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KLAC - KLA Corp.
$390.12
8.26(2.16%)6:15:12 PM 3/23/2023
KLA Corporation is a capital equipment company based in Milpitas, California. It supplies process control and yield management systems for the semiconductor industry and other related nanoelectronics industries. The company's products and services are intended for all phases of wafer, reticle, integrated circuit and packaging production, from research and development to final volume manufacturing. KLA-Tencor was formed in 1997 through the merger of KLA Instruments and Tencor Instruments, two companies in the semiconductor equipment and yield management systems industry. KLA Instruments was founded in 1975 by Ken Levy and Bob Anderson, and focused on defect inspection solutions. Karel Urbanek established Tencor Instruments in 1977 with an emphasis on metrology solutions, later adding John Schwabacher as cofounder.

Financials

Quarterly financials
(USD)Dec 2022Q/Q
Revenue3B+10%
Gross Profit1.8B-
Cost Of Revenue1.2B+16%
Operating Income1.1B+7%
Operating Expenses632.1MM-
Net Income978.8MM-5%
R&D332.8MM+4%
G&A243.1MM-4%
Amortization65.6MM+1%
Interest Expense74.3MM-0%

Revenue Breakdowns

The above Revenue Breakdowns and below Management Discussion contents are extracted from this specific SEC Edgar 10-K/10-Q filling. The process is fully automated and without human validation. Although we make every effort getting the relevant information, please be advised that We make no representation or warranties of any kind about completeness, accuracy, reliability, suitability or availability of the information exacted from Edgar 10-K/10-Q filings.

Highlights of Management DIscussion and Risk Factors in 10-K/10-Q filling

Positive
1.
Continuing advancement of technology spurred by the economic, power and performance benefits of being at the leading edge, increasing involvement in legacy nodes as semiconductor content increases, and innovation and growth of new enabling technologies are fueling long-term growth for the semiconductor equipment industry.
2.
On one hand, the semiconductor and capital equipment industry has experienced multiple growth drivers, including acceleration of the pace of virtual engagement and digitization driven by COVID-19 related travel restrictions and quarantines.
3.
Revenues from our Semiconductor Process Control segment during the three and six months ended December 31, 2022 increased compared to the three and six months ended December 31, 2021 primarily due to strong demand for many of our products, especially from our inspection and metrology portfolios.
4.
Revenues in the Specialty Semiconductor Process segment during the three and six months ended December 31, 2022 increased compared to the three and six months ended December 31, 2021 primarily due to continued growth in the specialty semiconductor market.
5.
(1)Our net income attributable to KLA increased to $978.8 million in the three months ended December 31, 2022 compared to the three months ended December 31, 2021, which was primarily due to 27% higher revenues partially offset by increased operating expenses of 20%.
6.
Chinese government initiatives are propelling China to expand its domestic manufacturing capacity and attracting investment from semiconductor manufacturers from Taiwan, Korea, Japan and the U.S.
7.
Our products, services and expertise are used by our customers to measure, detect, analyze and resolve critical and nanometric level product defects, helping them to manage manufacturing process challenges and to obtain higher finish product yields at lower cost.
8.
The pervasive and increasing needs for semiconductors in many consumer and industrial products, the rapid proliferation of new applications for more advanced semiconductor devices, and the increasing complexity associated with leading edge semiconductor manufacturing drives demand for our process control and yield management solutions.
9.
Changes in gross margin from manufacturing labor, overhead and efficiencies reflect our ability to manage costs and drive productivity as we scale our manufacturing activity to respond to customer requirements, and amortization of intangible assets.
10.
Our future operating results will depend significantly on our ability to produce products and provide services that have a competitive advantage in our marketplace.
11.
Gross profit in the Semiconductor Process Control segment during the three and six months ended December 31, 2022 increased compared to the three and six months ended December 31, 2021 primarily due to a higher revenue volume of products and services sold, partially offset by an increase in other service and manufacturing costs.
12.
Gross profit in the Specialty Semiconductor Process segment during the three and six months ended December 31, 2022 increased compared to the three and six months ended December 31, 2021 primarily due to a higher revenue volume, partially offset by a less favorable mix of products and services sold as well as an increase in other service and manufacturing costs.
Negative
1.
Revenues in the PCB, Display and Component Inspection segment during the three and six months ended December 31, 2022 decreased compared to the three and six months ended December 31, 2021 primarily due to market softening.
2.
Impact of COVID-19Events surrounding the ongoing COVID-19 pandemic had resulted in a reduction in economic activity across the globe in calendar year 2020 and early 2021.
3.
On the other hand, the war in Ukraine and resumption of growth has caused us to experience new constraints and challenges.
4.
As we begin 2023, the macro-driven slowdown is having an impact on semiconductor device demand as the semiconductor industry rebalances its supply chain and inventory levels.
5.
Gross profit in the PCB, Display and Component Inspection segment during the three and six months ended December 31, 2022 decreased compared to the three and 42Table of Contentssix months ended December 31, 2021 primarily due to a lower revenue volume of products and services sold and an increase in other service and manufacturing costs, partially offset by a more favorable mix of products and services sold.
6.
Push out or cancellation of deliveries to our customers could cause earnings volatility, due to the timing of revenue recognition as well as increased risk of inventory-related charges.
7.
There is a likelihood of system reallocation of products to other customers where supply is meaningfully below demand for those products.
8.
The new rules have not significantly impacted our operations to date, but the possible negative effects on our future business of export licenses not being granted could be material and could result in a substantial reduction to our remaining performance obligations (“RPO”) or require us to return substantial deposits received from customers in China for future purchase orders.
9.
As a result, customers are postponing capacity expansion plans and setting lower capital expenditure budgets for 2023.
10.
As a result, some of our customers are adjusting their capacity expansion-focused capital expenditure plans for calendar 2023 to reflect this lower end demand.
11.
While all of our global manufacturing sites are currently operational, any local pandemic outbreaks or introduction of new variants have required and could in the future require us to temporarily curtail production levels or temporarily cease operations based on government mandates or due to outbreaks affecting our manufacturing employees.
12.
The decrease in our gross margin during the three and six months ended December 31, 2022 compared to the three and six months ended December 31, 2021 is primarily due to increases in other service and manufacturing costs, partially offset by a higher revenue volume of products and services sold.
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Stock news

