Applied Materials Announces 4Q, Fiscal Year 2015 Results

Applied Materials, Inc. reported results for its fourth quarter and fiscal year ended Oct. 25, 2015.
 
Fourth quarter orders were $2.42 billion, down 16% sequentially and up 7% year over year. Net sales were $2.37 billion, down 5% sequentially and up 5% year over year.
 
On a non-GAAP adjusted basis, the company reported fourth-quarter gross margin of 42.2%, operating margin of 19.3%, and net income of $347 million or $0.29 per diluted share. The company recorded GAAP gross margin of 40.5%, operating margin of 17.9%, and net income of $336 million or $0.28 per diluted share.
 
The company generated $471 million in cash from operations during the fourth quarter, paid dividends of $119 million and used $700 million to repurchase 44 million shares of common stock at an average price of $15.78.
 
In fiscal 2015, orders grew 5% to $10.10 billion, net sales increased 6% to $9.66 billion, non-GAAP adjusted gross margin declined 1.2% points to 42.9%, non-GAAP adjusted operating margin remained at 19.6%, and non-GAAP adjusted net income increased by 10.9% to $1.46 billion or $1.19 per diluted share. The company recorded GAAP gross margin of 40.9%, operating income of $1.69 billion or 17.5% of net sales, and net income of $1.38 billion or $1.12 per diluted share.
 
The company generated $1.16 billion in cash from operations in fiscal 2015, paid dividends of $487 million and used $1.33 billion to repurchase 76 million shares of common stock.
 
“In fiscal 2015, Applied Materials delivered year-over-year growth across our semiconductor, display and service businesses resulting in our highest earnings in four years,” said Gary Dickerson, president and CEO. “We have positioned the company for sustainable profitable growth and we are winning share, growing our service business and expanding our available market.”