Exhibit 99.1
Investor Relations:Media Relations:
Kevin Kessel, CFA Randi Polanich
Vice President, Investor RelationsVice President and Chief Communications Officer
(408) 875-6627(408) 875-6633


Total revenues were $1.80 billion, finishing at the upper end of the range of guidance;
GAAP diluted EPS attributable to KLA was $3.66, and non-GAAP diluted EPS attributable to KLA was $3.85, each also finishing at the upper end of the range of guidance;
Cash flow from operations and free cash flow were both records at $646.2 million and $585.0 million, respectively;
Capital return was $412.7 million with $139.3 million in dividends and $273.4 million in share repurchases.

MILPITAS, Calif., April 29, 2021 -KLA Corporation (NASDAQ: KLAC) today announced operating results for its third quarter of fiscal year 2021, which ended on March 31, 2021, and reported GAAP net income attributable to KLA of $567 million and GAAP earnings per diluted share attributable to KLA of $3.66 on revenue of $1.80 billion.

“KLA’s March quarter results demonstrate strong momentum in our business. We have seen a sharp increase in business levels in each of our major end markets, driven by secular demand trends across a broad range of semiconductor markets and applications,” commented Rick Wallace, president and chief executive officer of KLA Corporation. “Against this backdrop, KLA continues to demonstrate our ability to meet customer requirements while growing operating profits, generating record free cash flow, and maintaining our long-term strategy of productive capital allocation.”
GAAP Results
Q3 FY 2021Q2 FY 2021Q3 FY 2020
Total revenue$1,804 million$1,651 million$1,424 million
Net Income Attributable to KLA$567 million$457 million$78 million
Net Income per Diluted Share Attributable to KLA$3.66$2.94$0.50
Non-GAAP Results
Q3 FY 2021Q2 FY 2021Q3 FY 2020
Net Income Attributable to KLA$598 million$504 million$389 million
Net Income per Diluted Share Attributable to KLA$3.85$3.24$2.47
A reconciliation between GAAP operating results and non-GAAP operating results is provided following the financial statements included in this release. KLA will discuss the results for its fiscal year 2021 third quarter, along with its outlook, on a conference call today beginning at 2:00 p.m. Pacific Time. A webcast of the call will be available at: www.kla.com.
Fourth Quarter Fiscal 2021 Guidance
The following details our guidance for the fourth quarter of fiscal 2021 ending in June:
Total revenue between $1,755 million to $1,955 million
GAAP gross margin is expected to be in a range of 58% to 61%
Non-GAAP gross margin is expected to be in a range of 61% to 63%
GAAP diluted EPS attributable to KLA is expected to be in a range of $3.20 to $4.08
Non-GAAP diluted EPS attributable to KLA in a range of $3.47 to $4.35
For additional guidance metrics please see the company’s published Letter to Shareholders and earnings slides on the KLA investor relations website.

About KLA:
KLA Corporation (“KLA”) develops industry-leading equipment and services that enable innovation throughout the electronics industry. We provide advanced process control and process-enabling solutions for manufacturing wafers and reticles, integrated circuits, packaging, printed circuit boards and flat panel displays. In close collaboration with leading customers across the globe, our expert teams of physicists, engineers, data scientists and problem-solvers design solutions that move the world forward. Investors and others should note that KLA announces material financial information including SEC filings, press releases, public earnings calls and conference webcasts using an investor relations website (ir.kla.com). Additional information may be found at: www.kla.com.

Note Regarding Forward-Looking Statements:
Statements in this press release other than historical facts, such as statements pertaining to revenues, GAAP and non-GAAP gross margin and GAAP and non-GAAP diluted EPS for the quarter ending June 30, 2021 are forward-looking statements and 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 future impacts of the COVID-19 pandemic; delays and disruptions in the supply chain; the demand for semiconductors; the financial condition of the global capital markets and the general macroeconomic environment; new and enhanced product and technology offerings by competitors; push-out of deliveries or cancellation of orders by customers; the ability of KLA’s research and development teams to successfully innovate and develop technologies and products that are responsive to customer demands; KLA’s ability to successfully manage its costs; market acceptance of KLA’s existing and newly launched products; changing customer demands; and industry transitions. For other factors that may cause actual results to differ materially from those projected and anticipated in forward-looking statements in this letter, please refer to KLA Corporation’s Annual Report on Form 10-K for the year ended June 30, 2020, and other subsequent filings with the Securities and Exchange Commission (including, but not limited to, the risk factors described therein). KLA Corporation assumes no obligation to, and does not currently intend to, update these forward-looking statements.


