APPLIED MATERIALS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

         
         
 Three Months Ended Six Months Ended
(In thousands, except per share amounts) April 26,
1998		 April 27,
1997		 April 26,
1998 		April 27,
1997
Net sales $ 1,176,316 $ 900,862 $ 2,484,001 $ 1,736,638
Cost of products sold 622,027 486,845 1,300,271 950,965
Gross margin 554,289 414,017 1,183,730 785,673
Operating expenses:
  Research, development and engineering 181,937 131,973 364,266 248,465
  Marketing and selling 84,689 74,965 171,078 141,236
  General and administrative 76,745 59,617 142,513 119,225
  Acquired in-process research and development - - 32,227 59,500
Income from operations 210,918 147,462 473,646 217,247
Income from litigation settlement - - 80,000 -
Interest expense 11,885 4,935 23,749 10,735
Interest income 18,230 14,598 39,509 28,155
Income from consolidated companies before taxes 217,263 157,125 569,406 234,667
Provision for income taxes 76,042 54,994 199,292 102,959
Income from consolidated companies 141,221 102,131 370,114 131,708
Equity in net income/(loss) of joint venture - - - -
Net income $ 141,221 $ 102,131 $ 370,114 $ 131,708
Earnings per share: *
 Basic $ 0.39 $ 0.28 $ 1.01 $ 0.36
 Diluted $ 0.37 $ 0.27 $ 0.98 $ 0.35
Weighted average number of shares: *
 Basic 365,936 362,846 366,555 362,134
 Diluted 379,247 375,798 379,320 373,524
*Amounts for the three and six months ended April 27, 1997 have been retroactively restated to reflect a two-for-one stock split in the form of a 100 percent stock dividend, effective October 13, 1997.



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