Company Ordered to Disclose China Sales Data

The latest subpoena issued to Applied Materials came from the US Commerce Department's Bureau of Industry and Security, marking the fifth such request received by the company from various US institutions. The purpose of these subpoenas is likely to determine whether equipment was shipped in violation of US export license conditions.

Applied Materials disclosed the subpoenas in its financial results filing for the second quarter of its fiscal year 2024, which ended on April 28, 2024. This is not the first time the company has been subpoenaed by the BIS, as a similar request was made in November 2023.

In addition to the recent subpoena from the US Commerce Department, Applied Materials has also received subpoenas from the U.S. Attorney's Office for the District of Massachusetts in August 2022 and February 2024. Furthermore, the company was served with a subpoena from the US Securities and Exchange Commission in February 2024.

Regarding the ongoing investigations, Applied Materials stated in the filing: "We are cooperating fully with the government in these matters," indicating their willingness to assist in the inquiries being conducted by the authorities.

During the second quarter of fiscal year 2024, Applied Materials reported a net profit of US$1.72 billion on sales revenue of US$6.65 billion, which remained consistent with the figures from the same quarter in the previous year. Despite the legal challenges, the company continues to maintain a strong financial position.