Early Access

10-QPeriod: Q1 FY2015

APPLIED MATERIALS INC /DE Quarterly Report for Q1 Ended Jan 25, 2015

Filed February 19, 2015For Securities:AMAT

Summary

Applied Materials, Inc. (AMAT) reported its financial results for the fiscal quarter ended January 25, 2015, showing a significant increase in profitability compared to the same period in the prior year. Net sales rose by 7.7% to $2.36 billion, while net income surged by 37.5% to $348 million. This growth was primarily driven by strong performance in the Silicon Systems Group and a notable recovery in the Display segment. Earnings per diluted share also improved to $0.28 from $0.21 year-over-year. The company's operational efficiency appears to be strengthening, with income from operations increasing by 38.8% to $458 million, indicating improved cost management and leverage of higher sales. Despite a slight increase in operating expenses, the substantial revenue growth and favorable product mix within segments contributed to a significant expansion in operating margin. Investors will likely view these results positively, highlighting the company's ability to capitalize on market demand and translate sales into bottom-line growth, while continuing to invest in research and development.

Financial Highlights

52 data points
Beta

Revenue

$2.36B

0.4% Gross Margin

Net Income

$348.00M

0.1% Net Margin

EPS (Diluted)

$0.28

Total Assets

$13.07B

Cash & Equivalents

$2.93B

Free Cash Flow

$11.00M

Financial Statements
Beta
Revenue$2.36B
Cost of Revenue$1.40B
Gross Profit$959.00M
R&D Expenses$351.00M
Operating Expenses$501.00M
Operating Income$458.00M
Interest Expense$23.00M
Net Income$348.00M
EPS (Basic)$0.28
EPS (Diluted)$0.28
Shares Outstanding (Basic)1.22B
Shares Outstanding (Diluted)1.24B

Key Highlights

  • 1Net sales increased by 7.7% to $2.36 billion for the quarter ended January 25, 2015, compared to $2.19 billion in the prior year period.
  • 2Net income saw a substantial increase of 37.5% to $348 million, up from $253 million in the prior year period.
  • 3Earnings per diluted share improved to $0.28, an increase from $0.21 in the comparable prior year quarter.
  • 4Income from operations grew significantly by 38.8% to $458 million, indicating strong operational leverage.
  • 5The Silicon Systems Group remained the largest segment by revenue, and the Display segment showed strong sequential and year-over-year growth in net sales.
  • 6The company reported $2.93 billion in cash and cash equivalents, indicating a solid liquidity position.
  • 7Significant investments in Research, Development and Engineering (RD&E) were maintained at $351 million, underscoring a commitment to innovation.

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