Business Outlook
In the second quarter of fiscal 2023, Applied expects net sales to be approximately $6.40 billion, plus or minus $400 million, which includes ongoing supply chain challenges and a negative estimated impact of $250 million dollars related to a cybersecurity event recently announced by one of our suppliers. Non-GAAP adjusted diluted EPS is expected to be in the range of $1.66 to $2.02.
This outlook for non-GAAP adjusted diluted EPS excludes known charges related to completed acquisitions of $0.01 per share, includes the normalized tax benefit of share-based compensation of $0.01 per share and includes a net income tax benefit related to intra-entity intangible asset transfers of $0.02 per share, but does not reflect any items that are unknown at this time, such as any additional charges related to acquisitions or other non-operational or unusual items, as well as other tax related items, which we are not able to predict without unreasonable efforts due to their inherent uncertainty.
First Quarter Reportable Segment Information
| Semiconductor Systems | Q1 FY2023 | Q1 FY2022 | |||||
| (In millions, except percentages) | |||||||
| Net sales | $ | 5,162 | $ | 4,567 | |||
| Foundry, logic and other | 77 | % | 60 | % | |||
| DRAM | 13 | % | 25 | % | |||
| Flash memory | 10 | % | 15 | % | |||
| Operating income | $ | 1,917 | $ | 1,771 | |||
| Operating margin | 37.1 | % | 38.8 | % | |||
| Non-GAAP Adjusted Results | |||||||
| Non-GAAP adjusted operating income | $ | 1,926 | $ | 1,778 | |||
| Non-GAAP adjusted operating margin | 37.3 | % | 38.9 | % | |||
| Applied Global Services | Q1 FY2023 | Q1 FY2022 | |||||
| (In millions, except percentages) | |||||||
| Net sales | $ | 1,369 | $ | 1,320 | |||
| Operating income | $ | 383 | $ | 403 | |||
| Operating margin | 28.0 | % | 30.5 | % | |||
| Non-GAAP Adjusted Results | |||||||
| Non-GAAP adjusted operating income | $ | 383 | $ | 403 | |||
| Non-GAAP adjusted operating margin | 28.0 | % | 30.5 | % | |||
