Applied Materials(AMAT) - 2024 Q4 - Annual Results

Financial Performance - Quarterly revenue reached $7.05 billion, representing a 5% increase year over year[1] - Quarterly GAAP EPS was $2.09, down 12% year over year, while non-GAAP EPS was $2.32, up 9% year over year[2] - Annual revenue for fiscal 2024 was $27.18 billion, a 2% increase year over year[1] - Annual GAAP EPS was $8.61, up 6% year over year, and non-GAAP EPS was $8.65, up 7% year over year[4] - Net income for Q4 FY2024 was $1,731 million, a decrease from $2,004 million in Q4 FY2023, while total net income for FY2024 reached $7,177 million compared to $6,856 million in FY2023[22] - The company reported diluted earnings per share of $2.09 for the three months ended October 27, 2024, down from $2.38 in the same period last year, a decrease of 12.2%[20] - Non-GAAP net income for Q4 FY2024 was $1,917 million, compared to $1,786 million in Q4 FY2023, with total non-GAAP net income for FY2024 reaching $7,210 million[24] Cash Flow and Operations - The company generated $2.58 billion in cash from operations in Q4 and $8.68 billion for the full year[3][5] - Total cash provided by operating activities for Q4 FY2024 was $2,575 million, significantly higher than $1,555 million in Q4 FY2023, contributing to a total of $8,677 million for FY2024[22] - Non-GAAP free cash flow for the three months ended October 27, 2024, was $2,168 million, up from $1,246 million in the same period last year[28] - Cash provided by operating activities for the three months ended October 27, 2024, was $2,575 million, compared to $1,555 million in the prior year[28] Shareholder Returns - Shareholder distributions totaled $1.77 billion in Q4, including $1.44 billion in share repurchases and $329 million in dividends[3] Segment Performance - In Q4, the Semiconductor Systems segment generated $5.18 billion in revenue, accounting for 73% of total revenue[12] - Non-GAAP operating income for Semiconductor Systems was $1,834 million for the three months ended October 27, 2024, compared to $1,751 million for the same period last year[26] - Non-GAAP operating margin for Semiconductor Systems was 35.4% for the three months ended October 27, 2024, slightly down from 35.9% year-over-year[26] Market Outlook - For Q1 FY2025, the company expects net revenue to be approximately $7.15 billion, plus or minus $400 million[9] - Non-GAAP diluted EPS for Q1 FY2025 is expected to be approximately $2.29, plus or minus $0.18[9] - The company is focused on expanding its market share and developing new markets, with ongoing investments in new products and technologies[19] Assets and Liabilities - Total assets increased to $34,409 million as of October 27, 2024, compared to $30,729 million a year earlier, representing a growth of 12.0%[21] - Cash and cash equivalents rose to $8,022 million, up from $6,132 million, marking a significant increase of 30.8%[21] - Total liabilities increased to $15,408 million from $14,380 million, reflecting a rise of 7.1%[21] - The company’s total stockholders' equity increased to $19,001 million, up from $16,349 million, indicating a growth of 10.1%[21] Expenses - Research, development, and engineering expenses increased to $3,233 million for the twelve months ended October 27, 2024, up from $3,102 million, indicating a growth of 4.2%[20] - Capital expenditures for the three months ended October 27, 2024, were $407 million, up from $309 million year-over-year[28] - The company reported capital expenditures of $407 million in Q4 FY2024, an increase from $309 million in Q4 FY2023, with total capital expenditures for FY2024 amounting to $1,190 million[22] Taxation - GAAP effective income tax rate for the three months ended October 27, 2024, was 8.7%[27] - Non-GAAP effective income tax rate for the same period was 11.0%[27]