[KLA LETTERHEAD]
KLA INSTRUMENTS ANNOUNCES SECOND QUARTER OPERATING RESULTS
SAN JOSE, California, January 19, 1994 -- KLA Instruments Corporation today
reported second quarter sales of $57,087,000 and net income of $6,292,000,
compared with sales of $38,654,000 and net income of $1,369,000 for the second
quarter last year. Quarterly earnings per share were $0.30 this year compared
with $0.07 in the second quarter last year. For the previous quarter ended
September 30, 1993, the Company's sales, net income and EPS were $51,904,000,
$4,166,000 and $0.20 per share, respectively.
New orders during the second quarter increased 40% from the first quarter,
setting a new quarterly record for the Company. As previously reported, the
book-to-bill ratio was higher than 1.3, reflecting broad strength in the
Company's businesses. The Company includes both systems and service in its
book-to-bill calculation.
New orders were particularly strong in the Company's wafer inspection unit,
where demand for the 2100 series of in-line yield monitors reflected the
increasing number of fabrication facilities which employed multiple KLA systems.
The Company believes that, during the quarter, the number of fabs with multiple
systems installed or on-order increased from 18 to 25, and that certain of these
fabs increased the number of line monitors employed.
The Company's metrology division set a new order record for the quarter and
the Company believes that it continued to increase its share of the optical
overlay market.
KLA reported that all geographic areas were strong, with Japan and the U.S.
each accounting for about one-third of the total new orders. The Asia Pacific
and European regions accounted for the remaining one-third.
Gross margins increased to 43% during the second quarter, up from 40% in
the first quarter. The improvement was primarily due to increased sales of the
Company's wafer inspection systems. As the Company ramped up production of the
2100 series, it achieved manufacturing efficiencies. Improved financial results
of the customer service division also contributed to the rise in gross margins.
KLA Instruments Corporation is the world's leading manufacturer of yield
monitoring and process control systems for the semiconductor manufacturing
industry. KLA is a publicly held corporation traded on The Nasdaq National
Market under the symbol "KLAC."
KLA INSTRUMENTS CORPORATION
SUMMARY CONSOLIDATED STATEMENT OF INCOME
THREE MONTHS ENDED SIX MONTHS ENDED
DECEMBER 31, DECEMBER 31,
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1993 1992 1993 1992
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(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
Net sales........................................... $57,087 $38,654 $108,991 $ 77,113
Cost and expenses:
Cost of sales..................................... 32,417 25,054 63,578 50,535
Engineering, research and development............. 4,847 4,178 9,776 8,193
Selling, general and administrative............... 11,310 7,698 21,243 15,202
Restructuring recovery............................ -- (718) -- (718)
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48,574 36,212 94,597 73,212
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Income from operations.............................. 8,513 2,442 14,394 3,901
Interest income and other, net...................... 376 219 549 485
Interest expense.................................... (499) (838) (995) (1,801)
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Income from operations before income tax............ 8,390 1,823 13,948 2,585
Provision for income taxes.......................... 2,098 454 3,490 645
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Net income.......................................... $ 6,292 $ 1,369 $ 10,458 $ 1,940
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Net income per share................................ $ 0.30 $ 0.07 $ 0.50 $ 0.10
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Weighted average common and equivalent shares
outstanding....................................... 20,909 19,471 20,854 19,178
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SUMMARY CONSOLIDATED BALANCE SHEET
ASSETS
DECEMBER 31, JUNE 30,
1993 1993
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(IN THOUSANDS)
Cash and marketable securities..................................... $ 47,106 $ 52,362
Accounts receivable................................................ 61,147 48,077
Inventory.......................................................... 44,511 42,489
Deferred income taxes.............................................. 3,917 3,917
Other current assets............................................... 6,146 4,724
Land, property and equipment....................................... 37,226 39,384
Other.............................................................. 6,901 8,136
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Total Assets............................................. $206,954 $ 199,089
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities................................................ $ 52,338 57,958
Deferred taxes..................................................... 7,081 7,081
Long term debt..................................................... 20,000 20,000
Shareholders' equity............................................... 127,535 114,050
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Total Liabilities and Shareholders' Equity............... $206,954 $ 199,089
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