Summary
KLA Corp. (KLAC) reported a significant rebound in its financial performance for the quarter ended December 31, 2009, compared to the challenging prior year period. Total revenues increased by 11% year-over-year to $440.4 million, driven by a 15% increase in product revenue and a modest 2% rise in service revenue. This top-line growth, coupled with improved cost management and lower inventory write-downs, resulted in a substantial swing from a net loss of $434.3 million in the prior year's quarter to a net income of $21.8 million. Earnings per diluted share also improved dramatically from a loss of $2.57 to $0.13. The company demonstrated strong operational execution, evidenced by a significant increase in gross margin to 53% from 40% in the year-ago period. This improvement was primarily due to higher manufacturing capacity utilization, lower excess inventory write-downs, and reduced employee-related expenses. While R&D expenses saw a slight increase due to higher variable compensation accruals, SG&A expenses decreased by 23% year-over-year, reflecting ongoing cost reduction efforts. The balance sheet remains robust, with total cash, cash equivalents, and marketable securities increasing to $1.5 billion, providing ample liquidity.
Financial Highlights
30 data points| Revenue | $440.36M |
| Cost of Revenue | $207.29M |
| Gross Profit | $233.07M |
| R&D Expenses | $83.30M |
| SG&A Expenses | $102.67M |
| Operating Expenses | $393.26M |
| Operating Income | $47.09M |
| Interest Expense | $13.54M |
| Net Income | $21.79M |
| EPS (Basic) | $0.13 |
| EPS (Diluted) | $0.13 |
| Shares Outstanding (Basic) | 171.41M |
| Shares Outstanding (Diluted) | 173.81M |
Key Highlights
- 1Revenue increased 11% year-over-year to $440.4 million, driven by strong performance in product sales.
- 2Net income turned positive at $21.8 million, a significant improvement from a net loss of $434.3 million in the prior year's quarter.
- 3Diluted EPS improved to $0.13 from a loss of $2.57 in the same period last year.
- 4Gross margin expanded significantly to 53% from 40% due to improved capacity utilization and cost controls.
- 5Operating expenses (R&D and SG&A) were managed effectively, with SG&A decreasing by 23% year-over-year.
- 6Cash, cash equivalents, and marketable securities totaled $1.5 billion, indicating a strong liquidity position.
- 7The company successfully navigated significant legal proceedings related to historical stock option practices, with settlements and investigations concluded.