Analyze the income statement of Applied Materials. Write a summary that includes important points that an analyst would use in assessing the profit-ability of Applied Materials.

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Applied Material, INC (AMAT / NASDAQ) Annual Consolidated Income Statement Amounts Rounded to : Millions (except per share amounts) Results for the Years Ending Oct 27, 2013 Oct 28, 2012 Oct 30, 2011 7,509 $ 4,518 Net sales $ 8,719 $ 5,406 10,517 6,157 Less: Cost of goods sold Gross profit 2,991 3,313 4,360 Sales, general and administrative Research and development (R&D) Restructuring, impairment, and amortization Purchased in-process R&D Other operating expenses 469 595 469 1,320 1,237 1,118 63 168 707 902 375 Total operating expenses 2,559 2,902 1,962 Operating profit (loss) 432 411 2,398 Other income (expenses), net excluding interest expense 13 39 Earnings (loss) before interest and taxes 445 411 2,437 Interest expense 95 95 59 Earnings (loss) before taxes 350 316 2,378 Provision for (benefit from) income taxes 94 207 452 Earnings (loss) after taxes 256 109 1,926 Extraordinary items, net Discontinued operations, net Cumulative effect of changes in accounting principles, net Other after-tax income (loss), net Net profit (loss) 2$ 256 $ 109 $ 1,926 Basic earnings per common share $ 0.21 $ 0.09 $ 1.46 Applied Material, INC (AMAT / NASDAQ) Annual Consolidated Income Statement Amounts Rounded to : Millions (except per share amounts) Results for the Years Ending Oct 27, 2013 Oct 28, 2012 Oct 30, 2011 7,509 $ 4,518 Net sales $ 8,719 $ 5,406 10,517 6,157 Less: Cost of goods sold Gross profit 2,991 3,313 4,360 Sales, general and administrative Research and development (R&D) Restructuring, impairment, and amortization Purchased in-process R&D Other operating expenses 469 595 469 1,320 1,237 1,118 63 168 707 902 375 Total operating expenses 2,559 2,902 1,962 Operating profit (loss) 432 411 2,398 Other income (expenses), net excluding interest expense 13 39 Earnings (loss) before interest and taxes 445 411 2,437 Interest expense 95 95 59 Earnings (loss) before taxes 350 316 2,378 Provision for (benefit from) income taxes 94 207 452 Earnings (loss) after taxes 256 109 1,926 Extraordinary items, net Discontinued operations, net Cumulative effect of changes in accounting principles, net Other after-tax income (loss), net Net profit (loss) 2$ 256 $ 109 $ 1,926 Basic earnings per common share $ 0.21 $ 0.09 $ 1.46