KLA-Tencor Reports Fiscal 2008 First Quarter Results
SAN JOSE, Calif.--(BUSINESS WIRE)--
KLA-Tencor Corporation (NASDAQ:KLAC) today announced operating results for its first quarter of fiscal 2008, which ended on September 30, 2007. The Company reported GAAP net income of $88 million and GAAP earnings per diluted share of $0.46 on revenue of $693 million for the quarter ended September 30, 2007, which included stock-based compensation and other charges discussed below, compared to GAAP net income of $147 million or $0.75 per diluted share on revenue of $736 million in the fourth quarter of fiscal 2007, and GAAP net income of $136 million or $0.67 per diluted share on revenue of $629 million in the first quarter of fiscal 2007.
Net income for the first quarter of fiscal 2008 reflects $91 million in charges, as follows:
-- Stock-based compensation related charges of $28 million,
compared to $26 million for the fourth quarter of fiscal 2007
and $37 million for the first quarter of fiscal 2007.
-- Discrete tax expenses of $47 million for US tax associated
with implementation of our global manufacturing strategy.
There were no such charges associated with our manufacturing
strategy in either the fourth quarter of fiscal 2007 or the
first quarter of fiscal 2007.
-- Acquisition-related charges of $12 million for amortization of
intangible assets relating to the acquisitions completed by
the Company in fiscal 2007. Acquisition-related charges,
including impairment of intangibles and in-process R&D, were
$38 million for the fourth quarter of fiscal 2007 and $1
million for the first quarter of fiscal 2007.
-- Severance charges of $2 million related to a worldwide
reduction in force, compared to $11 million for the fourth
quarter of fiscal 2007. There were no severance charges for
the first quarter of fiscal 2007.
-- Restatement-related charges of $2 million for shareholder
litigation and related matters. Restatement-related charges
were $1 million for the fourth quarter of fiscal 2007 and $3
million for the first quarter of fiscal 2007.
"KLA-Tencor delivered solid operational execution and extended our market leadership position in the quarter," said Rick Wallace, CEO of KLA-Tencor. "We continued to reduce costs and improve operating leverage, while maintaining our aggressive pace of investment and innovation in delivering the next-generation yield management solutions our customers require to meet their mission-critical production challenges as they invest in new technologies."
KLA-Tencor ended the first quarter of fiscal year 2008 with approximately eight months of product-related shipment and revenue backlog. The geographic breakdown of system orders in the quarter was:
Percent of Orders
Region ---------------------------------
Current Quarter Historical
Average
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United States 14% 25%
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Japan 46% 25%
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Taiwan 13% 20%
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Korea, China, & Singapore 19% 20%
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Europe 8% 10%
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KLA-Tencor's financial position remained strong with cash and investments of $1.3 billion. Accounts receivable increased by $37 million compared to the prior quarter to $619 million on strong shipments.
KLA-Tencor will discuss its fiscal 2008 first quarter results, along with its outlook for the second quarter of fiscal 2008, on a conference call today beginning at 2:00 p.m. Pacific Daylight Time. A web cast of the call will be available at: www.kla-tencor.com.
Forward Looking Statements: Statements in this press release other than historical facts, such as statements regarding the benefit to customers of KLA-Tencor's products and demand for KLA-Tencor's products, are forward-looking statements, and are subject to the Safe Harbor provisions created by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current information and expectations, and involve a number of risks and uncertainties. Actual results may differ materially from those projected in such statements due to various factors, including but not limited to: the demand for semiconductors; new and enhanced product offerings by competitors; cancellation of orders by customers; and changing customer demands. For other factors that may cause actual results to differ materially from those projected and anticipated in forward-looking statements in this release, please refer to the Company's Annual Report on Form 10-K for the year ended June 30, 2007, subsequently filed Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission (including, but not limited to, the risk factors described therein).
About KLA-Tencor: KLA-Tencor is the world's leading supplier of process control and yield management solutions for the semiconductor and related microelectronics industries. Headquartered in San Jose, Calif., the Company has sales and service offices around the world. An S&P 500 Company, KLA-Tencor is traded on the NASDAQ Global Select Market under the symbol KLAC. Additional information about the Company is available on the Internet at http://www.kla-tencor.com
KLA-Tencor Corporation
Condensed Consolidated Unaudited Balance Sheets
(In thousands) September 30, 2007 June 30, 2007
------------------ -------------
ASSETS
Current assets:
Cash and investments 1,282,933 1,710,629
Accounts receivable, net 618,959 581,500
Inventories 500,286 535,370
Other current assets 415,428 425,272
------------------ -------------
Total current assets 2,817,606 3,252,771
Land, property and equipment, net 379,189 382,240
Goodwill 311,330 311,856
Purchased intangibles, net 167,626 175,432
Other assets 516,349 500,950
------------------ -------------
Total assets $ 4,192,100 $ 4,623,249
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 119,050 $ 92,165
Deferred system profit 208,046 201,747
Unearned revenue 54,188 52,304
Other current liabilities 578,540 659,346
------------------ -------------
Total current liabilities 959,824 1,005,562
Non-current liabilities
Income tax payable 87,444 -
Unearned revenue 51,665 46,950
Other non-current liabilities 35,659 20,695
------------------ -------------
Total liabilities 1,134,592 1,073,207
Stockholders' equity:
Common stock and capital in excess
of par value 651,720 967,886
Retained earnings 2,385,949 2,570,751
Accumulated other comprehensive
income 19,839 11,405
------------------ -------------
Total stockholders' equity 3,057,508 3,550,042
------------------ -------------
Total liabilities and
stockholders' equity $ 4,192,100 $ 4,623,249
================== =============
KLA-Tencor Corporation
Condensed Consolidated Unaudited Statements Of Operations
Three months ended
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(In thousands except per share data) September 30, September 30,
2007 2006
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Revenues:
Product $ 578,432 $ 530,927
Service 114,588 98,436
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Total revenues 693,020 629,363
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Costs and operating expenses:
Cost of revenues (a) 305,893 270,119
Engineering, research and development
(a) 99,344 99,293
Selling, general and administrative (a) 110,505 105,961
------------- -------------
Total costs and operating expenses 515,742 475,373
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Income from operations 177,278 153,990
Interest income and other, net 17,474 22,457
------------- -------------
Income before income taxes and minority
interest 194,752 176,447
Provision for income taxes (a) 106,594 41,368
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Income before minority interest 88,158 135,079
Minority interest - 843
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Net income $ 88,158 $ 135,922
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Net income per share:
Basic $ 0.47 $ 0.68
Diluted $ 0.46 $ 0.67
Weighted average number of shares:
Basic 187,789 199,416
Diluted 193,043 203,323
(a) includes the following amounts related
to equity awards:
Costs of revenues $ 6,253 $ 8,587
Engineering, research and development $ 8,592 $ 11,705
Selling, general and administrative $ 13,238 $ 16,755
Provision for income taxes $ (8,475) $ (11,389)
Source: KLA-Tencor Corporation
Released October 25, 2007