KLA-Tencor Reports Third Quarter Operating Results for Fiscal 2002
SAN JOSE, Calif.--(BUSINESS WIRE)--April 18, 2002--KLA-Tencor Corp. (Nasdaq:KLAC - news) today announced operating results for its third fiscal quarter ended March 31, 2002. KLA-Tencor reported after tax net income of $34 million or $0.17 per fully diluted share on revenues of $357 million. As expected, compared to the same period one year ago, the current quarter's revenues and net income were down 42 and 75 percent respectively. On a quarter over quarter basis, revenues and net income declined 12 and 30 percent respectively from the December 2001 quarter.
Bookings during the quarter improved significantly over the previous quarter, with the majority of these orders coming from Taiwan, which was above its historical proportion. The United States also improved quarter to quarter, remaining at its historical average, while Japan was below its historical share. The company ended the quarter with over six months of backlog at current shipping levels, and a book to ship ratio that exceeded 1:1 for the first time in five quarters.
``The demand for increased capacity in the most advanced technology segments resulted in both customer pull-ins and incremental orders over our original forecast,'' commented Ken Schroeder, KLA-Tencor president and chief executive officer. ``Although the recovery is still not broad-based, we did receive orders from a number of leading chipmakers eager to reserve production slots for our most advanced inspection and metrology tools. These customers clearly recognize the critical role process control plays in both enabling and speeding the production ramp of their next-generation devices.''
Gross margins for the current quarter were 49.0 percent versus 50.1 percent in the prior quarter largely due to a higher percentage of service revenue versus system revenue. Operating expenses were $138 million, $8 million lower than the December 2001 quarter. Engineering expenses declined $2.6 million and sales, marketing, and administration decreased $5.6 million versus the previous quarter.
Cash and short-term investments were $1.22 billion, an increase of $151 million from the previous quarter. Cash flow from operations was due primarily to improved working capital; inventory declined $16 million and accounts receivable declined $91 million.
Forward Looking Statements: Statements in this press release regarding any industry ``recovery,'' current order backlog and ``speeding the production ramp'' 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: delays or cancellations of orders by customers; shipments or acceptances; inability by the company to meet its production and/or product development schedules; the demand for semiconductors; and new and enhanced product offerings by competitors. For other factors that may cause actual results to differ from those projected, please refer to the company's Form 10-K, Forms 10-Q and other filings with the Securities and Exchange Commission. Actual results could differ materially from those anticipated in forward-looking statements in this release as a result of certain factors, including those set forth in the risk factors described in the company's SEC filings.
About KLA-Tencor: KLA-Tencor is the world leader in yield management and process control solutions for semiconductor manufacturing and related 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 National Market under the symbol KLAC. Additional information about the company is available on the Internet at kla-tencor.com.
KLA-Tencor Corporation
CONDENSED CONSOLIDATED UNAUDITED BALANCE SHEETS
March 31, June 30,
2002 2001
(In thousands)
ASSETS
Cash, short-term investments
and marketable securities $ 1,216,438 $ 1,143,860
Accounts receivable, net 274,563 402,013
Inventories 319,513 394,406
Land, property and equipment, net 306,264 290,254
Other assets 533,690 514,018
Total assets $ 2,650,468 $ 2,744,551
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 32,799 $ 60,740
Deferred profit 268,452 422,054
Other current liabilities 454,330 501,291
Total current liabilities 755,581 984,085
Stockholders' equity:
Common stock and capital in
excess of par value 687,139 714,333
Retained earnings 1,213,191 1,043,529
Accumulated other comprehensive
income (5,443) 2,604
Total stockholders' equity 1,894,887 1,760,466
Total liabilities and
stockholders' equity $ 2,650,468 $ 2,744,551
KLA-Tencor Corporation
CONDENSED CONSOLIDATED UNAUDITED STATEMENTS OF OPERATIONS
Three months ended Nine months ended
March 31, March 31,
2002 2001 2002 2001
(In thousands, except (Restated) (Restated)
per share data)
Revenues $ 357,108 $ 617,567 $ 1,264,088 $ 1,501,115
Costs and
operating
expenses:
Costs of goods
sold 182,102 269,074 628,281 667,983
Research and
development 71,479 89,828 218,463 266,705
Selling,
general and
administrative 66,430 83,916 219,674 269,321
Total costs
and
operating
expenses 320,011 442,818 1,066,418 1,204,009
Income from
operations 37,097 174,749 197,670 297,106
Interest income
and other, net 9,050 14,606 31,603 40,539
Income before
income taxes 46,147 189,355 229,273 337,645
Provision for
income taxes 11,998 53,019 59,611 94,541
Income before
cumulative
effect of
principle,
net of tax
benefit 34,149 136,336 169,662 243,104
Cumulative effect
of change in
accounting
principle, net
of tax benefit -- -- -- (306,375)
Net income
(loss) $ 34,149 $ 136,336 $ 169,662 ($ 63,271)
Earnings per
basic share:
Income before
cumulative
effect of
change in
accounting
principles $ 0.18 $ 0.74 $ 0.90 $ 1.31
Cumulative
effect of
change in
accounting
principle $ -- $ -- $ -- ($ 1.65)
Net income
(loss) $ 0.18 $ 0.74 $ 0.90 ($ 0.34)
Earnings per
diluted share:
Income before
cumulative
effect of
change in
accounting
principles $ 0.17 $ 0.71 $ 0.86 $ 1.26
Cumulative
effect of
change in
accounting
principle $ -- $ -- $ -- ($ 1.59)
Net income
(loss) $ 0.17 $ 0.71 $ 0.86 ($ 0.33)
Weighted average
number of
shares:
Basic 187,443 184,510 187,557 185,661
Diluted 197,669 191,717 196,168 192,954
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Contact:
KLA-Tencor Corp.
John Kispert, 408/875-6224
Chief Financial Officer
john.kispert@kla-tencor.com
or
Kern Beare, 408/875-7039 (Media)
Senior Director, Corporate Communications
kern.beare@kla-tencor.com
or
Bren Higgins, 408/875-4094 (Investment Community)
Manager, Investor Relations
bren.higgins@kla-tencor.com |
