On Feb. 13, chip equipment maker Applied Materials (NASDAQ:AMAT) released earnings for the first quarter ended Jan. 28.

  • Strong spending by memory customers drove results.
  • The bottom line nearly tripled year over year, but last year's results included restructuring charges of $215 million, or $0.08 per share.
  • The Motley Fool CAPS community thinks highly of Applied Materials, giving it a four-star rating.

(Figures in millions, except per-share data)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$2,277

$1,858

22.6%

Net Profit

$403

$143

181.8%

EPS

$0.29

$0.09

222.2%

Diluted Shares

1,409

1,608

(12.4%)


Get back to basics with a look at the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross margin

46.7%

45.1%

1.6

Operating margin

24.2%

7.8%

16.4

Net margin

17.7%

7.7%

10.0
*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Investments

$2,083

$5,808

(64.1%)

Accounts Rec.

$2,052

$1,755

16.9%

Inventory

$1,519

$1,023

48.5%


Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable

$1,911

$1,604

19.1%

Long-Term Debt

$205

$407

(49.6%)


Learn the ways of the balance sheet.

Cash Flow Highlights

Applied Materials didn't provide cash flow information in its earnings release.

Find out why Fools always follow the money.

Related companies:

  • Novellus (NASDAQ:NVLS)
  • KLA-Tencor (NASDAQ:KLAC)
  • Lam Research (NASDAQ:LRCX)
  • FormFactor (NASDAQ:FORM)
  • Intel (NASDAQ:INTC)

Related Foolishness:

FormFactor is a Motley Fool Hidden Gems recommendation. Intel is an Inside Value recommendation. Try any one of our investing services free for 30 days.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Fool contributor Dan Bloom and his wife had positions in Intel and KLA-Tencor, although his wife most likely isn't aware of it. Fool rules are here.