Summary
KLA Corporation (KLAC) filed its 10-K for the fiscal year ended June 29, 2009, detailing a challenging year impacted by the global economic downturn. The semiconductor equipment industry experienced a significant cyclical downturn, leading to reduced capital spending by KLA's customers. This resulted in a substantial decline in revenues and a net loss for the year. The company faced increased restructuring charges, inventory write-downs, and significant impairment charges related to goodwill and intangible assets. Despite these headwinds, KLA-Tencor highlighted its commitment to long-term technological investment and cost reduction efforts. The company's financial position remains solid with substantial cash reserves, and it continues to pay dividends, albeit at a reduced rate compared to the prior year. Investors should monitor the recovery of the semiconductor industry and KLA's ability to navigate economic volatility while continuing its innovation pipeline.
Financial Highlights
36 data points| Revenue | $1.52B |
| Cost of Revenue | $864.82M |
| Gross Profit | $655.39M |
| R&D Expenses | $371.46M |
| SG&A Expenses | $415.13M |
| Operating Expenses | $2.10B |
| Operating Income | -$577.94M |
| Interest Expense | $55.34M |
| Net Income | -$523.37M |
| EPS (Basic) | $-3.07 |
| EPS (Diluted) | $-3.07 |
| Shares Outstanding (Basic) | 170.25M |
| Shares Outstanding (Diluted) | 170.25M |
Key Highlights
- 1The company experienced a significant downturn in its business due to the global economic recession, leading to a substantial decrease in revenues and a net loss of $523.4 million for the fiscal year ended June 30, 2009.
- 2Significant charges were recorded during the year, including $446.7 million for goodwill and purchased intangible asset impairment, $85.6 million for excess inventory write-offs, and $38.7 million in restructuring charges related to workforce reductions.
- 3Product revenues decreased by 47% year-over-year due to reduced capital spending by customers in the semiconductor industry.
- 4Service revenues saw a decrease of 7% year-over-year as customers idled production equipment.
- 5Despite the challenging environment, KLA-Tencor maintained a healthy liquidity position with $1.3 billion in cash, cash equivalents, and marketable securities.
- 6The company continued to pay dividends, totaling $102.1 million during the fiscal year, though the quarterly dividend was reduced.
- 7Two customers, Intel Corporation and Samsung Electronics Co., Ltd., accounted for more than 10% of total revenues in the fiscal year ended June 30, 2009, indicating customer concentration risk.