Applied Materials(US:AMAT)2025-05-22 20:02Financial Performance - Net revenue for the three months ended April 27, 2025, was $7,100 million, a 6.8% increase from $6,646 million for the same period in 2024[12] - Gross profit for the three months ended April 27, 2025, was $3,485 million, up 10.5% from $3,153 million in the prior year[12] - Net income for the three months ended April 27, 2025, reached $2,137 million, representing a 24.2% increase compared to $1,722 million in the same quarter of 2024[15] - Earnings per share (EPS) for the three months ended April 27, 2025, was $2.64, an increase from $2.08 in the same quarter of the previous year[12] - Comprehensive income for the three months ended April 27, 2025, was $2,136 million, compared to $1,716 million for the same period in 2024[15] - Operating income for the three months ended April 27, 2025, was $2,169 million, an increase of 13% from $1,912 million in the same period of 2024[143] Assets and Liabilities - Total current assets decreased to $19,708 million as of April 27, 2025, from $21,220 million as of October 27, 2024[18] - Total liabilities decreased to $14,671 million as of April 27, 2025, compared to $15,408 million as of October 27, 2024[18] - Total cash, cash equivalents, and investments as of April 27, 2025, amounted to $10,385 million, up from $10,190 million[35] - The company’s cash and cash equivalents at the end of the period were $6,169 million, down from $7,175 million[27] - Total long-term debt was $5,462 million as of April 27, 2025, remaining stable compared to $5,460 million as of October 27, 2024[84] Cash Flow and Financing Activities - Cash provided by operating activities for the six months ended April 28, 2024, was $3,717 million, compared to $2,496 million for the same period in 2025, reflecting a 48.8% increase[27] - The company utilized $3.7 billion in cash for financing activities in the six months ended April 27, 2025, primarily for stock repurchases of $3.0 billion and cash dividends of $651 million[174] - The company has credit facilities for unsecured borrowings of up to $2.1 billion, with no amounts outstanding under the Revolving Credit Agreement as of April 27, 2025[177] Research and Development - Research, development, and engineering expenses increased to $893 million for the three months ended April 27, 2025, compared to $785 million in the same period of 2024[12] - The company continues to invest significantly in research, development, and engineering (RD&E) to ensure the availability of innovative technology for advanced customer designs[134] Stock Repurchase and Dividends - The company declared dividends of $0.46 per common share for the three months ended April 27, 2025[22] - The company authorized a stock repurchase program of $10.0 billion in March 2025, supplementing the previous $10.0 billion authorization from March 2023, with approximately $15.9 billion remaining available for future repurchases as of April 27, 2025[87] - For the three months ended April 27, 2025, the company repurchased 11 million shares at a cost of $1.685 billion, averaging $148.88 per share, compared to 4 million shares for $827 million at an average of $199.59 per share in the same period of 2024[90] Segment Performance - The Semiconductor Systems segment generated net revenue of $5,255 million with an operating income of $1,900 million for the three months ended April 27, 2025, compared to $4,901 million and $1,701 million respectively in the same period of 2024[123] - Applied Global Services (AGS) segment reported net revenue of $1,566 million and operating income of $446 million for the three months ended April 27, 2025, up from $1,530 million and $436 million in the same period of 2024[123] - Display segment net revenue increased to $259 million with an operating income of $68 million for the three months ended April 27, 2025, compared to $179 million and $5 million in the same period of 2024[123] Tax and Legal Matters - The effective tax rate for the second quarter of fiscal 2025 was 8.0%, down from 13.6% in the same quarter of 2024, primarily due to a reduction of unrecognized tax benefits related to foreign operations[104] - The company is subject to various legal proceedings and government inquiries, including subpoenas related to export controls compliance, but does not expect these to materially affect its financial condition[110][111] Market Conditions - Net revenue from China decreased by 37% to $1,774 million for the three months ended April 27, 2025, compared to $2,831 million in the same period of 2024[126] - The company reported a 25% decrease in net revenue from customers in China for the three months ended April 27, 2025, primarily due to lower investments in semiconductor equipment[148] - Net revenue from customers in Korea increased by 58% to $1,562 million for the three months ended April 27, 2025, compared to $988 million in the same period last year[148]