Applied Materials Posts 53% Revenue Growth in Fiscal Fourth Quarter

Applied Materials posted $10.41 billion in fiscal fourth-quarter revenue, up 53% from a year earlier, as the semiconductor equipment maker closed its fiscal year with annual sales growth of 21%. The quarter ended Oct. 25, and its revenue growth outpaced the 25% increase in the previous quarter.

Fiscal third-quarter revenue was $9.115 billion, compared with $7.302 billion a year earlier. The third-quarter results provide a comparison for the stronger year-over-year pace in the latest quarter.

Quarterly non-GAAP earnings per share rose 92% to $4.16. Non-GAAP gross margin increased 250 basis points from a year earlier to 50.6%. Those results topped the midpoints of the company’s earlier fourth-quarter outlook: $10.25 billion in revenue and $4.02 in non-GAAP EPS. The fourth-quarter preview covered that outlook.

For the full fiscal year, revenue reached $34.45 billion, up 21%. Non-GAAP EPS rose 37% to $12.89, while full-year non-GAAP gross margin was 50.1%, up 130 basis points.

Applied Materials generated a record $8.87 billion in operating cash flow for the year and returned $4.75 billion to shareholders through dividends and stock buybacks. The company makes equipment used by chipmakers to manufacture semiconductors.