01—Abstract
Summary
Summary of the 10-Q filed April 25, 2014. Cited figures are marked; the original filing is the authoritative source.
KLA CORP (KLAC) reported robust financial performance for the nine months ended March 31, 2014, showcasing a significant increase in both revenues and net income compared to the prior year period.
Total revenues grew by 3% to $2.195 billiona, driven by a 2% increase in product revenue and a 7% rise in service revenue. Net income saw a substantial increase of 11% to $454 million, translating to diluted earnings per share of $2.70. The company maintained a strong balance sheet with total assets of $5.487 billion as of March 31, 2014.
Liquidity remains strong, with cash, cash equivalents, and marketable securities totaling $3.027 billionb. KLA-Tencor also demonstrated its commitment to returning value to shareholders through dividend payments and share repurchases, while continuing to invest in research and development to drive future growth.
The acquisition of a private software company for $18 millionc in March 2014 highlights KLA-Tencor's strategic growth initiatives. While the company operates in a cyclical industry, it appears well-positioned to navigate market fluctuations and capitalize on long-term trends in semiconductor technology.
02—Key points
Key Highlights
- Total revenues for the nine months ended March 31, 2014 increased by 3% year-over-year to $2.195 billion.
- Net income for the nine months ended March 31, 2014 increased by 11% year-over-year to $454 million.
- Diluted earnings per share for the nine months ended March 31, 2014 were $2.70, up from $2.41 in the prior year.
- The company maintained a strong liquidity position with $3.027 billion in cash, cash equivalents, and marketable securities as of March 31, 2014.
- A strategic acquisition of a private software company for $18 million was completed on March 28, 2014.
- The company continued to return capital to shareholders, with dividends paid totaling $224.4 million for the nine months ended March 31, 2014.
- Research and Development expenses increased by 11% year-over-year to $401 million for the nine months ended March 31, 2014, reflecting ongoing investment in innovation.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2014, KLA Corp kept $0.24.
- Revenue$831.6M100.0%
- Cost of revenue−$342.8M41.2%
- Gross profit$488.8M58.8%
- Operating costs−$227.6M27.4%
- Operating income$261.2M31.4%
- Interest, other & tax−$57.6M6.9%
- Net income$203.6M24.5%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2014filed April 25, 2014Financial Statements
Q3 FY2014 against Q3 FY2013
| Line item | Q3 FY2014Q3 FY2013 | Change |
|---|---|---|
| Revenue | $831.60M$729.03M | +14.1% |
| Cost of Revenue | $342.83M$309.51M | +10.8% |
| Gross Profit | $488.77M$419.52M | +16.5% |
| R&D Expenses | $134.16M$118.79M | +12.9% |
| SG&A Expenses | $93.45M$98.49M | −5.1% |
| Operating Expenses | $570.44M$526.78M | +8.3% |
| Operating Income | $261.16M$202.25M | +29.1% |
| Interest Expense | $13.40M$13.47M | −0.5% |
| Net Income | $203.58M$166.38M | +22.4% |
| EPS (Basic) | $0.12$0.10 | +22.0% |
| EPS (Diluted) | $0.12$0.10 | +23.5% |
| Shares Outstanding (Basic) | 1.66B1.66B | 0.0% |
| Shares Outstanding (Diluted) | 1.68B1.69B | −0.7% |
05—Questions
Frequently Asked Questions
What was KLA-Tencor's revenue growth for the period?
For the nine months ended March 31, 2014, KLA-Tencor reported total revenues of $2.195 billion, a 3% increase compared to $2.123 billion for the same period in the prior year. Product revenue grew 2% to $1.716 billion, and service revenue increased 7% to $479 million.
How did KLA-Tencor's profitability change?
Net income for the nine months ended March 31, 2014, increased by 11% to $454 million, up from $408 million in the prior year. Diluted earnings per share were $2.70 for the period, compared to $2.41 in the prior year.
What is KLA-Tencor's current financial health and liquidity situation?
KLA-Tencor maintained a strong financial position as of March 31, 2014. Total assets were $5.487 billion, and total liabilities were $1.847 billion. The company had $3.027 billion in cash, cash equivalents, and marketable securities, indicating robust liquidity.
What were the key uses of KLA-Tencor's cash during the period?
For the nine months ended March 31, 2014, KLA-Tencor used cash for operating activities, investing activities (including $54.4 million in capital expenditures and $1.156 billion in purchases of available-for-sale securities, net of sales and maturities), and financing activities (including $224.4 million in dividend payments and $180.7 million in common stock repurchases).
06—Continue