01—Abstract
Summary
Summary of the 10-Q filed October 30, 2020. Cited figures are marked; the original filing is the authoritative source.
KLA Corporation (KLAC) reported strong financial results for the quarter ended September 29, 2020, demonstrating robust revenue growth and profitability.
Total revenues increased by 9% year-over-year to $1.54 billiona, driven by higher demand across key segments, particularly Semiconductor Process Control and Specialty Semiconductor Process. Net income attributable to KLA also saw a significant increase, reaching $420.6 million, or $2.69 per diluted share, up from $346.5 million, or $2.16 per diluted share, in the prior year's quarter. The company's financial health appears solid, with substantial cash and marketable securities totaling $2.04 billion.
KLA continued to return value to shareholders through increased dividends and ongoing share repurchases. Despite the ongoing impacts of the COVID-19 pandemic, KLA has managed its supply chain effectively and maintained operational continuity, highlighting its resilience and strong market position in the semiconductor equipment sector.
02—Key points
Key Highlights
- Total revenues increased by 9% to $1.54 billion in Q1 FY21 compared to Q1 FY20.
- Net income attributable to KLA rose to $420.6 million ($2.69/share) from $346.5 million ($2.16/share) year-over-year.
- Gross margin improved to 59.7% from 57.2% in the prior year's quarter, driven by a more profitable product mix.
- The Semiconductor Process Control segment, the largest contributor, saw revenue growth of 9%.
- The Specialty Semiconductor Process segment showed significant growth of 29% year-over-year.
- The company maintained a strong liquidity position with $2.04 billion in cash, cash equivalents, and marketable securities.
- KLA returned $141.2 million to shareholders via dividends and continued share repurchases totaling $193.9 million in the quarter.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2021filed October 30, 2020Financial Statements
Q1 FY2021 against Q1 FY2020
| Line item | Q1 FY2021Q1 FY2020 | Change |
|---|---|---|
| Revenue | $1.54B$1.41B | +8.9% |
| Cost of Revenue | $620.56M$604.24M | +2.7% |
| Gross Profit | $918.06M$809.17M | +13.5% |
| R&D Expenses | $219.04M$210.58M | +4.0% |
| SG&A Expenses | $172.63M$188.34M | −8.3% |
| Interest Expense | $39.39M$40.35M | −2.4% |
| Net Income | $420.57M$346.52M | +21.4% |
| EPS (Basic) | $0.27$0.22 | +24.3% |
| EPS (Diluted) | $0.27$0.22 | +24.5% |
| Shares Outstanding (Basic) | 1.55B1.59B | −2.2% |
| Shares Outstanding (Diluted) | 1.56B1.60B | −2.3% |
05—Questions
Frequently Asked Questions
How did KLA's revenue performance compare to the previous year's quarter?
KLA's total revenues increased by 9% to $1.54 billion for the three months ended September 30, 2020, compared to $1.41 billion for the same period in the prior year, indicating strong demand across its key business segments.
What was the key driver behind the improved gross margin?
The gross margin percentage increased to 59.7% from 57.2% year-over-year, primarily attributed to a more profitable mix of products and services sold, along with increased revenue volume.
How is KLA managing its cash and liquidity?
KLA maintained a strong liquidity position, with cash, cash equivalents, and marketable securities totaling $2.04 billion as of September 30, 2020. Net cash provided by operating activities was $512.2 million, supporting dividend payments, share repurchases, and investing activities.
What is the company's outlook regarding the COVID-19 pandemic?
KLA is actively monitoring the COVID-19 pandemic and has implemented preventative protocols to safeguard employees and ensure business continuity. While the full impact remains uncertain, the company has so far managed its supply chain and operations effectively, with strong demand from semiconductor customers.
06—Continue