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KLA-Tencor Reports Record Operating Results For Second Fiscal Quarter 2001
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San Jose, Calif. - January 17, 2001 - KLA-Tencor Corporation today announced results for its second fiscal quarter ended December 31, 2000. Revenues were a record $573 million, a 73% increase from the $331 million of the December, 1999 quarter and a 7% increase from the previous quarter. Net income was a record $109 million, or $0.57 per share, compared to $49 million, or $0.26 per share, excluding the impact of non-recurring acquisition, restructuring and other charges in the same period one year ago. Net income and earnings per share increased sequentially from the September 2000 quarter when the company reported $106 million and $0.54 per share respectively.

Commenting on the results, KLA-Tencor's CEO Ken Schroeder noted that the company was pleased with the continued strength of its performance in light of recent forecasts from industry analysts. "We continue to experienced solid bookings for our newest generation inspection and metrology tools. So while we remain cautious about the near-term business outlook and are managing our business accordingly, we are encouraged by our customers' enthusiastic response to the KLA-Tencor technologies and expertise that help speed IC technology transitions while delivering the productivity and yield gains that are attractive in any business climate."

The Company continued to have a positive book-to-bill ratio and ended the quarter with over six months backlog at current shipping levels. Geographically, Taiwan neared its previous record bookings levels. Europe had record bookings at more than 20% of the total due to continued strength of these customers and the ability of KLA-Tencor solutions to help improve tool productivity and accelerate time-to-yield through innovative multi-tool solutions.

Across the board, bookings reflected strength in all product areas, with record bookings for e-beam inspection, e-beam review and overlay metrology. Bookings activity in our newest wafer inspection product, the 2350 brightfield inspection tool, was extremely high as customers prepared for 0.13 micron and 300mm fabs. The new reticle inspection tool, TeraStarÂ?, has also received strong customer interest due to the sensitivity and throughput improvements this new product affords.

Gross margins were at 57.3% for the December quarter. Total fixed costs increased to $191 million from $172 million in the September quarter primarily due to higher material costs and NRE-related costs for the next generation products. The Company increased spending on engineering programs during the quarter to $96 million, compared with $81 million in the September quarter, to support advanced e-beam and optical wafer inspection programs.

Cash and investments decreased during the quarter to $817 million primarily due to share repurchases. and investments in land and buildings.

Forward Looking Statements: The following statements in this press release are forward-looking statements, and are subject to the Safe Harbor provisions created by the Private Securities Litigation Reform Act of 1995.: statements regarding customer reaction to KLA-Tencor technologies and expertise, and statements regarding the amount of time that will be required to ship the current backlog at current ship rates. 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.

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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