Applied Materials, Inc.

SANTA CLARA, Calif., Oct. 12, 2022 (GLOBE NEWSWIRE) — Applied Materials, Inc. is revising its business outlook for the fourth quarter of fiscal 2022, ending October 30, 2022.

On October 7, 2022, the United States government announced new export regulations for American semiconductor technology sold in China, including wafer fabrication equipment and related parts and services. Applied currently estimates that the new regulations will reduce its fourth-quarter net sales by approximately $400 million, plus or minus $150 million.

Applied revises its fourth-quarter business outlook for net sales to approximately $6.4 billion, plus or minus $250 million, from an earlier outlook of $6.65 billion, plus or minus $400 million . The revised net sales outlook reflects the impact of new export regulations partially offset by improved supply chain performance.

Applied now expects fourth quarter non-GAAP adjusted diluted EPS to be between $1.54 and $1.78, which compares to the previous range of $1.82 to $2.18 . The revised EPS outlook includes the impact of lower expected revenues as well as a preliminary estimated impact of approximately $0.23 primarily for inventory and refurbishment costs related to new export regulations.

Applied seeks additional export licenses and authorizations if necessary. The company currently expects the new regulations to impact net sales in the first quarter of fiscal 2023 by a similar amount as the current quarter. Additional information will be provided during the company’s next earnings webcast.

Applied Materials is a global company with customers, suppliers and operations located in many countries around the world. Applied’s business depends on international trade and the company is committed to complying with all applicable trade regulations.

Forward-looking statements
This press release contains forward-looking statements, including those regarding our business and financial outlook for the fourth quarter of fiscal 2022 and beyond, the impact of new export regulations on our ability to export products and to provide services to customers and about our results of operations, our intention to apply for additional licenses in accordance with new export regulations, and other statements that are not historical facts. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include, but are not limited to: the level of demand for our products, our ability to meet customer demand and the ability of our suppliers to meet our demand requirements; global economic, political and industrial conditions; interpreting and implementing new export regulations and licensing requirements and accounting rules; global trade issues and changes in trade and export regulations and policies; our ability to obtain licenses or authorizations in a timely manner, if required; transportation disruptions and logistical constraints; the effects of regional or global health epidemics; consumer demand for electronic products; demand for semiconductors; customer technology and capacity requirements; the introduction of new and innovative technologies and the timing of technology transitions; our ability to develop, deliver and support new products and technologies; the concentrated nature of our customer base; our ability to accurately predict future results, market conditions, customer requirements and business needs; our ability to ensure compliance with applicable laws, rules and regulations; and other risks and uncertainties described in our filings with the SEC, including our recent Forms 10-Q and 8-K. All forward-looking statements are based on management’s current estimates, projections and assumptions, and we undertake no obligation to update them.

Non-GAAP Financial Measures
This outlook for Non-GAAP Adjusted Diluted EPS excludes known charges related to completed acquisitions of $0.01 per share, includes the normalized stock-based compensation tax benefit of $0.02 per share and includes a net tax benefit related to intra-entity intangible transfers of $0.03 per share, but does not take into account items not known at this time, such as additional costs related to acquisitions or other non-operating items or unusual items, and other tax-related items, which we are unable to predict without unreasonable effort due to their inherent uncertainty.

About Applied Materials
Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Our expertise in modifying materials at atomic and industrial scale levels enables customers to turn possibilities into reality. At Applied Materials, our innovations make a better future possible. Learn more at www.appliedmaterials.com.

Contact:
Ricky Gradwohl (editorial/media) 408.235.4676
Michael Sullivan (financial community) 408.986.7977