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KLA-Tencor Reports Third Quarter Operating Results For Fiscal 2002
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SAN JOSE, Calif., April 18, 2002 - - KLA-Tencor Corp. (Nasdaq: KLAC) today announced operating results for its third fiscal quarter ended March 31, 2002. KLA-Tencor reported after tax net income of $34 million or $0.17 per fully diluted share on revenues of $357 million. As expected, compared to the same period one year ago, the current quarter's revenues and net income were down 42 and 75 percent respectively. On a quarter over quarter basis, revenues and net income declined 12 and 30 percent respectively from the December 2001 quarter.

Bookings during the quarter improved significantly over the previous quarter, with the majority of these orders coming from Taiwan, which was above its historical proportion. The United States also improved quarter to quarter, remaining at its historical average, while Japan was below its historical share. The company ended the quarter with over six months of backlog at current shipping levels, and a book to ship ratio that exceeded 1:1 for the first time in five quarters.

"The demand for increased capacity in the most advanced technology segments resulted in both customer pull-ins and incremental orders over our original forecast," commented Ken Schroeder, KLA-Tencor President and Chief Executive Officer. "Although the recovery is still not broad-based, we did receive orders from a number of leading chipmakers eager to reserve production slots for our most advanced inspection and metrology tools. These customers clearly recognize the critical role process control plays in both enabling and speeding the production ramp of their next-generation devices."

Gross margins for the current quarter were 49.0 percent versus 50.1 percent in the prior quarter largely due to a higher percentage of service revenue versus system revenue. Operating expenses were $138 million, $8 million lower than the December 2001 quarter. Engineering expenses declined $2.6 million and sales, marketing, and administration decreased $5.6 million versus the previous quarter.

Cash and short-term investments were $1.22 billion, an increase of $151 million from the previous quarter. Cash flow from operations was due primarily to improved working capital; inventory declined $16 million and accounts receivable declined $91 million.

Forward Looking Statements: Statements in this press release regarding any industry "recovery", current order backlog and "speeding the production ramp" 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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