Applied Materials(US:AMAT)2025-02-13 21:05Revenue and Earnings - Revenue for Q1 FY2025 was $7.17 billion, representing a 7% increase year over year[4] - Non-GAAP diluted EPS for Q1 FY2025 was $2.38, a 12% increase compared to $2.13 in Q1 FY2024[5] - Net income decreased by 41% to $1.185 billion from $2.019 billion in the same quarter last year[5] - Non-GAAP net income for the three months ended January 26, 2025, was $1,946 million, an increase of 9.2% from $1,782 million in the same period last year[21] - Non-GAAP earnings per diluted share rose to $2.38, compared to $2.13 for the same period in 2024, marking an increase of 11.7%[24] Margins and Profitability - GAAP gross margin improved to 48.8%, up 1.0 percentage point from 47.8% in Q1 FY2024[5] - Non-GAAP gross profit increased to $3,503 million, up from $3,211 million, resulting in a non-GAAP gross margin of 48.9%, compared to 47.9% in the previous year[21] - The Semiconductor Systems segment reported a non-GAAP operating income of $1,998 million, up from $1,754 million, with a non-GAAP operating margin of 37.3% compared to 35.7% in the previous year[26] - Applied Global Services segment revenue increased to $1.594 billion from $1.476 billion, maintaining an operating margin of 28.0%[8] Cash Flow and Shareholder Returns - The company generated $925 million in cash from operations and returned $1.64 billion to shareholders, including $1.32 billion in share repurchases[4] - Cash provided by operating activities decreased to $925 million from $2,325 million, reflecting a decline of 60.3% year-over-year[18] - Non-GAAP free cash flow for the three months ended January 26, 2025, was $544 million, a significant decrease from $2,096 million in the same period last year[30] - Total cash, cash equivalents, and restricted cash equivalents at the end of the period was $6,355 million, down from $6,954 million a year earlier[18] Tax and Expenses - The company recorded a $644 million income tax expense due to new tax incentive agreements in Singapore[6] - The company reported a GAAP effective income tax rate of 44.1% for the three months ended January 26, 2025[28] Future Outlook - For Q2 FY2025, total net revenue is expected to be approximately $7.1 billion, with a non-GAAP gross margin of 48.4%[7] - The outlook for non-GAAP diluted EPS for Q2 FY2025 is projected at $2.30, with a potential variance of +/- $0.18[7] Segment Performance - Semiconductor Systems segment revenue was $5.356 billion, up from $4.909 billion in Q1 FY2024, with an operating margin of 37.1%[8] - Capital expenditures increased to $381 million from $229 million, reflecting a rise of 66.1% year-over-year[18]