• Quarterly revenue of $3.75 billion
• GAAP EPS of $0.80 and non-GAAP EPS of $0.81
• Returns $942 million to shareholders

SANTA CLARA, Calif., Feb. 14, 2019 (GLOBE NEWSWIRE) -- Applied Materials, Inc. (NASDAQ:AMAT) today reported results for its first quarter ended Jan. 27, 2019.

First Quarter Results

Applied generated revenue of $3.75 billion. On a GAAP basis, the company recorded gross margin of 44.4 percent, operating income of $908 million or 24.2 percent of net sales, and earnings per share (EPS) of $0.80.

On a non-GAAP adjusted basis, the company reported gross margin of 44.6 percent, operating income of $925 million or 24.6 percent of net sales, and EPS of $0.81.

The company returned $942 million to shareholders including $750 million in share repurchases and dividends of $192 million.

“Applied Materials delivered solid first quarter results in a challenging business environment,” said Gary Dickerson, president and CEO. “As we navigate the current market dynamics, we remain highly optimistic about the long term and are investing in new technology, products and capabilities that position the company to play a bigger and broader role in the industry's future.”

Quarterly Results Summary

Applied adopted Accounting Standards Update 2014-09, Revenue from Contracts with Customers (ASC 606), as of the first day of fiscal 2019 using the full retrospective method. Applied also adopted Accounting Standards Update 2017-07, Compensation—Retirement Benefits, as of the first day of fiscal 2019 using the retrospective method. All prior periods included in the unaudited consolidated condensed balance sheet as of Oct. 28, 2018, and the unaudited consolidated condensed statements of operations and cash flows for the three months ended Jan. 28, 2018, were restated under the new standards. The cumulative impact of the adoption was an increase of approximately $6 million to beginning retained earnings of the first quarter of fiscal 2019.

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 second quarter of fiscal 2019, Applied expects net sales to be in the range of $3.33 billion to $3.63 billion. Non-GAAP adjusted diluted EPS is expected to be in the range of $0.62 to $0.70.

This outlook for non-GAAP adjusted diluted EPS excludes known charges related to completed acquisitions of $0.01 per share and net income tax benefit related to intra-entity intangible asset transfers of $0.02 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.

First Quarter Reportable Segment Information