KLA-Tencor Posts Second Quarter Earnings of $29 Million on Revenues of $335 Million
Thursday January 23, 4:19 pm ET
SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 23, 2003--KLA-Tencor Corp. (Nasdaq:KLAC - News) today announced its operating results for its second quarter of fiscal 2003, ended December 31, 2002. The company posted net income of $29 million and earnings per share of $0.15 on revenues of $335 million, as compared to $49 million on revenues of $404 million for the same period of the prior fiscal year. Revenue declined by 11 percent, as compared with the first quarter of fiscal 2003. Income was lower by 43 percent, as a result of the change in revenue, gains in the first quarter and restructuring-related expenses in the second quarter. For the three-month period the company continued to realize significant net income and strong cash flow.
"We continue to post quality earnings, despite one of the deepest downturns in the history of the semiconductor industry," stated Kenneth Schroeder, KLA-Tencor Chief Executive Officer. "Driving our results is that the fact that our comprehensive process control solutions play a pivotal role in helping our customers be more competitive by accelerating the development and production of the next-generation devices that are critical to their profitability. Through diligent financial management and extra efforts from our employees, we have continued to invest in new product development, while also cutting costs, delivering strong asset management performance, and maintaining healthy income from operations."
KLA-Tencor continues to maintain its historical backlog position of approximately six months of shipment backlog, based on current shipment levels. Gross margin of 49 percent decreased slightly from 50 percent in the previous quarter, due primarily to a higher percentage of service revenue.
Geographically, the percentage of orders from the United States was at historical norms and Taiwan was below historical levels, while Europe, Japan and the rest of Asia were above historical averages.
Total cash, cash equivalents and marketable securities were $1.3 billion at quarter end. During the quarter, the company invested $120 million in the purchase of its previously leased campus land and buildings. This investment was offset by strong working capital management. Inventory decreased $29 million to $290 million. Accounts receivable increased by $1 million on higher quarter to quarter shipments, resulting in record low days sales outstanding based on shipments. The company continues to have no long-term debt.
Forward-Looking Statements: Statements in this press release regarding current order backlog and the effect of cost-saving measures may be construed as 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
December 31, June 30,
2002 2002
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(In thousands)
ASSETS
Cash, short-term investments and marketable
securities $1,309,221 $1,333,583
Accounts receivable, net 257,561 277,006
Inventories 289,956 323,016
Land, property and equipment, net 400,367 300,560
Other assets 493,741 483,553
---------- ----------
Total assets $2,750,846 $2,717,718
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 22,947 $ 52,988
Deferred system profit 177,851 193,852
Unearned revenue 49,734 54,886
Other current liabilities 400,513 385,764
---------- ----------
Total current liabilities 651,045 687,490
---------- ----------
Stockholders' equity:
Common stock and capital in excess of par
value 751,413 765,946
Retained earnings 1,340,188 1,259,695
Accumulated other comprehensive income 8,200 4,587
---------- ----------
Total stockholders' equity 2,099,801 2,030,228
---------- ----------
Total liabilities and stockholders'
equity $2,750,846 $2,717,718
========== ==========
KLA-Tencor Corporation
CONDENSED CONSOLIDATED UNAUDITED STATEMENTS OF OPERATIONS
Three months ended Six months ended
December 31, December 31,
2002 2001 2002 2001
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(In thousands, except
per share data)
Revenues:
Product $ 268,075 $ 354,608 $ 580,583 $ 809,004
Service 66,843 49,540 129,855 97,976
--------- --------- --------- ---------
Total
revenues $ 334,918 404,148 710,438 906,980
Costs and operating
expenses:
Costs of goods sold 171,138 201,811 357,482 446,179
Research and
development 71,935 74,061 142,788 146,984
Selling, general and
administrative 65,089 71,996 135,530 153,244
Non-recurring
acquisition,
restructuring and
other, net -- -- (9,402) --
--------- --------- --------- ---------
Total costs
and operating
expenses 308,162 347,868 626,398 746,407
--------- --------- --------- ---------
Income from operations 26,756 56,280 84,040 160,573
Interest income and
other, net 11,702 10,001 21,872 22,553
--------- --------- --------- ---------
Income before income
taxes 38,458 66,281 105,912 183,126
Provision for income
taxes 9,230 17,233 25,419 47,613
--------- --------- --------- ---------
Net income $ 29,228 $ 49,048 $ 80,493 $ 135,513
========= ========= ========= =========
Earnings per basic
share:
Net income $ 0.15 $ 0.26 $ 0.43 $ 0.72
========= ========= ========= =========
Earnings per diluted
share:
Net income $ 0.15 $ 0.25 $ 0.42 $ 0.70
========= ========= ========= =========
Weighted average
number of shares:
Basic 189,018 186,200 189,229 186,928
========= ========= ========= =========
Diluted 193,519 194,637 193,904 194,855
========= ========= ========= =========
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Contact:
KLA-Tencor Corp.
John Kispert, 408/875-6224
Chief Financial Officer
john.kispert@kla-tencor.com
Kern Beare, 408/875-7039 (Media)
Vice President, Corporate Communications
kern.beare@kla-tencor.com
Rahul Mathur, 408/875-4094 (Investment Community)
Manager, Investor Relations
rahul.mathur@kla-tencor.com
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Source: KLA-Tencor Corp. |
