Applied Materials Announces Record Results for Fourth Quarter and Fiscal Year 2000; Record New Orders, Net Sales and Net Income
SANTA CLARA, Calif.--(BUSINESS WIRE)--Nov. 15, 2000--Applied Materials, Inc., the world's largest supplier of wafer fabrication solutions to the semiconductor industry, reported record results for its fourth fiscal quarter ended October 29, 2000. Record net sales were $2.92 billion, up 7 percent from $2.73 billion for the third fiscal quarter of 2000, and up 81 percent from $1.61 billion for the fourth fiscal quarter of 1999. Record ongoing net income (net income, excluding one-time items) for the fourth fiscal quarter of 2000 was $664 million, or $0.77 per diluted share, up 10 percent from $604 million, or $0.70 per diluted share, for the third fiscal quarter of 2000, and up 119 percent from $303 million, or $0.37 per diluted share, for the fourth fiscal quarter of 1999.
Record new orders were $3.60 billion for the fourth fiscal quarter of 2000, increasing 10 percent from $3.28 billion for the third fiscal quarter of 2000, and increasing 113 percent from $1.69 billion for the fourth fiscal quarter of 1999. Regional distribution of new orders for the fourth fiscal quarter of 2000 was: North America 29 percent, Japan 21 percent, Europe 15 percent, Taiwan 14 percent, Southeast Asia and China 11 percent and Korea 10 percent. Backlog at the end of the fourth fiscal quarter of 2000 increased to $4.38 billion, from $3.69 billion at the end of the third fiscal quarter of 2000.
Gross margin for the fourth fiscal quarter of 2000 was 51.7 percent, up from 50.9 percent for the third fiscal quarter of 2000, and up from 49.6 percent for the fourth fiscal quarter of 1999. Record operating income as a percentage of net sales was 31.0 percent for the fourth fiscal quarter of 2000, compared to 30.2 percent for the third fiscal quarter of 2000 and 24.5 percent for the fourth fiscal quarter of 1999. Record ongoing net income as a percentage of net sales was
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22.7 percent for the fourth fiscal quarter of 2000, compared to 22.1 percent for the third fiscal quarter of 2000 and 18.8 percent for the fourth fiscal quarter of 1999.
The Company also announced results for its fiscal year ended October 29, 2000, with record new orders, net sales and ongoing net income. Fiscal 2000 new orders were $12.26 billion, a 114 percent increase from fiscal 1999 new orders of $5.72 billion. Net sales for fiscal 2000 were $9.56 billion, an 88 percent increase from fiscal 1999 net sales of $5.10 billion. Ongoing net income (net income, excluding one-time items) for fiscal 2000 was $2.05 billion, or $2.39 per diluted share, up 171 percent from $757 million, or $0.92 per diluted share, for fiscal 1999.
"This has been an outstanding year for Applied Materials," said James C. Morgan, chairman and chief executive officer. "I am very proud of our global team for capitalizing on worldwide demand for semiconductors to deliver the strongest year in the Company's history, with revenue almost double that of last year."
Applied Materials' leading-edge systems and services enable semiconductor manufacturers to make more powerful, portable and affordable chips for the Internet and Information Age. Underscoring its commitment to industry innovation, the Company introduced a record 37 new products in fiscal 2000, together with a host of new applications for advanced semiconductor processing.
"Since we are just at the beginning of the Information Age, we have tremendous growth opportunities ahead, as global demand for electronics products and the number of applications for semiconductors are both increasing. In the coming year, we expect our customers to increase their investment in advanced technologies for smaller line-widths, 300mm product capabilities and advanced materials applications. Our focus on providing a broad range of leading products, combined with strong operating capability and global support infrastructure, positions Applied Materials to benefit from worldwide demand for increasingly sophisticated electronics," concluded Morgan.
This press release contains certain forward-looking statements, including, but not limited to, those relating to growth opportunities ahead and customers' increased investments in advanced technologies. These forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to: continued global demand for semiconductors and increasingly sophisticated electronics; changes in customer capacity requirements; the ability of the Company to maintain its technology leadership and product position; the transition to 300mm systems; changes in global economic conditions; and those risks and uncertainties described in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update the information in this press release.
Applied Materials will be discussing its fourth quarter and fiscal year results, along with its outlook for the first fiscal quarter of 2001, on a conference call today, beginning at 1:30 PM PST. A webcast of the conference call will be available to all interested parties on Applied Materials' website at http://www.appliedmaterials.com under the "Investors" section.
Applied Materials (Nasdaq:AMAT) is a leader of the Information Age and the world's largest supplier of products and services to the global semiconductor industry.
