KLA CORP Quarterly Report for Q3 Ended Mar 31, 2020

Summary

KLA Corporation reported solid performance for the nine months ended March 31, 2020, with total revenues increasing by 31% year-over-year to $4.35 billion. This growth was primarily driven by strong demand in the Semiconductor Process Control segment, which saw a 17% revenue increase, and the inclusion of Orbotech's results following its acquisition in February 2019. Despite an increase in R&D expenses (up 28%) and a significant goodwill impairment charge of $256.6 million impacting the Specialty Semiconductor Process and PCB and Display reporting units, the company demonstrated resilience. Financially, KLA maintained a strong liquidity position with $1.63 billion in cash, cash equivalents, and marketable securities as of March 31, 2020. The company also continued its commitment to returning capital to shareholders through dividends and share repurchases, although the latter saw a decrease in the nine-month period compared to the prior year. The company's debt management also appears sound, with a BBB+ credit rating from S&P and compliance with all debt covenants.

Key Highlights

• 1Total revenues increased by 31% to $4.35 billion for the nine months ended March 31, 2020.
• 2Semiconductor Process Control segment revenue grew by 17% year-over-year.
• 3A goodwill impairment charge of $256.6 million was recognized, impacting the Specialty Semiconductor Process and PCB and Display reporting units.
• 4R&D expenses increased by 28% to $646.8 million for the nine months ended March 31, 2020.
• 5Cash, cash equivalents, and marketable securities totaled $1.63 billion as of March 31, 2020.
• 6The company paid $389.7 million in dividends and dividend equivalents during the nine months ended March 31, 2020.
• 7S&P upgraded KLA's credit rating to BBB+ with a stable outlook.

Frequently Asked Questions