Summary
KLA Corporation (KLAC) reported total revenues of $9.81 billion for the fiscal year ended June 30, 2024, a decrease of 7% year-over-year, primarily driven by a broad, macro-driven slowdown in semiconductor demand and customers rebalancing their supply chains. Despite the revenue dip, the company maintained a strong gross margin of 60%. The Semiconductor Process Control segment, which represents the largest portion of revenue, saw a 6% decrease, while the Specialty Semiconductor Process segment remained relatively flat, and the PCB and Component Inspection segment experienced a 13% decline. Geographically, China represented a significant 43% of total revenues for the fiscal year, though this was an increase from the prior year's 27%. This growth in China is notable given ongoing U.S. export restrictions, which the company is actively navigating by applying for necessary licenses. KLA continues to invest heavily in Research and Development (R&D) at 13% of total revenues, highlighting its commitment to innovation and maintaining a competitive technological edge in the dynamic semiconductor industry. The company also repurchased approximately $1.74 billion of its stock and paid out $773 million in dividends, demonstrating a commitment to returning capital to shareholders.
Financial Highlights
53 data points| Revenue | $9.81B |
| Cost of Revenue | $3.93B |
| Gross Profit | $5.88B |
| R&D Expenses | $1.28B |
| SG&A Expenses | $969.51M |
| Net Income | $2.76B |
| EPS (Basic) | $20.41 |
| EPS (Diluted) | $20.28 |
| Shares Outstanding (Basic) | 135.34M |
| Shares Outstanding (Diluted) | 136.19M |
Key Highlights
- 1Total revenues decreased by 7% to $9.81 billion for fiscal year 2024 compared to fiscal year 2023, primarily due to a slowdown in semiconductor demand and inventory rebalancing by customers.
- 2Gross margin remained strong at 60% for fiscal year 2024, consistent with the prior year, reflecting effective cost management and product mix.
- 3The Semiconductor Process Control segment, the largest revenue contributor, experienced a 6% revenue decrease, while the PCB and Component Inspection segment saw a 13% decline.
- 4Revenue from China increased significantly, accounting for 43% of total revenues in fiscal year 2024, up from 27% in fiscal year 2023, despite ongoing U.S. export restrictions.
- 5KLA Corp. continues substantial investment in R&D, allocating 13% of total revenues towards innovation and new product development.
- 6The company returned $1.74 billion to shareholders through stock repurchases and paid $773 million in dividends in fiscal year 2024.
- 7The company decided to exit its Display business, with most products to cease manufacturing by December 31, 2024, while continuing to service the installed base.