.7977
Applied Materials, inc.неаудированные консолидированные сокращенные отчеты о деятельности
Three Months Ended | Six Months Ended | |||||||||||
(In millions, except per share amounts) | May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | ||||||||
Net sales | $ | 6,245 | $ | 5,582 | $ | 12,516 | $ | 10,744 | ||||
Cost of products sold | 3,318 | 2,929 | 6,630 | 5,742 | ||||||||
Gross profit | 2,927 | 2,653 | 5,886 | 5,002 | ||||||||
Operating expenses: | ||||||||||||
Research, development and engineering | 686 | 617 | 1,340 | 1,223 | ||||||||
Marketing and selling | 173 | 148 | 340 | 295 | ||||||||
General and administrative | 174 | 149 | 340 | 310 | ||||||||
Severance and related charges | — | 6 | (4 | ) | 158 | |||||||
Deal termination fee | — | 154 | — | 154 | ||||||||
Total operating expenses | 1,033 | 1,074 | 2,016 | 2,140 | ||||||||
Income from operations | 1,894 | 1,579 | 3,870 | 2,862 | ||||||||
Interest expense | 58 | 61 | 115 | 122 | ||||||||
Interest and other income, net | 28 | 27 | 34 | 45 | ||||||||
Income before income taxes | 1,864 | 1,545 | 3,789 | 2,785 | ||||||||
Provision for income taxes | 328 | 215 | 461 | 325 | ||||||||
Net income | $ | 1,536 | $ | 1,330 | $ | 3,328 | $ | 2,460 | ||||
Earnings per share: | ||||||||||||
Basic | $ | 1.75 | $ | 1.45 | $ | 3.77 | $ | 2.68 | ||||
Diluted | $ | 1.74 | $ | 1.43 | $ | 3.74 | $ | 2.66 | ||||
Weighted average number of shares: | ||||||||||||
Basic | 878 | 918 | 883 | 917 | ||||||||
Diluted | 883 | 927 | 890 | 926 |
Applied Materials, inc.неаудированные консолидированные сокращенные балансы
(In millions) | May 1, 2022 | October 31, 2021 | |||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 3,331 | $ | 4,995 | |
Short-term investments | 591 | 464 | |||
Accounts receivable, net | 4,883 | 4,953 | |||
Inventories | 5,009 | 4,309 | |||
Other current assets | 1,430 | 1,386 | |||
Total current assets | 15,244 | 16,107 | |||
Long-term investments | 2,102 | 2,055 | |||
Property, plant and equipment, net | 2,071 | 1,934 | |||
Goodwill | 3,479 | 3,479 | |||
Purchased technology and other intangible assets, net | 85 | 104 | |||
Deferred income taxes and other assets | 2,478 | 2,146 | |||
Total assets | $ | 25,459 | $ | 25,825 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
Current liabilities: | |||||
Accounts payable and accrued expenses | $ | 4,060 | $ | 4,268 | |
Contract liabilities | 2,590 | 2,076 | |||
Total current liabilities | 6,650 | 6,344 | |||
Long-term debt | 5,455 | 5,452 | |||
Income taxes payable | 962 | 1,090 | |||
Other liabilities | 813 | 692 | |||
Total liabilities | 13,880 | 13,578 | |||
Total stockholders’ equity | 11,579 | 12,247 | |||
Total liabilities and stockholders’ equity | $ | 25,459 | $ | 25,825 |
Applied Materials, inc.неаудированные консолидированные сокращенные отчеты о движении денежных средств
(In millions) | Three Months Ended | Six Months Ended | |||||||||||||
May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 1,536 | $ | 1,330 | $ | 3,328 | $ | 2,460 | |||||||
Adjustments required to reconcile net income to cash provided by operating activities: | |||||||||||||||
Depreciation and amortization | 111 | 97 | 213 | 191 | |||||||||||
Severance and related charges | — | 1 | (4 | ) | 149 | ||||||||||
Share-based compensation | 101 | 84 | 219 | 191 | |||||||||||
Deferred income taxes | (257 | ) | (4 | ) | (256 | ) | 24 | ||||||||
Other | (24 | ) | (15 | ) | (8 | ) | (15 | ) | |||||||
Net change in operating assets and liabilities | (1,052 | ) | (306 | ) | (419 | ) | (392 | ) | |||||||
Cash provided by operating activities | 415 | 1,187 | 3,073 | 2,608 | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Capital expenditures | (210 | ) | (204 | ) | (354 | ) | (325 | ) | |||||||
