KLA-Tencor Posts $51 Million in Net Income for Its First Fiscal Quarter 2003
Business Editors/High-Tech Writers
SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 22, 2002--KLA-Tencor Corp.
(Nasdaq:KLAC) today announced its operating results for its first
quarter of fiscal 2003, ended September 30, 2002. The company posted
net income of $51 million and earnings per share of $0.26 on revenues
of $376 million. Revenue, net income and earnings per share were all
up slightly from the prior fiscal quarter's results of $374 million,
$47 million and $0.23 per share respectively -- due in part to a
one-time net pre-tax gain of $9 million related to the sale of
technology offset by charges related to facilities consolidations.
Reflecting the current business environment, net income and revenue
were down on a year-over-year basis from the levels of the first
fiscal quarter of 2002 when the company posted net income of $86
million on revenues of $503 million.
"KLA-Tencor's continuing profitability, strong backlog position
and healthy balance sheet, despite the challenging industry
environment, reflect the continued demand for our leading-edge process
control solutions, which chipmakers need to speed time to market and
profit on their next-generation chips," commented Ken Schroeder, Chief
Executive Officer. "To further enhance our technology edge in the
process control sector we lead, we are sustaining our strong
commitment to research and development. At the same time, we are
keeping a tight rein on expenses and have taken additional spending
reductions during the quarter."
"Looking forward, KLA-Tencor is well positioned to weather the
industry downturn and capitalize on the inevitable upturn when it
arrives," Schroeder continued. "The company's process control
solutions are critical to the production of next-generation
technologies. As a result, KLA-Tencor stands to benefit substantially
when the technology buys of today become the large-scale production
purchases of the future. In the meantime, we remain focused on
increasing customer value and delivering strong financial results for
our shareholders."
KLA-Tencor continues to maintain its historical backlog position
and industry-leading gross margins. The company retained approximately
six months of shipment backlog, based on current shipment levels.
Deferred revenue backlog currently represents approximately 3 months
of revenue. KLA-Tencor also continues to realize gross margins of
approximately 50 percent. The gross margin for the quarter was 50.4
percent versus 50.1 percent in the fourth quarter of 2002. Gross
margins improved slightly despite a higher percentage of service
revenue, as products introduced over the last 18 months benefited from
lower warranty and install costs.
Geographically, orders from Japan were above their historical
share while the United States, Korea and Taiwan were at historical
share. Europe and the rest of Asia were below historical share.
The company generated $62 million of cash from operating
activities in the quarter with total cash, cash equivalents and
marketable securities of $1.35 billion at quarter end. The company
continues to have no long-term debt on the balance sheet. Inventory
decreased $4 million to $319 million and accounts receivable decreased
$21 million to $256 million. During the quarter, the company
repurchased $47 million in stock, which was partially offset by $4
million in stock issuance. |
