Exhibit 99.1
Investor Relations:Media Relations:
Kevin Kessel, CFA Randi Polanich
Vice President, Investor RelationsVice President and Chief Communications Officer
(408) 875-6627(408) 875-6633

KLA Corporation Reports Fiscal 2022 Third Quarter Results

Total revenues were $2.29 billion, towards the high-end of the range of guidance;
GAAP diluted EPS attributable to KLA was $4.83 and non-GAAP diluted EPS attributable to KLA was $5.13, each above the midpoint of the ranges of guidance;
Cash flow from operating activities and free cash flow were $818.9 million and $718.6 million, respectively; and
Capital returns were $723.7 million with $159.0 million in dividends paid and $564.7 million in share repurchases.

MILPITAS, Calif., April 28, 2022 -KLA Corporation (NASDAQ: KLAC) today announced operating results for its third quarter of fiscal year 2022, which ended on March 31, 2022, and reported GAAP net income attributable to KLA of $730.6 million and GAAP earnings per diluted share attributable to KLA of $4.83 on revenue of $2.29 billion.

“Our March quarter results demonstrate strong execution across multiple areas of our business, delivering revenue, GAAP and non-GAAP earnings per share all above the midpoint of the guidance ranges for the quarter,” commented Rick Wallace, president and chief executive officer of KLA Corporation. “The demand environment for KLA products and solutions remains robust amidst a persistently challenging supply chain landscape, and we are focused on navigating this environment to consistently meet customer commitments and delivering on our long-term strategic objectives and financial targets.”
GAAP Results
Q3 FY 2022Q2 FY 2022Q3 FY 2021
Total Revenue$2,289 million$2,353 million$1,804 million
Net Income Attributable to KLA$731 million$717 million$567 million
Net Income per Diluted Share Attributable to KLA$4.83$4.71$3.66
Non-GAAP Results
Q3 FY 2022Q2 FY 2022Q3 FY 2021
Net Income Attributable to KLA$776 million$851 million$598 million
Net Income per Diluted Share Attributable to KLA$5.13$5.59$3.85
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 third 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.
Fourth Quarter Fiscal 2022 Guidance
The following details our guidance for the fourth quarter of fiscal 2022 ending in June:
Total revenues between $2,300 million to $2,550 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 $4.60 to $5.70
Non-GAAP diluted EPS attributable to KLA in a range of $4.93 to $6.03
For additional guidance metrics, please see the company’s published Letter to Shareholders and earnings slides on the KLA investor relations website.

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 attributable to KLA for the quarter ending June 30, 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 rising inflation and interest rates, Russia's invasion of Ukraine and 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.


KLA Corporation
Condensed Consolidated Unaudited Balance Sheets
(In thousands)March 31, 2022June 30, 2021
Current assets:
Cash and cash equivalents$1,415,172 $1,434,610 
Marketable securities1,162,724 1,059,912 
Accounts receivable, net1,618,867 1,305,479 
Inventories1,982,297 1,575,380 
Other current assets403,657 320,867 
Total current assets6,582,717 5,696,248 
Land, property and equipment, net808,874 663,027 
Goodwill2,314,471 2,011,172 
Deferred income taxes614,957 270,461 
Purchased intangible assets, net1,255,672 1,185,311 
Other non-current assets441,121 444,905 
Total assets$12,017,812 $10,271,124 
Current liabilities:
Accounts payable$424,128 $342,083 
Deferred system revenue428,723 295,192 
Deferred service revenue350,429 284,936 
Short-term debt— 20,000 
Other current liabilities1,625,703 1,161,016 
Total current liabilities2,828,983 2,103,227 
Long-term debt3,699,799 3,422,767 
Deferred tax liabilities660,816 650,623 
Deferred service revenue107,424 87,575 
Other non-current liabilities642,166 631,290 
Total liabilities7,939,188 6,895,482 
Stockholders’ equity:
Common stock and capital in excess of par value2,179,229 2,175,988 
Retained earnings1,972,611 1,277,123 
Accumulated other comprehensive loss(71,533)(75,557)
Total KLA stockholders' equity4,080,307 3,377,554 
Non-controlling interest in consolidated subsidiaries(1,683)(1,912)
Total stockholders’ equity4,078,624 3,375,642 
Total liabilities and stockholders’ equity$12,017,812 $10,271,124 


