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 Second Quarter Results

•Total revenues were $2.35 billion, above the midpoint of the range of guidance;
•GAAP diluted EPS attributable to KLA was $4.71 and non-GAAP diluted EPS attributable to KLA was $5.59, each within the range of guidance;
•Cash flow from operating activities and free cash flow were $810.8 million and $745.9 million, respectively;
•Capital returns were $589.0 million with $159.1 million in dividends paid and $429.9 million in share repurchases.

MILPITAS, Calif., January 27, 2022 -KLA Corporation (NASDAQ: KLAC) today announced operating results for its second quarter of fiscal year 2022, which ended on December 31, 2021, and reported GAAP net income attributable to KLA of $717.4 million and GAAP earnings per diluted share attributable to KLA of $4.71 on revenue of $2.35 billion.

“KLA’s December quarter and calendar 2021 performance exceeded our expectations in a demanding and challenging environment. Our results underscore the importance of our products and solutions in the marketplace, consistent execution by our global teams, and technology leadership and innovation that is guided by the KLA Operating Model,” commented Rick Wallace, president and chief executive officer of KLA Corporation. “In addition to outperforming our 2023 long-term target model and demonstrating strong earnings leverage, KLA returned $2 billion in capital to shareholders during calendar 2021 via both dividends and stock repurchases.”
GAAP Results
Q2 FY 2022Q1 FY 2022Q2 FY 2021
Total Revenue$2,353 million$2,084 million$1,651 million
Net Income Attributable to KLA$717 million$1,068 million$457 million
Net Income per Diluted Share Attributable to KLA$4.71$6.96$2.94
Non-GAAP Results
Q2 FY 2022Q1 FY 2022Q2 FY 2021
Net Income Attributable to KLA$851 million$712 million$504 million
Net Income per Diluted Share Attributable to KLA$5.59$4.64$3.24
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 second 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.
Third Quarter Fiscal 2022 Guidance
The following details our guidance for the third quarter of fiscal 2022 ending in March:
•Total revenues between $2,100 million to $2,300 million
•GAAP gross margin is expected to be in a range of 59.5% to 61.7%
•Non-GAAP gross margin is expected to be in a range of 61.5% to 63.5%
•GAAP diluted EPS attributable to KLA is expected to be in a range of $4.09 to $4.99
•Non-GAAP diluted EPS attributable to KLA in a range of $4.35 to $5.25
Note that any impact from acquisitions that have not closed as of December 31, 2021 are not included in these estimates. For additional guidance metrics please see the company’s published Letter to Shareholders and earnings slides on the KLA investor relations website.
1

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 March 31, 2022 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.


2

KLA Corporation
Condensed Consolidated Unaudited Balance Sheets
(In thousands)December 31, 2021June 30, 2021
ASSETS
Current assets:
Cash and cash equivalents$1,657,057 $1,434,610 
Marketable securities1,153,404 1,059,912 
Accounts receivable, net1,728,376 1,305,479 
Inventories1,829,412 1,575,380 
Other current assets333,226 320,867 
Total current assets6,701,475 5,696,248 
Land, property and equipment, net717,178 663,027 
Goodwill2,042,794 2,011,172 
Deferred income taxes662,854 270,461 
Purchased intangible assets, net1,104,991 1,185,311 
Other non-current assets450,945 444,905 
Total assets$11,680,237 $10,271,124 
LIABILITIES, NON-CONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$379,875 $342,083 
Deferred system revenue432,854 295,192 
Deferred service revenue307,250 284,936 
Short-term debt20,000 20,000 
Other current liabilities1,636,119 1,161,016 
Total current liabilities2,776,098 2,103,227 
Long-term debt3,424,106 3,422,767 
Deferred tax liabilities679,688 650,623 
Deferred service revenue102,776 87,575 
Other non-current liabilities650,813 631,290 
Total liabilities7,633,481 6,895,482 
Stockholders’ equity:
Common stock and capital in excess of par value2,181,025 2,175,988 
Retained earnings1,943,981 1,277,123 
Accumulated other comprehensive loss(76,479)(75,557)
Total KLA stockholders' equity4,048,527 3,377,554 
Non-controlling interest in consolidated subsidiaries(1,771)(1,912)
Total stockholders’ equity4,046,756 3,375,642 
Total liabilities and stockholders’ equity$11,680,237 $10,271,124 


