Page 1

APPLIED MATERIALSⓇ make possible Applied Materials Announces Third Quarter 2021 Results August 19 , 2021 • Record quarterly revenue of $ 6.20 billion , up 41 percent year over year • Record quarterly GAAP operating margin of 32.5 percent and record non - GAAP operating margin of 32.7 percent , up 7.3 points and 6.3 points year over year , respectively • Record quarterly GAAP EPS of $ 1.87 and record non - GAAP EPS of $ 1.90 , up 105 percent and 79 percent year over year , respectively SANTA CLARA , Calif . , Aug. 19 , 2021 ( GLOBE NEWSWIRE ) Applied Materials , Inc. ( NASDAQ : AMAT ) today reported results for its third quarter ended Aug. 1 , 2021 . Third Quarter Results Applied generated revenue of $ 6.20 billion . On a GAAP basis , the company recorded gross margin of 47.9 percent , operating income of $ 2.01 billion or 32.5 percent of net sales , and earnings per share ( EPS ) of $ 1.87 . On a non - GAAP adjusted basis , the company reported gross margin of 48.0 percent , operating income of $ 2.03 billion or 32.7 percent of net sales , and EPS of $ 1.90 . The company generated $ 1.69 billion in cash from operations and returned $ 1.72 billion to shareholders including $ 1.50 billion in share repurchases and $ 219 million in dividends . " Applied Materials delivered record performance as long - term trends fueled by the digital transformation of the economy drive strong , secular demand for semiconductors , " said Gary Dickerson , President and CEO . " Applied has the broadest and most enabling portfolio of technologies to accelerate our customers ' roadmaps , putting us in a great position to outperform our markets again in 2021 and the years ahead . " Quarterly Results Summary Net sales Gross margin Operating margin Net income Diluted earnings per share Non - GAAP Adjusted Results Non - GAAP adjusted gross margin Non - GAAP adjusted operating margin Non - GAAP adjusted net income Non - GAAP adjusted diluted EPS Q3 FY2021 $ 6,196 $ 47.9 % 32.5 % 1,716 $ m 1.87 $ 48.0 % 32.7 % 1,740 $ 1.90 $ $ ᏌᏊ Ꭿ Third Quarter Reportable Segment Information Semiconductor Systems $ $ EA CA $ Q3 FY2020 ( In millions , except per share amounts and percentages ) 4,395 44.5 % 25.2 % 841 0.91 Change 45.0 % 26.4 % 976 1.06 41 % 3.4 points 7.3 points 104 % 105 % 3.0 points 6.3 points 78 % 79 % A reconciliation of the GAAP and non - GAAP adjusted results is provided in the financial tables included in this release . See also " Use of Non - GAAP Adjusted Financial Measures " section . Business Outlook In the fourth quarter of fiscal 2021 , Applied expects net sales to be approximately $ 6.33 billion , plus or minus $ 250 million . Non - GAAP adjusted diluted EPS is expected to be in the range of $ 1.87 to $ 2.01 . This outlook for non - GAAP adjusted diluted EPS excludes known charges related to completed acquisitions of $ 0.01 per share , includes the normalized tax benefit of share - based compensation of $ 0.01 per share and a net income tax benefit related to intra - entity intangible asset transfers of $ 0.03 per share , but does not reflect any items that are unknown at this time , such as any additional charges related to acquisitions or other non - operational or unusual items , as well as other tax related items , which we are not able to predict without unreasonable efforts due to their inherent uncertainty . Q3 FY2021 Q3 FY2020 ( In millions , except percentages )