KLA Corporation
Condensed Consolidated Unaudited Statements of Operations
Three Months Ended March 31,Nine Months Ended March 31,
(In thousands, except per share amounts)2022202120222021
Product$1,800,659 $1,375,320 $5,326,316 $3,758,838 
Service488,017 428,453 1,398,828 1,234,425 
Total revenues2,288,676 1,803,773 6,725,144 4,993,263 
Costs and expenses:
Costs of revenues892,091 709,629 2,613,877 1,999,924 
Research and development285,189 238,957 808,373 687,059 
Selling, general and administrative216,489 183,040 623,229 537,580 
Interest expense39,978 39,092 116,142 117,358 
Other expense (income), net8,644 (7,348)23,985 (269)
Income before income taxes846,285 640,403 2,539,538 1,651,611 
Provision for income taxes115,625 73,233 22,876 207,316 
Net income 730,660 567,170 2,516,662 1,444,295 
Less: Net income (loss) attributable to non-controlling interest88 (326)229 (1,019)
Net income attributable to KLA$730,572 $567,496 $2,516,433 $1,445,314 
Net income per share attributable to KLA:
Basic$4.87 $3.69 $16.64 $9.36 
Diluted$4.83 $3.66 $16.52 $9.28 
Weighted-average number of shares:
Basic150,145 153,801 151,250 154,457 
Diluted151,186 155,159 152,346 155,789 


KLA Corporation
Condensed Consolidated Unaudited Statements of Cash Flows
Three Months Ended March 31,
(In thousands)20222021
Cash flows from operating activities:
Net income $730,660 $567,170 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization92,127 84,365 
Unrealized foreign exchange (gain) loss and other(7,059)5,231 
Asset impairment charges— (23)
Stock-based compensation expense37,087 30,327 
Deferred income taxes(11,747)(151)
Gain on sale of business— (4,422)
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions:
Accounts receivable126,414 16,055 
Other assets(25,972)(20,700)
Accounts payable41,797 32,735 
Deferred system revenue(4,734)57,820 
Deferred service revenue47,748 11,507 
Other liabilities(50,930)(99,595)
Net cash provided by operating activities818,878 646,150 
Cash flows from investing activities:
Proceeds from sale of business— 16,833 
Business acquisitions, net of cash acquired(432,901)— 
Capital expenditures(100,304)(61,183)
Purchases of available-for-sale securities(207,546)(303,076)
Proceeds from sale of available-for-sale securities26,713 14,962 
Proceeds from maturity of available-for-sale securities151,724 159,120 
Purchases of trading securities(43,000)(48,495)
Proceeds from sale of trading securities35,820 45,251 
Net cash used in investing activities(569,494)(176,588)
Cash flows from financing activities:
Proceeds from revolving credit facility300,000 — 
Repayment of debt(45,000)(20,000)
Common stock repurchases(564,666)(273,441)
Payment of dividends to stockholders(158,976)(139,338)
Tax withholding payments related to vested and released restricted stock units(16,661)(6,674)
Contingent consideration payable and other, net(1,100)— 
Net cash used in financing activities(486,403)(439,453)
Effect of exchange rate changes on cash and cash equivalents(4,866)(9,425)
Net (decrease) increase in cash and cash equivalents(241,885)20,684 
Cash and cash equivalents at beginning of period1,657,057 1,431,466 
Cash and cash equivalents at end of period$1,415,172 $1,452,150 
Supplemental cash flow disclosures:
Income taxes paid$128,233 $100,657 
Interest paid$40,020 $39,980 
Non-cash activities:
Contingent consideration payable - financing activities$423 $178 
Dividends payable - financing activities$1,638 $1,536 
Unsettled common stock repurchase - financing activities$6,000 $6,000 
Accrued purchase of land, property and equipment - investing activities$22,305 $24,392 


