KLA-Tencor Executives Express Optimism on Sales Growth in 2003
By Anne Brady
Executives at KLA-Tencor Corp. (NasdaqNM: KLAC - News) on Tuesday expressed optimism about sales growth in 2003, saying that the semiconductor industry is facing challenges that create a need for its products.
For the company's first fiscal quarter ending in September, Chief Financial Officer John Kispert predicted revenue and operating earnings that will be close to flat with the fourth quarter.
After markets closed Tuesday, the San Jose , Calif. , chip-equipment supplier announced fiscal fourth-quarter net income of $46.5 million, or 23 cents a share, on revenue of $373 million. That compares with income in the fourth quarter of fiscal 2001 of $130 million, or 67 cents a share, on revenue of $603 million.
The results beat the average estimate of analysts polled by Thomson First Call of 20 cents a share, and the company's forecast, which called for earnings of 18 cents to 20 cents a share on sales of $355 million to $365 million.
After closing 4 p.m. EDT trading on the Nasdaq Stock Market up $1.43, or 3.7%, at $40.34 Tuesday, KLA-Tencor shares dipped after-hours, trading as low as $39, according to Nasdaq.com, after the company said in its press release it was " entering a flat period."
In a conference call with analysts, Mr. Kispert said the company expects first-quarter earnings of 25 cents or 26 cents a share, including a charge of three cents a share, on revenue of $370 million to $380 million. He said he expects gross margin to be up slightly in the first quarter.
"We're in the early stages of economic recovery in the United States ," Chief Executive Kenneth Schroeder said. "All recoveries seem to go in fits and starts, and we're in a fit right now."
He predicted "flat bookings" in the September quarter and said there is " limited visibility" for the December quarter, but he said he expects growth in 2003 and 2004.
"More and more people will be investing (in technology)," he said. As they do, KLA-Tencor is the only credible supplier for certain equipment that the semiconductor companies will need, he said.
"We are optimistic about the recovery," Mr. Kispert added.
Asked in the call whether the company was being conservative with its forecast for a fiscal first-quarter performance that's flat with the fourth, Mr. Kispert said the outlook for the company's results will likely change "day to day and week to week" as the quarter progresses.
"Every time I pass (CEO Schroeder) in the hall, I think our sentiment on that is going to change," Mr. Kispert said. "We picked flat for a reason. ... Right now, I think we have equal odds in either direction."
The average estimate of analysts calls for first-quarter operating earnings of 25 cents a share.
-Anne Brady, Dow Jones Newswires, 602-258-2003; anne.brady@dowjones.com |
