01—Abstract
Summary
Summary of the 10-Q filed April 29, 2022. Cited figures are marked; the original filing is the authoritative source.
KLA Corporation (KLAC) reported strong financial results for the nine months ended March 31, 2022, showcasing robust revenue growth and increased profitability.
Total revenues reached $6.73 billiona, a significant increase from $4.99 billion in the prior year period, driven primarily by strong demand across its Semiconductor Process Control (SPC) segment, which saw a 40% revenue increase. This growth was further bolstered by the Specialty Semiconductor Process segment, which grew 22%. The company's net income attributable to KLA also saw a substantial rise to $2.52 billion from $1.45 billion in the comparable period.
Operationally, KLA completed the acquisition of ECI Technology, Inc. for $431.5 millionb, strengthening its portfolio in chemical management systems. The company also continued its aggressive share repurchase program, returning significant capital to shareholders through dividends and buybacks. Despite persistent supply chain challenges exacerbated by global events like the COVID-19 pandemic, KLA demonstrated resilience, effectively managing its operations and supply chain to meet customer demand, with continued focus on R&D and strategic investments to maintain its technological edge in the dynamic semiconductor industry.
02—Key points
Key Highlights
- Total revenues for the nine months ended March 31, 2022, increased by 35% to $6.73 billion, compared to $4.99 billion in the prior year period.
- Net income attributable to KLA for the nine months ended March 31, 2022, rose to $2.52 billion, a significant increase from $1.45 billion in the prior year period.
- The Semiconductor Process Control (SPC) segment, the largest revenue driver, saw a 40% increase in revenue for the nine months ended March 31, 2022.
- KLA completed the acquisition of ECI Technology, Inc. for $431.5 million on February 28, 2022, to expand its product and service offerings.
- The company repurchased $1.39 billion of common stock during the nine months ended March 31, 2022, demonstrating a strong commitment to returning capital to shareholders.
- Despite global supply chain challenges, KLA maintained operational effectiveness, with gross margin remaining strong at 61.1% for the nine months ended March 31, 2022.
- R&D expenses increased by 18% to $808.4 million for the nine months ended March 31, 2022, reflecting continued investment in innovation.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2022filed April 29, 2022Financial Statements
Q3 FY2022 against Q3 FY2021
| Line item | Q3 FY2022Q3 FY2021 | Change |
|---|---|---|
| Revenue | $2.29B$1.80B | +26.9% |
| Cost of Revenue | $892.09M$709.63M | +25.7% |
| Gross Profit | $1.40B$1.09B | +27.6% |
| R&D Expenses | $285.19M$238.96M | +19.3% |
| SG&A Expenses | $216.49M$183.04M | +18.3% |
| Interest Expense | $39.98M$39.09M | +2.3% |
| Net Income | $730.57M$567.50M | +28.7% |
| EPS (Basic) | $0.49$0.37 | +32.0% |
| EPS (Diluted) | $0.48$0.37 | +32.0% |
| Shares Outstanding (Basic) | 1.50B1.54B | −2.4% |
| Shares Outstanding (Diluted) | 1.51B1.55B | −2.6% |
05—Questions
Frequently Asked Questions
What was KLA Corporation's revenue performance in the reported period?
For the nine months ended March 31, 2022, KLA Corporation reported total revenues of $6.73 billion, a substantial increase of 35% compared to $4.99 billion for the same period in the prior year. This growth was primarily driven by strong demand in the Semiconductor Process Control (SPC) segment, which increased by 40% year-over-year.
How did KLA's profitability change during this period?
KLA Corporation's net income attributable to KLA significantly increased to $2.52 billion for the nine months ended March 31, 2022, compared to $1.45 billion in the corresponding prior year period. This growth in profitability reflects the strong revenue performance and effective cost management.
What significant strategic actions did KLA undertake during the period?
KLA completed a key acquisition of ECI Technology, Inc. for $431.5 million on February 28, 2022, aimed at enhancing its chemical management systems capabilities. Additionally, the company continued its aggressive share repurchase program, buying back $1.39 billion in common stock during the nine months ended March 31, 2022, demonstrating a commitment to shareholder returns.
How is KLA managing supply chain challenges and what is its outlook?
KLA acknowledged ongoing supply chain challenges, exacerbated by global events, but demonstrated resilience by effectively managing its operations. The company increased its purchase commitments to secure critical components and maintained strong gross margins. While facing some localized impacts, KLA's overall outlook remains positive, driven by sustained demand in the semiconductor industry and its strategic investments in R&D and acquisitions.
06—Continue