01—Abstract
Summary
Summary of the 10-Q filed April 28, 2023. Cited figures are marked; the original filing is the authoritative source.
KLA Corporation reported solid financial results for the third quarter of fiscal year 2023, with total revenues increasing by 6% year-over-year to $2.43 billiona.
The Semiconductor Process Control segment was the primary growth driver, up 10%, reflecting strong demand for inspection and metrology products. The company also saw an 8% increase in service revenue, attributed to a growing installed base. Despite a slight decrease in gross margin to 58.7% from 61.0% in the prior year period, largely due to increased service and manufacturing costs, KLA maintained a healthy net income of $697.8 millionb.
The company highlighted significant R&D investments, up 15%c year-over-year, underscoring its commitment to innovation in the dynamic semiconductor industry. Management noted a continued slowdown in semiconductor demand impacting customer capital expenditure plans for 2023, and is focusing on moderating spending in response.
Financially, KLA ended the quarter with a strong liquidity position, holding $2.89 billiond in cash, cash equivalents, and marketable securities. The company returned significant capital to shareholders through dividends and share repurchases, demonstrating a commitment to shareholder returns while strategically investing in future growth.
02—Key points
Key Highlights
- Total revenues grew 6% year-over-year to $2.43 billion.
- Semiconductor Process Control segment revenue increased by 10%, driven by strong demand for inspection and metrology products.
- Service revenue increased by 8%, supported by a larger installed base.
- Net income attributable to KLA was $697.8 million.
- Research and Development (R&D) expenses increased by 15% year-over-year to $328.3 million, reflecting continued investment in innovation.
- The company ended the quarter with $2.89 billion in cash, cash equivalents, and marketable securities, indicating a strong liquidity position.
- KLA returned capital to shareholders through dividends and share repurchases totaling $553.0 million and $923.0 million respectively for the nine months ended March 31, 2023.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2023filed April 28, 2023Financial Statements
Q3 FY2023 against Q3 FY2022
| Line item | Q3 FY2023Q3 FY2022 | Change |
|---|---|---|
| Revenue | $2.43B$2.29B | +6.3% |
| Cost of Revenue | $1.01B$892.09M | +12.7% |
| Gross Profit | $1.43B$1.40B | +2.2% |
| R&D Expenses | $328.28M$285.19M | +15.1% |
| SG&A Expenses | $238.39M$216.49M | +10.1% |
| Interest Expense | $74.77M$39.98M | +87.0% |
| Net Income | $697.84M$730.57M | −4.5% |
| EPS (Basic) | $0.51$0.49 | +3.9% |
| EPS (Diluted) | $0.50$0.48 | +4.1% |
| Shares Outstanding (Basic) | 1.38B1.50B | −8.2% |
| Shares Outstanding (Diluted) | 1.39B1.51B | −8.3% |
05—Questions
Frequently Asked Questions
What was KLA Corp's revenue performance in Q3 FY2023?
KLA Corp reported total revenues of $2.43 billion for the third quarter of fiscal year 2023, a 6% increase compared to $2.29 billion in the same period of the prior year. This growth was primarily driven by the Semiconductor Process Control segment, which saw a 10% increase in revenue.
How did KLA Corp's profitability fare in the quarter?
KLA Corp reported a net income attributable to KLA of $697.8 million for the third quarter of fiscal year 2023, compared to $730.6 million in the same period last year. The diluted net income per share was $5.03, down from $5.06 in the prior year quarter.
What is the company's outlook regarding the semiconductor market?
KLA acknowledges a continued slowdown in semiconductor demand impacting customer capital expenditure plans for 2023. Memory device manufacturers and foundry/logic customers are reducing their capacity expansion plans. In response, KLA is focusing on moderating its spending levels.
How is KLA Corp managing its cash and capital resources?
KLA Corp maintained a strong liquidity position with $2.89 billion in cash, cash equivalents, and marketable securities as of March 31, 2023. The company generated $2.71 billion in net cash from operating activities for the nine months ended March 31, 2023. KLA also returned capital to shareholders through dividends and significant share repurchases.
06—Continue