Press release
Applied Materials Showcases Unique Capabilities to Accelerate Innovation and Drive Long-Term Profitable Growth
Outlines strategy to be “the PPACt enablement company” Plans to grow revenue by over 55 percent and non-GAAP EPS by more than 100 percent by fiscal
About this update from Applied Materials, Inc.
[{"type":"text","content":"Outlines strategy to be “the PPACt enablement company” Plans to grow revenue by over 55 percent and non-GAAP EPS by more than 100 percent by fiscal 2024Commits to return 80 to 100 percent of free cash flow to shareholders SANTA CLARA, Calif., April 06, 2021 (GLOBE NEWSWIRE) -- At its 2021 Investor Meeting held today, Applied Materials unveiled plans to grow the company’s revenue, earnings and free cash flow by enabling customers to accelerate improvements in chip power, performance, area, cost and time to market (PPACt). Applied also announced plans to generate 70 percent of future services and parts revenue through subscription-like long-term agreements. Applied outlined five major inflections that are fueling secular growth and the need for innovation as the company drives its longer-term strategy. At a macro level, the digital transformation of the global economy is accelerating. In computing, AI workloads are fueling the need for new architectures based on entirely new types of silicon. Within chipmaking, traditional Moore's Law 2D scaling is slowing, creating the need for a “new playbook” for PPACt that enables continued chip- and system-level improvements. Another inflection is the need to grow the industry in a more sustainable and equitable manner. Finally, customers are seeking not just better products, but also better outcomes, resulting in a business model shift to solutions delivered via subscription models. “The core of our strategy is to be the PPACt enablement company,” said Gary Dickerson, president and CEO of Applied Materials. “Our broad portfolio and ability to combine technologies in ways no other company can is accelerating value creation for our customers and puts Applied in a leadership position to advance the state of chipmaking for years to come.” Applied has aligned its strategy to meet the increasingly complex needs of its customers, many of whom participated in the event to discuss trends in computing, semiconductor technology, services and ESG (environmental, social and governance). Applied summarized the evolution of its Semiconductor Systems business. The portfolio is expanding from unit process equipment that performs a single step to include co-optimized systems with pre-proven combinations along with Integrated Materials Solutions where multiple process technologies are combined under vacuum to ...