Exhibit 99.1
FOR IMMEDIATE RELEASE
Investor Relations:Media Relations:
Kevin Kessel, CFA Randi Polanich
Vice President, Investor RelationsVice President and Chief Communications Officer
(408) 875-6627(408) 875-6633
kevin.kessel@kla.comrandi.polanich@kla.com

KLA CORPORATION REPORTS FISCAL 2022 FIRST QUARTER RESULTS

•Total revenues were $2.08 billion, finishing towards the upper end of the range of guidance;
•GAAP diluted EPS attributable to KLA was $6.96, above the upper end of the range of guidance, and non-GAAP diluted EPS attributable to KLA was $4.64, finishing towards the upper end of the range of guidance;
•Cash flow from operations and free cash flow were both records at $863.8 million and $794.8 million, respectively;
•Capital returns for the quarter were $562.5 million with $162.8 million in dividends and $399.7 million in share repurchases.

MILPITAS, Calif., October 27, 2021 -KLA Corporation (NASDAQ: KLAC) today announced operating results for its first quarter of fiscal year 2022, which ended on September 30, 2021, and reported GAAP net income attributable to KLA of $1.07 billion and GAAP earnings per diluted share attributable to KLA of $6.96 on revenue of $2.08 billion.

"KLA’s track-record of consistent execution and sustainable outperformance was evident during the September 2021 quarter, demonstrating the strong momentum in our core markets and the attractive operating leverage inherent in the KLA financial model,” commented Rick Wallace, President and Chief Executive Officer of KLA Corporation. “KLA continues to outperform expectations despite significant supply chain challenges by operating with purpose and precision and focusing on creating value for our customers, partners, and shareholders alike. KLA’s execution is powered by our global teams continuing to go above and beyond, to meet the challenges and opportunities of the marketplace."

GAAP Results
Q1 FY 2022Q4 FY 2021Q1 FY 2021
Total Revenue$2,084 million$1,925 million$1,539 million
Net Income Attributable to KLA$1,068 million$633 million$421 million
Net Income per Diluted Share Attributable to KLA$6.96$4.10$2.69
Non-GAAP Results
Q1 FY 2022Q4 FY 2021Q1 FY 2021
Net Income Attributable to KLA$712 million$684 million$475 million
Net Income per Diluted Share Attributable to KLA$4.64$4.43$3.03
A reconciliation between GAAP operating results and non-GAAP operating results is provided following the financial statements included in this release. KLA will discuss the results for its fiscal year 2022 first quarter, along with its outlook, on a conference call today beginning at 2:00 p.m. Pacific Time. A webcast of the call will be available at: www.kla.com.
Second Quarter Fiscal 2022 Guidance
The following details our guidance for the second quarter of fiscal 2022 ending in December:
•Total revenue between $2,225 million to $2,425 million
•GAAP gross margin is expected to be in a range of 60.2% to 62.3%
•Non-GAAP gross margin is expected to be in a range of 62.0% to 64.0%
•GAAP diluted EPS attributable to KLA is expected to be in a range of $4.69 to $5.59
•Non-GAAP diluted EPS attributable to KLA in a range of $4.95 to $5.85
For additional guidance metrics please see the company’s published Letter to Shareholders and earnings slides on the KLA investor relations website.
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About KLA:
KLA Corporation (“KLA”) develops industry-leading equipment and services that enable innovation throughout the electronics industry. We provide advanced process control and process-enabling solutions for manufacturing wafers and reticles, integrated circuits, packaging, printed circuit boards and flat panel displays. In close collaboration with leading customers across the globe, our expert teams of physicists, engineers, data scientists and problem-solvers design solutions that move the world forward. Investors and others should note that KLA announces material financial information including SEC filings, press releases, public earnings calls and conference webcasts using an investor relations website (ir.kla.com). Additional information may be found at: www.kla.com.