Cash paid for acquisitions, net of cash acquired | — | — | — | (12 | ) | ||||||||||
Proceeds from sales and maturities of investments | 321 | 266 | 639 | 624 | |||||||||||
Purchases of investments | (524 | ) | (281 | ) | (836 | ) | (722 | ) | |||||||
Cash used in investing activities | (413 | ) | (219 | ) | (551 | ) | (435 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Proceeds from common stock issuances | 96 | 86 | 96 | 86 | |||||||||||
Common stock repurchases | (1,800 | ) | (750 | ) | (3,603 | ) | (750 | ) | |||||||
Tax withholding payments for vested equity awards | (21 | ) | (17 | ) | (256 | ) | (159 | ) | |||||||
Payments of dividends to stockholders | (211 | ) | (202 | ) | (425 | ) | (403 | ) | |||||||
Cash used in financing activities | (1,936 | ) | (883 | ) | (4,188 | ) | (1,226 | ) | |||||||
Increase (decrease) in cash, cash equivalents and restricted cash equivalents | (1,934 | ) | 85 | (1,666 | ) | 947 | |||||||||
Cash, cash equivalents and restricted cash equivalents—beginning of period | 5,369 | 6,328 | 5,101 | 5,466 | |||||||||||
Cash, cash equivalents and restricted cash equivalents — end of period | $ | 3,435 | $ | 6,413 | $ | 3,435 | $ | 6,413 | |||||||
Reconciliation of cash, cash equivalents, and restricted cash equivalents | |||||||||||||||
Cash and cash equivalents | $ | 3,331 | $ | 6,305 | $ | 3,331 | $ | 6,305 | |||||||
Restricted cash equivalents included in deferred income taxes and other assets | 104 | 108 | 104 | 108 | |||||||||||
Total cash, cash equivalents, and restricted cash equivalents | $ | 3,435 | $ | 6,413 | $ | 3,435 | $ | 6,413 | |||||||
Supplemental cash flow information: | |||||||||||||||
Cash payments for income taxes | $ | 951 | $ | 299 | $ | 1,031 | $ | 409 | |||||||
Cash refunds from income taxes | $ | 5 | $ | 4 | $ | 128 | $ | 23 | |||||||
Cash payments for interest | $ | 68 | $ | 68 | $ | 102 | $ | 103 |
Applied Materials, inc.неаудированная дополнительная информация
Корпоративные и другие
(In millions) | Q2 FY2022 | Q2 FY2021 | |||||
Unallocated net sales | $ | 23 | $ | 32 | |||
Unallocated cost of products sold and expenses | (179 | ) | (174 | ) | |||
Share-based compensation | (101 | ) | (84 | ) | |||
Severance and related charges | — | (6 | ) | ||||
Deal termination fee | — | (154 | ) | ||||
Total | $ | (257 | ) | $ | (386 | ) |
дополнительная информация
Q2 FY2022 | Q2 FY2021 | ||||||
Net Sales by Geography (In millions) | |||||||
United States | $ | 702 | $ | 489 | |||
% of Total | 11 | % | 9 | % | |||
Europe | $ | 489 | $ | 229 | |||
% of Total | 8 | % | 4 | % | |||
Japan | $ | 407 | $ | 442 | |||
% of Total | 6 | % | 8 | % | |||
Korea | $ | 968 | $ | 1,428 | |||
% of Total | 16 | % | 25 | % | |||
Taiwan | $ | 1,408 | $ | 1,041 | |||
% of Total | 23 | % | 19 | % | |||
Southeast Asia | $ | 138 | $ | 109 | |||
% of Total | 2 | % | 2 | % | |||
China | $ | 2,133 | $ | 1,844 | |||
% of Total | 34 | % | 33 | % | |||
Employees (In thousands) | |||||||
Regular Full Time | 30.1 | 24.8 |
Applied Materials, inc. неаудированная сверка результатов gaap с результатами, скорректированными не по gaap
Three Months Ended | Six Months Ended | ||||||||||||||
(In millions, except percentages) | May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | |||||||||||
Non-GAAP Adjusted Gross Profit | |||||||||||||||
Reported gross profit - GAAP basis | $ | 2,927 | $ | 2,653 | $ | 5,886 | $ | 5,002 | |||||||
Certain items associated with acquisitions1 | 7 | 7 | 13 | 15 | |||||||||||
Certain incremental expenses related to COVID-192 | — | — | — | 12 | |||||||||||
Other charges | — | 2 | — | 2 | |||||||||||
Non-GAAP adjusted gross profit | $ | 2,934 | $ | 2,662 | $ | 5,899 | $ | 5,031 | |||||||
Non-GAAP adjusted gross margin | 47.0 | % | 47.7 | % | 47.1 | % | 46.8 | % | |||||||
