Applied Materials Inc. (Santa Clara, CA) reported results for its fourth fiscal quarter ended October 26, 2003. Net sales were $1.22 billion, up 12% from $1.09 billion for the third fiscal quarter of 2003, and down 16% from $1.45 billion for the fourth fiscal quarter of 2002. Gross margin for the fourth fiscal quarter of 2003 was 40.5%, up from 31.7% for the third fiscal quarter of 2003 and down from 41.7% for the fourth fiscal quarter of 2002. Net income for the fourth fiscal quarter of 2003 was $15 million, or $0.01 per share, compared to a loss of $37 million, or $0.02 per share, for the third fiscal quarter of 2003, and down from net income of $147 million, or $0.09 per share, for the fourth fiscal quarter of 2002.
The company reported a pre-tax realignment charge of $114 million, or $0.05 per share, after tax for the fourth fiscal quarter of 2003. Realignment activities consisted primarily of consolidation of facilities and employee-related costs. Excluding the charges associated with realignment activities, the company would have reported ongoing net income of $95 million, or $0.06 per share, for the fourth fiscal quarter of 2003, an increase from $78 million, or $0.05 per share, for the third fiscal quarter of 2003. Ongoing gross margin of 40.5% for the fourth fiscal quarter of 2003 was the same as reported gross margin, compared to 40.2% ongoing gross margin for the third fiscal quarter of 2003.
The company also announced results for its fiscal year ended October 26, 2003. Fiscal 2003 new orders were $4.32 billion, a 30% decrease from fiscal 2002 new orders of $6.14 billion. Net sales for fiscal 2003 were $4.48 billion, a 12% decrease from fiscal 2002 net sales of $5.06 billion. The net loss for fiscal 2003 was $149 million, or $0.09 loss per share, down from $269 million net income, or $0.16 earnings per share, for fiscal 2002. Ongoing net income for fiscal 2003 was $223 million, or $0.13 earnings per share, down from $337 million, or $0.20 earnings per share, for fiscal 2002.
