Applied Materials Announces Record Revenues of $898 Million And Record New Orders Exceeding $1 Billion; Revenue up 104 percent, Record Net Income of $139 Million.SANTA CLARA Santa Clara, city, Cuba Santa Clara (sän`tä klä`rä), city (1994 est. pop. 217,000), capital of Villa Clara prov., central Cuba. , Calif.--(BUSINESS WIRE)--Aug. 15, 1995--Applied Materials, Inc. reported record results for its third quarter ended July 30, 1995, with net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $897.7 million, up 104 percent from third quarter fiscal 1994 net sales of $440.2 million. Net income increased 140 percent to $139.2 million, or $1.57 per share in the third quarter of fiscal 1995, from $58.1 million, or $0.68 per share, in the third quarter of fiscal 1994. Backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. rose to $1.35 billion from $1.22 billion at the end of the second quarter of fiscal 1995. New orders of $1.01 billion were received during the third quarter, breaking the one billion dollar level for the first time in the Company's history. Sales in the third quarter reflect the semiconductor industry's continued strong demand for advanced wafer (1) A small, thin continuous-loop magnetic tape cartridge that has been used from time to time for data storage and specialized applications. (2) The base unit of chip making. It is a slice taken from a salami-like silicon crystal ingot up to 12" (300mm) in diameter. processing equipment. The Company's year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. revenue of $2.08 billion represents a 74 percent increase from $1.19 billion during the same period in 1994. "The Company's strong revenue growth during the last two quarters demonstrates successful execution of our strategies to ramp manufacturing capacity to meet customer delivery requirements The stipulation that requires that an item of materiel must be delivered in the total quantity required by the date required. . The Austin and Santa Clara manufacturing facilities have responded extremely well to this strength in demand and in their ability to manage backlog commitments," said James C. Morgan Morgan, American family of financiers and philanthropists. Junius Spencer Morgan, 1813–90, b. West Springfield, Mass., prospered at investment banking. , chairman and chief executive officer. A record $1.01 billion in orders was achieved during the third quarter, up from the $926.9 million reported in the second quarter of fiscal 1995. "Many leading semiconductor companies worldwide have increased capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. forecasts during the year in an effort to keep up with the strong demand for semiconductor devices. Record new orders from North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. and European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. manufacturers were driven by strong demand for microprocessors This is a list of microprocessors. Intel
Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. applications. Orders from Japan were near record levels as DRAM manufacturers continued investment in response to tight supply. As anticipated, Korean orders were down from previous record levels as manufacturers absorbed recent shipments from capacity buys placed earlier this year. Strong demand for foundry A semiconductor manufacturer that makes chips for third parties. It may be a large chip maker that sells its excess manufacturing capacity or one that makes chips exclusively for other companies. , merchant and DRAM capacity led to near record orders from the rest of Asia-Pacific," added Morgan. "Each of the Company's product lines and our spares and service division achieved record revenues during the quarter as customers continued to purchase equipment to address the requirements of advanced semiconductors with circuit geometries of 0.5-micron and smaller," said Morgan. The Company achieved record net income of $139.2 million, or 15.5 percent of revenue, in the third quarter of fiscal 1995, up from 13.9 percent, or $93.6 million, in the second quarter of fiscal 1995 as a result of higher sales and lower operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. as a percentage of sales. "Gross margin as a percentage of revenue increased modestly to 45.5 percent from the second quarter's 45.2 percent, as productivity gains were beginning to be realized from employees who were hired earlier this year to support the higher revenue run rate, and from improved manufacturing efficiencies for the new Centura-based products," continued Morgan. In July 1995, the Company completed a secondary equity offering by issuing 4,025,000 shares at $82.75, raising more than $333 million. Pursuant to its existing shelf registration, the Company also intends to commence a program to offer medium term notes or other debt