10-QPeriod: Q1 FY2021

KLA CORP Quarterly Report for Q1 Ended Sep 30, 2020

Filed October 30, 2020For Securities:KLAC

Summary

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 billion, 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.

Financial Highlights

52 data points
Beta

Revenue

$1.54B

59.7% Gross Margin

Net Income

$420.57M

27.3% Net Margin

EPS (Diluted)

$0.27

Total Assets

$9.32B

Cash & Equivalents

$1.22B

Free Cash Flow

$456.25M

Financial Statements
Beta
Revenue$1.54B
Cost of Revenue$620.56M
Gross Profit$918.06M
R&D Expenses$219.04M
SG&A Expenses$172.63M
Interest Expense$39.39M
Net Income$420.57M
EPS (Basic)$0.27
EPS (Diluted)$0.27
Shares Outstanding (Basic)1.55B
Shares Outstanding (Diluted)1.56B

Key Highlights

  • 1Total revenues increased by 9% to $1.54 billion in Q1 FY21 compared to Q1 FY20.
  • 2Net income attributable to KLA rose to $420.6 million ($2.69/share) from $346.5 million ($2.16/share) year-over-year.
  • 3Gross margin improved to 59.7% from 57.2% in the prior year's quarter, driven by a more profitable product mix.
  • 4The Semiconductor Process Control segment, the largest contributor, saw revenue growth of 9%.
  • 5The Specialty Semiconductor Process segment showed significant growth of 29% year-over-year.
  • 6The company maintained a strong liquidity position with $2.04 billion in cash, cash equivalents, and marketable securities.
  • 7KLA returned $141.2 million to shareholders via dividends and continued share repurchases totaling $193.9 million in the quarter.

Frequently Asked Questions

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.

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.

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.

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.