01—Abstract
Summary
Summary of the 10-Q filed April 27, 2012. Cited figures are marked; the original filing is the authoritative source.
KLA-Tencor Corporation (KLAC) reported solid financial results for the third quarter of fiscal year 2012, ending March 31, 2012.
Total revenues reached $840.5 milliona, a slight increase of 1% compared to the same quarter last year, driven by a strong performance in product revenues which saw a 1% increase year-over-year. The company demonstrated effective cost management, with R&D expenses increasing 15% and SG&A expenses decreasing 8% year-over-year, contributing to a stable gross margin of 57.7% for the quarter. Net income for the quarter was $205.3 million, or $1.21 per diluted share, indicating a slight decrease from the prior year's quarter, primarily due to higher cost of revenues and R&D investments.
The company maintained a strong liquidity position, with cash, cash equivalents, and marketable securities totaling $2.4 billionb. KLA-Tencor also continued its commitment to returning capital to shareholders through increased dividend payments and a robust share repurchase program.
02—Key points
Key Highlights
- Total revenues for the third quarter of FY12 were $840.5 million, a 1% increase year-over-year.
- Product revenues showed resilience, increasing by 1% year-over-year to $701.2 million.
- Net income for the quarter was $205.3 million, resulting in diluted EPS of $1.21.
- The company maintained a strong cash position, with $2.4 billion in cash, cash equivalents, and marketable securities.
- R&D expenses increased by 15% year-over-year, reflecting continued investment in innovation.
- SG&A expenses decreased by 8% year-over-year, indicating effective cost control.
- The company increased its quarterly dividend to $0.35 per share and continued its share repurchase program.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2012, KLA Corp kept $0.24.
- Revenue$840.5M100.0%
- Cost of revenue−$355.1M42.3%
- Gross profit$485.4M57.7%
- Operating costs−$201.1M23.9%
- Operating income$284.3M33.8%
- Interest, other & tax−$78.9M9.4%
- Net income$205.3M24.4%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2012filed April 27, 2012Financial Statements
Q3 FY2012 against Q3 FY2011
| Line item | Q3 FY2012Q3 FY2011 | Change |
|---|---|---|
| Revenue | $840.52M$834.06M | +0.8% |
| Cost of Revenue | $355.15M$327.70M | +8.4% |
| Gross Profit | $485.37M$506.36M | −4.1% |
| R&D Expenses | $110.10M$95.62M | +15.1% |
| SG&A Expenses | $91.00M$98.97M | −8.1% |
| Operating Expenses | $556.25M$522.28M | +6.5% |
| Operating Income | $284.27M$311.78M | −8.8% |
| Interest Expense | $13.51M$13.41M | +0.7% |
| Net Income | $205.35M$209.78M | −2.1% |
| EPS (Basic) | $0.12$0.13 | −1.6% |
| EPS (Diluted) | $0.12$0.12 | −0.8% |
| Shares Outstanding (Basic) | 1.67B1.68B | −0.3% |
| Shares Outstanding (Diluted) | 1.70B1.71B | −0.7% |
05—Questions
Frequently Asked Questions
How did KLA-Tencor's revenue performance compare to the prior year's quarter?
KLA-Tencor reported total revenues of $840.5 million for the quarter ended March 31, 2012, which represents a slight increase of 1% compared to $834.1 million in the same quarter of the prior year. Product revenues also showed a similar trend, increasing by 1% year-over-year.
What is the company's current financial health and liquidity position?
The company maintains a strong liquidity position, with total cash, cash equivalents, and marketable securities amounting to $2.4 billion as of March 31, 2012. This reflects a healthy financial standing and the ability to fund operations and strategic initiatives.
How is KLA-Tencor investing in its future?
KLA-Tencor continues to invest in its future through increased Research and Development (R&D) expenses, which rose 15% year-over-year. This indicates a commitment to innovation and developing new technologies to address evolving customer needs in the semiconductor industry.
What is the company doing to return value to its shareholders?
KLA-Tencor is returning value to shareholders through an increased quarterly cash dividend, raised to $0.35 per share, and an active share repurchase program. These actions demonstrate a commitment to enhancing shareholder returns.
06—Continue