Summary
KLA Corporation (KLAC) reported its second-quarter fiscal year 2024 results, showing a year-over-year decrease in total revenues to $2.49 billion from $2.98 billion. This decline was primarily driven by a slowdown in semiconductor demand, leading customers to reduce capital expenditure plans. The company recorded a significant goodwill and purchased intangible asset impairment charge of $219 million related to its PCB and Display businesses, impacting net income. Despite the revenue decrease, service revenues saw a 9% increase year-over-year, supported by a growing installed base. KLA maintained a strong liquidity position with $3.34 billion in cash, cash equivalents, and marketable securities as of December 31, 2023. The company is navigating a challenging macroeconomic environment, characterized by a broad slowdown in semiconductor demand and inventory rebalancing within the industry. Management is focusing on moderating spending to reflect these conditions. The ongoing U.S. export control regulations impacting sales to China continue to be a key factor, with KLA actively seeking export licenses to mitigate disruptions. The company continues to invest in R&D to maintain its technological leadership.
Financial Highlights
51 data points| Revenue | $2.49B |
| Cost of Revenue | $976.75M |
| Gross Profit | $1.51B |
| R&D Expenses | $320.42M |
| SG&A Expenses | $237.24M |
| Interest Expense | $74.20M |
| Net Income | $582.53M |
| EPS (Basic) | $4.30 |
| EPS (Diluted) | $4.28 |
| Shares Outstanding (Basic) | 135.54M |
| Shares Outstanding (Diluted) | 136.25M |
Key Highlights
- 1Total revenues for the second quarter of fiscal year 2024 decreased by 17% to $2.49 billion compared to $2.98 billion in the prior year, primarily due to a macro-driven slowdown impacting semiconductor demand and customer capital expenditure plans.
- 2The Semiconductor Process Control segment, KLA's largest, saw a 17% revenue decline, reflecting the broader industry downturn.
- 3Service revenues increased by 9% year-over-year to $564.9 million, driven by an expanding installed base.
- 4KLA recognized a significant impairment charge of $219 million related to goodwill and purchased intangible assets for its PCB and Display businesses due to a deteriorating long-term forecast for these segments.
- 5Net income attributable to KLA decreased to $582.5 million ($4.28 per diluted share) from $978.8 million ($6.89 per diluted share) in the prior year's comparable quarter, impacted by the impairment charge and lower revenues.
- 6The company maintained a strong liquidity position, with total cash, cash equivalents, and marketable securities of $3.34 billion as of December 31, 2023.
- 7The company continues to monitor and adapt to evolving U.S. export control regulations affecting sales to China, actively applying for necessary export licenses.