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KLA-Tencor Reports First Quarter Operating Results For Fiscal 2002
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SAN JOSE, Calif., Oct. 18, 2001 - KLA-Tencor Corp. (Nasdaq: KLAC) today announced its operating results for the first quarter of fiscal 2002, ended September 30, 2001. Revenue was $503 million, down 17 percent from the previous quarter's revenue of $603 million. This was a 31 percent increase from the $383 million in revenue for the September 2000 fiscal quarter. Income after tax for the September 2001 quarter was $86 million, or $0.44 per share, compared to $29 million, or $0.15 per share in the corresponding quarter a year ago before the cumulative effect of a change in accounting principles. Net income and earnings per share decreased 33 and 34 percent respectively from the $130 million and $0.67 per share reported for the June 2001 quarter.

The company ended the quarter with over six months of backlog at current shipping levels. Geographically, the strongest performance in orders came from the United States and Taiwan followed by Europe and Japan, which were at historical percentage levels.

KLA-Tencor president and chief executive officer Ken Schroeder credits this solid performance to continued demand from global chipmakers for the company's advanced yield management solutions. "Even though the September quarter is typically the slowest of the year, we are pleased with the quarter's order activity and financial results," explained Schroeder. At the same time, Schroeder counseled, "It remains unclear what impact on-going global events will have on the semiconductor industry. Even though we are reducing expenses in this uncertain period, we continue to invest to develop best-of-class products to meet the industry roadmap and maintain market leadership."

Gross margins for the current quarter were 51.4 percent versus 55.3 percent in the prior quarter-primarily due to unfavorable overhead absorption based on reduced business levels during the quarter and a higher percentage of service revenue. Operating expenses were $154 million, a decrease of $18 million from the June 2001 quarter.

Cash and short-term investments were $1.09 billion, a decrease of $57 million from the previous quarter. During the quarter, the company used $74 million in the continuation of its systematic share repurchase program. The company also reduced inventory by $33 million and accounts receivable by $33 million.

Forward Looking Statements: Statements in this press release regarding the 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.

Click here to view Condensed Consolidated Unaudited Balance Sheets and Unaudited Statements Of Operations

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.

Contact:
Meggan Powers
Director Corporate Communications

 

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