Summary
Applied Materials Inc. (AMAT) reported its third quarter fiscal year 2013 results, showing a sequential increase in net sales and a return to profitability after a challenging prior quarter. Net sales for the three months ended July 28, 2013, were $1.975 billion, a slight increase from the previous quarter but a decrease compared to the same period in the prior year. Net income for the quarter was $168 million, or $0.14 per diluted share, a significant improvement from a net loss in the prior quarter, though lower than the year-ago period. The company's performance was impacted by mixed industry trends. While the Display segment showed strong growth driven by LCD TV equipment demand, and the Silicon Systems Group saw moderate improvements from memory customers, the Energy and Environmental Solutions segment continued to be a drag due to overcapacity in the solar industry. Overall, the company navigated a challenging market environment, marked by ongoing semiconductor industry cyclicality and subdued solar equipment demand.
Financial Highlights
52 data points| Revenue | $1.98B |
| Cost of Revenue | $1.17B |
| Gross Profit | $806.00M |
| R&D Expenses | $334.00M |
| Operating Expenses | $556.00M |
| Operating Income | $250.00M |
| Interest Expense | $23.00M |
| Net Income | $168.00M |
| EPS (Basic) | $0.14 |
| EPS (Diluted) | $0.14 |
| Shares Outstanding (Basic) | 1.20B |
| Shares Outstanding (Diluted) | 1.22B |
Key Highlights
- 1Net sales for the third quarter of fiscal 2013 were $1.975 billion, slightly up from the previous quarter but down 16% year-over-year.
- 2Net income for the quarter was $168 million ($0.14 per diluted share), a significant improvement from a net loss in the second quarter but down from $218 million ($0.17 per diluted share) in the prior year's third quarter.
- 3The company recorded a goodwill impairment charge of $224 million and intangible asset impairment charges of $54 million in the second quarter of fiscal 2013, impacting prior period results but not the current quarter's operational performance.
- 4The Display segment showed strong growth with a 282% increase in new orders year-over-year, driven by LCD TV equipment demand.
- 5The Silicon Systems Group, the largest segment, experienced a 22% sequential decline in new orders but a slight 3% increase year-over-year, with foundry customers driving demand.
- 6The Energy and Environmental Solutions segment continued to struggle, with operating losses and a 46% year-over-year decline in new orders due to persistent solar industry overcapacity.
- 7The company maintained a strong cash position, with cash and cash equivalents totaling $1.745 billion and total cash, cash equivalents, and investments at $3.030 billion.