Non-GAAP Adjusted Operating Income | |||||||||||||||
Reported operating income - GAAP basis | $ | 1,894 | $ | 1,579 | $ | 3,870 | $ | 2,862 | |||||||
Certain items associated with acquisitions1 | 10 | 12 | 19 | 25 | |||||||||||
Acquisition integration and deal costs | 9 | 11 | 13 | 35 | |||||||||||
Certain incremental expenses related to COVID-192 | — | — | — | 24 | |||||||||||
Severance and related charges3 | — | 6 | (4 | ) | 158 | ||||||||||
Deal termination fee | — | 154 | — | 154 | |||||||||||
Other charges | — | 6 | — | 6 | |||||||||||
Non-GAAP adjusted operating income | $ | 1,913 | $ | 1,768 | $ | 3,898 | $ | 3,264 | |||||||
Non-GAAP adjusted operating margin | 30.6 | % | 31.7 | % | 31.1 | % | 30.4 | % | |||||||
Non-GAAP Adjusted Net Income | |||||||||||||||
Reported net income - GAAP basis | $ | 1,536 | $ | 1,330 | $ | 3,328 | $ | 2,460 | |||||||
Certain items associated with acquisitions1 | 10 | 12 | 19 | 25 | |||||||||||
Acquisition integration and deal costs | 12 | 12 | 16 | 36 | |||||||||||
Certain incremental expenses related to COVID-192 | — | — | — | 24 | |||||||||||
Severance and related charges3 | — | 6 | (4 | ) | 158 | ||||||||||
Deal termination fee | — | 154 | — | 154 | |||||||||||
Realized loss (gain) on strategic investments, net | (2 | ) | 6 | — | 4 | ||||||||||
Unrealized loss (gain) on strategic investments, net | (28 | ) | (26 | ) | (33 | ) | (32 | ) | |||||||
Other charges | — | 6 | — | 6 | |||||||||||
Income tax effect of share-based compensation4 | 14 | 6 | (44 | ) | (23 | ) | |||||||||
Income tax effects related to intra-entity intangible asset transfers | 81 | 17 | 99 | 37 | |||||||||||
Resolution of prior years’ income tax filings and other tax items | 7 | (10 | ) | (55 | ) | (13 | ) | ||||||||
Income tax effect of non-GAAP adjustments5 | 6 | (4 | ) | 6 | (45 | ) | |||||||||
Non-GAAP adjusted net income | $ | 1,636 | $ | 1,509 | $ | 3,332 | $ | 2,791 |
1 | These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. |
2 | Temporary incremental employee compensation during the COVID-19 pandemic. |
3 | The severance and related charges primarily related to a one-time voluntary retirement program offered to certain eligible employees. |
4 | GAAP basis tax benefit related to share-based compensation is recognized ratably over the fiscal year on a non-GAAP basis. |
5 | Adjustment to provision for income taxes related to non-GAAP adjustments reflected in income before income taxes. |
Applied Materials, inc.неаудированная сверка результатов gaap с результатами, скорректированными не по gaap
Three Months Ended | Six Months Ended | ||||||||||||||
(In millions, except per share amounts) | May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | |||||||||||
Non-GAAP Adjusted Earnings Per Diluted Share | |||||||||||||||
Reported earnings per diluted share - GAAP basis | $ | 1.74 | $ | 1.43 | $ | 3.74 | $ | 2.66 | |||||||
Certain items associated with acquisitions | 0.01 | 0.01 | 0.02 | 0.02 | |||||||||||
Acquisition integration and deal costs | 0.01 | 0.01 | 0.02 | 0.03 | |||||||||||
Certain incremental expenses related to COVID-19 | — | — | — | 0.02 | |||||||||||
Severance and related charges | — | 0.01 | — | 0.13 | |||||||||||
Deal termination fee | — | 0.17 | — | 0.17 | |||||||||||
Realized loss (gain) on strategic investments, net | — | 0.01 | — | — | |||||||||||
Unrealized loss (gain) on strategic investments, net | (0.03 | ) | (0.03 | ) | (0.04 | ) | (0.02 | ) | |||||||
Income tax effect of share-based compensation | 0.02 | 0.01 | (0.05 | ) | (0.02 | ) | |||||||||
Income tax effects related to intra-entity intangible asset transfers | 0.09 | 0.02 | 0.11 | 0.04 | |||||||||||
Resolution of prior years’ income tax filings and other tax items | 0.01 | (0.01 | ) | (0.06 | ) | (0.01 | ) | ||||||||
