Delaware | 000-06920 | 94-1655526 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
3050 Bowers Avenue | ||
P.O. Box 58039 | ||
Santa Clara, CA | 95052-8039 | |
(Address of principal executive | (Zip Code) | |
offices) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition | ||||||||
Item 2.05 Costs Associated with Exit or Disposal Activities | ||||||||
Item 9.01 Financial Statements and Exhibits | ||||||||
SIGNATURES | ||||||||
EXHIBIT INDEX | ||||||||
Exhibit 99.1 |
Exhibit No. | Description | |
99.1
|
Press Release issued by Applied Materials, Inc. dated November 12, 2008. |
Applied Materials, Inc. (Registrant) |
||||
Date: November 12, 2008 | By: | /s/ Joseph J. Sweeney | ||
Joseph J. Sweeney | ||||
Senior Vice President, General Counsel and Corporate Secretary |
Exhibit No. | Description | |
99.1
|
Press Release issued by Applied Materials, Inc. dated November 12, 2008. |
Contact:
|
Robert Friess (investment community) | David Miller (editorial/media) | ||
(408) 986-7977 | (408) 563-9582 |
Twelve Months Ended | Twelve Months Ended | |||||||||||||||||||||||
October 26, 2008 | October 28, 2007 | |||||||||||||||||||||||
Operating | Operating | |||||||||||||||||||||||
New | Net | Income | New | Net | Income | |||||||||||||||||||
(In millions) | Orders | Sales | (Loss) | Orders | Sales | (Loss) | ||||||||||||||||||
Silicon |
$ | 4,092 | $ | 4,005 | $ | 1,242 | $ | 6,651 | $ | 6,512 | $ | 2,379 | ||||||||||||
Applied Global
Services |
2,249 | 2,329 | 575 | 2,508 | 2,353 | 630 | ||||||||||||||||||
Display |
1,486 | 976 | 310 | 273 | 705 | 159 | ||||||||||||||||||
Energy and
Environmental
Solutions |
1,329 | 819 | (183 | ) | 245 | 165 | (89 | ) |
Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||||
October 26, 2008 | July 27, 2008 | October 28, 2007 | ||||||||||||||||||||||||||||||||||
Operating | Operating | |||||||||||||||||||||||||||||||||||
New | Net | Operating | New | Net | Income | New | Net | Income | ||||||||||||||||||||||||||||
(In millions) | Orders | Sales | Income | Orders | Sales | (Loss) | Orders | Sales | (Loss) | |||||||||||||||||||||||||||
Silicon |
$ | 1,162 | $ | 744 | $ | 177 | $ | 793 | $ | 756 | $ | 172 | $ | 1,343 | $ | 1,511 | $ | 550 | ||||||||||||||||||
Applied Global
Services |
496 | 528 | 123 | 541 | 607 | 145 | 645 | 605 | 159 | |||||||||||||||||||||||||||
Display |
65 | 334 | 113 | 374 | 311 | 103 | 120 | 189 | 47 | |||||||||||||||||||||||||||
Energy and
Environmental
Solutions |
490 | 438 | 21 | 322 | 174 | (85 | ) | 98 | 62 | (30 | ) |
Three Months Ended | Twelve Months Ended | |||||||||||||||
October 26, | October 28, | October 26, | October 28, | |||||||||||||
(In thousands, except per share amounts) | 2008 | 2007 | 2008 | 2007 | ||||||||||||
Net sales |
$ | 2,043,677 | $ | 2,367,044 | $ | 8,129,240 | $ | 9,734,856 | ||||||||
Cost of products sold |
1,244,972 | 1,290,139 | 4,686,412 | 5,242,413 | ||||||||||||
Gross margin |
798,705 | 1,076,905 | 3,442,828 | 4,492,443 | ||||||||||||
Operating expenses: |
||||||||||||||||
Research, development and engineering |
275,222 | 270,878 | 1,104,122 | 1,142,073 | ||||||||||||
Marketing and selling |
100,131 | 116,270 | 459,402 | 451,258 | ||||||||||||
General and administrative |
138,410 | 125,624 | 505,762 | 501,185 | ||||||||||||
Restructuring and asset impairments |
(9,686 | ) | 3,039 | 39,948 | 26,421 | |||||||||||
Income from operations |
294,628 | 561,094 | 1,333,594 | 2,371,506 | ||||||||||||
Pre-tax loss of equity method investment |
9,867 | 12,162 | 35,527 | 29,371 | ||||||||||||
Gain on sale of facility |
21,837 | | 21,837 | | ||||||||||||
Interest expense |
4,846 | 9,243 | 20,506 | 38,631 | ||||||||||||
Interest income |
20,937 | 39,556 | 109,320 | 136,149 | ||||||||||||
Income before income taxes |
322,689 | 579,245 | 1,408,718 | 2,439,653 | ||||||||||||
Provision for income taxes |
91,594 | 157,484 | 447,972 | 729,457 | ||||||||||||
Net income |
$ | 231,095 | $ | 421,761 | $ | 960,746 | $ | 1,710,196 | ||||||||
Earnings per share: |
||||||||||||||||
Basic |
$ | 0.17 | $ | 0.31 | $ | 0.71 | $ | 1.22 | ||||||||
Diluted |
$ | 0.17 | $ | 0.30 | $ | 0.70 | $ | 1.20 | ||||||||
Weighted average number of shares: |
||||||||||||||||
Basic |
1,338,227 | 1,381,871 | 1,354,176 | 1,406,685 | ||||||||||||
Diluted |
1,350,092 | 1,403,687 | 1,374,507 | 1,427,002 |