KLA Corporation
Condensed Consolidated Unaudited Balance Sheets
(In thousands)March 31, 2021June 30, 2020
Cash, cash equivalents and marketable securities$2,442,725 $1,980,472 
Accounts receivable, net1,201,991 1,107,413 
Inventories1,450,588 1,310,985 
Other current assets309,861 324,675 
Land, property and equipment, net628,438 519,824 
Goodwill2,011,187 2,045,402 
Deferred income taxes, non-current240,822 236,797 
Purchased intangible assets, net1,237,589 1,391,413 
Other non-current assets416,039 362,979 
Total assets$9,939,240 $9,279,960 
Current liabilities:
Accounts payable$295,111 $264,280 
Deferred system revenue332,296 336,237 
Deferred service revenue252,992 233,493 
Short-term debt20,000 — 
Other current liabilities1,129,067 865,776 
Total current liabilities2,029,466 1,699,786 
Non-current liabilities:
Long-term debt3,422,097 3,469,670 
Deferred tax liabilities629,896 660,885 
Deferred service revenue86,902 96,325 
Other non-current liabilities658,015 672,284 
Total liabilities6,826,376 6,598,950 
Stockholders’ equity:
Common stock and capital in excess of par value2,115,205 2,090,268 
Retained earnings1,070,124 654,930 
Accumulated other comprehensive income (loss)(70,473)(79,774)
Total KLA stockholders' equity3,114,856 2,665,424 
Non-controlling interest in consolidated subsidiaries(1,992)15,586 
Total stockholders’ equity3,112,864 2,681,010 
Total liabilities and stockholders’ equity$9,939,240 $9,279,960 


KLA Corporation
Condensed Consolidated Unaudited Statements of Operations
Three Months Ended March 31,Nine Months Ended March 31,
(In thousands, except per share amounts)2021202020212020
Product$1,375,320 $1,051,096 $3,758,838 $3,253,621 
Service428,453 372,868 1,234,425 1,093,210 
Total revenues1,803,773 1,423,964 4,993,263 4,346,831 
Costs and expenses:
Costs of revenues709,629 590,158 1,999,924 1,828,017 
Research and development238,957 215,433 687,059 646,764 
Selling, general and administrative183,040 185,760 537,580 566,358 
Goodwill impairment— 256,649 — 256,649 
Interest expense39,092 39,231 117,358 120,053 
Loss on extinguishment of debt— 22,538 — 22,538 
Other expense (income), net(7,348)(1,004)(269)(5,190)
Income before income taxes640,403 115,199 1,651,611 911,642 
Provision for income taxes73,233 37,190 207,316 106,932 
Net income 567,170 78,009 1,444,295 804,710 
Less: Net loss attributable to non-controlling interest(326)(443)(1,019)(822)
Net income attributable to KLA$567,496 $78,452 $1,445,314 $805,532 
Net income per share attributable to KLA:
Basic$3.69 $0.50 $9.36 $5.12 
Diluted$3.66 $0.50 $9.28 $5.08 
Weighted-average number of shares:
Basic153,801 156,067 154,457 157,356 
Diluted155,159 157,172 155,789 158,586 


KLA Corporation
Condensed Consolidated Unaudited Statements of Cash Flows
Three Months Ended
March 31,
(In thousands)20212020
Cash flows from operating activities:
Net income $567,170 $78,009 
Adjustments to reconcile net income to net cash provided by operating activities:
Goodwill impairment— 256,649 
Depreciation and amortization84,365 81,990 
Loss on extinguishment of debt— 22,538 
(Gain) loss on unrealized foreign exchange and other5,231 (5,950)
Asset impairment charges(23)— 
Stock-based compensation expense30,327 31,270 
Gain on sale of business(4,422)— 
Settlement of treasury lock agreement— (21,518)
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions:
Accounts receivable16,055 73,103 
Other assets(20,851)(23,899)
Accounts payable32,735 (12,904)
Deferred system revenue57,820 89,280 
Deferred service revenue11,507 10,691 
Other liabilities(99,595)(125,591)
Net cash provided by operating activities646,150 442,028 
Cash flows from investing activities:
Proceeds from sale of business16,833 — 
Business acquisitions, net of cash acquired— (70)
Capital expenditures(61,183)(43,445)
Purchases of available-for-sale securities(303,076)(156,173)
Proceeds from sale of available-for-sale securities14,962 69,034 
Proceeds from maturity of available-for-sale securities159,120 133,819 
Purchases of trading securities(48,495)(46,784)
Proceeds from sale of trading securities45,251 45,407 
Net cash used in (provided by) investing activities(176,588)1,788 
Cash flows from financing activities:
Proceeds from issuance of debt, net of issuance costs— 742,004 
Repayment of debt(20,000)(721,033)
Common stock repurchases(273,441)(315,995)
Payment of dividends to stockholders(139,338)(133,327)
Issuance of common stock— 672 
Tax withholding payments related to equity awards(6,674)(4,958)
Net cash used in financing activities(439,453)(432,637)
Effect of exchange rate changes on cash and cash equivalents(9,425)(4,868)
Net increase (decrease) in cash and cash equivalents20,684 6,311 
Cash and cash equivalents at beginning of period1,431,466 939,864 
Cash and cash equivalents at end of period$1,452,150 $946,175 
Supplemental cash flow disclosures:
Income taxes paid$100,657 $91,972 
Interest paid$39,980 $35,176 
Non-cash activities:
Accrued purchase of land, property and equipment - investing activities$24,392 $17,137 
Contingent consideration payable - financing activities$178 $303 
Dividends payable - financing activities$779 $1,388 
Unsettled common stock repurchase - financing activities$6,000 $— 
Accrued debt issuance costs - financing activities$— $193 


