Applied Materials, Inc. (NASDAQ:AMAT), today reported record revenue and operating profit in its first quarter ended January 28, 2018.
First Quarter Results
Compared to the first quarter of fiscal 2017, Applied grew net sales by 28 percent to $4.20 billion. On a GAAP
basis, the company increased gross margin by 1.6 points to 45.7 percent, and grew operating income by 48 percent
to $1.20 billion or 28.4 percent of net sales. GAAP earnings per share (EPS) declined to $0.13 due to a one-time
charge related to recent U.S. tax legislation that reduced EPS by approximately $0.94.
On a non-GAAP adjusted basis, over the same period, the company increased gross margin by 1.3 points to 46.7
percent, grew operating income by 46 percent to $1.25 billion or 29.6 percent of net sales, and increased EPS by 58
percent to $1.06, which excludes the charge related to recent U.S. tax legislation. In addition, non-GAAP EPS
included a benefit of $0.04 that was driven by recent changes in U.S. tax legislation that reduced the companys
fiscal 2018 tax rate relative to previous expectations.
The company increased cash flow from operations by 85 percent year over year to $1.47 billion and returned $888
million to shareholders through dividends of $106 million and $782 million in share repurchases.
“We see sustainable strength in our markets as large, powerful trends drive a fundamental shift in the demand for
semiconductors and displays,” said Gary Dickerson, president and CEO. “Our broad portfolio of capabilities and
products puts us in a great position to outperform our markets and we’re confident that each of our three major
business segments can deliver strong double-digit growth in 2018.”
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