securities. "This financing strategy provides the Company with added liquidity and financial resources to fund strategic investments in global infrastructure and human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. which are critical to satisfying long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. customer requests," said Morgan. "The increasingly pervasive pervasive, adj indicates that a condition permeates the entire development of the individual. nature of semiconductors by application and by geographic region is expanding the nature and scope of our business opportunity," commented Morgan. "Industry analysts believe that the semiconductor industry is still investing in new production capacity in order to meet demand. As a world-class global competitor in an industry affected by inherent uncertainty, Applied Materials Applied Materials, Inc. NASDAQ: AMAT (HKSE: 4336 ) is the global leader in nanomanufacturing technology solutions with a broad portfolio of innovative equipment, service and software products for the fabrication of semiconductor chips, flat panel solar displays, solar continues to invest in technology, support infrastructure, customer relationships and capable employees to insure Insure can mean:
Applied Materials, Inc. is a global growth company and the world's largest supplier of wafer fabrication Wafer Fabrication is a procedure composed of many repeated sequential processes to produce complete electrical or photonic circuits. Examples include production of radio frequency (RF) amplifiers, LEDs, optical computer components, and CPUs for computers. systems and services to the global semiconductor industry. Applied Materials is traded on the Nasdaq National Market under the symbol "AMAT AMAT Applied Materials (stock symbol) AMAT Average Memory Access Time AMAT Automatic Message Accounting Transmitter AMAT Anti-Materiel (bomb or mine) AMAT Ageing Management Assessment Team ." -0-
APPLIED MATERIALS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share data)
Three Months Ended Nine Months Ended
July 30, July 31, July 30, July 31,
1995 1994 1995 1994
Net sales $897,684 $440,228 $2,079,231 $1,192,009 Cost and expenses: Cost of products sold 489,256 234,656 1,127,781 641,067 Research, development and engineering 85,789 52,494 219,178 135,386 Marketing and selling 62,520 39,851 158,566 113,254 General and administrative 44,109 20,279 109,096 60,500 Other, net 2,633 701 4,286 815 Income from operations 213,377 92,247 460,324 240,987 Interest expense 5,527 3,659 17,161 10,779 Interest income 6,323 2,946 16,306 7,214 Income from consolidated companies before taxes and cumulative effect of accounting change 214,173 91,534 459,469 237,422 Provision for income taxes 74,961 32,036 160,814 83,097 Income from consolidated companies before cumulative effect of accounting change 139,212 59,498 298,655 154,325 Equity in net loss of joint venture - 1,362 - 3,727 Income before cumulative effect of accounting change 139,212 58,136 298,655 150,598 Cumulative effect of a change in accounting for income taxes - - - 7,000
Net income $139,212 $ 58,136 $ 298,655 $ 157,598
Earnings per share
Before cumulative effect of
accounting change $ 1.57 $ 0.68 $ 3.42 $ 1.78
Net income $ 1.57 $ 0.68 $ 3.42 $ 1.86
Average common shares and equivalents 88,877 86,033 87,399 84,654
APPLIED MATERIALS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS(a)
(in thousands)
July 30, Oct. 30,
1995 1994
ASSETS
Current assets:
Cash and cash equivalents $ 262,363 $ 160,320
Short-term investments 437,382 262,005
Accounts receivable, net 778,113 405,813
Inventories 391,229 245,710
Deferred income taxes 104,646 99,766
Other current assets 84,470 56,923
Total current assets 2,058,203 1,230,537
Property, plant and equipment, net 557,718 452,454 Other assets 22,210 19,674 Total assets $2,638,131 $1,702,665 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Notes payable $ 73,607 $ 43,081 Current portion of long-term debt 25,428 15,432 Accounts payable and accrued expenses 595,303 378,238 Income taxes payable 65,625 59,682 Total current liabilities 759,963 496,433 Long-term debt 231,103 209,114 Deferred income taxes and other non-current obligations 39,748 30,854 Total liabilities 1,030,814 736,401 Stockholders' equity: Common stock 893 841 Additional paid-in capital 720,644 390,655 Retained earnings 844,581 545,926 Cumulative translation adjustments 41,199 28,842 Total stockholders' equity 1,607,317 966,264 Total liabilities and stockholders' equity $2,638,131 $1,702,665 (a) Amounts as of July 30, 1995 are unaudited. Amounts as of October 30, 1994 were obtained from the October 30, 1994 audited financial statements. CONTACT: Applied Materials, Inc. Shannon Fryhoff, 408/986-7229 (editorial/media) Bill Ong, 408/235-6232 (investment community) |
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