Note Regarding Forward-Looking Statements:
Statements in this press release other than historical facts, such as statements pertaining to total revenues, GAAP and non-GAAP gross margin and GAAP and non-GAAP diluted EPS for the quarter ending December 31, 2021 are forward-looking statements and 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 impact of the COVID-19 pandemic on the global economy and on our business, financial condition and results of operations, including the supply chain constraints we are experiencing as a result of the pandemic; economic, political and social conditions in the countries in which we, our customers and our suppliers operate, including global trade policies; disruption to our manufacturing facilities or other operations, or the operations of our customers, due to natural catastrophic events, health epidemics or terrorism; ongoing changes in the technology industry, and the semiconductor industry in particular, including future growth rates, pricing trends in end-markets, or changes in customer capital spending patterns; our ability to timely develop new technologies and products that successfully anticipate or address changes in the semiconductor industry; our ability to maintain our technology advantage and protect our proprietary rights; our ability to compete with new products introduced by our competitors; our ability to attract and retain key personnel; cybersecurity threats, cyber incidents affecting our and our service providers’ systems and networks and our ability to access critical information systems for daily business operations; liability to our customers under indemnification provisions if our products fail to operate properly or contain defects or our customers are sued by third parties due to our products; exposure to a highly concentrated customer base; availability and cost of the wide range of materials used in the production of our products; our ability to operate our business in accordance with our business plan; legal, regulatory and tax environments in which we perform our operations and conduct our business and our ability to comply with relevant laws and regulations; our ability to pay interest and repay the principal of our current indebtedness is dependent upon our ability to manage our business operations, our credit rating and the ongoing interest rate environment, among other factors; instability in the global credit and financial markets; our exposure to currency exchange rate fluctuations, or declining economic conditions in those countries where we conduct our business; changes in our effective tax rate resulting from changes in the tax rates imposed by jurisdictions where our profits are determined to be earned and taxed, expiration of tax holidays in certain jurisdictions, resolution of issues arising from tax audits with various authorities or changes in tax laws or the interpretation of such tax laws; and our ability to identify suitable acquisition targets and successfully integrate and manage acquired businesses. For other factors that may cause actual results to differ materially from those projected and anticipated in forward-looking statements in this press release, please refer to KLA Corporation’s Annual Report on Form 10-K for the year ended June 30, 2021, and other subsequent filings with the Securities and Exchange Commission (including, but not limited to, the risk factors described therein). KLA Corporation assumes no obligation to, and does not currently intend to, update these forward-looking statements.


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KLA Corporation
Condensed Consolidated Unaudited Balance Sheets
(In thousands)September 30, 2021June 30, 2021
ASSETS
Cash, cash equivalents and marketable securities$2,624,813 $2,494,522 
Accounts receivable, net1,463,974 1,305,479 
Inventories1,715,339 1,575,380 
Other current assets340,546 320,867 
Land, property and equipment, net698,547 663,027 
Goodwill2,041,338 2,011,172 
Deferred income taxes, non-current665,672 270,461 
Purchased intangible assets, net1,157,535 1,185,311 
Other non-current assets438,713 444,905 
Total assets$11,146,477 $10,271,124 
LIABILITIES, NON-CONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$380,827 $342,083 
Deferred system revenue319,846 295,192 
Deferred service revenue286,741 284,936 
Short-term debt20,000 20,000 
Other current liabilities1,515,596 1,161,016 
Total current liabilities2,523,010 2,103,227 
Non-current liabilities:
Long-term debt3,423,436 3,422,767 
Deferred tax liabilities625,540 650,623 
Deferred service revenue94,824 87,575 
Other non-current liabilities620,581 631,290 
Total liabilities7,287,391 6,895,482 
Stockholders’ equity:
Common stock and capital in excess of par value2,137,706 2,175,988 
Retained earnings1,801,268 1,277,123 
Accumulated other comprehensive loss(78,044)(75,557)
Total KLA stockholders' equity3,860,930 3,377,554 
Non-controlling interest in consolidated subsidiaries(1,844)(1,912)
Total stockholders’ equity3,859,086 3,375,642 
Total liabilities and stockholders’ equity$11,146,477 $10,271,124 


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KLA Corporation
Condensed Consolidated Unaudited Statements of Operations
Three Months Ended September 30,
(In thousands, except per share amounts)20212020
Revenues:
Product$1,629,888 $1,145,495 
Service453,950 393,125 
Total revenues2,083,838 1,538,620 
Costs and expenses:
Costs of revenues813,624 620,562 
Research and development258,153 219,038 
Selling, general and administrative193,261 172,631 
Interest expense38,312 39,386 
Other expense (income), net14,140 3,197 
Income before income taxes766,348 483,806 
Provision (benefit) for income taxes(302,137)63,664 
Net income 1,068,485 420,142 
Less: Net income (loss) attributable to non-controlling interest68 (425)
Net income attributable to KLA$1,068,417 $420,567 
Net income per share attributable to KLA:
Basic$7.01 $2.71 
Diluted$6.96 $2.69 
Weighted-average number of shares:
Basic152,330 155,281 
Diluted153,410 156,442 

