(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||
Emerging Growth Company |
Exhibit No. | Description | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL) |
Applied Materials, Inc. (Registrant) | ||||||||||||||
Date: | November 16, 2023 | By: | /s/ Teri A. Little | |||||||||||
Teri A. Little | ||||||||||||||
Senior Vice President, Chief Legal Officer and Corporate Secretary |
Change | |||||||||||||||||||||||||||||||||||
Q4 FY2023 | Q4 FY2022 | FY2023 | FY2022 | Q4 FY2023 vs. Q4 FY2022 | FY2023 vs. FY2022 | ||||||||||||||||||||||||||||||
(In millions, except per share amounts and percentages) | |||||||||||||||||||||||||||||||||||
Net sales | $ | 6,723 | $ | 6,749 | $ | 26,517 | $ | 25,785 | —% | 3% | |||||||||||||||||||||||||
Gross margin | 47.1 | % | 45.9 | % | 46.7 | % | 46.5 | % | 1.2 points | 0.2 points | |||||||||||||||||||||||||
Operating margin | 29.3 | % | 29.5 | % | 28.9 | % | 30.2 | % | (0.2) points | (1.3) points | |||||||||||||||||||||||||
Net income | $ | 2,004 | $ | 1,591 | $ | 6,856 | $ | 6,525 | 26% | 5% | |||||||||||||||||||||||||
Diluted earnings per share | $ | 2.38 | $ | 1.85 | $ | 8.11 | $ | 7.44 | 29% | 9% | |||||||||||||||||||||||||
Non-GAAP Adjusted Results | |||||||||||||||||||||||||||||||||||
Non-GAAP adjusted gross margin | 47.3 | % | 46.0 | % | 46.8 | % | 46.6 | % | 1.3 points | 0.2 points | |||||||||||||||||||||||||
Non-GAAP adjusted operating margin | 29.5 | % | 29.8 | % | 29.1 | % | 30.5 | % | (0.3) points | (1.4) points | |||||||||||||||||||||||||
Non-GAAP adjusted net income | $ | 1,786 | $ | 1,741 | $ | 6,802 | $ | 6,756 | 3% | 1% | |||||||||||||||||||||||||
Non-GAAP adjusted diluted EPS | $ | 2.12 | $ | 2.03 | $ | 8.05 | $ | 7.70 | 4% | 5% | |||||||||||||||||||||||||
Non-GAAP free cash flow | $ | 1,246 | $ | 634 | $ | 7,594 | $ | 4,612 | 97% | 65% |
Semiconductor Systems | Q4 FY2023 | Q4 FY2022 | FY2023 | FY2022 | |||||||||||||||||||
(In millions, except percentages) | |||||||||||||||||||||||
Net sales | $ | 4,883 | $ | 5,038 | $ | 19,698 | $ | 18,797 | |||||||||||||||
Foundry, logic and other | 69 | % | 71 | % | 77 | % | 66 | % | |||||||||||||||
DRAM | 27 | % | 16 | % | 17 | % | 19 | % | |||||||||||||||
Flash memory | 4 | % | 13 | % | 6 | % | 15 | % | |||||||||||||||
Operating income | $ | 1,791 | $ | 1,849 | $ | 7,090 | $ | 6,969 | |||||||||||||||
Operating margin | 36.7 | % | 36.7 | % | 36.0 | % | 37.1 | % | |||||||||||||||
Non-GAAP Adjusted Results | |||||||||||||||||||||||
Non-GAAP adjusted operating income | $ | 1,801 | $ | 1,858 | $ | 7,129 | $ | 7,000 | |||||||||||||||
Non-GAAP adjusted operating margin | 36.9 | % | 36.9 | % | 36.2 | % | 37.2 | % |
Applied Global Services | Q4 FY2023 | Q4 FY2022 | FY2023 | FY2022 | |||||||||||||||||||
(In millions, except percentages) | |||||||||||||||||||||||
Net sales | $ | 1,471 | $ | 1,420 | $ | 5,732 | $ | 5,543 | |||||||||||||||
Operating income | $ | 431 | $ | 402 | $ | 1,657 | $ | 1,661 | |||||||||||||||
Operating margin | 29.3 | % | 28.3 | % | 28.9 | % | 30.0 | % | |||||||||||||||
Non-GAAP Adjusted Results | |||||||||||||||||||||||
Non-GAAP adjusted operating income | $ | 431 | $ | 402 | $ | 1,657 | $ | 1,661 | |||||||||||||||
