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KLA-Tencor Posts $27 Million In Net Income For Third Quarter Of Fiscal 2003
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SAN JOSE, Calif., April 23, 2003 --KLA-Tencor Corp. (Nasdaq: KLAC) today announced operating results for its third quarter of fiscal 2003, ended March 31, 2003. For the three-month period, the company posted net income of $27 million or $0.14 per share on revenue of $304 million versus $34 million or $0.17 per share on revenues of $357 million for the same period last year. When compared to the prior quarter, revenue decreased 9% from $335 million while net income decreased 6% from $29 million.

For the nine-month period, the company posted net income of $108 million or $0.56 per share on revenues of $1.01 billion compared to earnings of $170 million or $0.86 per share and $1.26 billion in revenue in the first nine months of the previous fiscal year.

According to Chief Executive Officer Ken Schroeder, the value KLA-Tencor brings to its customers and the company's operational excellence are reflected in the quarter's performance. "We're pleased to report that the book to ship ratio exceeded 1:1 for the first time in three quarters. Our net margin of 9% also improved quarter over quarter, despite a very tough environment. In addition, our cost reduction programs from previous periods and completion of some key engineering programs resulted in an 11% reduction in operating expenses quarter over quarter--saving the company an additional $15 million."

Schroeder added that KLA-Tencor continues to benefit from the technological leadership of its broad product portfolio, especially as customers become increasingly value oriented in allocating their capital dollars. "We continue to introduce breakthrough solutions -- such as our eCD 1 CD SEM and Archer Aim overlay tools introduced this quarter -- which deliver unparalleled capabilities for successful pattern transfer down to the 65 nm node. We believe the accelerated adoption of our new products demonstrates the strong customer confidence in our technology leadership as well the overall strength and reputation of KLA-Tencor."

From a regional perspective, bookings during the quarter showed the largest percentage improvement in Taiwan and China. The U.S. and Japan remained steady with booking levels consistent with the previous quarter while Korea and Europe returned to a more normal percentage of total booking following a strong second quarter. The company ended the quarter with approximately six months of shipment backlog at current shipping levels.

By quarter end, the company had increased total cash, cash equivalents and marketable securities by $89 million to a total of $1.4 billion with no long-term debt on the balance sheet. Inventory decreased $21 million to $269 million. Accounts receivable decreased by $26 million on lower shipments while DSO on shipments remained at 68 days. Gross margin of 48.5 percent decreased slightly from 48.9 percent in the previous quarter due primarily to a higher percentage of service revenue.

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Forward Looking Statements: Statements in this press release regarding technological leadership, market share and adoption, current order backlog and future cost-saving measures are forward-looking statements, and are subject to the Safe Harbor provisions created by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current information and expectations, and involve a number of risks and uncertainties. Actual results may differ materially from those projected in such statements due to various factors, including but not limited to: delays or cancellations of orders by customers; shipments or acceptances; inability by the company to meet its production and/or product development schedules; the demand for semiconductors; and new and enhanced product offerings by competitors. For other factors that may cause actual results to differ from those projected, please refer to the company's Form 10-K, Forms 10-Q and other filings with the Securities and Exchange Commission. 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.

About KLA-Tencor: KLA-Tencor is the world leader in yield management and process control solutions for semiconductor manufacturing and related industries. Headquartered in San Jose, Calif., the company has sales and service offices around the world. An S&P 500 company, KLA-Tencor is traded on the Nasdaq National Market under the symbol KLAC. Additional information about the company is available on the Internet at http://www.kla-tencor.com

Contact:
Meggan Powers
Director Corporate Communications

 

 

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