Just as your pulse is checked during a routine physical, free cash flow is used as an indicator of a company's health. It equals the cash brought in from operations minus the money needed to pay the bills. Think about leftover money in your checking account after you pay this month's bills.

Investors and analysts see this leftover money as a gauge of a company's ability to perform. It is available for transactions such as handing out dividends and working on new products.

Some argue free cash flow is wrongly overshadowed by the emphasis often placed on earnings. Earnings numbers can be manipulated and don't always tell the whole story -- and earnings don't mean much if there's nothing left over after a company pays its expenses. Even if you bring in a six-figure salary, but no money left after paying the bills, are you in great financial shape?

You don't have to be Einstein to figure out free cash flow. To calculate the number, subtract the company's expenditures and dividends from its operating cash flow.

If the free cash flow is written in red ink, it doesn't necessarily signal curtains. This is common for young companies looking to grow. It also could be a result of heavy investments, which in the long run could be worth a standing ovation.

Home / Markets / Industries / Technology

Monday, June 23, 2008

Applied Materials to Hold Analyst Briefing on Tuesday, July 15, 2008 at 8:30 a.m. PDT at SEMICON/West 2008

Email this Story | Respond to Editor | Print

Comtex

SANTA CLARA, Calif., Jun 23, 2008 (BUSINESS WIRE) ----Applied Materials, Inc. (Nasdaq:AMAT) will hold an analyst briefing on Tuesday, July 15, 2008, at 8:30 a.m. Pacific Daylight Time (11:30 a.m. Eastern Daylight Time) in San Francisco, California. This year's briefing will be focused on the Silicon Systems Group.

A live webcast of the event will be available on Applied Materials' website at: http://www.appliedmaterials.com/investors/index.html. Replays and an audio/MP3 will be available beginning Tuesday, July 15 at 2 p.m. PDT (5 p.m. EDT), and ending Tuesday, August 5 at 5 p.m. PDT (8 p.m. EDT).

There is no conference call scheduled for the event. For more information about the event, please visit http://www.appliedmaterials.com on the Investors page.

Applied Materials, Inc. is the global leader in Nanomanufacturing Technology(TM) solutions with a broad portfolio of innovative equipment, service and software products for the fabrication of semiconductor chips, flat panels, solar photovoltaic cells, flexible electronics and energy efficient glass. At Applied Materials, we apply Nanomanufacturing Technology to improve the way people live. Learn more at www.appliedmaterials.com.

SOURCE: Applied Materials, Inc.

Applied Materials, Inc. Linda Heller, 408-748-5227 (Investment community)
   investor_relations@amat.com or David Miller, 408-563-9582 (Editorial/Media) david_miller@amat.com