Non-GAAP adjusted operating margin | 29.3 | % | 28.3 | % | 28.9 | % | 30.0 | % |
Display and Adjacent Markets | Q4 FY2023 | Q4 FY2022 | FY2023 | FY2022 | |||||||||||||||||||
(In millions, except percentages) | |||||||||||||||||||||||
Net sales | $ | 298 | $ | 251 | $ | 868 | $ | 1,331 | |||||||||||||||
Operating income | $ | 67 | $ | 34 | $ | 133 | $ | 260 | |||||||||||||||
Operating margin | 22.5 | % | 13.5 | % | 15.3 | % | 19.5 | % | |||||||||||||||
Non-GAAP Adjusted Results | |||||||||||||||||||||||
Non-GAAP adjusted operating income | $ | 67 | $ | 34 | $ | 133 | $ | 263 | |||||||||||||||
Non-GAAP adjusted operating margin | 22.5 | % | 13.5 | % | 15.3 | % | 19.8 | % |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
(In millions, except per share amounts) | October 29, 2023 | October 30, 2022 | October 29, 2023 | October 30, 2022 | |||||||||||||||||||
Net sales | $ | 6,723 | $ | 6,749 | $ | 26,517 | $ | 25,785 | |||||||||||||||
Cost of products sold | 3,554 | 3,648 | 14,133 | 13,792 | |||||||||||||||||||
Gross profit | 3,169 | 3,101 | 12,384 | 11,993 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research, development and engineering | 789 | 726 | 3,102 | 2,771 | |||||||||||||||||||
Marketing and selling | 192 | 183 | 776 | 703 | |||||||||||||||||||
General and administrative | 217 | 198 | 852 | 735 | |||||||||||||||||||
Severance and related charges | — | — | — | (4) | |||||||||||||||||||
Total operating expenses | 1,198 | 1,107 | 4,730 | 4,205 | |||||||||||||||||||
Income from operations | 1,971 | 1,994 | 7,654 | 7,788 | |||||||||||||||||||
Interest expense | 58 | 57 | 238 | 228 | |||||||||||||||||||
Interest and other income (expense), net | 259 | 12 | 300 | 39 | |||||||||||||||||||
Income before income taxes | 2,172 | 1,949 | 7,716 | 7,599 | |||||||||||||||||||
Provision for income taxes | 168 | 358 | 860 | 1,074 | |||||||||||||||||||
Net income | $ | 2,004 | $ | 1,591 | $ | 6,856 | $ | 6,525 | |||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic | $ | 2.40 | $ | 1.86 | $ | 8.16 | $ | 7.49 | |||||||||||||||
Diluted | $ | 2.38 | $ | 1.85 | $ | 8.11 | $ | 7.44 | |||||||||||||||
Weighted average number of shares: | |||||||||||||||||||||||
Basic | 836 | 854 | 840 | 871 | |||||||||||||||||||
Diluted | 842 | 859 | 845 | 877 |
(In millions) | October 29, 2023 | October 30, 2022 | |||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 6,132 | $ | 1,995 | |||||||
Short-term investments | 737 | 586 | |||||||||
Accounts receivable, net | 5,165 | 6,068 | |||||||||
Inventories | 5,725 | 5,932 | |||||||||
Other current assets | 1,388 | 1,344 | |||||||||
Total current assets | 19,147 | 15,925 | |||||||||
Long-term investments | 2,281 | 1,980 | |||||||||
Property, plant and equipment, net | 2,723 | 2,307 | |||||||||
Goodwill | 3,732 | 3,700 | |||||||||
Purchased technology and other intangible assets, net | 294 | 339 | |||||||||
Deferred income taxes and other assets | 2,552 | 2,475 | |||||||||
Total assets | $ | 30,729 | $ | 26,726 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Short-term debt | $ | 100 | $ | — | |||||||
