Applied Materials posted strong quarterly results that beat the analysts estimates, reporting net sales of US$2.52 billion, operating profit of US$183 million, and net income of US$123 million or US$0.09 per share. Non-GAAP net income was US$234 million or US$0.17 per share. However the world’s top supplier of semiconductor manufacturing equipment warned that sales of solar and energy equipment would decrease from 15% to make up 10% – 20% of company revenue this quarter due to strong Q3 results and looming feed-in tariff cuts.
“Applied had strong results across our semiconductor, display and crystalline silicon solar businesses, and we now expect Silicon Systems Group net sales to be up by more than 160% over fiscal 2009,” said Mike Splinter, chairman and chief executive officer.
“During the quarter, we took actions that focus our Energy and Environmental Solutions segment on our most promising opportunities in solar and advanced energy, and strengthen our company’s financial outlook.”
The company’s fast-growing solar division saw net sales more than double from the fiscal second quarter to US$387 million, led by record demand for its crystalline silicon solar equipment.
Additional quarterly financial information
- Gross margin was 34.2% including the thin-film solar equipment inventory charge which lowered gross margin by approximately 10 percentage points.
- Operating cash flow was US$299 million for the quarter or 12% of sales, and operating cash flow for the nine months was US$1.20 billion or 18% of sales.
- Cash dividend payments totaled US$94 million.
- The company used US$100 million to repurchase 7.9 million shares of its common stock.
- Cash, cash equivalents and investments increased to US$3.63 billion at quarter end.
- The effective tax rate was 30.8%.
- Backlog increased by US$136 million to US$3.13 billion.