01—Abstract
Summary
Summary of the 10-Q filed April 30, 2021. Cited figures are marked; the original filing is the authoritative source.
KLA Corporation reported a strong third quarter of fiscal year 2021, with total revenues reaching $1.80 billiona, a significant 27% increase year-over-year.
This growth was primarily driven by robust demand in the Semiconductor Process Control segment, which saw a 28% increase in revenue, reflecting strong demand for inspection and metrology products. The company's net income attributable to KLA also saw a substantial jump to $567.5 millionb, up from $78.5 million in the prior year's quarter, leading to diluted earnings per share of $3.66. This performance indicates a strong recovery and growth trajectory for KLA, likely benefiting from increased capital spending by semiconductor manufacturers and the growing demand for advanced technologies like 5G and high-performance computing.
02—Key points
Key Highlights
- Total revenues for the third quarter of FY2021 increased by 27% year-over-year to $1.80 billion, driven by strong demand across key segments.
- Net income attributable to KLA surged to $567.5 million, a significant increase from $78.5 million in the same quarter last year, demonstrating improved profitability.
- Diluted earnings per share reached $3.66, a substantial increase from $0.50 in the prior year's quarter.
- The Semiconductor Process Control segment, the company's largest, reported a 28% revenue increase, highlighting its strong performance.
- Gross margin improved to 60.7% from 58.6% in the prior year's quarter, indicating better operational efficiency and pricing power.
- The company generated strong operating cash flow, with $1.72 billion for the nine months ended March 31, 2021.
- KLA maintained a healthy balance sheet with $2.44 billion in cash, cash equivalents, and marketable securities as of March 31, 2021.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2021filed April 30, 2021Financial Statements
Q3 FY2021 against Q3 FY2020
| Line item | Q3 FY2021Q3 FY2020 | Change |
|---|---|---|
| Revenue | $1.80B$1.42B | +26.7% |
| Cost of Revenue | $709.63M$590.16M | +20.2% |
| Gross Profit | $1.09B$833.81M | +31.2% |
| R&D Expenses | $238.96M$215.43M | +10.9% |
| SG&A Expenses | $183.04M$185.76M | −1.5% |
| Interest Expense | $39.09M$39.23M | −0.4% |
| Net Income | $567.50M$78.45M | +623.4% |
| EPS (Basic) | $0.37$0.05 | +638.0% |
| EPS (Diluted) | $0.37$0.05 | +632.0% |
| Shares Outstanding (Basic) | 1.54B1.56B | −1.5% |
| Shares Outstanding (Diluted) | 1.55B1.57B | −1.3% |
05—Questions
Frequently Asked Questions
What was KLA's revenue performance in the third quarter of FY2021?
KLA reported total revenues of $1.80 billion for the third quarter of FY2021, representing a 27% increase compared to $1.42 billion in the same period of the previous year. This growth was broad-based, with strong contributions from Product revenues ($1.38 billion, up 31%) and Service revenues ($428 million, up 15%).
How did KLA's profitability change compared to the prior year?
Profitability significantly improved. Net income attributable to KLA rose to $567.5 million for the quarter, a substantial increase from $78.5 million in the prior year's quarter. Consequently, diluted earnings per share increased to $3.66 from $0.50 year-over-year.
What were the key drivers of revenue growth for KLA in this quarter?
The revenue growth was primarily driven by strong demand from memory and logic customers, sustained growth in 5G infrastructure, and the ongoing work-from-home trends fueling high-performance computing. The Semiconductor Process Control segment, in particular, showed robust performance, reflecting strong demand for inspection and metrology products.
What is the company's financial position in terms of cash and debt?
As of March 31, 2021, KLA had a strong liquidity position with $2.44 billion in cash, cash equivalents, and marketable securities. The company's total debt was approximately $3.42 billion. The company's liquidity and cash flow generation appear strong, supporting its operations, dividend payments, and stock repurchase programs.
06—Continue