. Raises fiscal year net sales outlook to growth of more than 50%
. Orders up 33% quarter over quarter led by Silicon Systems Group order growth of 80%
. Completes Semitool acquisition targeting growth in advanced semiconductor packaging
SANTA CLARA, Calif.--(BUSINESS WIRE)--Applied Materials, Inc. (NASDAQ:AMAT), the global leader in Nanomanufacturing Technology™ solutions for the semiconductor, flat panel display and solar industries, today reported results for its first quarter of fiscal 2010 ended January 31, 2010. Applied generated net sales of $1.85 billion, operating profit of $116 million, and net income of $83 million or $0.06 per share. Non-GAAP net income was $179 million or $0.13 per share.
“Applied posted solid first quarter results led by robust sales in our semiconductor equipment business,” said Mike Splinter, chairman and CEO. “With global demand improving in our customers' end markets, we are raising our full-year revenue target to reflect higher anticipated demand in our semiconductor, LCD display and crystalline silicon solar businesses.”

“During the quarter, we completed the acquisition of Semitool Inc., opening new growth opportunities in our core semiconductor equipment market, particularly in advanced packaging,” Splinter added. “Applied enters its second quarter with considerable momentum, and we are off to an excellent start for the year.”

Financial Results Summary

Q1 FY 2010 Q4 FY 2009 Q1 FY 2009
GAAP Results
Net sales $1.85 billion $1.53 billion $1.33 billion
Net income (loss) $83 million $138 million ($133 million)
Earnings (loss) per share $0.06 $0.10 ($0.10)
Non-GAAP Results
Non-GAAP net income (loss) $179 million $155 million ($28 million)
Non-GAAP earnings (loss) per share $0.13 $0.11 ($0.02)

Fiscal year 2010 is a 53-week year with 14 weeks in the first quarter.

The non-GAAP results exclude the impact of the following, where applicable: restructuring and asset impairments, acquisition-related costs, investment impairments, gains on sales of facilities, and amounts associated with the resolution of income tax audits. Effective the first quarter of fiscal 2010, the non-GAAP results no longer exclude the impact of equity-based compensation. A reconciliation of the GAAP and non-GAAP results is provided in the financial statements included in this release.

Reportable Segment Results

The Silicon Systems Group (SSG) had new orders of $1.13 billion, net sales of $970 million and operating income of $306 million. The 48 percent sequential increase in net sales was led by shipments to foundry and DRAM customers. New order composition was: foundry 42 percent, DRAM 36 percent, flash 13 percent, and logic and other 9 percent.

Applied Global Services (AGS) had new orders of $474 million, net sales of $426 million and operating income of $63 million. Sequential growth in net sales of 9 percent was driven primarily by semiconductor customer increases in factory utilization levels and new wafer starts.

The Display group had new orders of $126 million, net sales of $132 million and operating income of $25 million. The sequential decline in net sales was expected following a strong prior quarter.

The Energy and Environmental Solutions (EES) group had new orders of $230 million, net sales of $321 million and an operating loss of $36 million. Net sales included revenue for two additional SunFab™ thin film solar production lines.

Financial Highlights

Applied generated operating cash flow of $367 million during the quarter. The company acquired Semitool Inc. in an all-cash transaction for $323 million, net of cash acquired, and paid cash dividends of $80 million. At the end of the period, the company held $3.2 billion in cash and investments.

Business Outlook

For the second quarter of fiscal 2010, Applied expects quarter over quarter net sales growth of between 15 percent and 25 percent. The company expects non-GAAP EPS to be in the range of $0.17 to $0.22, which excludes anticipated charges related primarily to acquisitions.

For fiscal 2010, Applied expects net sales to grow by more than 50 percent, an increase from the previous outlook of greater than 30 percent.