Semiconductor Systems net revenue decreased to $4.901 billion for the three months ended April 28, 2024, compared to $4.977 billion for the same period last year. The six-month revenue decreased to $9.810 billion from $10.139 billion year-over-year.

Applied Global Services net revenue increased to $1.530 billion for the three months ended April 28, 2024, compared to $1.428 billion for the same period last year. The six-month revenue increased to $3.006 billion from $2.797 billion year-over-year.

Display and Adjacent Markets net revenue increased to $179 million for the three months ended April 28, 2024, compared to $168 million for the same period last year. The six-month revenue increased to $423 million from $335 million year-over-year.

Operating expenses increased to $1.241 billion for the three months ended April 28, 2024, compared to $1.183 billion for the same period last year. The six-month operating expenses increased to $2.478 billion from $2.358 billion year-over-year.

Research, development and engineering expenses increased to $785 million for the three months ended April 28, 2024, compared to $775 million for the same period last year. The six-month R&D expenses decreased to $1.539 billion from $1.546 billion year-over-year.

Marketing and selling expenses increased to $209 million for the three months ended April 28, 2024, compared to $194 million for the same period last year. The six-month marketing and selling expenses increased to $416 million from $391 million year-over-year.

The company acknowledges that global trade issues, export regulations, and trade disputes could negatively impact business and operations, including the ability to sell products and provide services to customers, and increase supply chain complexity and manufacturing costs.

The company identifies supply chain disruptions, manufacturing interruptions, and the failure to accurately forecast demand as risks that could lead to higher costs, excess inventory, and the inability to meet customer demand.

The company states that it is subject to cybersecurity incidents, which may range from employee error to sophisticated cyberattacks, and that these incidents could result in business disruption, theft of intellectual property, and reputational damage.

The company states that it operates in highly competitive industries, and that its future success depends on its ability to innovate, commercialize new products, and increase its market position.

The company acknowledges that a limited number of customers account for a substantial portion of its business, and that the actions of a single customer or changes in export regulations could expose its business to greater volatility.

The company identifies various risks related to the semiconductor and display industries, including technology transitions, capital expenditures, and the ability to meet technical challenges.

Cost of products sold decreased to $3.493 billion for the three months ended April 28, 2024, compared to $3.536 billion for the same period last year. The six-month cost of products sold decreased to $6.996 billion from $7.130 billion year-over-year.

The company states that it is focused on improving its manufacturing processes and achieving cost efficiencies across product offerings.

The company acknowledges that supply chain disruptions and manufacturing delays could impact its ability to meet customer demand and lead to higher costs.

The company states that it is critical to continue to make substantial investments in R&D to assure the availability of innovative technology.

R&D expenses were $785 million for the three months ended April 28, 2024, and $1.539 billion for the six months ended April 28, 2024, indicating a continued commitment to innovation.

The company states that it is focused on developing new products and disruptive technologies, and improving and developing new applications for existing products.

The company repurchased $827 million of common stock during the three months ended April 28, 2024, and $1.530 billion during the six months ended April 28, 2024.

The company declared quarterly cash dividends of $0.40 per share in March 2024, and $0.32 per share in December 2023, and paid $532 million in dividends during the six months ended April 28, 2024.

The company used $2.2 billion in financing activities during the six months ended April 28, 2024, consisting primarily of cash used for repurchases of common stock, dividends to stockholders, tax withholding payments for vested equity awards and net payments of principals on financing leases.

The company states that it is focused on reducing energy usage and improving the environmental impact and sustainability associated with manufacturing operations.

The company states that it is subject to environmental, health and safety regulations in connection with its global business operations.

The company acknowledges that its sustainability targets could cause it to incur substantial expense and alter its manufacturing, operations or equipment designs and processes.

The company states that uncertain or adverse economic and business conditions could materially and adversely impact its operating results.

The company acknowledges that global trade issues, export regulations, and trade disputes could negatively impact its business and operations.

The company identifies various risks related to the semiconductor and display industries, including technology transitions, capital expenditures, and the ability to meet technical challenges.