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KLA Corporation
Condensed Consolidated Unaudited Statements of Cash Flows
Three Months Ended September 30,
(In thousands)20212020
Cash flows from operating activities:
Net income $1,068,485 $420,142 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization84,824 80,066 
Unrealized foreign exchange (gain) loss and other15,639 (12,907)
Asset impairment charges5,962 865 
Stock-based compensation expense25,216 26,992 
Deferred income taxes(427,970)(14,967)
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions:
Accounts receivable(180,354)73,000 
Inventories(138,189)(85,991)
Other assets4,673 20,070 
Accounts payable41,868 (9,822)
Deferred system revenue33,469 (82,633)
Deferred service revenue4,912 (3,646)
Other liabilities325,262 101,002 
Net cash provided by operating activities863,797 512,171 
Cash flows from investing activities:
Proceeds from sale of assets— 1,114 
Business acquisitions, net of cash acquired(37,986)— 
Capital expenditures(68,955)(55,925)
Purchases of available-for-sale securities(264,000)(231,821)
Proceeds from sale of available-for-sale securities14,954 53,249 
Proceeds from maturity of available-for-sale securities178,414 95,835 
Purchases of trading securities(22,896)(18,630)
Proceeds from sale of trading securities25,163 21,244 
Proceeds from other investments— 614 
Net cash used in investing activities(175,306)(134,320)
Cash flows from financing activities:
Proceeds from revolving credit facility300,000 — 
Repayment of debt(300,000)(50,000)
Common stock repurchases(399,677)(187,897)
Payment of dividends to stockholders(162,821)(141,164)
Tax withholding payments related to equity awards(46,532)(25,145)
Net cash used in financing activities(609,030)(404,206)
Effect of exchange rate changes on cash and cash equivalents(4,507)7,766 
Net increase (decrease) in cash and cash equivalents74,954 (18,589)
Cash and cash equivalents at beginning of period1,434,610 1,234,409 
Cash and cash equivalents at end of period$1,509,564 $1,215,820 
Supplemental cash flow disclosures:
Income taxes paid$57,532 $54,185 
Interest paid$39,717 $40,071 
Non-cash activities:
Accrued purchase of land, property and equipment - investing activities$22,962 $23,388 
Contingent consideration payable - financing activities$12,810 $(2,987)
Dividends payable - financing activities$1,783 $1,660 
Unsettled common stock repurchase - financing activities$5,999 $6,000 

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KLA Corporation
Segment Information (Unaudited)
The following is a summary of results for each of our four reportable segments and reconciliation to total revenues for the indicated periods:
 Three Months Ended September 30,
(In thousands)
20212020
Revenues:
Semiconductor Process Control$1,779,083 $1,267,954 
Specialty Semiconductor Process102,029 88,954 
PCB, Display and Component Inspection202,808 181,177 
Other— 140 
Total revenues for reportable segments2,083,920 1,538,225 
Corporate allocation and effects of foreign exchange rates(82)395 
Total revenues$2,083,838 $1,538,620 


KLA Corporation
Condensed Consolidated Unaudited Supplemental Information

Reconciliation of GAAP Net Income to Non-GAAP Net Income
Three Months Ended
(In thousands, except per share amounts)September 30,
2021		June 30,
2021		September 30,
2020
GAAP net income attributable to KLA$1,068,417 $632,978 $420,567 
Adjustments to reconcile GAAP net income to non-GAAP net income:
Acquisition-related chargesa60,168 53,008 50,475 
Restructuring, severance and other chargesb125 1,358 3,253 
Income tax effect of non-GAAP adjustmentsc(19,684)(16,910)(17,013)
Discrete tax itemsd(397,000)13,620 17,487 
Non-GAAP net income attributable to KLA$712,026 $684,054 $474,769 
GAAP net income per diluted share attributable to KLA$6.96 $4.10 $2.69 
Non-GAAP net income per diluted share attributable to KLA$4.64 $4.43 $3.03 
Shares used in diluted shares calculation153,410 154,283 156,442 