3

KLA Corporation
Condensed Consolidated Unaudited Statements of Operations
Three Months Ended December 31,Six Months Ended December 31,
(In thousands, except per share amounts)2021202020212020
Revenues:
Product$1,895,769 $1,238,023 $3,525,657 $2,383,518 
Service456,861 412,847 910,811 805,972 
Total revenues2,352,630 1,650,870 4,436,468 3,189,490 
Costs and expenses:
Costs of revenues908,162 669,733 1,721,786 1,290,295 
Research and development265,031 229,064 523,184 448,102 
Selling, general and administrative213,479 181,909 406,740 354,540 
Interest expense37,852 38,880 76,164 78,266 
Other expense (income), net1,201 3,882 15,341 7,079 
Income before income taxes926,905 527,402 1,693,253 1,011,208 
Provision (benefit) for income taxes209,388 70,419 (92,749)134,083 
Net income 717,517 456,983 1,786,002 877,125 
Less: Net income (loss) attributable to non-controlling interest73 (268)141 (693)
Net income attributable to KLA$717,444 $457,251 $1,785,861 $877,818 
Net income per share attributable to KLA:
Basic$4.74 $2.96 $11.77 $5.67 
Diluted$4.71 $2.94 $11.68 $5.62 
Weighted-average number of shares:
Basic151,251 154,273 151,791 154,777 
Diluted152,331 155,560 152,886 156,057 

4

KLA Corporation
Condensed Consolidated Unaudited Statements of Cash Flows
Three Months Ended December 31,
(In thousands)20212020
Cash flows from operating activities:
Net income $717,517 $456,983 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization85,545 84,257 
Unrealized foreign exchange (gain) loss and other6,089 (5,663)
Stock-based compensation expense27,766 26,827 
Deferred income taxes56,742 (24,540)
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions:
Accounts receivable(264,331)(190,189)
Inventories(101,701)(26,215)
Other assets(2,430)(31,850)
Accounts payable(1,289)8,039 
Deferred system revenue112,387 21,038 
Deferred service revenue28,556 2,215 
Other liabilities145,947 240,179 
Net cash provided by operating activities810,798 561,081 
Cash flows from investing activities:
Proceeds from sale of assets— 741 
Capital expenditures(64,901)(59,144)
Purchases of available-for-sale securities(261,840)(260,227)
Proceeds from sale of available-for-sale securities25,838 57,563 
Proceeds from maturity of available-for-sale securities194,539 163,492 
Purchases of trading securities(35,446)(16,741)
Proceeds from sale of trading securities34,751 18,424 
Proceeds from other investments795 — 
Net cash used in investing activities(106,264)(95,892)
Cash flows from financing activities:
Proceeds from issuance of debt, net of issuance costs— 40,343 
Common stock repurchases(429,874)(177,492)
Payment of dividends to stockholders(159,129)(139,584)
Issuance of common stock36,912 26,356 
Tax withholding payments related to vested and released restricted stock units(5,755)(11,000)
Net cash used in financing activities(557,846)(261,377)
Effect of exchange rate changes on cash and cash equivalents805 11,834 
Net increase in cash and cash equivalents147,493 215,646 
Cash and cash equivalents at beginning of period1,509,564 1,215,820 
Cash and cash equivalents at end of period$1,657,057 $1,431,466 
Supplemental cash flow disclosures:
Income taxes paid$169,411 $59,764 
Interest paid$37,054 $36,925 
Non-cash activities:
Accrued purchase of land, property and equipment - investing activities$18,504 $25,987 
Contingent consideration (receivable) payable - financing activities$1,853 $(5,761)
Dividends payable - financing activities$1,954 $1,661 
Unsettled common stock repurchase - financing activities$5,999 $6,000 

