01—Abstract
Summary
Summary of the 10-K filed August 6, 2012. Cited figures are marked; the original filing is the authoritative source.
KLA-Tencor Corporation, a leading supplier of process control and yield management solutions for the semiconductor industry, reported robust financial performance for the fiscal year ended June 30, 2012, driven by strong demand in the mobile device market.
Total revenues remained strong at $3.17 billiona, a slight decrease of 0.1% year-over-year, while net income was $756 million. The company's core business, serving IC manufacturers, benefited from significant customer investments in advanced technology and capacity expansion. Geographically, Asia continued to be the largest market, accounting for a substantial portion of revenue.
The company maintained a strong balance sheet with over $2.5 billionb in cash, cash equivalents, and marketable securities, underscoring its financial stability. KLA-Tencor also demonstrated a commitment to shareholder returns by increasing its quarterly dividend and continuing its share repurchase program. The company's outlook remains focused on innovation and addressing the evolving technological challenges within the semiconductor industry.
02—Key points
Key Highlights
- Total revenues were $3.17 billion for the fiscal year ended June 30, 2012, indicating stable performance compared to the previous year.
- Net income stood at $756 million, reflecting strong profitability.
- The company generated significant cash flow from operations, ending the fiscal year with $2.5 billion in cash, cash equivalents, and marketable securities.
- Asia, particularly Taiwan and Korea, remained the largest geographic revenue markets, highlighting the company's strong presence in key semiconductor manufacturing regions.
- KLA-Tencor announced an increase in its quarterly dividend and continued its share repurchase program, signaling a focus on returning capital to shareholders.
- Research and development expenses increased by 17% to $453 million, demonstrating the company's commitment to innovation and new product development to address evolving industry needs.
- The company's primary customers include major semiconductor manufacturers such as Samsung Electronics, Intel, and Taiwan Semiconductor Manufacturing Company.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2012, KLA Corp kept $0.24.
- Revenue$3.17B100.0%
- Cost of revenue−$1.33B41.9%
- Gross profit$1.84B58.1%
- Operating costs−$825.6M26.0%
- Operating income$1.02B32.0%
- Interest, other & tax−$260.3M8.2%
- Net income$756.0M23.8%
Where FY2012 revenue went
$3.17B- Cost of revenue: $1.33B, 42% of revenue
- Net income: $756.0M, 24% of revenue
- R&D: $452.9M, 14% of revenue
- SG&A: $372.7M, 12% of revenue
- Interest, other & tax: $260.3M, 8.2% of revenue
Kept 24% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2012filed August 6, 2012Financial Statements
FY2012 against FY2011
| Line item | FY2012FY2011 | Change |
|---|---|---|
| Revenue | $3.17B$3.18B | −0.1% |
| Cost of Revenue | $1.33B$1.26B | +5.6% |
| Gross Profit | $1.84B$1.92B | −3.9% |
| R&D Expenses | $452.94M$386.16M | +17.3% |
| SG&A Expenses | $372.67M$369.43M | +0.9% |
| Operating Expenses | $2.16B$2.01B | +7.0% |
| Operating Income | $1.02B$1.16B | −12.4% |
| Interest Expense | $54.20M$54.33M | −0.2% |
| Net Income | $756.01M$794.49M | −4.8% |
| EPS (Basic) | $0.45$0.47 | −4.6% |
| EPS (Diluted) | $0.44$0.47 | −4.7% |
| Shares Outstanding (Basic) | 1.67B1.67B | −0.3% |
| Shares Outstanding (Diluted) | 1.70B1.70B | −0.1% |
05—Questions
Frequently Asked Questions
What is KLA-Tencor's primary business and market focus?
KLA-Tencor is a leading supplier of process control and yield management solutions for the semiconductor and related nanoelectronics industries. Its products and services help integrated circuit (IC) manufacturers manage yield throughout the entire fabrication process, from research and development to final volume production.
How did KLA-Tencor perform financially in the fiscal year ended June 30, 2012?
For the fiscal year ended June 30, 2012, KLA-Tencor reported total revenues of $3.17 billion and a net income of $756 million. The company experienced robust demand, largely driven by the mobile device market, which led to sustained capital equipment spending by its customers.
What is the company's geographic revenue breakdown?
The majority of KLA-Tencor's revenue is generated internationally, with Asia being the dominant region. Taiwan and Korea were the largest markets in FY2012, followed by Japan and the United States.
What is the company's financial health and capital management strategy?
KLA-Tencor maintained a strong financial position with over $2.5 billion in cash, cash equivalents, and marketable securities as of June 30, 2012. The company funded its operations primarily through cash generated from operations and has demonstrated a commitment to shareholder returns through increased dividend payments and an ongoing share repurchase program.
06—Continue