Applied Materials (AMAT: AMAT) released its financial results for the second quarter of fiscal year 2020, ending April 26, 2020.
The company’s second-quarter revenue was $ 3.96 billion. Calculated by GAAP, the company posted gross margin of 44.2%, operating profit of $ 932 million or 23.6% of net sales, and earnings per share of $ 0.82. In a non-GAAP adjusted calculation, Applied reported gross margin of 44.6%, operating profit of $ 976 million or 24.7% of net sales, and earnings per share of $ 0.89. The company paid back its shareholders $ 392 million, including $ 199 million through the repurchase of shares and dividends of $ 193 million.
“These days, as we navigate through the challenges that COVID-19 poses, the company rallies around safety, productivity and customer retention and industry for the future,” said Gary Dickerson, President and CEO of Applied Materials. “Although the situation is still liquid, as far as we can currently predict, our supply chain is recovering and the basic demand for semiconductor equipment and services remains robust.”
The field in which the company operates in Israel (PDC), with a record revenue in half
In Israel, Applied Materials’ business focuses on developing and manufacturing advanced testing and control systems for the chip industry. Medical equipment, industrial machinery, etc. Almost all the chips in the world went through the manufacturing process through Applied Materials’ machines manufactured in Israel.
In relation to this, Dickerson noted: “According to a recent report by VLSI Research, our performance hit the market last year in both equipment and conductor services. PDC activity generated record revenue in the first half of the year. One of the key contributors to this record performance is our new optical testing system which will be officially launched later this year. ”
He added: “The field of testing and measurement is one of the areas where we have the strongest momentum. We grew stronger and we will achieve good double-digit growth in the entire fiscal year as well as half. The field is one of the strongest growth businesses for us this year. Another positive element of our PDC business is found in e-beam-based systems. There we have a strong leadership position and also some new capabilities, with the highest resolution imaging technology in the industry alongside a very strong initial adoption of the new capabilities in leading customers. We are starting a great year at PDC 2020 and I would say that we are in the best position we have ever had in relation to this business area, ”Dickerson said.
Applied continues to recruit employees these days
The company’s development and production center, which employs 1600 people in Israel, is located in Rehovot Science Park. In the past year, the company has recruited 250 employees.
And these days, she continues to recruit new employees and employees, mainly in software, algorithms, engineering, product integration and more.
Already at the beginning of the outbreak of the Corona virus, Applied announced that it would maintain the financial security of its employees. In addition to the fact that no employee has been issued to the USSR and has not been fired, the company continues to pay employees full wages even to those who are unable to work due to the situation. For example, workers forced to go into isolation should not have to take sick days and receive full wages for the isolation period. In addition, the company continues to pay fully to various service providers so that even the 800 employees not directly employed by it continue to receive full wages. This is despite the fact that a large proportion of these employees are not required to go to work on the company campus and most of Applied employees work from home.