Accounts payable and accrued expenses | 4,297 | 4,237 | |||||||||
Contract liabilities | 2,975 | 3,142 | |||||||||
Total current liabilities | 7,372 | 7,379 | |||||||||
Long-term debt | 5,461 | 5,457 | |||||||||
Income taxes payable | 833 | 964 | |||||||||
Other liabilities | 714 | 732 | |||||||||
Total liabilities | 14,380 | 14,532 | |||||||||
Total stockholders’ equity | 16,349 | 12,194 | |||||||||
Total liabilities and stockholders’ equity | $ | 30,729 | $ | 26,726 |
(In millions) | Three Months Ended | Twelve Months Ended | |||||||||||||||||||||
October 29, 2023 | October 30, 2022 | October 29, 2023 | October 30, 2022 | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 2,004 | $ | 1,591 | $ | 6,856 | $ | 6,525 | |||||||||||||||
Adjustments required to reconcile net income to cash provided by operating activities: | |||||||||||||||||||||||
Depreciation and amortization | 130 | 123 | 515 | 444 | |||||||||||||||||||
Severance and related charges | — | — | — | (4) | |||||||||||||||||||
Share-based compensation | 115 | 99 | 490 | 413 | |||||||||||||||||||
Deferred income taxes | 198 | (14) | 24 | (223) | |||||||||||||||||||
Other | (149) | 22 | 40 | 36 | |||||||||||||||||||
Net change in operating assets and liabilities | (743) | (964) | 775 | (1,792) | |||||||||||||||||||
Cash provided by operating activities | 1,555 | 857 | 8,700 | 5,399 | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Capital expenditures | (309) | (223) | (1,106) | (787) | |||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | — | — | (25) | (441) | |||||||||||||||||||
Proceeds from sales and maturities of investments | 297 | 350 | 1,268 | 1,363 | |||||||||||||||||||
Purchases of investments | (477) | (317) | (1,672) | (1,492) | |||||||||||||||||||
Cash used in investing activities | (489) | (190) | (1,535) | (1,357) | |||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from commercial paper | 99 | — | 991 | — | |||||||||||||||||||
Repayments of commercial paper | (200) | — | (900) | — | |||||||||||||||||||
Proceeds from common stock issuances | 116 | 103 | 227 | 199 | |||||||||||||||||||
Common stock repurchases | (700) | (1,500) | (2,189) | (6,103) | |||||||||||||||||||
Tax withholding payments for vested equity awards | (14) | (7) | (179) | (266) | |||||||||||||||||||
Payments of dividends to stockholders | (268) | (223) | (975) | (873) | |||||||||||||||||||
Repayments of principal on finance leases | 1 | — | (7) | — | |||||||||||||||||||
Cash used in financing activities | (966) | (1,627) | (3,032) | (7,043) | |||||||||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash equivalents | 100 | (960) | 4,133 | (3,001) | |||||||||||||||||||
Cash, cash equivalents and restricted cash equivalents—beginning of period | 6,133 | 3,060 | 2,100 | 5,101 | |||||||||||||||||||
Cash, cash equivalents and restricted cash equivalents — end of period | $ | 6,233 | $ | 2,100 | $ | 6,233 | $ | 2,100 | |||||||||||||||
Reconciliation of cash, cash equivalents, and restricted cash equivalents | |||||||||||||||||||||||
Cash and cash equivalents | $ | 6,132 | $ | 1,995 | $ | 6,132 | $ | 1,995 | |||||||||||||||
