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10-QPeriod: Q2 FY2013

KLA CORP Quarterly Report for Q2 Ended Dec 31, 2012

Filed January 25, 2013For Securities:KLAC

Summary

KLA Corp. (KLAC) reported revenues of $673.0 million for the quarter ending December 31, 2012, a slight increase of 5% compared to the same period last year. However, revenues were down 7% sequentially from the September 2012 quarter, primarily due to reduced customer purchases of process control and yield management equipment, reflecting the cyclical nature of the semiconductor industry. Net income for the quarter was $106.6 million, or $0.63 per diluted share, a decrease from the prior year's quarter. The company maintained a strong liquidity position with over $2.5 billion in cash, cash equivalents, and marketable securities. KLA Corp. continues to invest in research and development, with R&D expenses increasing 5% year-over-year, underscoring its commitment to innovation in the fast-evolving semiconductor industry. Despite sequential revenue decline, the company saw an increase in product revenue year-over-year, driven by strong foundry demand and higher product acceptance in Taiwan. Service revenue also saw a positive trend, increasing both sequentially and year-over-year. The company's stock repurchase program and dividend payments continue, demonstrating a commitment to returning value to shareholders. While KLA Corp. operates in a cyclical industry, its financial health remains robust, supported by its strong balance sheet and ongoing investments in technology.

Financial Statements
Beta
Revenue$673.01M
Cost of Revenue$303.92M
Gross Profit$369.10M
R&D Expenses$121.61M
SG&A Expenses$94.24M
Operating Expenses$519.76M
Operating Income$153.25M
Interest Expense$13.43M
Net Income$106.63M
EPS (Basic)$0.64
EPS (Diluted)$0.63
Shares Outstanding (Basic)166.27M
Shares Outstanding (Diluted)169.08M

Key Highlights

  • 1Total revenues for the quarter ending December 31, 2012, were $673.0 million, an increase of 5% year-over-year but a decrease of 7% sequentially.
  • 2Net income for the quarter was $106.6 million, translating to diluted earnings per share of $0.63.
  • 3The company reported strong liquidity with $2.58 billion in cash, cash equivalents, and marketable securities as of December 31, 2012.
  • 4Product revenues increased 4% year-over-year, driven by foundry demand and higher product acceptance in Taiwan.
  • 5Service revenues also increased year-over-year by 6%, indicating a growing maintenance and support business.
  • 6Research and Development (R&D) expenses increased by 5% year-over-year to $121.6 million, highlighting continued investment in innovation.
  • 7The company repurchased approximately 1.47 million shares of common stock during the quarter, costing $68.3 million.

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