KLA Corporation
Segment Information (Unaudited)
The following is a summary of results for each of our four reportable segments and reconciliation to total revenues for the indicated periods:
 Three Months Ended March 31,Nine Months Ended March 31,
(In thousands)
Semiconductor Process Control$1,506,140 $1,177,777 $4,154,278 $3,588,839 
Specialty Semiconductor Process91,724 85,083 271,264 229,328 
PCB, Display and Component Inspection205,202 160,411 565,646 525,242 
Other149 469 739 3,217 
Total revenues for reportable segments1,803,215 1,423,740 4,991,927 4,346,626 
Corporate allocation and effects of foreign exchange rates558 224 1,336 205 
Total revenues$1,803,773 $1,423,964 $4,993,263 $4,346,831 

KLA Corporation
Condensed Consolidated Unaudited Supplemental Information

Reconciliation of GAAP Net Income and GAAP Earnings Per Diluted Share to Non-GAAP Net Income and Non-GAAP Earnings Per Diluted Share
Three Months EndedNine Months Ended
(In thousands, except per share amounts)March 31,
December 31,
March 31,
March 31,
March 31,
GAAP net income attributable to KLA$567,496 $457,251 $78,452 $1,445,314 $805,532 
Adjustments to reconcile GAAP net income to non-GAAP net income:
Acquisition-related chargesa52,973 53,099 55,022 156,547 188,778 
Restructuring, severance and other chargesb(1,534)3,960 5,432 5,679 8,218 
Goodwill impairmentc— — 256,649 — 256,649 
Loss on extinguishment of debtd— — 22,538 — 22,538 
Income tax effect of non-GAAP adjustmentse(17,866)(17,552)(23,604)(52,431)(67,375)
Discrete tax itemsf(2,967)7,381 (5,551)21,901 (5,551)
Non-GAAP net income attributable to KLA$598,102 $504,139 $388,938 $1,577,010 $1,208,789 
GAAP net income per diluted share attributable to KLA$3.66 $2.94 $0.50 $9.28 $5.08 
Non-GAAP net income per diluted share attributable to KLA$3.85 $3.24 $2.47 $10.12 $7.62 
Shares used in diluted shares calculation155,159 155,560 157,172 155,789 158,586 


Pre-tax impact of GAAP to non-GAAP adjustments included in Condensed Consolidated Unaudited Statements of Operations
(In thousands)Acquisition - Related ChargesRestructuring, Severance and Other ChargesGoodwill ImpairmentDebt Extinguishment LossTotal pre-tax GAAP to non-GAAP Adjustments
Three months ended March 31, 2021
Costs of revenues$40,309 $701 $— $— $41,010 
Research and development— 147 — — 147 
Selling, general and administrative12,664 2,075 — — 14,739 
Other expense (income), net— (4,457)— — (4,457)
Total in three months ended March 31, 2021$52,973 $(1,534)$— $— $51,439 
Three months ended December 31, 2020
Costs of revenues$38,738 $765 $— $— $39,503 
Research and development— 1,432 — — 1,432 
Selling, general and administrative14,361 2,450 — — 16,811 
Other expense (income), net— (687)— — (687)
Total in three months ended December 31, 2020$53,099 $3,960 $— $— $57,059 
Three months ended March 31, 2020
Costs of revenues$36,850 $483 $— $— $37,333 
Research and development— 685 — — 685 
Selling, general and administrative18,172 4,264 — — 22,436 
Goodwill impairment— — 256,649 — 256,649 
Loss on extinguishment of debt— — — 22,538 22,538 
Total in three months ended March 31, 2020$55,022 $5,432 $256,649 $22,538 $339,641 

