SAN JOSE, Calif.--(BUSINESS WIRE)--April 16, 1998--KLA-Tencor
Corporation today announced operating results for its third quarter
ended March 31, 1998.
The Company previously announced estimates for the third quarter
on April 1, 1998. Revenues were $274 million versus $252 million for
the same period last year. Net income was $31 million, excluding a
non-recurring acquisition charge of $3 million for Nanopro GmbH, or
$0.35 cents per share compared with $37 million, or $0.43 cents per
share in the same period one year ago.
The Company reduced its revenues compared with prior quarters in
response to a decline in bookings coupled with cancellations of some
orders booked in previous quarters. New order weakness was most
significant in the Asia Pacific region, however the Japanese and
European markets also exhibited order weakness.
New bookings from the U.S. region were about equal to the prior
quarter, however order cancellations from terminated customer projects
caused the net bookings to be lower than the previous quarter.
With the revenue decline, the company began to reduce spending
levels. Despite some spending reductions, gross margins declined to
51% of sales because service revenue became a higher percentage of
total revenues, and because certain critical infrastructure support
spending continued despite lower revenue levels. Operating costs for
the quarter increased to 40% as spending reductions in research and
development and selling costs were less than the revenue decline.
During the quarter the Company acquired Nanopro GmbH, a
privately-held manufacturer which specializes in technology used to
measure wafer thickness and shape, and wrote off $3 million of
in-process technology as a non-recurring expense.
The Company's financial position remains strong. Cash and
equivalents increased to about $715 million and the Company continues
to have no long-term debt.
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.
|
