10-QPeriod: Q3 FY2022

KLA CORP Quarterly Report for Q3 Ended Mar 31, 2022

Filed April 29, 2022For Securities:KLAC

Summary

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 billion, 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 million, 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.

Financial Highlights

52 data points
Beta

Revenue

$2.29B

61.0% Gross Margin

Net Income

$730.57M

31.9% Net Margin

EPS (Diluted)

$0.48

Total Assets

$12.02B

Cash & Equivalents

$1.42B

Free Cash Flow

$718.57M

Financial Statements
Beta
Revenue$2.29B
Cost of Revenue$892.09M
Gross Profit$1.40B
R&D Expenses$285.19M
SG&A Expenses$216.49M
Interest Expense$39.98M
Net Income$730.57M
EPS (Basic)$0.49
EPS (Diluted)$0.48
Shares Outstanding (Basic)1.50B
Shares Outstanding (Diluted)1.51B

Key Highlights

  • 1Total 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.
  • 2Net 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.
  • 3The Semiconductor Process Control (SPC) segment, the largest revenue driver, saw a 40% increase in revenue for the nine months ended March 31, 2022.
  • 4KLA completed the acquisition of ECI Technology, Inc. for $431.5 million on February 28, 2022, to expand its product and service offerings.
  • 5The 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.
  • 6Despite global supply chain challenges, KLA maintained operational effectiveness, with gross margin remaining strong at 61.1% for the nine months ended March 31, 2022.
  • 7R&D expenses increased by 18% to $808.4 million for the nine months ended March 31, 2022, reflecting continued investment in innovation.

Frequently Asked Questions

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.

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.

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.

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.