Applied Materials Inc. (Santa Clara, CA), a supplier of semiconductor equipment and services, reported results for its fourth fiscal quarter ended October 30, 2005. Net sales were $1.72 billion, up five percent from $1.63 billion for the third fiscal quarter of 2005, and down 22 percent from $2.20 billion for the fourth fiscal quarter of 2004. Gross margin for the fourth fiscal quarter of 2005 was 44.2 percent, compared to 43.9 percent for the third fiscal quarter of 2005, and down from 46.6 percent for the fourth quarter of 2004.
Net income for the fourth fiscal quarter of 2005 was $247 million, or $0.15 per share, down from net income of $370 million, or $0.23 per share, for the third fiscal quarter of 2005, and down from net income of $455 million, or $0.27 per share, for the fourth fiscal quarter of 2004. The results for the fourth fiscal quarter of 2005 included an increase in taxes of $32 million, which reduced earnings per share by $0.02. Applied's results for the previous quarter included a tax adjustment that increased earnings per share by $0.08.
New orders of $1.69 billion for the fourth fiscal quarter of 2005 increased 15 percent from $1.47 billion for the third fiscal quarter of 2005, and decreased 35 percent from $2.62 billion for the fourth fiscal quarter of 2004. Backlog at the end of the fourth fiscal quarter of 2005 was $2.57 billion, compared to $2.61 billion at the end of the third fiscal quarter of 2005.
During the fourth fiscal quarter of 2005, the company repurchased approximately 26 million shares of common stock at an average price of $17.37 per share for an aggregate purchase price of $450 million. In addition, the company declared a quarterly cash dividend of $0.03 per share, payable on December 8, 2005, to stockholders of record on November 17, 2005.
