Business Outlook
In the second quarter of fiscal 2024, Applied expects net revenue to be approximately $6.50 billion, plus or minus $400 million. Non-GAAP diluted EPS is expected to be in the range of $1.79 to $2.15.
This outlook for non-GAAP diluted EPS excludes known charges related to completed acquisitions of $0.01 per share and includes the normalized tax benefit of share-based compensation of $0.01 per share and includes a 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
Effective in the first quarter of fiscal 2024, management began including share-based compensation expense in the evaluation of reportable segments' performance. Prior-year numbers have been recast to conform to the current-year presentation.
| Semiconductor Systems | Q1 FY2024 | Q1 FY2023 | |||||
| (In millions, except percentages) | |||||||
| Net revenue | $ | 4,909 | $ | 5,162 | |||
| Foundry, logic and other | 62 | % | 77 | % | |||
| DRAM | 34 | % | 13 | % | |||
| Flash memory | 4 | % | 10 | % | |||
| Operating income | $ | 1,744 | $ | 1,855 | |||
| Operating margin | 35.5 | % | 35.9 | % | |||
| Non-GAAP Results | |||||||
| Non-GAAP operating income | $ | 1,754 | $ | 1,864 | |||
| Non-GAAP operating margin | 35.7 | % | 36.1 | % | |||
| Applied Global Services | Q1 FY2024 | Q1 FY2023 | |||||
| (In millions, except percentages) | |||||||
| Net revenue | $ | 1,476 | $ | 1,369 | |||
| Operating income | $ | 417 | $ | 345 | |||
| Operating margin | 28.3 | % | 25.2 | % | |||
| Non-GAAP Results | |||||||
| Non-GAAP operating income | $ | 417 | $ | 345 | |||
| Non-GAAP operating margin | 28.3 | % | 25.2 | % | |||