APPLIED MATERIALS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Fiscal Year Ended
----------------------------------------------------------------------
(In thousands, except October 31, October 29, October 31, October 29,
per share amounts) 1999 2000 1999 2000
----------------------------------------------------------------------
Net sales $1,613,570 $2,920,163 $5,096,302 $9,564,412
Cost of products sold 813,110 1,411,256 2,677,083 4,708,684
---------- ---------- ---------- ----------
Gross margin 800,460 1,508,907 2,419,219 4,855,728
Operating expenses:
Research, development
and engineering 216,123 327,413 740,114 1,107,922
Marketing and selling 92,918 142,598 340,515 483,316
General and
administrative 96,676 133,439 354,781 477,437
Non-recurring items 43,400 -- 50,915 40,000
---------- ---------- ---------- ----------
Income from operations 351,343 905,457 932,894 2,747,053
Non-recurring income 10,000 -- 30,000 68,158
Interest expense 12,238 13,221 47,566 51,375
Interest income 30,576 56,046 108,016 184,008
---------- ---------- ---------- ----------
Income before taxes
and equity in net
income of joint
venture 379,681 948,282 1,023,344 2,947,844
Provision for income
taxes 130,697 284,485 330,458 884,292
---------- ---------- ---------- ----------
Income before equity
in net income of
joint venture 248,984 663,797 692,886 2,063,552
Restructuring of joint
venture 3,677 -- 3,677 --
Equity in net income
of joint venture 18,068 -- 30,116 --
---------- ---------- ---------- ----------
Income from continuing
operations 270,729 663,797 726,679 2,063,552
Provision for
discontinuance of
joint venture 33,044 -- 20,996 --
---------- ---------- ---------- ----------
Net income $ 303,773 $ 663,797 $ 747,675 $2,063,552
---------- ---------- ---------- ----------
Earnings per share:
Basic - continuing
operations $ 0.35 $ 0.82 $ 0.93 $ 2.56
Basic - discontinued
operations 0.04 -- 0.03 --
---------- ---------- ---------- ----------
Total basic $ 0.39 $ 0.82 $ 0.96 $ 2.56
---------- ---------- ---------- ----------
Diluted - continuing
operations $ 0.33 $ 0.77 $ 0.88 $ 2.40
Diluted -
discontinued
operations 0.04 -- 0.03 --
---------- ---------- ---------- ----------
Total diluted $ 0.37 $ 0.77 $ 0.91 $ 2.40
---------- ---------- ---------- ----------
Weighted average number
of shares:
Basic 788,422 813,042 778,604 806,580
Diluted 830,840 860,822 820,580 859,169
Historical amounts have been restated to reflect a two-for-one
stock split in the form of a 100 percent stock dividend, effective
March 15, 2000, and the acquisition of Etec, which was completed on
March 29, 2000 and accounted for as a pooling-of-interests.
APPLIED MATERIALS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
----------------------------------------------------------------------
October 31, October 29,
(In thousands) 1999 2000
----------------------------------------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 868,121 $ 1,647,604
Short-term investments 1,951,254 2,580,435
Accounts receivable, net 1,268,146 2,351,379
Inventories 727,107 1,503,751
Deferred income taxes 341,668 549,108
Other current assets 154,424 206,870
------------ ------------
Total current assets 5,310,720 8,839,147
Property, plant and equipment, net 1,278,269 1,366,782
Other assets 425,521 339,801
------------ ------------
Total assets $ 7,014,510 $ 10,545,730
------------ ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $ 5,789 $ 94,676
Current portion of long-term debt 36,484 11,621
Accounts payable and accrued expenses 1,442,718 2,268,608
Income taxes payable 246,506 384,806
------------ ------------
Total current liabilities 1,731,497 2,759,711
Long-term debt 584,357 573,126
Deferred income taxes and other
liabilities 123,398 108,545
------------ ------------
Total liabilities 2,439,252 3,441,382
------------ ------------
Stockholders' equity:
Common stock 7,932 8,125
Additional paid-in capital 1,443,723 1,930,212
Retained earnings 3,122,337 5,185,181
Accumulated other comprehensive
income/(loss) 1,266 (19,170)
------------ ------------
Total stockholders' equity 4,575,258 7,104,348
------------ ------------
Total liabilities and stockholders'
equity $ 7,014,510 $ 10,545,730
------------ ------------
Historical amounts have been restated to reflect a two-for-one
stock split in the form of a 100 percent stock dividend, effective
March 15, 2000, and the acquisition of Etec, which was completed on
March 29, 2000 and accounted for as a pooling-of-interests.
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| CONTACT: | Applied Materials |
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| Carolyn Schwartz, 408/748-5227 (investment community) | |