Thursday July 27, 8:34 am Eastern Time
Company Press Release
KLA-Tencor Reports Record Year-End and Fourth Quarter Results
Fiscal Year Net Income Up 275 Percent on 78 Percent Increase in Revenue
SAN JOSE, Calif.--(BUSINESS WIRE)--July 27, 2000--KLA-Tencor Corporation today announced record fourth quarter results of $482 million in revenues, $92 million in net income and $0.47 earnings per share. These results compared with revenues of $234 million, net income of $26 million and earnings per share of $0.14 for the same period of the prior year.
For the twelve months ended June 30, 2000, revenues were $1.50 billion, up 78 percent from $843 million in the prior year. Net income and earnings per share, excluding non-recurring restructuring and acquisition charges, grew 275 percent to $251 million from $67 million and 251 percent to $1.30 from $0.37, respectively. Net income and earnings per share including non-recurring restructuring and acquisition charges were $254 million and $1.32 for the current fiscal year versus $39 million and $0.21 for the prior year.
The Company also posted record bookings during the quarter. The United States, Korea and Japan exhibited the strongest growth during the quarter, driven in part by design shrinks, capacity expansions, 300mm wafers, and new processes such as copper/low-k interconnect. The US and Europe were a larger proportion of the total bookings compared to historical norms. While Japan bookings also increased dramatically, they were still below historical share. The rest of Asia was at normal proportions of the total bookings.
On a product line basis, every product group grew during the quarter. Wafer inspection, both e-beam and optical, experienced the highest growth during the quarter, a result of the escalating importance of these tools for all of the semiconductor industry's major technology transitions.
Gross margins improved one percent sequentially to 57 percent in the June quarter from 56 percent in the March quarter. Similar to the previous quarter, capacity absorption and a shift toward higher gross margin products provided the majority of the gross margin improvement. Total fixed costs decreased as a percent of revenue from 34 percent in the March quarter to 33 percent, or $159 million, in the June quarter.
Cash and investments climbed to $964 million during the quarter, a $76 million increase from the prior quarter and a $209 million increase from the prior year ending balance.
``KLA-Tencor's rapid growth reflects the increasing demand for our process control solutions that help IC manufacturers quickly navigate critical technology transitions for higher return on their fab investments,'' stated Ken Schroeder, President and CEO. ``Going forward, you will see KLA-Tencor continue to merge new hardware, software and yield management expertise into innovative defect, parametric and lithography solutions that meet our customers' emerging process control requirements.''
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.
KLA-Tencor Corporation is the world leader in yield management and process control solutions for semiconductor manufacturing and related industries. The Company offers a broad portfolio of systems for inspection, metrology, and data analysis, as well as yield management services. KLA-Tencor is traded on the Nasdaq National Market under the symbol KLAC. Additional information on the Company is available on the Internet at www.kla-tencor.com.
KLA-Tencor Corporation
CONDENSED CONSOLIDATED UNAUDITED BALANCE SHEETS
June 30, June 30,
1999 2000
---------- ----------
(In thousands)
ASSETS
Cash, short-term investments and
marketable securities $ 755,183 $ 964,383
Accounts receivable, net 280,070 481,950
Inventories 195,679 282,489
Land, property and equipment, net 168,335 199,719
Other assets 185,633 274,962
---------- ----------
Total assets $1,584,900 $2,203,503
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $ 14,567 $ --
Accounts payable 35,249 55,016
Other current liabilities 302,501 439,811
---------- ----------
Total current liabilities 352,317 494,827
---------- ----------
Stockholders' equity:
Common stock and capital in excess
of par value 504,352 718,165
Retained earnings 723,048 976,846
Accumulated other comprehensive income 5,183 13,665
---------- ----------
Total stockholders' equity 1,232,583 1,708,676
---------- ----------
Total liabilities and
stockholders' equity $1,584,900 $2,203,503
========== ==========
KLA-Tencor Corporation
CONDENSED CONSOLIDATED UNAUDITED STATEMENTS OF OPERATIONS
Three months ended Twelve months ended
June 30, June 30,
1999 2000 1999 2000
----------- ----------- ----------- -----------
(In thousands, except
per share data)
Revenues $ 233,641 $ 482,049 $ 843,181 $ 1,498,812
Costs and operating
expenses:
Costs of goods sold 118,815 206,943 447,059 677,805
Research and
development 43,803 76,387 164,699 246,227
Selling, general
and administrative 48,723 82,615 199,057 267,877
Non-recurring
acquisition,
restructure
and other charges -- -- 42,700 (4,638)
----------- ----------- ----------- -----------
Total costs and
operating expenses 211,341 365,945 853,515 1,187,271
----------- ----------- ----------- -----------
Income (loss) from
operations 22,300 116,104 (10,334) 311,541
Interest income and
other, net 13,599 11,258 60,643 41,536
----------- ----------- ----------- -----------
Income before income
taxes 35,899 127,362 50,309 353,077
Provision for income
taxes 10,052 35,662 11,097 99,279
----------- ----------- ----------- -----------
Net income $ 25,847 $ 91,700 $ 39,212 $ 253,798
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Earnings per share:
Basic $ 0.15 $ 0.49 $ 0.22 $ 1.39
=========== =========== =========== ===========
Diluted $ 0.14 $ 0.47 $ 0.21 $ 1.32
=========== =========== =========== ===========
Weighted average
number of shares:
Basic 176,442 186,240 175,474 182,177
=========== =========== =========== ===========
Diluted 185,830 195,806 183,344 192,564
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