01—Abstract
Summary
Summary of the 10-K filed August 5, 2024. Cited figures are marked; the original filing is the authoritative source.
KLA Corporation (KLAC) reported total revenues of $9.81 billiona 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%b. 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 billionc of its stock and paid out $773 million in dividends, demonstrating a commitment to returning capital to shareholders.
02—Key points
Key Highlights
- Total 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.
- Gross margin remained strong at 60% for fiscal year 2024, consistent with the prior year, reflecting effective cost management and product mix.
- The Semiconductor Process Control segment, the largest revenue contributor, experienced a 6% revenue decrease, while the PCB and Component Inspection segment saw a 13% decline.
- Revenue 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.
- KLA Corp. continues substantial investment in R&D, allocating 13% of total revenues towards innovation and new product development.
- The company returned $1.74 billion to shareholders through stock repurchases and paid $773 million in dividends in fiscal year 2024.
- The company decided to exit its Display business, with most products to cease manufacturing by December 31, 2024, while continuing to service the installed base.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed August 5, 2024Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $9.81B$10.50B | −6.5% |
| Cost of Revenue | $3.93B$4.22B | −6.9% |
| Gross Profit | $5.88B$6.28B | −6.3% |
| R&D Expenses | $1.28B$1.30B | −1.4% |
| SG&A Expenses | $969.51M$986.33M | −1.7% |
| Net Income | $2.76B$3.39B | −18.5% |
| EPS (Basic) | $2.04$2.43 | −15.9% |
| EPS (Diluted) | $2.03$2.42 | −16.0% |
| Shares Outstanding (Basic) | 1.35B1.39B | −3.0% |
| Shares Outstanding (Diluted) | 1.36B1.40B | −2.9% |
05—Questions
Frequently Asked Questions
What is KLA Corporation's primary business?
KLA Corporation is a leading supplier of process control and yield management solutions and services for the semiconductor and related electronics industries. Their products are used to measure, detect, analyze, and resolve critical defects in the manufacturing of integrated circuits (ICs), wafers, and reticles, helping customers improve manufacturing yields and reduce costs.
How did KLA's revenues perform in the fiscal year ended June 30, 2024?
Total revenues decreased by 7% to $9.81 billion in fiscal year 2024 compared to fiscal year 2023. This decline was primarily attributed to a broad, macro-driven slowdown in semiconductor demand, leading customers to rebalance inventory and reduce capital expenditures.
What is the company's exposure to the Chinese market?
China represented 43% of KLA's total revenues in fiscal year 2024, an increase from 27% in fiscal year 2023. This growth occurs amidst U.S. export restrictions, which KLA is actively managing by applying for necessary export licenses.
What is KLA's strategy regarding R&D and innovation?
KLA Corp. continues to make significant investments in Research and Development, allocating 13% of its total revenues to R&D in fiscal year 2024. This commitment underscores the company's focus on technological innovation and maintaining its competitive advantage in the rapidly evolving semiconductor industry.
06—Continue