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Pre-tax Impact of GAAP to Non-GAAP Adjustments Included in Condensed Consolidated Unaudited Statements of Operations
(In thousands)Acquisition - Related ChargesRestructuring, Severance and Other ChargesTotal Pre-tax GAAP to Non-GAAP Adjustments
Three Months Ended September 30, 2021
Costs of revenues$41,115 $— $41,115 
Research and development5,962 — 5,962 
Selling, general and administrative13,091 — 13,091 
Other expense (income), net— 125 125 
Total in three months ended September 30, 2021$60,168 $125 $60,293 
Three Months Ended June 30, 2021
Costs of revenues$40,499 $(471)$40,028 
Research and development— 203 203 
Selling, general and administrative12,509 1,626 14,135 
Total in three months ended June 30, 2021$53,008 $1,358 $54,366 
Three Months Ended September 30, 2020
Costs of revenues$37,040 $636 $37,676 
Research and development— 923 923 
Selling, general and administrative13,435 1,933 15,368 
Other expense (income), net— (239)(239)
Total in three months ended September 30, 2020$50,475 $3,253 $53,728 

Free Cash Flow Reconciliation
Three Months Ended September 30,
(In thousands)20212020
Net cash provided by operating activities$863,797 $512,171 
Capital expenditures(68,955)(55,925)
Free cash flow$794,842 $456,246 

Second Quarter Fiscal 2021 Guidance
Reconciliation of GAAP Diluted EPS to Non-GAAP Diluted EPS
Three Months Ending December 31, 2021
(In millions, except per share amounts)
LowHigh
GAAP net income per diluted share attributable to KLA$4.69$5.59
Acquisition-related chargesa0.360.36
Restructuring, severance and other chargesb0.010.01
Income tax effect of non-GAAP adjustmentsc(0.11)(0.11)
Non-GAAP net income per diluted share attributable to KLA$4.95$5.85
Shares used in net income per diluted share calculation152.2152.2

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Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin
Three Months Ending December 31, 2021
LowHigh
GAAP gross margin60.2%62.3%
Acquisition-related chargesa1.8%1.7%
Non-GAAP gross margin62.0%64.0%

The Non-GAAP and supplemental information provided in this press release is a supplement to, and not a substitute for, KLA’s financial results presented in accordance with United States GAAP.
To supplement our Condensed Consolidated Financial Statements presented in accordance with GAAP, we provide 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 our operating performance and our prospects in the future. Specifically, we believe that the non-GAAP information, including non-GAAP net income attributable to KLA, non-GAAP net income per diluted share attributable to KLA, non-GAAP gross margin and Free Cash Flow, provides useful measures to both management and investors regarding financial and business trends relating to our financial performance by excluding certain costs and expenses that we believe are not indicative of our core operating results to help investors compare our operating performances with our results in prior periods as well as with the performance of other companies. The non-GAAP information is among the budgeting and planning tools that management uses for future forecasting. However, because there are no standardized or generally accepted definitions for most non-GAAP financial metrics, definitions of non-GAAP financial metrics are inherently subject to significant discretion (for example, determining which costs and expenses to exclude when calculating such a metric). As a result, non-GAAP financial metrics may be defined very differently from company to company, or even from period to period within the same company, which can potentially limit the usefulness of such information to an investor. 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. The following are descriptions of the adjustments made to reconcile GAAP net income attributable to KLA to non-GAAP net income attributable to KLA:
a.Acquisition-related charges primarily include amortization of intangible assets and other acquisition-related adjustments including adjustments for the fair valuation of inventory and backlog, and transaction costs associated with our acquisitions.
b.Restructuring, severance and other charges primarily include costs associated with employee severance, acceleration of certain stock-based compensation arrangements, and other exit costs.
c.Income tax effect of non-GAAP adjustments includes the income tax effects of the excluded items noted above.
d.Discrete tax items in the three months ended September 30, 2021 primarily relate to a one-time tax benefit of $394.5 million resulting from changes made to our international structure to better align ownership of certain intellectual property rights with how our business operates. Discrete tax items in the three months ended June 30, 2021 include tax expense from an increase in deferred tax liability on purchased intangibles relating to an increase in the United Kingdom statutory income tax rate, partially offset by a net tax benefit from an internal restructuring and a reduction in unrecognized tax benefits. Discrete tax items in the three months ended September 30, 2020 include a tax expense of $14.0 million due to an increase in deferred tax liability on purchased intangibles relating to an increase in the United Kingdom statutory income tax rate as well as tax expense from a restructuring.
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