Applied Materials supply chain improves, record Q3 revenue follows

By Devika Patel

Knoxville, Tenn., Aug. 19 – Applied Materials, Inc. is seeing improvements in the supply chain, which helped the company to generate record quarterly revenue of $6.52 billion in the third quarter, up 5% year over year, but management expects to remain supply constrained for several more quarters and has correspondingly slowed hiring and redirected funds toward research and development as well as growth.

“We are beginning to see gradual improvements in our supply chain, which enabled us to deliver record revenue for the quarter,” president and chief executive officer Gary E. Dickerson said on the company’s third quarter ended July 31 earnings conference call on Thursday.

“We expect demand to remain higher than supply for the next several quarters and we are continuing to drive actions to close the gap.

“We are working through our very substantial backlog of orders, which provides a buffer to in-year demand fluctuations.

“We expect Applied to remain supply constrained for the next several quarters,” Dickerson said.

The company has slowed hiring and is devoting extra funding to research and development and growth.

“Although we are confident in our ability to perform well in a range of market scenarios, we are mindful of the current macroeconomic trends,” Dickerson said.

“As a result, we are slowing down hiring, while ensuring we fully fund the R&D programs and strategic operational capabilities that support our long-term growth,” Dickerson said.

Cash and cash equivalents were $2,956,000,000 as of July 31, 2022, compared to $4,995,000,000 as of Oct. 31, 2021.

Long-term debt was $5,456,000,000 as of July 31, 2022, compared to $5,452,000,000 as of Oct. 31, 2021.

Applied Materials is a Santa Clara, Calif., manufacturer of semiconductor equipment.

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