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KLA-Tencor Posts Third Quarter Fiscal Year 2004 Earnings Of $66 Million On Revenues Of $390 Million
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SAN JOSE, Calif., April 21, 2004--KLA-Tencor Corporation (NASDAQ: KLAC) today announced operating results for its third quarter of fiscal 2004, ended March 31, 2004. Revenues for the quarter were $390 million, up 15% from $339 million in the previous quarter, and up 28% from $304 million in the third quarter of fiscal 2003. The net income for the quarter was $66 million or $0.33 per diluted share, compared with net income of $45 million or $0.22 per diluted share in the prior quarter, and $27 million or $0.14 per diluted share in the third quarter of fiscal 2003.

"Customer orders for our process control solutions continued to rise as we helped chipmakers lower their manufacturing costs and move to more advanced process technologies," stated Chief Executive Officer Ken Schroeder. "During the quarter KLA-Tencor benefited from all the major capital spending trends, as we partnered with chipmakers to expand both 200-mm and 300-mm capacity, advance existing capacity to next-generation processes, increase the efficiency of already operating production lines and overcome yield and reliability problems in next-generation pilot lines. While working to increase the profitability of our customers by speeding their time-to-market of next generation chips, we also enhanced our own profitability with cost reduction initiatives and improved capacity absorption. As a result of rising revenues and our improved cost-structure, we achieved gross profit margins in excess of 55 percent for the first time since the last quarter of fiscal 2001."

Orders for wafer inspection equipment remained robust, while bookings growth was particularly strong in metrology and reticle inspection. On a geographic basis the U.S. and Korea posted the strongest bookings growth. The U.S. was 32 percent of orders, above its historical average of 25-30 percent; Korea, China and Singapore combined were 27 percent of orders, above their combined historical average of 15 percent; Taiwan was 16 percent, below its historical average of 20 percent; Japan was 14 percent, lower than its historical average of 20 percent, and Europe was 11 percent, lower than its historical average of 15 percent.

Gross margins improved two percent sequentially to 56 percent in the March quarter from 54 percent in the December quarter, primarily driven by cost reduction initiatives along with improvements in capacity absorption.

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Cash, cash equivalents and marketable securities increased by $92 million to $1.72 billion, while the balance sheet remained free of long-term debt. Accounts receivable increased by $116 million to $362 million on strong product shipments. Inventory increased by $22 million to $310 million, as the company continues to ramp production to meet customer demand.

Forward Looking Statements: Statements in this press release regarding the company's accounts receivable, orders and capital spending trends may be interpreted as forward-looking statements, and 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 or suggested 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., with operations around the world, KLA-Tencor ranked #6 on S&P's 2002 index of the top 500 companies in the U.S. 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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