MILPITAS, Calif., April 23, 2009—KLA-Tencor Corporation (NASDAQ: KLAC) today announced operating results for its third quarter of fiscal 2009, which ended on March 31, 2009. KLA-Tencor reported a GAAP net loss of $83 million and a GAAP loss per share of $0.49 on revenues of $310 million for the third quarter of fiscal 2009. For the same period, KLA-Tencor reported a non-GAAP net loss of $58 million and a non-GAAP loss per share of $0.34.

"We executed our cost containment programs well during the quarter and met our bookings and revenue guidance, in spite of the continued weakness in the global economy and the semiconductor equipment market," commented Rick Wallace, president and CEO of KLA-Tencor. "Although demand remains at low levels today, we are encouraged to see investments in technology development activity in the March quarter for customers at the leading edge. KLA-Tencor continues to advance its market leadership through maintaining our customer focus and driving our technology and innovation roadmaps."

 

GAAP Results
	Q3 FY 2009	Q2 FY 2009	Q3 FY 2008
Revenues	$ 310 million	$ 397 million	$ 602 million
Net (Loss) Income	$(83) million	$(434) million	$111 million
(Loss) Earnings per Share	$ (0.49)	$ (2.57)	$ 0.61

 

Non-GAAP Results
	Q3 FY 2009	Q2 FY 2009	Q3 FY 2008
Net (Loss) Income	$ (58) million	$ (20) million	$ 121 million
(Loss) Earnings per Share	$ (0.34)	$ (0.12)	$ 0.67

A reconciliation between GAAP operating results and non-GAAP operating results is provided following the financial statements that are part of this release. Non-GAAP results include the impact of stock-based compensation, but exclude the impact of acquisition, goodwill and intangible asset impairment, restatement, and restructuring related items.
KLA-Tencor will discuss its fiscal 2009 third quarter results, along with its outlook, on a conference call today beginning at 2:00 p.m. Pacific Daylight Time. A webcast of the call will be available at: www.kla-tencor.com

Forward-Looking Statements:
Statements in this press release other than historical facts, such as statements regarding KLA-Tencor’s existing market position and its ability to maintain and advance such position relative to its competitors, the encouragement derived from the investment in technology development activity witnessed in the March quarter (including without limitation the potential success of such technology development activity and whether such activity will result in future sales for KLA-Tencor), future levels of investment in research and development, KLA-Tencor’s ability to successfully innovate and develop new technologies and products, the benefit to customers of KLA-Tencor’s products, KLA-Tencor’s customer service and ability to deliver products and services consistent with our customers’ demands and expectations, and demand for KLA-Tencor’s products, 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: the demand for semiconductors; the financial condition of the global capital markets and the general macroeconomic environment; new and enhanced product offerings by competitors; cancellation of orders by customers; the ability of our research and development teams to successfully innovate and develop technology that is responsive to customer demands; the impact of local labor and employment laws on KLA-Tencor’s ability to complete, and realize the anticipated cost savings from, its recent global workforce reductions; unanticipated delays in the completion of KLA-Tencor’s facilities consolidation efforts or the implementation of other cost-reduction efforts; KLA-Tencor’s ability to successfully integrate and manage businesses that it acquires; and changing customer demands. For other factors that may cause actual results to differ materially from those projected and anticipated in forward-looking statements in this release, please refer to KLA-Tencor’s Annual Report on Form 10-K for the year ended June 30, 2008, subsequently filed Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission (including, but not limited to, the risk factors described therein). KLA-Tencor assumes no obligation to, and does not currently intend to, update these forward-looking statements.

About KLA-Tencor:
KLA-Tencor Corporation (NASDAQ: KLAC), a leading provider of process control and yield management solutions, partners with customers around the world to develop state-of-the-art inspection and metrology technologies. These technologies serve the semiconductor, data storage, compound semiconductor, photovoltaic, and other related nanoelectronics industries. With a portfolio of industry-standard products and a team of world-class engineers and scientists, the company has created superior solutions for its customers for over 30 years. Headquartered in Milpitas, California, KLA-Tencor has dedicated customer operations and service centers around the world. Additional information may be found at www.kla-tencor.com. (KLAC-F)


Use of Non-GAAP Financial Information:
The non-GAAP and supplemental information provided in this press release is a supplement to, and not a substitute for, our financial results presented in accordance with United States GAAP.

To supplement KLA-Tencor’s condensed consolidated financial statements presented in accordance with GAAP the company provides certain non-GAAP financial information, which is adjusted from results based on GAAP to exclude certain costs and expenses, as well as other supplemental information. The non-GAAP and supplemental information is provided to enhance the user’s overall understanding of KLA-Tencor’s operating performance and its prospects in the future. Specifically, KLA-Tencor believes the non-GAAP information provides useful measures to both management and investors regarding financial and business trends relating to KLA-Tencor’s financial performance by excluding certain costs and expenses that the company believes are not indicative of its core operating results. The non-GAAP information is among the budgeting and planning tools that management uses for future forecasting. The presentation of non-GAAP and supplemental information is not meant to be considered in isolation or as a substitute for results prepared and presented in accordance with United States GAAP.

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