October 26, | October 28, | |||||||||
(In thousands) | 2008 | 2007 |
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 1,411,624 | $ | 1,202,722 | ||||
Short-term investments |
689,044 | 1,166,857 | ||||||
Accounts receivable, net |
1,691,027 | 2,049,427 | ||||||
Inventories |
1,987,017 | 1,313,237 | ||||||
Deferred income taxes |
388,807 | 426,471 | ||||||
Income taxes receivable |
125,605 | | ||||||
Other current assets |
371,033 | 448,879 | ||||||
Total current assets |
6,664,157 | 6,607,593 | ||||||
Long-term investments |
1,367,056 | 1,362,425 | ||||||
Property, plant and equipment |
2,831,952 | 2,782,204 | ||||||
Less: accumulated depreciation and amortization |
(1,737,752 | ) | (1,730,962 | ) | ||||
Net property, plant and equipment |
1,094,200 | 1,051,242 | ||||||
Goodwill, net |
1,174,673 | 1,006,410 | ||||||
Purchased technology and other intangible assets, net |
388,429 | 373,178 | ||||||
Equity method investment |
79,533 | 115,060 | ||||||
Deferred income taxes and other assets |
138,270 | 146,370 | ||||||
Total assets |
$ | 10,906,318 | $ | 10,662,278 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Current portion of long-term debt |
$ | 1,068 | $ | 2,561 | ||||
Accounts payable and accrued expenses |
2,771,090 | 2,221,516 | ||||||
Income taxes payable |
173,394 | 157,549 | ||||||
Total current liabilities |
2,945,552 | 2,381,626 | ||||||
Long-term debt |
201,576 | 202,281 | ||||||
Other liabilities |
310,232 | 256,962 | ||||||
Total liabilities |
3,457,360 | 2,840,869 | ||||||
Stockholders equity: |
||||||||
Common stock |
13,308 | 13,857 | ||||||
Additional paid-in capital |
5,095,894 | 4,658,832 | ||||||
Retained earnings |
11,501,288 | 10,863,291 | ||||||
Treasury stock |
(9,134,962 | ) | (7,725,924 | ) | ||||
Accumulated other comprehensive income/(loss) |
(26,570 | ) | 11,353 | |||||
Total stockholders equity |
7,448,958 | 7,821,409 | ||||||
Total liabilities and stockholders equity |
$ | 10,906,318 | $ | 10,662,278 | ||||
Twelve Months Ended | ||||||||
October 26, | October 28, | |||||||
(In thousands) | 2008 | 2007 | ||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 960,746 | $ | 1,710,196 | ||||
Adjustments required to reconcile net income to cash provided by
operating activities: |
||||||||
Depreciation and amortization |
320,051 | 268,334 | ||||||
Loss on fixed asset retirements |
6,826 | 21,401 | ||||||
Restructuring and asset impairments |
49,634 | 26,421 | ||||||
Deferred income taxes |
(58,259 | ) | 31,642 | |||||
Excess tax benefits from equity-based compensation plans |
(7,491 | ) | (49,794 | ) | ||||
Acquired in-process research and development expense |
| 4,900 | ||||||
Net recognized loss on investments |
4,392 | 5,460 | ||||||
Pretax loss of equity-method investment |
35,527 | 29,371 | ||||||
Equity-based compensation |
178,943 | 161,197 | ||||||
Changes in operating assets and liabilities, net of amounts acquired: |
||||||||
Accounts receivable, net |
424,290 | 34,259 | ||||||
Inventories |
(638,256 | ) | 140,933 | |||||
Other current assets |
94,247 | (164,289 | ) | |||||
Other assets |
(394 | ) | 3,359 | |||||
Accounts payable and accrued expenses |
352,918 | (12,473 | ) | |||||
Income taxes |
8,126 | (23,968 | ) | |||||
Other liabilities |
(20,832 | ) | 22,347 | |||||
Cash provided by operating activities |
1,710,468 | 2,209,296 | ||||||
Cash flows from investing activities: |
||||||||
Capital expenditures |
(287,906 | ) | (264,784 | ) | ||||
Cash paid for acquisitions, net of cash acquired |
(235,324 | ) | (599,653 | ) | ||||
Proceeds from sale of facility |
42,210 | | ||||||
Proceeds from disposition of assets held for sale |
| 37,611 | ||||||
Proceeds from sales and maturities of investments |
5,962,316 | 3,053,640 | ||||||
Purchases of investments |
(5,534,475 | ) | (3,203,427 | ) | ||||
Cash used in investing activities |
(53,179 | ) | (976,613 | ) | ||||
Cash flows from financing activities: |
||||||||
Debt repayments |
(2,117 | ) | (202,139 | ) | ||||
Proceeds from common stock issuances |
393,978 | 898,025 | ||||||
Common stock repurchases |
(1,499,984 | ) | (1,331,997 | ) | ||||
Excess tax benefits from equity-based compensation plans |
7,491 | 49,794 | ||||||
Payment of dividends to stockholders |
(325,405 | ) | (305,672 | ) | ||||
Cash used in financing activities |
