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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: emichael who wrote (18848)	4/16/1998 10:26:00 AM
From: H James Morris	Read Replies (1) \| Respond to of 70976

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.