Summary
KLA Corporation (KLAC) reported solid financial results for the quarter ended September 30, 2019, with total revenues of $1.41 billion, a significant increase of 29% year-over-year. This growth was primarily driven by strong demand in the patterning business and the inclusion of revenues from the recently acquired Orbotech business. While product revenues saw a substantial 28% increase, service revenues also grew by a strong 35%, demonstrating the company's diversified revenue streams. The company maintained a robust gross margin of 57%, despite a slight decrease compared to the prior year, impacted by the lower gross margins of the acquired Orbotech business and an unfavorable product mix. Net income attributable to KLA for the quarter was $346.5 million, leading to diluted earnings per share of $2.16. The company's balance sheet remains strong, with total assets of $9.23 billion and a healthy liquidity position of $1.75 billion in cash, cash equivalents, and marketable securities. KLA continued to return capital to shareholders through dividends and share repurchases, indicating confidence in its financial health and future prospects.
Financial Highlights
52 data points| Revenue | $1.41B |
| Cost of Revenue | $604.24M |
| Gross Profit | $809.17M |
| R&D Expenses | $210.58M |
| SG&A Expenses | $188.34M |
| Interest Expense | $40.35M |
| Net Income | $346.52M |
| EPS (Basic) | $2.18 |
| EPS (Diluted) | $2.16 |
| Shares Outstanding (Basic) | 158.70M |
| Shares Outstanding (Diluted) | 160.13M |
Key Highlights
- 1Total revenues increased by 29% to $1.41 billion for the three months ended September 30, 2019, compared to $1.09 billion in the prior year period.
- 2Product revenues grew by 28% to $1.06 billion, driven by strong demand in the patterning business and the inclusion of Orbotech's revenue.
- 3Service revenues increased by 35% to $355.4 million, benefiting from the acquired Orbotech business and an increase in installed systems.
- 4Net income attributable to KLA was $346.5 million, resulting in diluted EPS of $2.16.
- 5The company maintained a gross margin of 57%, although it decreased from 65% in the prior year, primarily due to the impact of the Orbotech acquisition.
- 6KLA Corporation ended the quarter with a strong liquidity position, holding $1.75 billion in cash, cash equivalents, and marketable securities.
- 7Significant investments were made in R&D ($210.6 million) and SG&A ($188.3 million), reflecting ongoing product development and integration efforts.