Friday, November 25, 2022

Applied Materials Delivers Strong FY 2022 Numbers including Picosun ALD

Semiconductor equipment maker Applied Materials has reported strong earnings for FY 2022 (ended October 30). Total sales revenue increased 12% YoY to $25.78 billion despite supply chain shortages, geopolitical and macroeconomic headwinds, and softening consumer demand.

LINK: https://ir.appliedmaterials.com/

The company’s uniquely enabling technology and growing installed base will be its key growth drivers as chipmakers accelerate ramping up of new process nodes in R&D for high-volume manufacturing.




Key developments in FY 2022
  • Applied Materials acquired Picosun, a Finland-based innovator in atomic layer deposition (ALD) technology. This acquisition broadens Applied’s product portfolio and puts it in a great position to capture a large portion of the specialty semiconductor market in the coming years.
  • Collaboration with the Institute of Microelectronics (IME), a research institute under Singapore’s Agency for Science, Technology and Research (A*STAR). IME’s strategic R&D capabilities complement well Applied’s expertise in advanced packaging solutions and will accelerate material, equipment and process technology solutions for hybrid bonding and other emerging, 3D chip integration technologies.
  • Introduced new Ioniq™ PVD system to solve wiring resistance challenges of 2D scaling. This new integrated solution offers a significant reduction in electrical resistance, which has become a critical bottleneck to further improvements in chip performance and power.
Financial highlights
  • Semiconductor Systems revenue increased 15% YoY in FY 2022 to $18,797 million on account of strong orders as customers continued to invest in next-generation technology.
  • Applied Materials’ service revenue increased 11% YoY in FY 2022 to $5,543 million, accounting for 21% of the annual net revenue.
  • Display and Adjacent Markets revenue decreased 19% YoY in FY 2022 to $ 1,331 million.
  • Non-GAAP gross margin was at 46.6% in FY 2022.
  • Non-GAAP operating profit grew by over 7% to $7.86 billion.
  • Non-GAAP EPS increased nearly 13% to $7.70.
  • Total ending backlog increased 62% to $19 billion with Semiconductor Systems backlog increasing 90% to nearly $12.7 billion and services backlog increasing 30% to over $5.6 billion.
  • The company generated about $5.4 billion in operating cash flow and over $4.6 billion in free cash flow.
  • The company’s installed base grew 8% YoY in FY 2022.
  • The number of tools under comprehensive, long-term service contracts grew 16% YoY with the over 90% renewal rate for these agreements demonstrating the value customers see in subscription services.
  • New export regulations for US semiconductor technology sold in China reduced Semiconductor Systems and AGS fourth quarter revenue by approximately $280 million.

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