A reconciliation of the GAAP and non-GAAP adjusted results is provided in the financial tables included in this release. See also “Use of Non-GAAP Adjusted Financial Measures” section.
Business Outlook
In the fourth quarter of fiscal 2023, Applied expects net sales to be approximately $6.51 billion, plus or minus $400 million. Non-GAAP adjusted diluted EPS is expected to be in the range of $1.82 to $2.18.
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 $0.01 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.
Third Quarter Reportable Segment Information
| Semiconductor Systems | Q3 FY2023 | Q3 FY2022 | |||||
| (In millions, except percentages) | |||||||
| Net sales | $ | 4,676 | $ | 4,734 | |||
| Foundry, logic and other | 79 | % | 66 | % | |||
| DRAM | 17 | % | 15 | % | |||
| Flash memory | 4 | % | 19 | % | |||
| Operating income | $ | 1,618 | $ | 1,701 | |||
| Operating margin | 34.6 | % | 35.9 | % | |||
| Non-GAAP Adjusted Results | |||||||
| Non-GAAP adjusted operating income | $ | 1,628 | $ | 1,708 | |||
| Non-GAAP adjusted operating margin | 34.8 | % | 36.1 | % | |||
| Applied Global Services | Q3 FY2023 | Q3 FY2022 | |||||
| (In millions, except percentages) | |||||||
| Net sales | $ | 1,464 | $ | 1,420 | |||
| Operating income | $ | 429 | $ | 434 | |||
| Operating margin | 29.3 | % | 30.6 | % | |||
| Non-GAAP Adjusted Results | |||||||
| Non-GAAP adjusted operating income | $ | 429 | $ | 434 | |||
| Non-GAAP adjusted operating margin | 29.3 | % | 30.6 | % | |||