Restricted cash equivalents included in deferred income taxes and other assets | 101 | 105 | 101 | 105 | |||||||||||||||||||
Total cash, cash equivalents, and restricted cash equivalents | $ | 6,233 | $ | 2,100 | $ | 6,233 | $ | 2,100 | |||||||||||||||
Supplemental cash flow information: | |||||||||||||||||||||||
Cash payments for income taxes | $ | 588 | $ | 246 | $ | 1,006 | $ | 1,869 | |||||||||||||||
Cash refunds from income taxes | $ | 2 | $ | 23 | $ | 53 | $ | 156 | |||||||||||||||
Cash payments for interest | $ | 68 | $ | 68 | $ | 205 | $ | 205 |
(In millions) | Q4 FY2023 | Q4 FY2022 | FY2023 | FY2022 | |||||||||||||||||||
Unallocated net sales | $ | 71 | $ | 40 | $ | 219 | $ | 114 | |||||||||||||||
Unallocated cost of products sold and expenses | (274) | (232) | (955) | (807) | |||||||||||||||||||
Share-based compensation | (115) | (99) | (490) | (413) | |||||||||||||||||||
Severance and related charges | — | — | — | 4 | |||||||||||||||||||
Total | $ | (318) | $ | (291) | $ | (1,226) | $ | (1,102) |
Q4 FY2023 | Q4 FY2022 | FY2023 | FY2022 | ||||||||||||||||||||
Net Sales by Geography (In millions) | |||||||||||||||||||||||
United States | $ | 803 | $ | 830 | $ | 4,006 | $ | 3,104 | |||||||||||||||
% of Total | 12 | % | 12 | % | 15 | % | 12 | % | |||||||||||||||
Europe | $ | 441 | $ | 375 | $ | 2,152 | $ | 1,674 | |||||||||||||||
% of Total | 7 | % | 5 | % | 8 | % | 7 | % | |||||||||||||||
Japan | $ | 681 | $ | 606 | $ | 2,075 | $ | 2,012 | |||||||||||||||
% of Total | 10 | % | 9 | % | 8 | % | 8 | % | |||||||||||||||
Korea | $ | 745 | $ | 1,082 | $ | 4,609 | $ | 4,395 | |||||||||||||||
% of Total | 11 | % | 16 | % | 18 | % | 17 | % | |||||||||||||||
Taiwan | $ | 922 | $ | 2,068 | $ | 5,670 | $ | 6,262 | |||||||||||||||
% of Total | 14 | % | 31 | % | 21 | % | 24 | % | |||||||||||||||
Southeast Asia | $ | 168 | $ | 451 | $ | 758 | $ | 1,084 | |||||||||||||||
% of Total | 2 | % | 7 | % | 3 | % | 4 | % | |||||||||||||||
China | $ | 2,963 | $ | 1,337 | $ | 7,247 | $ | 7,254 | |||||||||||||||
% of Total | 44 | % | 20 | % | 27 | % | 28 | % | |||||||||||||||
Employees (In thousands) | |||||||||||||||||||||||
Regular Full Time | 34.3 | 33.3 |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
(In millions, except percentages) | October 29, 2023 | October 30, 2022 | October 29, 2023 | October 30, 2022 | |||||||||||||||||||
Non-GAAP Adjusted Gross Profit | |||||||||||||||||||||||
Reported gross profit - GAAP basis | $ | 3,169 | $ | 3,101 | $ | 12,384 | $ | 11,993 | |||||||||||||||
Certain items associated with acquisitions1 | 8 | 6 | 29 | 26 | |||||||||||||||||||
Non-GAAP adjusted gross profit | $ | 3,177 | $ | 3,107 | $ | 12,413 | $ | 12,019 | |||||||||||||||
Non-GAAP adjusted gross margin | 47.3 | % | 46.0 | % | 46.8 | % | 46.6 | % | |||||||||||||||
Non-GAAP Adjusted Operating Income | |||||||||||||||||||||||
Reported operating income - GAAP basis | $ | 1,971 | $ | 1,994 | $ | 7,654 | $ | 7,788 | |||||||||||||||
Certain items associated with acquisitions1 | 11 | 10 | 43 | 39 | |||||||||||||||||||
Acquisition integration and deal costs | 2 | 6 | 22 | 38 | |||||||||||||||||||
