01—Abstract
Summary
Summary of the 10-Q filed April 29, 2011. Cited figures are marked; the original filing is the authoritative source.
KLA Corp (KLAC) reported strong financial performance for the nine months ended March 31, 2011, driven by robust demand in the semiconductor industry.
Total revenues more than doubled year-over-year, reaching $2.28 billiona. Net income also saw a significant increase, rising to $549.5 million from $99.2 million in the prior year period. This performance reflects a healthy increase in product revenues, which grew by 109% year-over-year for the nine-month period, alongside steady growth in service revenues.
The company's balance sheet remains strong, with total assets growing to $4.45 billion and stockholders' equity increasing to $2.67 billionb. Liquidity is robust, with cash, cash equivalents, and marketable securities totaling $1.84 billion. KLA Corp also demonstrated a commitment to returning capital to shareholders, increasing its dividend payments and continuing its share repurchase program.
02—Key points
Key Highlights
- Total revenues for the nine months ended March 31, 2011, increased by 81% to $2.28 billion, compared to $1.26 billion for the same period in the prior year.
- Product revenue growth was particularly strong, up 109% year-over-year for the nine-month period, indicating high demand for KLA's core offerings.
- Net income for the nine months ended March 31, 2011, surged to $549.5 million, a significant increase from $99.2 million in the prior year.
- Diluted earnings per share (EPS) for the nine months ended March 31, 2011, reached $3.23, up from $0.57 in the prior year.
- The company maintained a strong liquidity position with $1.84 billion in cash, cash equivalents, and marketable securities as of March 31, 2011.
- KLA Corp increased its quarterly dividend payment to $0.25 per share and continued its share repurchase program, demonstrating a commitment to shareholder returns.
- Geographically, Asia remains the dominant revenue driver, with Taiwan and Rest of Asia contributing significantly to the company's top line.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2011, KLA Corp kept $0.25.
- Revenue$834.1M100.0%
- Cost of revenue−$327.7M39.3%
- Gross profit$506.4M60.7%
- Operating costs−$194.6M23.3%
- Operating income$311.8M37.4%
- Interest, other & tax−$102.0M12.2%
- Net income$209.8M25.2%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2011filed April 29, 2011Financial Statements
Q3 FY2011 against Q3 FY2010
| Line item | Q3 FY2011Q3 FY2010 | Change |
|---|---|---|
| Revenue | $834.06M$478.30M | +74.4% |
| Cost of Revenue | $327.70M$208.56M | +57.1% |
| Gross Profit | $506.36M$269.73M | +87.7% |
| R&D Expenses | $95.62M$84.74M | +12.8% |
| SG&A Expenses | $98.97M$93.71M | +5.6% |
| Operating Expenses | $522.28M$387.02M | +34.9% |
| Operating Income | $311.78M$91.28M | +241.6% |
| Interest Expense | $13.41M$14.09M | −4.8% |
| Net Income | $209.78M$57.02M | +267.9% |
| EPS (Basic) | $0.13$0.03 | +278.8% |
| EPS (Diluted) | $0.12$0.03 | +269.7% |
| Shares Outstanding (Basic) | 1.68B1.72B | −2.3% |
| Shares Outstanding (Diluted) | 1.71B1.73B | −1.2% |
05—Questions
Frequently Asked Questions
What is the primary driver of KLA Corp's revenue growth in this period?
The primary driver of KLA Corp's significant revenue growth is the strong demand from customers in the semiconductor and nanoelectronics industries. This is reflected in the substantial increase in product revenues, which is attributed to high customer capital spending for both technology advancements and capacity expansion.
How has KLA Corp's profitability changed compared to the previous year?
KLA Corp has experienced a substantial improvement in profitability. Net income for the nine months ended March 31, 2011, rose to $549.5 million, a nearly six-fold increase from $99.2 million in the same period last year. This is also reflected in the significant rise in diluted earnings per share from $0.57 to $3.23.
What is the company's liquidity position, and how is it managing capital?
KLA Corp maintains a strong liquidity position, with $1.84 billion in cash, cash equivalents, and marketable securities as of March 31, 2011. The company is actively returning capital to shareholders through increased dividend payments and its ongoing share repurchase program, funded by robust operating cash flow.
What is the geographic breakdown of KLA Corp's revenues?
KLA Corp generates a significant portion of its revenue from Asia, with Taiwan and the Rest of Asia being key regions. The United States, Japan, and Europe & Israel also contribute to the company's global revenue stream. The company expects the trend of strong Asian revenue contribution to continue.
06—Continue