08.13.15
Applied Materials, Inc. reported results for its third quarter ended July 26, 2015. Third quarter orders were $2.89 billion, up 15% sequentially and up 17% year over year. Net sales were $2.49 billion, up 2% sequentially and up 10% year over year.
The company recorded GAAP gross margin of 40.9%, operating margin of 15.9%, and net income of $329 million or $0.27 per diluted share. The GAAP results included the effect of cost reduction actions in the solar business consisting of $34 million of inventory charges and $17 million of restructuring and asset impairment charges.
The company generated $334 million in cash from operations, paid dividends of $123 million and used $625 million to repurchase 32 million shares of common stock.
“Applied is focused on profitable growth and the results show in our third-quarter performance when we delivered our highest ever 300mm semiconductor equipment orders and record revenue in services,” said Gary Dickerson, president and CEO. “Our highly differentiated materials engineering products help customers accelerate major technology inflections including 3D NAND, and this quarter we generated the highest flash memory orders in our history.”
For the fourth quarter of fiscal 2015, Applied expects net sales to be in the range of flat to down 7% from the previous quarter, and non-GAAP adjusted diluted EPS is expected to be in the range of $0.27 to $0.31.
Applied’s backlog grew 11% sequentially to $3.10 billion and included negative adjustments of $84 million, primarily consisting of order cancellations from a foundry customer.
The company recorded GAAP gross margin of 40.9%, operating margin of 15.9%, and net income of $329 million or $0.27 per diluted share. The GAAP results included the effect of cost reduction actions in the solar business consisting of $34 million of inventory charges and $17 million of restructuring and asset impairment charges.
The company generated $334 million in cash from operations, paid dividends of $123 million and used $625 million to repurchase 32 million shares of common stock.
“Applied is focused on profitable growth and the results show in our third-quarter performance when we delivered our highest ever 300mm semiconductor equipment orders and record revenue in services,” said Gary Dickerson, president and CEO. “Our highly differentiated materials engineering products help customers accelerate major technology inflections including 3D NAND, and this quarter we generated the highest flash memory orders in our history.”
For the fourth quarter of fiscal 2015, Applied expects net sales to be in the range of flat to down 7% from the previous quarter, and non-GAAP adjusted diluted EPS is expected to be in the range of $0.27 to $0.31.
Applied’s backlog grew 11% sequentially to $3.10 billion and included negative adjustments of $84 million, primarily consisting of order cancellations from a foundry customer.