Q3 2024 Applied Materials Inc Earnings Call Transcript
Key Points
- Applied Materials Inc (AMAT) reported record revenue of $6.78 billion for Q3 2024, up 5% year-over-year.
- The company achieved a non-GAAP gross margin of 47.4%, an increase of 100 basis points year-over-year.
- Strong performance in the DRAM segment, with sales growing nearly 50% year-over-year to $1.16 billion.
- Advanced packaging revenue is expected to grow to approximately $1.7 billion in 2024, driven by high-bandwidth memory demand.
- Applied Global Services delivered record revenue of $1.58 billion in Q3, up 8% year-over-year, with a non-GAAP operating margin of 29.6%.
- Revenue from China declined by 11 percentage points sequentially to 32%, reflecting lower DRAM sales in the region.
- Non-GAAP operating expenses increased by 8% year-over-year, driven largely by R&D investments.
- NAND memory sales grew only 10% year-over-year, indicating slower growth compared to other segments.
- The display segment remains weak, with LCD equipment spending still low and only modest growth in OLED technology adoption.
- The company faces headwinds in gross margin due to mix changes, particularly with a higher proportion of sales to smaller customers in China.
Welcome to the Applied Materials earnings conference call. (Operator Instructions) I would now like to turn the conference over to Michael Sullivan, Corporate Vice President. Please go ahead, sir.
Good afternoon, everyone, and thank you for joining Applied's third quarter of fiscal 2024 earnings call. Joining me are Gary Dickerson, our President and CE; and Brice Hill, our Chief Financial Officer.
Before we begin, I'd like to remind you that today's call contains forward-looking statements, which are subject to risks and uncertainties that could cause our actual results to differ. Information concerning the risks and uncertainties is contained in Applied's most recent Form 10-Q filing with the SEC.
Today's call also includes non-GAAP financial measures. Reconciliations to GAAP measures are found in today's earnings press release and in our quarterly earnings materials, which are available on our website at ir.appliedmaterials.com.
And with that introduction, I'd like to turn the call
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