Non-GAAP adjusted earnings per diluted share | $ | 1.85 | $ | 1.63 | $ | 3.74 | $ | 3.02 | |||||||
Weighted average number of diluted shares | 883 | 927 | 890 | 926 |
Applied Materials, inc.неаудированная сверка результатов gaap с результатами, скорректированными не по gaap
Three Months Ended | Six Months Ended | ||||||||||||||
(In millions, except percentages) | May 1, 2022 | May 2, 2021 | May 1, 2022 | May 2, 2021 | |||||||||||
Semiconductor Systems Non-GAAP Adjusted Operating Income | |||||||||||||||
Reported operating income - GAAP basis | $ | 1,648 | $ | 1,542 | $ | 3,419 | $ | 2,803 | |||||||
Certain items associated with acquisitions1 | 8 | 10 | 15 | 20 | |||||||||||
Acquisition integration costs | — | — | — | (2 | ) | ||||||||||
Certain incremental expenses related to COVID-192 | — | — | — | 12 | |||||||||||
Other charges | — | 3 | — | 3 | |||||||||||
Non-GAAP adjusted operating income | $ | 1,656 | $ | 1,555 | $ | 3,434 | $ | 2,836 | |||||||
Non-GAAP adjusted operating margin | 37.1 | % | 39.1 | % | 38.0 | % | 37.7 | % | |||||||
AGS Non-GAAP Adjusted Operating Income | |||||||||||||||
Reported operating income - GAAP basis | $ | 422 | $ | 358 | $ | 825 | $ | 690 | |||||||
Certain incremental expenses related to COVID-192 | — | — | — | 8 | |||||||||||
Other charges | — | 1 | — | 1 | |||||||||||
Non-GAAP adjusted operating income | $ | 422 | $ | 359 | $ | 825 | $ | 699 | |||||||
Non-GAAP adjusted operating margin | 30.5 | % | 29.8 | % | 30.5 | % | 29.6 | % | |||||||
Display and Adjacent Markets Non-GAAP Adjusted Operating Income | |||||||||||||||
Reported operating income - GAAP basis | $ | 81 | $ | 65 | $ | 157 | $ | 130 | |||||||
Certain items associated with acquisitions1 | 1 | 1 | 2 | 2 | |||||||||||
Certain incremental expenses related to COVID-192 | — | — | — | 1 | |||||||||||
Severance and related charges3 | — | — | — | 8 | |||||||||||
Non-GAAP adjusted operating income | $ | 82 | $ | 66 | $ | 159 | $ | 141 | |||||||
Non-GAAP adjusted operating margin | 21.5 | % | 17.6 | % | 21.3 | % | 17.9 | % |
1 | These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. |
2 | Temporary incremental employee compensation during the COVID-19 pandemic. |
3 | The severance and related charges related to workforce reduction actions globally across the Display and Adjacent Markets business. |
Примечание: Приведенная выше сверка сегментных результатов, скорректированных по GAAP и не скорректированных по GAAP, не включает определенные доходы, затраты на проданную продукцию и операционные расходы, которые отражаются в составе корпоративных и прочих и включаются в консолидированный операционный доход.
неаудированная сверка gaap с скорректированной эффективной ставкой налога на прибыль, не относящейся к gaap
Three Months Ended | |||
(In millions, except percentages) | May 1, 2022 | ||
Provision for income taxes - GAAP basis (a) | $ | 328 | |
Income tax effect of share-based compensation | (14 | ) | |
Income tax effects related to intra-entity intangible asset transfers | (81 | ) | |
Resolutions of prior years’ income tax filings and other tax items | (7 | ) | |
Income tax effect of non-GAAP adjustments | (6 | ) | |
Non-GAAP adjusted provision for income taxes (b) | $ | 220 | |
Income before income taxes - GAAP basis (c) | $ | 1,864 | |
Certain items associated with acquisitions | 10 | ||
Acquisition integration and deal costs | 12 | ||
Realized loss (gain) on strategic investments, net | (2 | ) | |
Unrealized loss (gain) on strategic investments, net | (28 | ) | |
Non-GAAP adjusted income before income taxes (d) | $ | 1,856 | |
Effective income tax rate - GAAP basis (a/c) | 17.6 | % | |
Non-GAAP adjusted effective income tax rate (b/d) | 11.9 | % |