    03/8/2023KLAC
    Calculating The Fair Value Of KLA Corporation (NASDAQ:KLAC)

    Key Insights Using the 2 Stage Free Cash Flow to Equity, KLA fair value estimate is US$361 With US$375 share price, KLA...

    02/21/2023KLAC
    KLA Announces Upcoming Investor Webcast

    MILPITAS, Calif., Feb. 21, 2023 /PRNewswire/—KLA Corporation (NASDAQ: KLAC) today announced the webcast for upcoming investor conference:

    02/6/2023KLAC
    Semiconductor Inspection Company's Growth Soars, But How Long Will It Last?

    In today's video, Jose Najarro, Nick Rossolillo, and Billy Duberstein discuss KLA (NASDAQ: KLAC), its latest earnings, and how the company's equipment is crucial for the chip manufacturing process. Check out the short video to learn more, consider subscribing, and click the special offer link below.

    02/2/2023KLAC
    KLA Declares Regular Cash Dividend

    The KLA Corporation (NASDAQ: KLAC) board of directors today declared a quarterly cash dividend of $1.30 per share on its common stock, payable on March 1, 2023, to KLA shareholders of record as of the close of business on Feb.13, 2023.

    01/28/2023KLAC
    KLA Second Quarter 2023 Earnings: Beats Expectations

    KLA ( NASDAQ:KLAC ) Second Quarter 2023 Results Key Financial Results Revenue: US$2.98b (up 27% from 2Q 2022). Net...

    01/27/2023KLAC
    These 2 Stocks Chipped Away at the Nasdaq Friday

    The stock market was engaged in a tug of war on Friday, as major market benchmarks did their best to hold onto their hard-earned gains from earlier in the week. As of 11 a.m. ET, the Nasdaq Composite (NASDAQINDEX: ^IXIC) was the only one of the major indexes to see a slight uptick, having posted the best year-to-date returns four weeks into 2023. Intel (NASDAQ: INTC) and KLA (NASDAQ: KLAC) were both among the biggest decliners on the Nasdaq, and together, they painted a downbeat picture that p...

    01/26/2023KLAC
    Stocks moving in after hours: Intel, KLA Corp., Visa, Hasbro, Salesforce

    Yahoo Finance Live anchor Seana Smith looks at several stocks trending in the after-hours trading session.

    01/26/2023KLAC
    KLA Corporation Reports Fiscal 2023 Second Quarter Results

    KLA Corporation (NASDAQ: KLAC) today announced financial and operating results for its second quarter of fiscal year 2023, which ended on Dec. 31, 2022, and reported GAAP net income attributable to KLA of $978.8 million and GAAP earnings per diluted share attributable to KLA of $6.89 on revenue of $2.98 billion.

    01/6/2023KLAC
    KLA Corporation (NASDAQ:KLAC) insiders sold US$1.2m worth of stock suggesting impending weakness.

    Over the past year, many KLA Corporation ( NASDAQ:KLAC ) insiders sold a significant stake in the company which may...

    01/5/2023KLAC
    KLA Announces Second Quarter Fiscal Year 2023 Earnings Date

    KLA Corporation (NASDAQ: KLAC) today announced that the company will review second quarter fiscal year 2023 earnings on Thursday, Jan. 26, 2023, at 3 p.m. PST. The company's results will be published on the same day after the stock market closes, as well as supplemental disclosures including a shareholder letter and earnings slide presentation.

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