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KLA-Tencor Reports Second Quarter Operating Results For Fiscal 2002
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SAN JOSE, Calif., Jan. 23, 2002 - KLA-Tencor Corp. (Nasdaq: KLAC) today announced its operating results for its second fiscal quarter ended December 31, 2001. Consistent with the company's earlier guidance, KLA-Tencor reported after tax net income of $49 million or $0.25 per share on revenue of $404 million. Compared to the same period one year ago, when the company reported net income of $78 million or $0.41 per share on revenue of $501 million, revenue and net income for the second quarter ended December 31, 2001 were down 19 and 37 percent respectively. On a sequential quarter basis, revenue and net income declined 20 and 43 percent respectively from the September 2001 quarter.

The company ended the quarter with over six months of backlog at current shipping levels. Geographically, the strongest performances came from the United States and Asia, which were above their historical proportions of total bookings, followed by Japan and Europe, which were below historical proportions.

"While we remain cautious in the near term and continue to reduce expenses in accordance with current business conditions, we observed a major trend this quarter that is favorable for our future growth," commented KLA-Tencor president and chief executive officer Ken Schroeder. "Capacity utilization for those semiconductor fabrication facilities processing 180 nanometer and below technologies exceeds 80 percent. We believe these customers will be buying equipment in the near future, and KLA-Tencor is well positioned to benefit from these purchases."

Gross margins for the current quarter were 50.1 percent versus 51.4 percent in the prior quarter-primarily due to a higher percentage of service revenue and the larger percentage decrease in shipments versus manufacturing overhead expense. Operating expenses were $146 million, $8 million lower than the September 2001 quarter.

Cash and short-term investments were $1.07 billion, a decrease of $21 million from the previous quarter. During the quarter, the company purchased $57 million under its systematic share repurchase program. The company also reduced inventory by $26 million and accounts receivable by $3 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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