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 March 31,Nine Months Ended March 31,
(In thousands)
Semiconductor Process Control$1,979,295 $1,506,140 $5,810,580 $4,154,278 
Specialty Semiconductor Process117,253 91,724 332,020 271,264 
PCB, Display and Component Inspection192,533 205,202 583,318 565,646 
Other— 149 — 739 
Total revenues for reportable segments2,289,081 1,803,215 6,725,918 4,991,927 
Corporate allocation and effects of foreign exchange rates(405)558 (774)1,336 
Total revenues$2,288,676 $1,803,773 $6,725,144 $4,993,263 

KLA Corporation
Condensed Consolidated Unaudited Supplemental Information

Reconciliation of GAAP Net Income to Non-GAAP Net Income
Three Months EndedNine Months Ended
(In thousands, except per share amounts)March 31,
December 31,
March 31,
March 31,
March 31,
GAAP net income attributable to KLA$730,572 $717,444 $567,496 $2,516,433 $1,445,314 
Adjustments to reconcile GAAP net income to non-GAAP net income:
Acquisition-related chargesa59,898 54,339 52,973 174,405 156,547 
Restructuring, severance and other chargesb2,513 — (1,534)2,638 5,679 
Income tax effect of non-GAAP adjustmentsc(18,803)(16,758)(17,866)(55,245)(52,431)
Discrete tax itemsd1,457 96,016 (2,967)(299,527)21,901 
Non-GAAP net income attributable to KLA$775,637 $851,041 $598,102 $2,338,704 $1,577,010 
GAAP net income per diluted share attributable to KLA$4.83 $4.71 $3.66 $16.52 $9.28 
Non-GAAP net income per diluted share attributable to KLA$5.13 $5.59 $3.85 $15.35 $10.12 
Shares used in diluted shares calculation151,186 152,331 155,159 152,346 155,789 


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 March 31, 2022
Costs of revenues$42,576 $— $42,576 
Selling, general and administrative17,322 — 17,322 
Other expense (income), net— 2,513 2,513 
Total in three months ended March 31, 2022$59,898 $2,513 $62,411 
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 March 31, 2021
Costs of revenues$40,309 $701 $41,010 
Research and development— 147 147 
Selling, general and administrative12,664 2,075 14,739 
Other expense (income), net— (4,457)(4,457)
Total in three months ended March 31, 2021$52,973 $(1,534)$51,439 

Free Cash Flow Reconciliation
Three Months Ended March 31,
(In thousands)20222021
Net cash provided by operating activities$818,878 $646,150 
Capital expenditures(100,304)(61,183)
Free cash flow$718,574 $584,967 
Fourth Quarter Fiscal 2022 Guidance
Reconciliation of GAAP Diluted EPS to Non-GAAP Diluted EPS
Three Months Ending June 30, 2022
(In millions, except per share amounts)
GAAP net income per diluted share attributable to KLA$4.60$5.70
Acquisition-related chargesa0.460.46
Income tax effect of non-GAAP adjustmentsc(0.13)(0.13)
Non-GAAP net income per diluted share attributable to KLA$4.93$6.03
Shares used in net income per diluted share calculation149.6149.6

Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin
Three Months Ending June 30, 2022
GAAP gross margin59.5%61.7%
Acquisition-related chargesa2.0%1.8%
Non-GAAP gross margin61.5%63.5%


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, charges related to liquidation of legal entities 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 March 31, 2022 include a tax impact relating to the amortization of certain intellectual property as a result of an internal restructuring of ownership rights to align with how our business operates. 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 March 31, 2021 primarily relate to a tax benefit of $3.0 million due to a decrease in deferred tax liability on purchased intangibles relating to a decrease in the effective income tax rate in Israel. Discrete tax items in the nine months ended March 31, 2022 primarily include the aforementioned items as well as 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 nine months ended March 31, 2021 primarily include the aforementioned item, 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 and a $4.0 million tax expense from an internal restructuring.