Free Cash Flow Reconciliation
Three Months Ended March 31,
(In thousands)20212020
Net cash provided by operating activities$646,150 $442,028 
Capital expenditures(61,183)(43,445)
Free Cash Flow$584,967 $398,583 

Fourth Quarter Fiscal 2021 Guidance
Reconciliation of GAAP Diluted EPS to Non-GAAP Diluted EPS
Three Months Ending June 30, 2021
(In millions, except per share amounts)
GAAP net income per diluted share attributable to KLA$3.20$4.08
Acquisition-related chargesa0.340.34
Restructuring, severance and other chargesb0.040.04
Income tax effect of non-GAAP adjustmentse(0.11)(0.11)
Non-GAAP net income per diluted share attributable to KLA$3.47$4.35
Shares used in net income per diluted share calculation154.5154.5


Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin
Three Months Ending June 30, 2021
GAAP gross margin58%61%
Acquisition-related chargesa3%2%
Non-GAAP gross margin61%63%

The Non-GAAP and supplemental information provided in this press release is a supplement to, and not a substitute for, KLA’s financial results presented in accordance with United States GAAP.

To supplement our Condensed Consolidated Financial Statements presented in accordance with GAAP, we provide certain non-GAAP financial information, which is adjusted from results based on GAAP to exclude certain costs and expenses, as well as other supplemental information. The non-GAAP and supplemental information is provided to enhance the user’s overall understanding of our operating performance and our prospects in the future. Specifically, we believe that the non-GAAP information, including non-GAAP net income attributable to KLA, non-GAAP net income per diluted share attributable to KLA and Free Cash Flow, provides useful measures to both management and investors regarding financial and business trends relating to our financial performance by excluding certain costs and expenses that we believe are not indicative of our core operating results to help investors compare our operating performances with our results in prior periods as well as with the performance of other companies. The non-GAAP information is among the budgeting and planning tools that management uses for future forecasting. However, because there are no standardized or generally accepted definitions for most non-GAAP financial metrics, definitions of non-GAAP financial metrics are inherently subject to significant discretion (for example, determining which costs and expenses to exclude when calculating such a metric). As a result, non-GAAP financial metrics may be defined very differently from company to company, or even from period to period within the same company, which can potentially limit the usefulness of such information to an investor. The presentation of non-GAAP and supplemental information is not meant to be considered in isolation or as a substitute for results prepared and presented in accordance with United States GAAP. The following are descriptions of the adjustments made to reconcile GAAP net income attributable to KLA to non-GAAP net income attributable to KLA:
a.Acquisition-related charges primarily include amortization of intangible assets and other acquisition-related adjustments including adjustments for the fair valuation of inventory and backlog, and transaction costs associated with our acquisitions, primarily Orbotech.
b.Restructuring, severance and other charges primarily include costs associated with employee severance, acceleration of certain stock-based compensation arrangements, and other exit costs.
c.Goodwill impairment included non-cash expense recognized as a result of KLA’s annual testing for goodwill impairment performed in the third quarter of the prior fiscal year. The impairment charge resulted from the downward revision of financial outlook for the acquired Orbotech business as well as the impact of elevated risk and macroeconomic slowdown driven by the COVID-19 pandemic.
d.Loss on extinguishment of debt included a pre-tax loss on early extinguishment of the $500 million 4.125% Senior Notes due in November 2021.
e.Income tax effect of non-GAAP adjustments includes the income tax effects of the excluded items noted above.
f.Discrete tax items in the three months ended March 31, 2021 primarily relate to a tax benefit of $3.0 million due to a decrease in deferred tax liability on purchased intangibles relating to a decrease in the effective income tax rate in Israel. Discrete tax items in the three months ended December 31, 2020 consist primarily of a tax expense of $4.0 million from an internal restructuring. Discrete tax items in the nine months ended March 31, 2021 primarily include the aforementioned items as well as a tax expense of $14.0 million due to an increase in deferred tax liability on purchased intangibles relating to an increase in the United Kingdom statutory income tax rate. Discrete tax items in the three months and nine months ended March 31, 2020 include a decrease in deferred tax liability for an unrealized gain on investments held for sale by subsidiaries of the acquired Orbotech business.