New orders were $3.66 billion, up 6% sequentially and up 26% year over year. Backlog of $4.95 billion was up 19% sequentially and up 60% year over year. Net sales of $2.82 billion were up 15% sequentially and up 13% year over year.
The company recorded gross margin of 42.3%, operating margin of 21.1%, and net income of $505 million or $0.46 per diluted share. On a non-GAAP adjusted basis, the company reported third quarter gross margin of 43.7%, operating margin of 22.8%, and net income of $550 million or $0.50 per diluted share.
The company generated $981 million in cash from operations, paid dividends of $108 million and used $196 million to repurchase 9 million shares of common stock at an average price of $21.88.
“With earnings and orders at an all-time high, Applied is performing better than ever and in a great position to sustainably outperform our markets,” said Gary Dickerson, president and CEO. “We are in the early stages of large, multi-year industry inflections that are driving our business today and creating new opportunities for future growth.”
In the fourth quarter of fiscal 2016, Applied expects net sales to be up 15% to 19% sequentially. Non-GAAP adjusted diluted EPS is expected to be in the range of $0.61 to $0.69.