Applied Materials : Applied Materials Demonstrates Momentum for Profitable Growth in Mobile Era

  Applied Materials : Applied Materials Demonstrates Momentum for Profitable
                             Growth in Mobile Era

  *Consumer demand for sophisticated mobile devices creates profitable growth
    opportunities for Applied's semiconductor and display equipment businesses
  *Company's leadership in Precision Materials Engineering enables customers
    to deliver mobile devices with better performance, longer battery life,
    higher resolution displays and new form factors
  *Unveils new financial model targeting non-GAAP adjusted earnings per share
    of $1.50 to $2.15 by fiscal 2016

SANTA CLARA, Calif., July 8, 2013 - At a meeting of the company's top
investors and equity analysts, Applied Materials today demonstrated plans to
drive profitable growth by using its leadership in Precision Materials
Engineering to help customers overcome the engineering challenges of
delivering more powerful, battery-efficient and visually compelling digital
devices to a growing global market. The evolution of transistor and display
technologies propelled by consumer demand for increased mobility presents
Applied Materials with new opportunities for profitable growth. Ever-growing
consumer demand for faster processors, longer battery life, and bigger and
better displays is creating major device performance and yield challenges for
semiconductor and display manufacturers - challenges that Applied Materials is
uniquely positioned to solve.

"Semiconductor and display makers are racing to deliver the new mobile
products consumers demand," said Mike Splinter, chairman and chief executive
officer. "The war for mobility leadership will be won by materials innovation
that is enabled by Applied Materials."

The industry is re-engineering transistor designs, driving the need for new
materials and new ways of handling those materials, as manufacturers look
beyond shrinking lithography geometries to achieve performance gains. Applied
Materials' leadership expertise in Precision Materials Engineering is critical
to solving customers' toughest device challenges, and enabling further
innovations in 3D transistors and display manufacturing.

"Our leadership in Precision Materials Engineering is what makes Applied
unique and provides us with great opportunities for profitable growth," said
Gary Dickerson, president of Applied Materials. "We are enabling major
mobility inflections that bring more advanced features and improved battery
life in next-generation mobile devices."

New Financial Model

Robert Halliday, senior vice president and chief financial officer, presented
the company's new financial model, which outlines increased profitability
goals for non-GAAP adjusted earnings per share of $1.50 - $2.15 by fiscal
2016. This model accounts for a number of factors including varying levels of
industry investment and market share assumptions. "Industry inflections and
the need for new materials to address technology challenges play in our favor
and position us as an increasingly strategic and valuable partner to our
customers, which we believe will lead to further opportunities to expand our
total available market," said Halliday. "Our new financial targets are
supported by our investment in cutting-edge innovation, focus on execution and
discipline to lower costs as we pursue future profitable growth."

Strong Pipeline of Technology to Deliver New Mobile Products

Dr. Randhir Thakur, executive vice president and general manager of the
Silicon Systems Group, highlighted several new products and discussed specific
growth opportunities in transistor, interconnect, patterning and yield. "As we
enter the second half of 2013, our product pipeline has us strongly positioned
with a range of innovations that benefit our customers as they navigate coming
technology inflections," said Thakur. "Our new transistor technologies will
help customers meet the insatiable demand for more efficient computing power,
while our interconnect developments ensure device reliability at the backend.
The momentum we are building with these innovations will help customers
accelerate their transitions to 1Xnm technology nodes and usher in a new era
of mobile products."

Delivering updates on Applied Materials' display equipment business was Ali
Salehpour, group vice president, general manager, Energy and Environmental
Solutions and Display business groups. "The display industry is experiencing
the most significant technology transition in two decades, implementing new
metal oxide and low temperature polysilicon (LTPS) materials to manufacture
higher resolution LCD and organic light-emitting diode (OLED) displays," said
Salehpour. "Manufacturers are facing further significant device performance
and yield challenges as they look to deliver larger screens with higher
resolution and new form factors such as wearable and bendable displays. All
these trends play to Applied Materials' sweet spot in Precision Materials
Engineering, where we believe we have distinct differentiation from our
competitors." 

A webcast replay of the 2013 Analyst Meeting presentations by senior
executives and accompanying Q&A will be available for at least 30 days at
http://www.appliedmaterials.com/2013-analyst-meeting beginning July 9 at 9:00
a.m. PT.

Non-GAAP Adjusted Financial Measures

The non-GAAP EPS targets assume non-GAAP adjustments as applicable for future
periods. Management uses non-GAAP adjusted results to evaluate the company's
operating and financial performance in light of business objectives and for
planning purposes. These measures are not in accordance with GAAP and may
differ from non-GAAP methods of accounting and reporting used by other
companies. Applied believes these measures enhance investors' ability to
review the company's business from the same perspective as management and
facilitate comparisons between periods.

Forward-Looking Statements

This release contains forward-looking statements, including those regarding
Applied's industry outlooks, growth opportunities, products, strategies and
2016 financial model. These statements are subject to known and unknown risks
and uncertainties that could cause actual results to differ materially from
those expressed or implied, including: uncertain global economic and industry
conditions; demand for mobility products; customers' new technology and
capacity requirements; the concentrated nature of our customer base; Applied's
ability to (i) develop, deliver and support a broad range of products and
expand its markets, (ii) achieve the objectives of operational initiatives,
(iii) obtain and protect IP, and (iv) attract, motivate and retain key
employees; and other risks described in our most recent SEC Form 10-Q. All
forward-looking statements are based on management's estimates, projections
and assumptions as of July 8, 2013, and Applied undertakes no obligation to
update any forward-looking statements.

Applied Materials, Inc. (Nasdaq:AMAT) is the global leader in providing
innovative equipment, services and software to enable the manufacture of
advanced semiconductor, flat panel display and solar photovoltaic products.
Our technologies help make innovations like smartphones, flat screen TVs and
solar panels more affordable and accessible to consumers and businesses around
the world. Learn more at www.appliedmaterials.com.

                                     ###

Contact:

Ricky Gradwohl (editorial/media) 408.235.4676   

Michael Sullivan (financial community) 408.986.7977 

------------------------------------------------------------------------------

This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
the
information contained therein.

Source: Applied Materials via Thomson Reuters ONE
HUG#1715028
 
Press spacebar to pause and continue. Press esc to stop.