05.23.16
Applied Materials, Inc. reported results for its second quarter ended May 1, 2016. Second quarter orders were $3.45 billion, up 52% sequentially and up 37% year over year. Backlog increased to $4.17 billion. Net sales of $2.45 billion were up 9% sequentially, flat year over year, and near the high end of guidance.
The company recorded gross margin of 41.0%, operating margin of 17.3%, and net income of $320 million or $0.29 per diluted share. On a non-GAAP adjusted basis, the company reported second quarter gross margin of 42.7%, operating margin of 19.2%, and net income of $376 million or $0.34 per diluted share.
The company generated $481 million in cash from operations during the second quarter, paid dividends of $113 million and used $900 million to repurchase 45 million shares of common stock.
“In our second quarter we booked our highest orders in 15 years and we expect to deliver record earnings in fiscal 2016,” said Gary Dickerson, president and CEO. “We are making significant progress with our strategy in semiconductor, display and service, and have a great pipeline of differentiated products that will fuel future growth.”
In the third quarter of fiscal 2016, Applied expects net sales to be up 14% to 18% sequentially. Non-GAAP adjusted diluted EPS is expected to be in the range of $0.46 to $0.50. Applied’s backlog increased 34% to $4.17 billion and included positive adjustments of $58 million, primarily consisting of favorable foreign currency impact.
The company recorded gross margin of 41.0%, operating margin of 17.3%, and net income of $320 million or $0.29 per diluted share. On a non-GAAP adjusted basis, the company reported second quarter gross margin of 42.7%, operating margin of 19.2%, and net income of $376 million or $0.34 per diluted share.
The company generated $481 million in cash from operations during the second quarter, paid dividends of $113 million and used $900 million to repurchase 45 million shares of common stock.
“In our second quarter we booked our highest orders in 15 years and we expect to deliver record earnings in fiscal 2016,” said Gary Dickerson, president and CEO. “We are making significant progress with our strategy in semiconductor, display and service, and have a great pipeline of differentiated products that will fuel future growth.”
In the third quarter of fiscal 2016, Applied expects net sales to be up 14% to 18% sequentially. Non-GAAP adjusted diluted EPS is expected to be in the range of $0.46 to $0.50. Applied’s backlog increased 34% to $4.17 billion and included positive adjustments of $58 million, primarily consisting of favorable foreign currency impact.