Applied Materials reports Q4 and fiscal 2011 results

SANTA CLARA, USA: Applied Materials Inc. reported results for its fourth quarter and fiscal year ended Oct. 30, 2011.

In the fourth quarter, Applied generated orders of $1.60 billion, net sales of $2.18 billion and operating income of $361 million. Fourth-quarter net income was $456 million or 34 cents per share, including a tax benefit equivalent to 13 cents per share that was disclosed previously in a Form 8-K filed on Sept. 8, 2011. Non-GAAP operating income was $384 million, and non-GAAP net income was $271 million or 21 cents per share.

For fiscal year 2011, the company reported orders of $10.14 billion, record net sales of $10.52 billion, operating income of $2.40 billion, and net income of $1.93 billion or $1.45 per share. Non-GAAP operating income was $2.41 billion, and non-GAAP net income was $1.72 billion or $1.30 per share.

"Applied's record year was driven by strength in our silicon business and our highest-ever revenue in solar and services, as well as strategic programs that improved the efficiency of our operations," said Mike Splinter, chairman and CEO. "While we expect the first half of fiscal 2012 to be impacted by the challenging economic environment, we anticipate that our overall business will strengthen during the second half of the year."

After the end of the quarter, Applied completed the acquisition of Varian Semiconductor Equipment. "The combination of Applied and Varian creates the industry leader in transistor technologies," Splinter added. "Together, we will partner with our customers to accelerate the development of new generations of chips enabling smaller, faster and more power-efficient mobile devices."

During the quarter, Applied generated operating cash flow of $698 million or 32 percent of net sales, including a $276 million tax refund. The company paid cash dividends of $106 million and used $175 million to repurchase 16 million shares of its common stock at an average price of $11.04 per share.

"In 2011, Applied invested $1.1 billion in research, development and engineering and generated $2.4 billion in operating cash flow, the most in company history," said George Davis, CFO. "During the year, we increased our quarterly dividend payment by 14 percent and returned $865 million to our stockholders through dividends and stock buybacks."