KLA-Tencor Reports Operating Results for Second Quarter
Business Wire - January 20, 1998 08:51
%KLA-TENCOR KLAC %CALIFORNIA %COMPUTERS %ELECTRONICS %COMED %EARNINGS V%BW P%BW
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SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 20, 1998--KLA-Tencor Corp. (NASDAQ:KLAC) today announced operating results for its second quarter ended Dec. 31, 1997. Revenues were $326 million, up from $242 million for the December quarter in 1996. Net income was $52 million or $0.59 cents per share, compared with $34 million or $0.40 cents per share in the same period one year ago. Revenues in the December quarter were driven by increases in wafer inspection and reticle inspection systems. New order volume was slightly below revenue levels although it was sequentially higher than the prior quarter. Korean customer orders were adversely affected by that country's economic uncertainty and by delays in determining which Korean projects will be funded and when. Additionally, capital spending by customers in Japan was weaker than normal and manufacturers of memory devices continued to hold or delay expansion plans. New order volume from the U.S., Europe, and Taiwan continued to be above normal as a percentage of the total orders received. The present emphasis by customers on upgrading existing fabs by shrinking linewidths or optimizing yields continues to be an important driver for KLA-Tencor's business. During the quarter 65% of the patterned wafer orders were driven by the need for more intensive sampling strategies on existing fabs. The industry-wide adoption of process monitors continued during the quarter. Of the 270 fabs with patterned wafer inspection tools, over 200 had multiple systems installed or on order. The top 10 fabs averaged over 11 systems per fab. The largest fab had over 20 systems installed or on order. Customer technology requirements continued to overshadow capacity requirements in driving order strengths in the Rapid, CD SEM, Thin Film and Yield Management groups. For the December quarter, gross margins at 54% were above the year earlier period but slightly below the September level primarily due to higher than normal service parts expenses. Operating expense ratios were slightly below the September level as workforce additions slowed in the sales and administrative areas. The financial position of the company remains strong. Cash and equivalents totaled over $680 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. KLA-Tencor Corp. 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 consulting 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
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS
(Unaudited)
June 30, December 31,
1997 1997
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(In thousands)
ASSETS
Current assets:
Cash and cash equivalents $ 279,225 $ 191,133
Short-term investments 69,606 89,837
Accounts receivable, net 269,291 376,345
Inventories 174,634 195,045
Deferred income taxes 54,799 53,557
Other current assets 12,452 13,744
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Total current assets 860,007 919,661
Land, property and equipment, net 117,595 131,045
Marketable securities 338,418 403,596
Other assets 27,287 30,357
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Total assets $1,343,307 $1,484,659
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $ 25,113 $ 22,495
Accounts payable 41,155 54,034
Other current liabilities 258,483 266,130
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Total current liabilities 324,751 342,659
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Deferred income taxes and other 3,943 3,179
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Stockholders' equity:
Common stock and capital in excess
of par value 458,308 476,112
Retained earnings 542,706 644,486
Net unrealized gain on investments 17,591 27,269
Cumulative translation adjustment (3,992) (9,046)
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Total stockholders' equity 1,014,613 1,138,821
Total liabilities and ----------- -----------
stockholders' equity $1,343,307 $1,484,659
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KLA-Tencor
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Six months ended
December 31, December 31,
1996 1997 1996 1997
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(In thousands, except per share amounts)
Revenues $242,155 $326,361 $503,295 $638,781
Costs and operating
expenses:
Costs of goods sold 114,874 150,235 230,238 290,999
Research and development 29,308 47,280 61,804 92,457
Selling, general and
administrative 50,223 61,622 108,838 123,760
Merger, restructure and
other charges --- --- 8,500 ---
Total costs and
operating expenses 194,405 259,137 409,380 507,216
Income from operations 47,750 67,224 93,915 131,565
Other income and other, net 5,353 9,331 11,010 18,116
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Income before income taxes 53,103 76,555 104,925 149,681
Provision for income taxes 18,884 24,497 37,126 47,901
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Net income $34,219 $52,058 $67,799 $101,780
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Earnings per share:
Basic $ 0.42 $ 0.61 $ 0.83 $ 1.20
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Diluted $ 0.40 $ 0.59 $ 0.80 $ 1.15
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Weighted average number
of shares:
Basic 82,114 84,657 81,961 84,470
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Diluted 84,907 88,105 84,230 88,343
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CONTACT: KLA-Tencor Corp., San Jose
Robert J. Boehlke, 408/875-6285
Roberta Emerson, 408/875-7037 |