5

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 December 31,Six Months Ended December 31,
(In thousands)
2021202020212020
Revenues:
Semiconductor Process Control$2,052,202 $1,380,184 $3,831,285 $2,648,138 
Specialty Semiconductor Process112,738 90,587 214,767 179,540 
PCB, Display and Component Inspection187,977 179,267 390,785 360,444 
Other— 449 — 590 
Total revenues for reportable segments2,352,917 1,650,487 4,436,837 3,188,712 
Corporate allocation and effects of foreign exchange rates(287)383 (369)778 
Total revenues$2,352,630 $1,650,870 $4,436,468 $3,189,490 


KLA Corporation
Condensed Consolidated Unaudited Supplemental Information

Reconciliation of GAAP Net Income to Non-GAAP Net Income
Three Months EndedSix Months Ended
(In thousands, except per share amounts)December 31,
2021		September 30,
2021		December 31,
2020		December 31,
2021		December 31,
2020
GAAP net income attributable to KLA$717,444 $1,068,417 $457,251 $1,785,861 $877,818 
Adjustments to reconcile GAAP net income to non-GAAP net income:
Acquisition-related chargesa54,339 60,168 53,099 114,507 103,574 
Restructuring, severance and other chargesb— 125 3,960 125 7,213 
Income tax effect of non-GAAP adjustmentsc(16,758)(19,684)(17,552)(36,442)(34,565)
Discrete tax itemsd96,016 (397,000)7,381 (300,984)24,868 
Non-GAAP net income attributable to KLA$851,041 $712,026 $504,139 $1,563,067 $978,908 
GAAP net income per diluted share attributable to KLA$4.71 $6.96 $2.94 $11.68 $5.62 
Non-GAAP net income per diluted share attributable to KLA$5.59 $4.64 $3.24 $10.22 $6.27 
Shares used in diluted shares calculation152,331 153,410 155,560 152,886 156,057 

6

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 December 31, 2021
Costs of revenues$41,115 $— $41,115 
Selling, general and administrative13,224 — 13,224 
Total in three months ended December 31, 2021$54,339 $— $54,339 
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 December 31, 2020
Costs of revenues$38,738 $765 $39,503 
Research and development— 1,432 1,432 
Selling, general and administrative14,361 2,450 16,811 
Other expense (income), net— (687)(687)
Total in three months ended December 31, 2020$53,099 $3,960 $57,059 

Free Cash Flow Reconciliation
Three Months Ended December 31,
(In thousands)20212020
Net cash provided by operating activities$810,798 $561,081 
Capital expenditures(64,901)(59,144)
Free cash flow$745,897 $501,937 
Third Quarter Fiscal 2022 Guidance
Reconciliation of GAAP Diluted EPS to Non-GAAP Diluted EPS
Three Months Ending March 31, 2022
(In millions, except per share amounts)
LowHigh
GAAP net income per diluted share attributable to KLA (1)
$4.09$4.99
Acquisition-related charges (1)
a0.370.37
Income tax effect of non-GAAP adjustmentsc(0.11)(0.11)
Non-GAAP net income per diluted share attributable to KLA$4.35$5.25
Shares used in net income per diluted share calculation151.4151.4

Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin
Three Months Ending March 31, 2022
LowHigh
GAAP gross margin (1)
59.5%61.7%
Acquisition-related charges (1)
a2.0%1.8%
Non-GAAP gross margin61.5%63.5%

7

(1) Any impacts from acquisitions that have not closed as of December 31, 2021 are not included in these estimates
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 December 31, 2021 consist primarily of a tax expense of $163.7 million from an increase in deferred tax liabilities on unremitted foreign earnings due to a change in tax law, partially offset by a net benefit of $69.2 million from an internal restructuring. 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 six months ended December 31, 2021 are the aggregate of the aforementioned discrete tax items. Discrete tax items in the three months ended December 31, 2020 consist primarily of a tax expense of $4.0 million from an internal restructuring. Discrete tax items in the six months ended December 31, 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 a $4.0 million tax expense from an internal restructuring.
8