The company generated $1.19 billion in cash from operations and returned $952 million to shareholders including $750 million in share repurchases and $202 million in dividends.
“Applied Materials’ record performance is underpinned by broad-based strength across our Semiconductor businesses,” says CEO Gary Dickerson, “we are confident in our ability to outperform our markets as large, secular trends create sustainable demand for semiconductors and our leadership in materials engineering becomes increasingly critical to deliver new chip technologies.”
Quarterly Results Summary
| Q2 FY2021 | Q2 FY2020 | Change | ||||||||
| (In millions, except per share amounts and percentages) | ||||||||||
| Net sales | $ | 5,582 | $ | 3,957 | 41 | % | ||||
| Gross margin | 47.5 | % | 44.2 | % | 3.3 points | |||||
| Operating margin | 28.3 | % | 23.6 | % | 4.7 points | |||||
| Net income | $ | 1,330 | $ | 755 | 76 | % | ||||
| Diluted earnings per share | $ | 1.43 | $ | 0.82 | 74 | % | ||||
| Non-GAAP Adjusted Results | ||||||||||
| Non-GAAP adjusted gross margin | 47.7 | % | 44.6 | % | 3.1 points | |||||
| Non-GAAP adjusted operating margin | 31.7 | % | 24.7 | % | 7.0 points | |||||
| Non-GAAP adjusted net income | $ | 1,509 | $ | 817 | 85 | % | ||||
| Non-GAAP adjusted diluted EPS | $ | 1.63 | $ | 0.89 | 83 | % | ||||
Second quarter GAAP results included a $154 million deal termination fee paid per the terms of the Share Purchase Agreement with Kokusai Electric Corporation and KKR HKE Investment L.P., which reduced earnings per share by $0.17.
In Q3, Applied expects net sales to be approximately $5.92 billion, plus or minus $200 million.