Severance and related charges2 | — | — | — | (4) | |||||||||||||||||||
Non-GAAP adjusted operating income | $ | 1,984 | $ | 2,010 | $ | 7,719 | $ | 7,861 | |||||||||||||||
Non-GAAP adjusted operating margin | 29.5 | % | 29.8 | % | 29.1 | % | 30.5 | % | |||||||||||||||
Non-GAAP Adjusted Net Income | |||||||||||||||||||||||
Reported net income - GAAP basis | $ | 2,004 | $ | 1,591 | $ | 6,856 | $ | 6,525 | |||||||||||||||
Certain items associated with acquisitions1 | 11 | 10 | 43 | 39 | |||||||||||||||||||
Acquisition integration and deal costs | 2 | 6 | 22 | 34 | |||||||||||||||||||
Severance and related charges2 | — | — | — | (4) | |||||||||||||||||||
Realized loss (gain), dividends and impairments on strategic investments, net | (2) | (2) | 107 | (3) | |||||||||||||||||||
Unrealized loss (gain) on strategic investments, net | (147) | 11 | (134) | (4) | |||||||||||||||||||
Earn-out | (15) | — | (15) | — | |||||||||||||||||||
Income tax effect of share-based compensation3 | 6 | 22 | — | — | |||||||||||||||||||
Income tax effects related to intra-entity intangible asset transfers | (65) | 132 | (40) | 252 | |||||||||||||||||||
Resolution of prior years’ income tax filings and other tax items | (9) | (26) | (31) | (80) | |||||||||||||||||||
Income tax effect of non-GAAP adjustments4 | 1 | (3) | (6) | (3) | |||||||||||||||||||
Non-GAAP adjusted net income | $ | 1,786 | $ | 1,741 | $ | 6,802 | $ | 6,756 |
1 | These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. | ||||
2 | The severance and related charges primarily related to a one-time voluntary retirement program offered to certain eligible employees. | ||||
3 | GAAP basis tax benefit related to share-based compensation is recognized ratably over the fiscal year on a non-GAAP basis. | ||||
4 | Adjustment to provision for income taxes related to non-GAAP adjustments reflected in income before income taxes. | ||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
(In millions, except per share amounts) | October 29, 2023 | October 30, 2022 | October 29, 2023 | October 30, 2022 | |||||||||||||||||||
Non-GAAP Adjusted Earnings Per Diluted Share | |||||||||||||||||||||||
Reported earnings per diluted share - GAAP basis | $ | 2.38 | $ | 1.85 | $ | 8.11 | $ | 7.44 | |||||||||||||||
Certain items associated with acquisitions | 0.01 | 0.01 | 0.05 | 0.04 | |||||||||||||||||||
Acquisition integration and deal costs | — | 0.01 | 0.02 | 0.03 | |||||||||||||||||||
Realized loss (gain), dividends and impairments on strategic investments, net | — | — | 0.13 | — | |||||||||||||||||||
Unrealized loss (gain) on strategic investments, net | (0.18) | 0.01 | (0.16) | (0.01) | |||||||||||||||||||
Earn-out | (0.01) | — | (0.01) | — | |||||||||||||||||||
Income tax effect of share-based compensation | 0.01 | 0.03 | — | — | |||||||||||||||||||
Income tax effects related to intra-entity intangible asset transfers | (0.08) | 0.15 | (0.05) | 0.29 | |||||||||||||||||||
Resolution of prior years’ income tax filings and other tax items | (0.01) | (0.03) | (0.04) | (0.09) | |||||||||||||||||||
Non-GAAP adjusted earnings per diluted share | $ | 2.12 | $ | 2.03 | $ | 8.05 | $ | 7.70 | |||||||||||||||
