Summary
KLA Corp (KLAC) reported its fiscal second quarter results for the period ending December 31, 2011. Total revenues for the quarter were $642.5 million, a decrease of 16% compared to the same period last year. This decline was primarily driven by a 20% drop in product revenues, attributed to customers reassessing capacity expansion plans amidst industry slowdown and macroeconomic uncertainty. Despite the revenue decrease, the company maintained a solid gross margin of 57.5% for the quarter. Net income for the quarter was $110.8 million, or $0.66 per diluted share, down from $185.5 million, or $1.09 per diluted share, in the prior year's comparable quarter. The company continues to invest in research and development, with R&D expenses increasing by 23% year-over-year to support next-generation products. KLA Corp ended the period with a strong liquidity position, holding $2.2 billion in cash, cash equivalents, and marketable securities, while managing its debt obligations and continuing its stock repurchase program and dividend payments.
Financial Highlights
48 data points| Revenue | $642.48M |
| Cost of Revenue | $272.86M |
| Gross Profit | $369.63M |
| R&D Expenses | $116.36M |
| SG&A Expenses | $93.80M |
| Operating Expenses | $483.02M |
| Operating Income | $159.46M |
| Interest Expense | $13.30M |
| Net Income | $110.80M |
| EPS (Basic) | $0.67 |
| EPS (Diluted) | $0.66 |
| Shares Outstanding (Basic) | 166.34M |
| Shares Outstanding (Diluted) | 169.10M |
Key Highlights
- 1Total revenues for the quarter ended December 31, 2011, were $642.5 million, a decrease of 16% compared to the prior year's quarter.
- 2Product revenues saw a significant decrease of 20% year-over-year, attributed to customer reassessment of capacity expansion plans due to industry slowdown and macroeconomic uncertainty.
- 3Net income for the quarter was $110.8 million ($0.66 per diluted share), down from $185.5 million ($1.09 per diluted share) in the prior year.
- 4Gross margin remained robust at 57.5%, although slightly down from 59.4% in the prior year's quarter, indicating effective cost management.
- 5Research and Development (R&D) expenses increased by 23% year-over-year to $116.4 million, reflecting continued investment in future technologies.
- 6The company maintained a strong liquidity position with $2.2 billion in cash, cash equivalents, and marketable securities as of December 31, 2011.
- 7KLA Corp continued its capital return to shareholders through stock repurchases and a declared dividend of $0.35 per share for the quarter.