59% Quarterly Drop For AMAT
Applied Materials has reported that for its first fiscal quarter ended January 25, 2009, net sales were $1.33 billion, gross margin was 29.4 percent, GAAP net loss was $133 million, GAAP net loss per share was $0.10, and new orders were $903 million. These results included a restructuring charge of $133 million associated with a global cost reduction program announced on November 12, 2008.
“We acted early and decisively to reduce costs in line with economic conditions that have resulted in an unprecedented decline in demand," said Mike Splinter, president and CEO. "With our leading technology and strong balance sheet, Applied is positioned to weather this recession and invest in new products and services.”
The following table shows comparisons to the first and fourth quarters of fiscal 2008.
|
| Q1 FY ‘09 |
| Q1 FY ‘08 |
| Q4 FY ‘08 |
Net sales |
| $1.33 billion |
| $2.09 billion |
| $2.04 billion |
Gross margin percent |
| 29.4% |
| 44.8% |
| 39.1% |
Net income (loss) |
| ($133 million) |
| $262 million |
| $231 million |
Earnings (loss) per share |
| ($0.10) |
| $0.19 |
| $0.17 |
New orders |
| $903 million |
| $2.50 billion |
| $2.21 billion |
Regional distribution of new orders was: Europe 39 percent, North America 26 percent, Japan 17 percent, Southeast Asia and China 9 percent, Korea 7 percent, and Taiwan 2 percent. Backlog at the end of the first quarter of fiscal 2009 was $4.05 billion, down from $4.85 billion at the end of the fourth quarter of fiscal 2008.
Non-GAAP net loss for the first quarter of fiscal 2009 was $3 million, or $0.00 per share. The following table shows comparisons of non-GAAP results to the first and fourth quarters of fiscal 2008. Non-GAAP adjustments are explained below and detailed in the accompanying Reconciliation of GAAP to Non-GAAP Results.
|
| Q1 FY ‘09 |
| Q1 FY ‘08 |
| Q4 FY ‘08 |
Non-GAAP net income (loss) |
| ($3 million) |
| $345 million |
| $264 million |
Non-GAAP earnings (loss) per share |
| $0.00 |
| $0.25 |
| $0.20 |
Non-GAAP net income (loss) and non-GAAP earnings (loss) per share, detailed in the accompanying Reconciliation of GAAP to Non-GAAP Results, exclude charges related to one or more of the following: (i) equity-based compensation, (ii) gain on sale of facility, (iii) certain items associated with acquisitions, including amortization of intangibles and inventory fair value adjustments on products sold, (iv) restructuring and asset impairments, (v) certain costs associated with ceasing development of beamline implant products, and/or (vi) the resolution of income tax audits and changes in tax credits. Management uses non-GAAP net income (loss) and non-GAAP earnings (loss) per share to evaluate the company's operating and financial performance in light of business objectives and for planning purposes. These measures are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. Applied believes that these measures enhance investors' ability to review the company's business from the same perspective as the company's management and facilitate comparisons of this period's results with prior periods.
Results by reportable segment for the first quarter of fiscal 2009 and the first and fourth quarters of fiscal 2008 were:
| Q1 FY ‘09 | Q1 FY ‘08 | Q4 FY ‘08 | ||||||
(In millions) | New Orders | Net Sales | Operating Income (Loss) | New Orders | Net Sales | Operating Income (Loss) | New Orders | Net Sales | Operating Income (Loss) |
Silicon | $246 | $546 | $34 | $1,075 | $1,237 | $445 | $1,162 | $744 | $177 |
Applied Global Services | 310 | 345 | 26 | 610 | 595 | 149 | 496 | 528 | 123 |
Display | 26 | 149 | 26 | 555 | 133 | 34 | 65 | 334 | 113 |
Energy and Environmental Solutions | 321 | 293 | (65) | 260 | 122 | (48) | 490 | 438 | 21 |
