- Record quarterly revenue of $3.97 billion, up 20% year over year
- Record quarterly EPS of $0.91 up 63% year over year, and non-GAAP EPS of $0.93 up 41% year over year
- Record annual revenues and operating profit for all segments
- Momentum continues with record year-end backlog of $6.03 billion, up 32% year over year
SANTA CLARA, Calif., Nov. 16, 2017 (GLOBE NEWSWIRE) -- Applied Materials, Inc. (NASDAQ:AMAT) today reported record results in its fourth quarter and fiscal year ended October 29, 2017.
Fourth Quarter Results
Compared to the fourth quarter of fiscal 2016, Applied grew net sales by 20 percent to $3.97 billion. On a GAAP basis, the company reported gross margin of 45.0 percent; operating income of $1.10 billion; and earnings per share (EPS) of $0.91. On a non-GAAP adjusted basis, year over year, the company increased gross margin by 2.5 points to 46.2 percent, grew operating income by 37 percent to $1.14 billion or 28.7 percent of net sales, and increased EPS by 41 percent to $0.93.
The company paid cash dividends of $107 million and used $385 million to repurchase 8 million shares of common stock at an average price of $48.65.
Full Year Results
In fiscal 2017, Applied grew net sales by 34 percent to $14.54 billion. On a GAAP basis, the company recorded gross margin of 44.9 percent, operating income of $3.87 billion, and EPS of $3.17. On a non-GAAP adjusted basis, year over year, the company increased gross margin by 2.9 points to 46.1 percent, grew operating income by 73 percent to $4.05 billion or 27.9 percent of net sales, and increased EPS by 86 percent to $3.25.
The company generated $3.61 billion in cash from operations, paid dividends of $430 million and used $1.17 billion to repurchase 28 million shares of common stock at an average price of $42.08.
“Fiscal 2017 was a record-breaking year for the company. We have great momentum and we’re confident that in 2018 we can deliver strong double-digit growth across our semiconductor, display and service businesses,” said Gary Dickerson, president and CEO. “This is the most exciting time in the history of the electronics industry. AI will transform entire industries over the coming years, creating trillions of dollars of economic value, and Applied is uniquely positioned to deliver the innovative materials needed to enable next-generation memory and high-performance computing.”
Results Summary
| Change | |||||||||||||||||||||||
| Q4 FY2017 | Q4 FY2016 | FY2017 | FY2016 |
Q4 FY2017
vs. Q4 FY2016 |
FY2017
vs. FY2016 | ||||||||||||||||||
| (In millions, except per share amounts and percentages) | |||||||||||||||||||||||
| Net sales | $ | 3,969 | $ | 3,297 | $ | 14,537 | $ | 10,825 | 20 | % | 34 | % | |||||||||||
| Gross margin | 45.0 | % | 42.4 | % | 44.9 | % | 41.7 | % | 2.6 | points | 3.2 | points | |||||||||||
| Operating margin | 27.7 | % | 23.6 | % | 26.6 | % | 19.9 | % | 4.1 | points | 6.7 | points | |||||||||||
| Net income | $ | 982 | $ | 610 | $ | 3,434 | $ | 1,721 | 61 | % | 100 | % | |||||||||||
| Diluted earnings per share | $ | 0.91 | $ | 0.56 | $ | 3.17 | $ | 1.54 | 63 | % | 106 | % | |||||||||||
| Non-GAAP Adjusted Results | |||||||||||||||||||||||
| Non-GAAP adjusted gross margin | 46.2 | % | 43.7 | % | 46.1 | % | 43.2 | % | 2.5 | points | 2.9 | points | |||||||||||
| Non-GAAP adjusted operating margin | 28.7 | % | 25.2 | % | 27.9 | % | 21.7 | % | 3.5 | points | 6.2 | points | |||||||||||
| Non-GAAP adjusted net income | $ | 1,005 | $ | 722 | $ | 3,525 | $ | 1,950 | 39 | % | 81 | % | |||||||||||
| Non-GAAP adjusted diluted EPS | $ | 0.93 | $ | 0.66 | $ | 3.25 | $ | 1.75 | 41 | % | 86 | % | |||||||||||
