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10-QPeriod: Q3 FY2013

KLA CORP Quarterly Report for Q3 Ended Mar 31, 2013

Filed April 26, 2013For Securities:KLAC

Summary

KLA Corporation (KLAC) reported for the quarter ended March 30, 2013, demonstrating a mixed financial performance driven by the cyclical nature of the semiconductor industry. While total revenues saw a decrease of approximately 13% year-over-year for the quarter, and a 7% decrease for the nine-month period, the company showed improved operational efficiency and a healthy cash position. The company's strategic investments in research and development continue, signaling a commitment to innovation and future growth in advanced technologies. Despite a challenging revenue environment marked by reduced capital equipment spending from semiconductor manufacturers, KLA Corp maintained its gross margin percentage for the quarter, indicating effective cost management. The company's balance sheet remains strong, with an increase in cash, cash equivalents, and marketable securities to nearly $2.9 billion, providing ample liquidity. The company also continued to return capital to shareholders through dividends and share repurchases, reflecting confidence in its financial stability and future prospects.

Financial Statements
Beta
Revenue$729.03M
Cost of Revenue$309.51M
Gross Profit$419.52M
R&D Expenses$118.79M
SG&A Expenses$98.49M
Operating Expenses$526.78M
Operating Income$202.25M
Interest Expense$13.47M
Net Income$166.38M
EPS (Basic)$1.00
EPS (Diluted)$0.98
Shares Outstanding (Basic)166.23M
Shares Outstanding (Diluted)169.18M

Key Highlights

  • 1Total revenues for the three months ended March 31, 2013, were $729.0 million, a decrease of 13% compared to $840.5 million in the prior year's quarter.
  • 2Net income for the quarter decreased to $166.4 million from $205.3 million year-over-year, with diluted EPS at $0.98 versus $1.21.
  • 3The company's cash, cash equivalents, and marketable securities increased to $2.88 billion as of March 31, 2013, up from $2.53 billion as of June 30, 2012.
  • 4Operating cash flow for the nine months ended March 31, 2013, was strong at $737.6 million, an increase from $668.3 million in the prior year period.
  • 5Research and Development (R&D) expenses increased by 8% year-over-year for the quarter to $118.8 million, reflecting continued investment in innovation.
  • 6The company paid dividends totaling $66.6 million during the quarter and repurchased $68.3 million of its stock, demonstrating a commitment to returning capital to shareholders.
  • 7The effective tax rate for the quarter was 13.4%, significantly lower than the prior year's 25.1%, primarily due to the reinstatement of the U.S. federal research credit.

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