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Applied Materials Inc. Reports Operating Results (10-Q)

February 27, 2012 | About:
10qk

10qk

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Applied Materials Inc. (AMAT) filed Quarterly Report for the period ended 2012-01-29.

Appld Matls Inc has a market cap of $16.35 billion; its shares were traded at around $12.53 with a P/E ratio of 11.3 and P/S ratio of 1.6. The dividend yield of Appld Matls Inc stocks is 2.5%.

Highlight of Business Operations:

Applieds backlog for the most recent three fiscal quarters was as follows: $2.2 billion at January 29, 2012, $2.4 billion at October 30, 2011, and $3.2 billion at July 31, 2011. Backlog adjustments for the quarter ended January 29, 2012 were negative and totaled $52 million. Negative backlog adjustments of $146 million consisted of financial debookings, cancellations and foreign exchange effects primarily related to solar customers. Negative adjustments were offset in part by $94 million of acquired Varian backlog. Backlog consists of: (1) orders for which written authorizations have been accepted and assigned shipment dates are within the next 12 months, or shipment has occurred but revenue has not been recognized; (2) contractual service revenue and maintenance fees to be earned within the next 12 months; and (3) orders for SunFab thin film solar lines that are anticipated to be recognized as revenue within the next 12 months. Applieds backlog at any particular time is not necessarily indicative of actual sales for any future periods, due to the potential for customer changes in delivery schedules or cancellation of orders. In the first quarter of fiscal 2012, approximately 67% of the net sales in the Silicon Systems Group, Applieds largest business segment, were from orders received and shipped in the same quarter.

New orders for the first quarter of fiscal 2012 increased by $20 million to $40 million as compared to the fourth quarter of fiscal 2011, while net sales decreased by $67 million to $104 million, reflecting ongoing weakness in LCD TV equipment demand. New orders decreased by $102 million for the first quarter of fiscal 2012 compared to the first quarter of fiscal 2011 and net sales decreased by $43 million to $104 million. The decrease in new orders and net sales year over year reflected weakness in demand for LCD TV equipment, offset in part by demand for touch panel and LTPS systems to manufacture new mobile devices like smart phones and tablets.

The book to bill ratio slightly increased to 0.4 for the first quarter of fiscal 2012 compared to 0.1 for the fourth quarter of fiscal 2011. The book to bill ratio, however, decreased compared to 1.0 for the first quarter of fiscal 2011, reflecting lower new orders and net sales. For the first quarter of fiscal 2012, operating income decreased by $26 million to $5 million as compared to the fourth quarter of fiscal 2011 and decreased by $23 million compared to first quarter of fiscal 2011 reflecting the decrease in net sales. Non-GAAP operating income for the first quarter of fiscal 2012 was $7 million or 7 percent of net sales, down from $33 million or 19 percent of net sales from the fourth quarter of fiscal 2011 and down from $30 million or 20 percent of net sales from the first quarter of fiscal 2011. Reconciliations of non-GAAP measures are presented under Non-GAAP Results below.

New orders for the first quarter of fiscal 2012 decreased by $53 million to $33 million as compared to the fourth quarter of fiscal 2011, and net sales decreased by $108 million to $207 million, reflecting solar industry overcapacity. For the first quarter of fiscal 2012, new orders decreased by $635 million and net sales decreased by $269 million. The year over year decreases in new orders and net sales were also due to excess manufacturing capacity. For the first quarter of fiscal 2012, 73 percent of the segments net sales were from products shipped prior to fiscal 2012 and reported as deferred revenue at October 30, 2011.

The book to bill ratio decreased to 0.2 for the first quarter of fiscal 2012, reflecting decreased demand, compared to 0.3 for the fourth quarter of fiscal 2011 and 1.4 for the first quarter of fiscal 2011. The Energy and Environmental Solutions segment reported an operating loss of $23 million for the first quarter of fiscal 2012 compared to operating income of $17 million for the fourth quarter of fiscal 2011 and $144 million for the first quarter of fiscal 2011, primarily attributable to lower net sales of c-Si solar products and inventory charges of $31 million. Non-GAAP operating loss for the first quarter of fiscal 2012 was $17 million, while non-GAAP operating income was $23 million for the fourth quarter of fiscal 2011 and $122 million for the first quarter of fiscal 2011. Reconciliations of non-GAAP measures are presented under Non-GAAP Results below.

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