Applied Materials, Inc. (NASDAQ:AMAT) stock fell 1.09% (As on Feb 17, 11:23:11 AM UTC-4, Source: Google Finance) after the company posted record quarterly revenue, driven by customers including Samsung Electronics and Taiwan Semiconductor Manufacturing Company. As per the company, the supply environment remains challenging and the company is doing everything it can to deliver for customers. The company expected second-quarter revenue of $6.35 billion, marginally below analysts’ estimates, according to Refinitiv data. Non-GAAP adjusted diluted EPS is expected to be in the range of $1.75 to $2.05. Within AGS, more than 60% of our parts and service revenue is generated from subscriptions in the form of long-term service agreements. The average tenure of these agreements is now 2.3 years, up from 1.9 years 12 months ago, and the renewal rate is over 90%. In addition, for the combined software businesses in AGS and semi systems-which are also subscription-based, the company expects them to generate more than $300 million of revenue this year.

AMAT in the first quarter of FY 22 has reported the adjusted earnings per share of $1.89, beating the analysts’ estimates for the adjusted earnings per share of $1.85, according to figures compiled by Thomson Reuters. The company had reported the adjusted revenue growth of 21 percent to $6.27 billion in the first quarter of FY 22, beating the analysts’ estimates for revenue of $6.16 billion. On a non-GAAP adjusted basis, the company reported gross margin of 47.3 percent and operating income of $1.99 billion or 31.7 percent of net sales. Semiconductor Systems revenue grew by 29% year- over-year.

The company generated a record $2.66 billion in cash from operations and returned $2.02 billion to shareholders including $1.80 billion in share repurchases and $214 million in dividends.

Moreover, in Etch, the company has recently won multiple new tool of record positions at advanced nodes in Foundry- Logic across all three leading-edge customers. In Inspection and Metrology-where the company has fewer supply chain constraints-the trailing 12-month revenues were up 68% year-on-year, and the eBeam revenues nearly doubled in that period. The company expects to outperform the market again in 2022 with especially strong growth in optical wafer inspection combined with further extension of the eBeam leadership. Further, the adoption of the co-optimized Draco solution is accelerating and on track to generate an incremental $600 million of revenue this year, and the company recently secured the first wins with a new carbon hard mask deposition and etch solution at a leading memory manufacturer.