Weighted average number of diluted shares | 842 | 859 | 845 | 877 |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
(In millions, except percentages) | October 29, 2023 | October 30, 2022 | October 29, 2023 | October 30, 2022 | |||||||||||||||||||
Semiconductor Systems Non-GAAP Adjusted Operating Income | |||||||||||||||||||||||
Reported operating income - GAAP basis | $ | 1,791 | $ | 1,849 | $ | 7,090 | $ | 6,969 | |||||||||||||||
Certain items associated with acquisitions1 | 10 | 9 | 39 | 31 | |||||||||||||||||||
Non-GAAP adjusted operating income | $ | 1,801 | $ | 1,858 | $ | 7,129 | $ | 7,000 | |||||||||||||||
Non-GAAP adjusted operating margin | 36.9 | % | 36.9 | % | 36.2 | % | 37.2 | % | |||||||||||||||
AGS Non-GAAP Adjusted Operating Income | |||||||||||||||||||||||
Reported operating income - GAAP basis | $ | 431 | $ | 402 | $ | 1,657 | $ | 1,661 | |||||||||||||||
Non-GAAP adjusted operating income | $ | 431 | $ | 402 | $ | 1,657 | $ | 1,661 | |||||||||||||||
Non-GAAP adjusted operating margin | 29.3 | % | 28.3 | % | 28.9 | % | 30.0 | % | |||||||||||||||
Display and Adjacent Markets Non-GAAP Adjusted Operating Income | |||||||||||||||||||||||
Reported operating income - GAAP basis | $ | 67 | $ | 34 | $ | 133 | $ | 260 | |||||||||||||||
Certain items associated with acquisitions1 | — | — | — | 3 | |||||||||||||||||||
Non-GAAP adjusted operating income | $ | 67 | $ | 34 | $ | 133 | $ | 263 | |||||||||||||||
Non-GAAP adjusted operating margin | 22.5 | % | 13.5 | % | 15.3 | % | 19.8 | % | |||||||||||||||
1 | These items are incremental charges attributable to completed acquisitions, consisting of amortization of purchased intangible assets. | ||||
Three Months Ended | |||||
(In millions, except percentages) | October 29, 2023 | ||||
Provision for income taxes - GAAP basis (a) | $ | 168 | |||
Income tax effect of share-based compensation | (6) | ||||
Income tax effects related to intra-entity intangible asset transfers | 65 | ||||
Resolutions of prior years’ income tax filings and other tax items | 9 | ||||
Income tax effect of non-GAAP adjustments | (1) | ||||
Non-GAAP adjusted provision for income taxes (b) | $ | 235 | |||
Income before income taxes - GAAP basis (c) | $ | 2,172 | |||
Certain items associated with acquisitions | 11 | ||||
Acquisition integration and deal costs | 2 | ||||
Realized loss (gain), dividends and impairments on strategic investments, net | (2) | ||||
Unrealized loss (gain) on strategic investments, net | (147) | ||||
Earn-out | (15) | ||||
Non-GAAP adjusted income before income taxes (d) | $ | 2,021 | |||
Effective income tax rate - GAAP basis (a/c) | 7.7 | % | |||
Non-GAAP adjusted effective income tax rate (b/d) | 11.6 | % |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
(In millions) | October 29, 2023 | October 30, 2022 | October 29, 2023 | October 30, 2022 | |||||||||||||||||||
Cash provided by operating activities | $ | 1,555 | $ | 857 | $ | 8,700 | $ | 5,399 | |||||||||||||||
Capital expenditures | (309) | (223) | (1,106) | (787) | |||||||||||||||||||
Non-GAAP free cash flow | $ | 1,246 | $ | 634 | $ | 7,594 | $ | 4,612 |