KLA CORP Quarterly Report for Q1 Ended Sep 30, 2014

Summary

KLA CORP (KLAC) reported revenues of $642.9 million for the three months ended September 30, 2014, a slight decrease of 2% compared to the same period in the prior year. Product revenue saw a decline of 5% year-over-year, while service revenue demonstrated growth, increasing by 6%. This indicates a shift in revenue composition, with services becoming a more significant contributor. Net income for the quarter was $72.2 million, or $0.43 per diluted share, down from $111.2 million, or $0.66 per diluted share, in the prior year's quarter. This decline in profitability is attributed to increased R&D expenses and a higher effective tax rate. Despite the revenue and profit dip, the company maintained a strong liquidity position with $2.9 billion in cash, cash equivalents, and marketable securities. Notably, a significant subsequent event was the announcement of a leveraged recapitalization plan, including a special cash dividend of $16.50 per share, to be funded by existing cash and new debt.

Key Highlights

• 1Total revenues for the quarter ended September 30, 2014, were $642.9 million, a 2% decrease year-over-year.
• 2Product revenues declined by 5% to $476.6 million, while Service revenues grew by 6% to $166.3 million.
• 3Net income decreased to $72.2 million ($0.43 per diluted share) from $111.2 million ($0.66 per diluted share) in the prior year.
• 4Operating expenses, particularly Engineering, Research & Development (R&D), increased by 9% year-over-year.
• 5The company maintained a strong liquidity position with $2.9 billion in cash, cash equivalents, and marketable securities as of September 30, 2014.
• 6A significant subsequent event announced on October 23, 2014, is the authorization of a leveraged recapitalization, including a $16.50 per share special cash dividend, to be funded by cash and up to $2.5 billion in new debt.
• 7The company repurchased $130.7 million of its common stock during the quarter.

Frequently Asked Questions