01—Abstract
Summary
Summary of the 10-Q filed November 14, 2001. Cited figures are marked; the original filing is the authoritative source.
KLA-Tencor Corporation (KLAC) reported its financial results for the quarter ended September 30, 2001.
The company experienced a significant increase in revenue, up 31% year-over-year to $502.8 milliona, driven by improved customer acceptance under the new SAB 101 revenue recognition policy. Despite this revenue growth, gross margins saw a slight decrease to 51% due to unfavorable overhead absorption and higher warranty costs. Operationally, KLA-Tencor implemented cost-saving measures in response to the semiconductor industry downturn, leading to a reduction in R&D and SG&A expenses as a percentage of revenue.
Net income for the quarter was a healthy $86.5 millionb, a significant turnaround from the net loss of $277.5 million in the prior year's comparable quarter, which was impacted by a large accounting change. The company maintained a strong balance sheet with substantial cash reserves and no long-term debt, indicating financial stability despite industry headwinds.
02—Key points
Key Highlights
- Revenue increased by 31% to $502.8 million for the three months ended September 30, 2001, compared to $382.7 million in the prior year's period.
- Net income for the quarter was $86.5 million, a substantial improvement from a net loss of $277.5 million in the same period last year.
- Gross margins slightly decreased to 51% from 52% year-over-year, attributed to lower shipment volumes impacting overhead absorption and increased warranty costs.
- Engineering, R&D, and Selling, General & Administrative expenses were reduced both in absolute terms and as a percentage of revenue compared to the prior year, reflecting cost-saving initiatives.
- The company's cash, cash equivalents, and marketable securities stood at $1.09 billion at the end of the period.
- KLA-Tencor continues to invest in new product development despite the industry downturn, focusing on leading-edge technologies for 0.18 micron, copper development, and 300mm wafers.
- The company reported $339.2 million in cash and cash equivalents as of September 30, 2001.
03—Questions
Frequently Asked Questions
How did KLA-Tencor's revenue perform in this quarter compared to last year?
KLA-Tencor's revenue significantly increased by 31% to $502.8 million for the three months ended September 30, 2001, compared to $382.7 million in the same period of the prior fiscal year. This growth was primarily attributed to improved customer acceptance under the SAB 101 revenue recognition policy.
What was the company's profitability in this quarter, and how does it compare to the prior year?
The company reported a net income of $86.5 million for the quarter ended September 30, 2001. This marks a substantial turnaround from the net loss of $277.5 million reported in the same quarter of the prior year, which was heavily influenced by a cumulative effect of a change in accounting principle.
What is the company's financial health and liquidity position?
KLA-Tencor maintains a strong financial position. As of September 30, 2001, the company had $1.09 billion in cash, cash equivalents, and marketable securities. The company also has no long-term debt, and its working capital was $873 million, indicating robust liquidity.
How is the company managing expenses in the current semiconductor industry downturn?
In response to the semiconductor industry downturn, KLA-Tencor implemented cost-saving measures. This resulted in reductions in Engineering, R&D, and Selling, General & Administrative expenses, both in absolute terms and as a percentage of revenue, compared to the prior year's period.
04—Continue