- Unveils new financial model targeting non-GAAP EPS of
$2.45 to $3.17for FY2019
- Expects higher wafer fab equipment (WFE) spending driven by multi-year inflections including 3D NAND,10 and 7 nanometer logic and foundry, materials-based patterning and new factory investments in
- Outlines plans to drive 50 percent growth in display business to
$1.8 billionby FY2019
Applied highlighted how the semiconductor industry’s major transition from lithography-based scaling to materials-enabled scaling has increased Applied’s addressable opportunity from 53 percent of WFE spending in calendar 2012 to an estimated 63 percent this year. With the broadest portfolio of materials engineering technologies and its unique Product Development Engine process, Applied now expects to achieve a 4-point gain in its share of WFE spending and nearly double its display business, from 2012 through 2016. By delivering enabling service products to support customers as they make these challenging technology transitions, the company expects to grow its services business revenue by
“Our innovation leadership strategy, combined with the breadth and depth of our materials engineering capabilities, puts Applied in a unique position to sustainably outperform our markets,” said
“We are raising the ceiling on our financial model based on our confidence that we have the right capability, strategy and operating model to deliver sustainable growth in the near and long term,” said
Large, multi-year inflections are driving sustained growth in semiconductor and display: the evolution of 3D NAND; transition to 10/7nm nodes; growing need for 3D materials-enabled patterning; increasing investments in
Multiple longer term technology drivers, including augmented/virtual reality and smart vehicles, will fuel the need for higher performance computing, better networks and more and new types of memory. These emerging drivers are expected to create new opportunities for Applied’s leading materials engineering technologies and products, and increase WFE and display industry investment in coming years.
A replay of the 2016 Analyst Meeting, along with presentations and related materials, will be available on the
Non-GAAP Adjusted Financial Measures
The non-GAAP adjusted EPS targets assume non-GAAP adjustments as applicable for future periods, which we are unable to predict without unreasonable efforts due to their inherent uncertainty. Management uses non-GAAP adjusted financial measures to evaluate the company's operating and financial performance and for planning purposes. Applied believes these measures enhance investors’ ability to review the company’s business from the same perspective as the company’s management, and facilitate comparisons between periods on a consistent basis. There are limitations in using non-GAAP financial measures because they are not prepared in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies.
This press release contains forward-looking statements, including those regarding anticipated growth and trends in our businesses and markets, industry outlooks, technology inflections, our strategies, our development of new products and technologies, the anticipated demand for our products, growth in our market share positions and opportunities, our business and financial performance, and our financial model, 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, without limitation: the level of demand for our products; global economic and industry conditions; consumer demand for electronic products; customers’ technology and capacity requirements; the introduction of new and innovative technologies, and the timing of technology inflections; our ability to develop, deliver and support new products, expand our markets and increase market share; the concentrated nature of our customer base; market acceptance of existing and newly developed products; our ability to obtain and protect intellectual property rights in key technologies; our ability to achieve the objectives of operational and strategic initiatives, and attract, motivate and retain key employees; the variability of operating expenses and results among products and segments, and our ability to accurately forecast future results, market conditions, customer requirements and business needs; and other risks and uncertainties described in our most recent Form 10-Q and other