KLA-Tencor Reports Fiscal 2007 Results
Revenue of $2.7 billion and EPS of $2.61
SAN JOSE, Calif.--(BUSINESS WIRE)--
KLA-Tencor Corporation (NASDAQ:KLAC) today announced operating results for its fourth quarter and fiscal year ended June 30, 2007. The Company reported GAAP net income of $528 million and GAAP earnings per diluted share of $2.61 on revenue of $2.7 billion for fiscal 2007, compared to GAAP net income of $380 million and GAAP earnings per diluted share of $1.86 on revenue of $2.1 billion for fiscal 2006. For the quarter ended June 30, 2007, the Company reported GAAP net income of $147 million, and GAAP earnings per diluted share of $0.75 on revenue of $736 million, compared to GAAP net income of $155 million or $0.76 per diluted share on revenue of $716 million in the third quarter of fiscal 2007, and GAAP net income of $132 million or $0.65 per diluted share on revenue of $579 million in the fourth quarter of fiscal 2006.
Operating income for the fourth quarter of fiscal 2007 includes $75 million in pre-tax charges, as follows:
-- Acquisition-related charges of $38 million for amortization
and impairment of intangible assets, and in-process R&D
related primarily to the acquisitions completed by the Company
as of June 30, 2007. Acquisition-related charges for the third
quarter of fiscal 2007 were $18 million.
-- Stock-based compensation related charges of $26 million,
compared to $29 million for the third quarter of fiscal 2007
and $38 million for the fourth quarter of fiscal 2006.
-- Severance charges of $11 million related to a worldwide
reduction in force. There were no severance charges in either
the third quarter of fiscal 2007 or fourth quarter of fiscal
2006.
"KLA-Tencor's financial performance this quarter was again strong, reflecting our continued focus on supporting our customers with a broad portfolio of inspection and measurement technology," said Rick Wallace, CEO of KLA-Tencor. "Our product pipeline has never been stronger, with six new products launched in the June quarter. As we go forward, we are developing more innovative and cost-effective solutions to address critical yield challenges facing customers as they transition to 45nm and beyond."
KLA-Tencor ended fiscal year 2007 with approximately eight months of product-related shipment and revenue backlog.
The geographic breakdown of system orders in the quarter was:
Percent of Bookings
Region ---------------------
Current Historical
Quarter Average
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United States 22% 25%
----------------------------------------------------------------------
Japan 26% 25%
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Taiwan 23% 20%
----------------------------------------------------------------------
Korea, China, & Singapore 22% 20%
----------------------------------------------------------------------
Europe 7% 10%
----------------------------------------------------------------------
KLA-Tencor's financial position remained strong with cash and investments balance at the end of fourth quarter of fiscal 2007 of $1.7 billion. Accounts receivable increased by $82 million compared to the prior quarter to $582 million on strong shipments.
KLA-Tencor will discuss its fiscal 2007 fourth quarter results, along with its outlook for the first quarter of fiscal 2008, on a conference call today beginning at 2:00 p.m. Pacific Daylight Time. A web cast 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 the KLA-Tencor's future product portfolio, benefit to customers of KLA-Tencor's products 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; new and enhanced product offerings by competitors; cancellation of orders by customers; and changing customer demand. 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 the Company's Form 10-K, Form 10-Q and other filings with the Securities and Exchange Commission (including, but not limited to, the risk factors described therein).
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 Global Select Market under the symbol KLAC. Additional information about the Company is available on the Internet at http://www.kla-tencor.com
KLA-Tencor Corporation
Condensed Consolidated Unaudited Balance Sheets
(In thousands) June 30, June 30,
2007 2006
--------- ---------
ASSETS
Current assets:
Cash and investments $1,710,629 $2,325,796
Accounts receivable, net 581,500 439,899
Inventories 535,370 449,156
Other current assets 425,272 328,392
--------- ---------
Total current assets 3,252,771 3,543,243
Land, property and equipment, net 382,240 395,412
Goodwill and intangibles, net 487,288 70,341
Other assets 500,950 566,915
--------- ---------
Total assets $4,623,249 $4,575,911
========= =========
LIABILITIES, MINORITY INTEREST AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 92,165 $ 95,192
Deferred system profit 201,747 226,142
Unearned revenue 99,254 80,543
Other current liabilities 680,041 600,604
--------- ---------
Total current liabilities 1,073,207 1,002,481
Minority interest in subsidiary $ - $ 5,439
Stockholders' equity:
Common stock and capital in excess of par
value 967,886 1,421,373
Retained earnings 2,570,751 2,137,710
Accumulated other comprehensive income 11,405 8,908
--------- ---------
Total stockholders' equity 3,550,042 3,567,991
--------- ---------
Total liabilities, minority interest, and
stockholders' equity $4,623,249 $4,575,911
========= =========
KLA-Tencor Corporation
Condensed Consolidated Unaudited Statements Of Operations
Three months ended Twelve months ended
------------------ ----------------------
(In thousands except per June 30, June 30, June 30, June 30,
share data) 2007 2006 2007 2006
-------- -------- ---------- -----------
Revenues:
Product $626,323 $483,036 $2,308,942 $1,713,237
Service 110,065 96,000 422,287 357,390
-------- -------- ---------- ----------
Total revenues 736,388 579,036 2,731,229 2,070,627
-------- -------- ---------- ----------
Costs and operating
expenses:
Cost of revenues(1) 315,681 284,164 1,190,323 942,091
Engineering, research and
development(1) 123,854 98,613 437,513 393,823
Selling, general and
administrative(1) 121,989 121,379 513,525 424,922
-------- -------- ---------- ----------
Total costs and operating
expenses 561,524 504,156 2,141,361 1,760,836
-------- -------- ---------- ----------
Income from operations 174,864 74,880 589,868 309,791
Interest income and other,
net 21,436 20,081 87,367 68,067
-------- -------- ---------- ----------
Income before income taxes
and minority interest 196,300 94,961 677,235 377,858
Provision for income
taxes(1) 48,958 (35,534) 150,509 1,507
-------- -------- ---------- ----------
Income before minority
interest 147,342 130,495 526,726 376,351
Minority interest - 1,181 1,372 4,101
-------- -------- ---------- ----------
Net income $147,342 $131,676 $ 528,098 $ 380,452
======== ======== ========== ==========
Net income per share:
Basic $ 0.77 $ 0.66 $ 2.68 $ 1.92
Diluted $ 0.75 $ 0.65 $ 2.61 $ 1.86
Weighted average number of
shares:
Basic 191,370 198,989 197,126 198,625
Diluted 197,062 202,948 202,204 204,097
(1) includes the following
amounts related to equity
awards:
Costs of revenues $ 5,965 $ 9,971 $ 29,183 $ 29,620
Engineering, research and
development $ 8,447 $ 11,490 $ 42,431 $ 49,509
Selling, general and
administrative $ 11,982 $ 16,355 $ 37,164 $ 85,613
Provision for income taxes $ (8,182) $(11,904) $ (33,778) $ (58,224)
Source: KLA-Tencor Corporation
Released July 26, 2007