Summary
KLA-TENCOR CORPORATION (KLAC) reported a sequential and year-over-year decrease in total revenues for the quarter ended September 30, 2012, primarily driven by reduced customer spending on capital equipment in the foundry and logic segments, coupled with a challenging demand environment in the memory segment. This downturn reflects the cyclical nature of the semiconductor industry. Despite the revenue decline, the company maintained a strong liquidity position with over $2.6 billion in cash, cash equivalents, and marketable securities. Management highlighted the company's commitment to research and development to drive future growth and addressed a strategic decision to exit the solar inspection business due to deteriorating market conditions. Investors should monitor the company's ability to navigate the cyclical semiconductor market and its continued investment in innovation.
Financial Highlights
48 data points| Revenue | $720.71M |
| Cost of Revenue | $317.23M |
| Gross Profit | $403.48M |
| R&D Expenses | $119.74M |
| SG&A Expenses | $97.19M |
| Operating Expenses | $534.15M |
| Operating Income | $186.56M |
| Interest Expense | $13.50M |
| Net Income | $135.37M |
| EPS (Basic) | $0.81 |
| EPS (Diluted) | $0.80 |
| Shares Outstanding (Basic) | 166.53M |
| Shares Outstanding (Diluted) | 169.82M |
Key Highlights
- 1Total revenues for the quarter ended September 30, 2012, decreased by 10% year-over-year to $720.7 million, impacted by reduced customer spending in the semiconductor capital equipment industry.
- 2Net income decreased to $135.4 million ($0.80 per diluted share) from $192.0 million ($1.13 per diluted share) in the prior year's comparable quarter.
- 3The company ended the quarter with a strong liquidity position, holding $2.64 billion in cash, cash equivalents, and marketable securities.
- 4Product revenues saw a significant decline of 12% year-over-year, reflecting the cyclical downturn in customer capital equipment procurement.
- 5Service revenues remained relatively flat year-over-year, demonstrating a stabilizing element within the business model.
- 6KLA-Tencor decided to exit the solar inspection business due to adverse market conditions, recognizing related expenses.
- 7The company repurchased approximately $68.3 million of its common stock during the quarter and increased its quarterly dividend to $0.40 per share.