Compared to the second quarter of fiscal 2017, Applied grew net sales by 29% to $4.57 billion. On a GAAP basis, the company increased gross margin by 0.7 points to 45.8%, and grew operating income by 41% to $1.33 billion or 29.1% of net sales. GAAP earnings per share (EPS) grew 43% to $1.09.
On a non-GAAP adjusted basis, over the same period, the company increased gross margin by 0.4 points to 46.7%, grew operating income by 40% to $1.38 billion or 30.2% of net sales, and increased EPS by 54% to $1.22.
The company generated $611 million in cash from operations and returned $2.6 billion to shareholders through $2.5 billion in share repurchases and dividends of $105 million.
“Applied’s performance in the second fiscal quarter was another all-time record for the company, which demonstrates strong execution and customer pull for materials solutions that help accelerate roadmaps and bring new devices to market faster,” said Gary Dickerson, president and CEO. “Applied has the broadest opportunity across major technology trends, and our markets are strong, with long-term growth drivers firmly in place.”
In the third quarter of fiscal 2018, Applied expects net sales to be in the range of $4.33 billion to $4.53 billion; the midpoint of the range would be an increase of approximately 18%, year over year. Non-GAAP adjusted diluted EPS is expected to be in the range of $1.13 to $1.21; the midpoint of the range would be an increase of approximately 36%, year over year.