10-QPeriod: Q3 FY2021

KLA CORP Quarterly Report for Q3 Ended Mar 31, 2021

Filed April 30, 2021For Securities:KLAC

Summary

KLA Corporation reported a strong third quarter of fiscal year 2021, with total revenues reaching $1.80 billion, 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 million, 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.

Financial Highlights

53 data points
Beta

Revenue

$1.80B

60.7% Gross Margin

Net Income

$567.50M

31.5% Net Margin

EPS (Diluted)

$0.37

Total Assets

$9.94B

Cash & Equivalents

$1.45B

Free Cash Flow

$584.97M

Financial Statements
Beta
Revenue$1.80B
Cost of Revenue$709.63M
Gross Profit$1.09B
R&D Expenses$238.96M
SG&A Expenses$183.04M
Interest Expense$39.09M
Net Income$567.50M
EPS (Basic)$0.37
EPS (Diluted)$0.37
Shares Outstanding (Basic)1.54B
Shares Outstanding (Diluted)1.55B

Key Highlights

  • 1Total revenues for the third quarter of FY2021 increased by 27% year-over-year to $1.80 billion, driven by strong demand across key segments.
  • 2Net 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.
  • 3Diluted earnings per share reached $3.66, a substantial increase from $0.50 in the prior year's quarter.
  • 4The Semiconductor Process Control segment, the company's largest, reported a 28% revenue increase, highlighting its strong performance.
  • 5Gross margin improved to 60.7% from 58.6% in the prior year's quarter, indicating better operational efficiency and pricing power.
  • 6The company generated strong operating cash flow, with $1.72 billion for the nine months ended March 31, 2021.
  • 7KLA maintained a healthy balance sheet with $2.44 billion in cash, cash equivalents, and marketable securities as of March 31, 2021.

Frequently Asked Questions

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%).

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.

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.

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.