Summary
Applied Materials, Inc. reported its third quarter and nine-month results for fiscal year 2012, indicating a challenging market environment. Net sales for the third quarter were $2.343 billion, a decrease from $2.787 billion in the same period last year. This decline was primarily attributed to weaker demand in the display and solar industries, partially offset by the inclusion of Varian Semiconductor Equipment Associates (Varian) and demand from foundry customers in the semiconductor segment. The company noted a softening in demand for semiconductor equipment in the third quarter due to uncertain global economic conditions and consumer spending patterns. Despite the revenue decline, the company managed its expenses, though operating income also saw a significant decrease compared to the prior year. The acquisition of Varian, completed in November 2011, is being integrated and contributed to both revenue and associated integration costs. The company is also undertaking a restructuring of its Energy and Environmental Solutions segment due to challenging industry conditions. Looking ahead, Applied Materials anticipates a further decline in semiconductor equipment investments and continued weakness in the display and solar equipment markets for the fourth quarter of fiscal 2012.
Financial Highlights
54 data points| Revenue | $2.34B |
| Cost of Revenue | $1.41B |
| Gross Profit | $930.00M |
| R&D Expenses | $309.00M |
| SG&A Expenses | $255.00M |
| Operating Expenses | $608.00M |
| Operating Income | $322.00M |
| Interest Expense | $24.00M |
| Net Income | $218.00M |
| EPS (Basic) | $0.17 |
| EPS (Diluted) | $0.17 |
| Shares Outstanding (Basic) | 1.26B |
| Shares Outstanding (Diluted) | 1.27B |
Key Highlights
- 1Net sales for the third quarter of fiscal 2012 decreased by 16% to $2.343 billion compared to $2.787 billion in the prior year period.
- 2Net income for the third quarter of fiscal 2012 was $218 million, a significant decrease from $476 million in the same period of the prior year.
- 3Diluted earnings per share (EPS) for the third quarter of fiscal 2012 was $0.17, down from $0.36 in the prior year period.
- 4The acquisition of Varian Semiconductor Equipment Associates (Varian) in November 2011 is impacting financial results, contributing to revenue but also to integration costs and amortization expenses.
- 5The company announced a restructuring plan for its Energy and Environmental Solutions segment due to challenging industry conditions in the solar photovoltaic and LED equipment markets.
- 6Cash, cash equivalents, and investments decreased significantly to $3.2 billion at July 29, 2012, from $7.2 billion at October 30, 2011, primarily due to the Varian acquisition and share repurchases.
- 7New orders decreased across most segments compared to both the prior quarter and prior year, reflecting a slowdown in capital equipment spending by customers in the semiconductor, display, and solar industries.