(1,426,037 | ) | (891,989 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents |
(22,350 | ) | 565 | |||||
Increase/(decrease) in cash and cash equivalents |
208,902 | 341,259 | ||||||
Cash and cash equivalents beginning of period |
1,202,722 | 861,463 | ||||||
Cash and cash equivalents end of period |
$ | 1,411,624 | $ | 1,202,722 | ||||
Supplemental cash flow information: |
||||||||
Cash payments for income taxes |
$ | 368,459 | $ | 845,756 | ||||
Cash payments for interest |
$ | 14,580 | $ | 29,104 |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
October 26, | July 27, | October 28, | October 26, | October 28, | |||||||||||||||||||
(In thousands, except per share amounts) | 2008 | 2008 | 2007 | 2008 | 2007 | ||||||||||||||||||
Non-GAAP Net Income |
|||||||||||||||||||||||
Reported net income (GAAP basis) |
$ | 231,095 | $ | 164,768 | $ | 421,761 | $ | 960,746 | $ | 1,710,196 | |||||||||||||
Equity-based compensation expense |
43,778 | 46,121 | 30,889 | 178,943 | 161,196 | ||||||||||||||||||
Certain items associated with acquisitions 1 |
35,320 | 41,109 | 29,497 | 138,611 | 85,513 | ||||||||||||||||||
Gain on sale of facility |
(21,837 | ) | | | (21,837 | ) | | ||||||||||||||||
Restructuring and asset impairments 2,3 |
(9,686 | ) | 138 | 3,039 | 39,948 | 26,421 | |||||||||||||||||
Costs associated with ceasing development of
beamline implant products 4 |
| 156 | 9,391 | 1,436 | 66,063 | ||||||||||||||||||
Resolution of audits of prior years income
tax filings 5 |
| | | | (36,242 | ) | |||||||||||||||||
Income tax effect of non-GAAP adjustments |
(14,765 | ) | (24,601 | ) | (22,691 | ) | (99,834 | ) | (108,501 | ) | |||||||||||||
Non-GAAP net income |
$ | 263,905 | $ | 227,691 | $ | 471,886 | $ | 1,198,013 | $ | 1,904,646 | |||||||||||||
Non-GAAP Net Income Per Diluted Share |
|||||||||||||||||||||||
Reported net income per diluted share
(GAAP basis) |
$ | 0.17 | $ | 0.12 | $ | 0.30 | $ | 0.70 | $ | 1.20 | |||||||||||||
Equity-based compensation expense |
0.02 | 0.02 | 0.02 | 0.09 | 0.08 | ||||||||||||||||||
Certain items associated with acquisitions |
0.02 | 0.02 | 0.01 | 0.07 | 0.04 | ||||||||||||||||||
Gain on sale of facility |
(0.01 | ) | | | (0.01 | ) | | ||||||||||||||||
Restructuring and asset impairments |
| | | 0.02 | 0.01 | ||||||||||||||||||
Costs associated with ceasing development
of beamline implant products |
| | | | 0.03 | ||||||||||||||||||
Resolution of audits of prior years income
tax filings |
| | | | (0.03 | ) | |||||||||||||||||
Non-GAAP net income per diluted share |
$ | 0.20 | $ | 0.17 | $ | 0.34 | $ | 0.87 | $ | 1.33 | |||||||||||||
Shares used in diluted shares calculation |
1,350,092 | 1,367,557 | 1,403,687 | 1,374,507 | 1,427,002 |
1 | Incremental charges attributable to acquisitions consisting of inventory fair value adjustments on products sold and amortization of purchased intangible assets. | |
2 | Results for the twelve months ended October 26, 2008 included restructuring charges of $29 million associated with a global cost reduction plan. | |
3 | Results for the fiscal quarters ended October 26, 2008, July 27, 2008 and October 28, 2007 included restructuring and asset impairment benefit of $351,000 and charges of $138,000 and $3 million, respectively, associated with ceasing development of beamline implant products. Results for the twelve months ended October 26, 2008 and October 28, 2007 included restructuring and asset impairment charges of $11 million and $30 million, respectively, associated with ceasing development of beamline implant products. Results for the twelve months ended October 28, 2007 included a net benefit of $3 million from the sale of the Hillsboro, Oregon facility. | |
4 | Results for the fiscal quarters ended July 27, 2008 and October 28, 2007 included other operating charges of $156,000 and $9 million, respectively, associated with ceasing development of beamline implant products. Results for the twelve months ended October 26, 2008 and October 28, 2007 included other operating charges of $1 million and $66 million, respectively, associated with ceasing development of beamline implant products. | |
5 | Results for the twelve months ended October 28, 2007 consisted of a $36 million benefit from the resolution of audits of prior years income tax filings and changes in tax credits. |