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 2023 First Quarter Results

•Total revenues were $2.72 billion, GAAP diluted EPS attributable to KLA was $7.20 and non-GAAP diluted EPS attributable to KLA was $7.06, each finishing above the respective guidance ranges;
•Cash flow from operating activities for the quarter and twelve months ended September 30, 2022 were $1.01 billion and $3.46 billion, respectively; and
•Capital returns for the quarter and twelve months ended September 30, 2022 were $277.8 million and $5.22 billion, respectively

MILPITAS, Calif., October 26, 2022 - KLA Corporation (NASDAQ: KLAC) today announced financial and operating results for its first quarter of fiscal year 2023, which ended on September 30, 2022, and reported GAAP net income attributable to KLA of $1.03 billion and GAAP earnings per diluted share attributable to KLA of $7.20 on revenue of $2.72 billion.
“KLA’s September quarter results were at the high-end or above the midpoint of our guidance ranges for revenue, non-GAAP gross margin and GAAP and non-GAAP EPS, exhibiting the consistency we are known for and the unique value KLA delivers to our customers," commented Rick Wallace, president and chief executive officer of KLA Corporation. "Despite signs of weakness across a broad set of electronics end markets and an increasingly challenging macro-economic backdrop, our December quarter outlook for sequential growth underscores the resiliency of our business and the strong demand for our critical products and services.”
GAAP Results
Q1 FY 2023Q4 FY 2022Q1 FY 2022
Total Revenue$2,724 million$2,487 million$2,084 million
Net Income Attributable to KLA$1,026 million$805 million$1,068 million
Net Income per Diluted Share Attributable to KLA$7.20$5.40$6.96
Non-GAAP Results
Q1 FY 2023Q4 FY 2022Q1 FY 2022
Net Income Attributable to KLA$1,007 million$867 million$712 million
Net Income per Diluted Share Attributable to KLA$7.06$5.81$4.64
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 2023 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 2023 Guidance
The following details our guidance for the second quarter of fiscal 2023 ending in December:
•Total revenues between $2,650 million to $2,950 million
•GAAP gross margin is expected to be in a range of 59.8% to 62.0%
•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 $5.94 to $7.34
•Non-GAAP diluted EPS attributable to KLA in a range of $6.30 to $7.70
For additional details and assumptions underlying our guidance metrics, please see the company’s published Letter to Shareholders, Earnings Slide Presentation and Earnings Infographic on the KLA investor relations website. Such Letter to Shareholders, Earnings Slide Presentation and Earnings Infographic are not incorporated by reference into this earnings release.
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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 attributable to KLA for the quarter ending December 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 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, onboard and retain key personnel; cybersecurity threats, cyber incidents affecting our and our customers, suppliers and other service providers’ systems and networks and our and their 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; increasing attention to environmental, social and governance matters and the resulting costs, risks and impact on our business; 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, 2022, 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, 2022June 30, 2022
ASSETS
Current assets:
Cash and cash equivalents$1,819,280 $1,584,908 
Marketable securities1,134,240 1,123,100 
Accounts receivable, net1,857,320 1,811,877 
Inventories2,408,325 2,146,889 
Other current assets424,774 502,137 
Total current assets7,643,939 7,168,911 
Land, property and equipment, net913,002 849,929 
Goodwill2,278,827 2,320,049 
Deferred income taxes662,408 579,173 
Purchased intangible assets, net1,131,445 1,194,414 
Other non-current assets494,031 484,612 
Total assets$13,123,652 $12,597,088 
LIABILITIES, NON-CONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$479,707 $443,338 
Deferred system revenue440,477 500,969 
Deferred service revenue362,832 381,737 
Other current liabilities1,856,348 1,545,039 
Total current liabilities3,139,364 2,871,083 
Long-term debt6,312,749 6,660,718 
Deferred tax liabilities557,832 658,937 
Deferred service revenue129,861 124,618 
Other non-current liabilities881,772 882,642 
Total liabilities11,021,578 11,197,998 
Stockholders’ equity:
Common stock and capital in excess of par value1,041,948 1,061,940 
Retained earnings1,118,967 366,882 
Accumulated other comprehensive loss(58,841)(27,471)
Total KLA stockholders’ equity2,102,074 1,401,351 
Non-controlling interest in consolidated subsidiaries— (2,261)
Total stockholders’ equity2,102,074 1,399,090 
Total liabilities and stockholders’ equity$13,123,652 $12,597,088 


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KLA Corporation
Condensed Consolidated Unaudited Statements of Operations
Three Months Ended September 30,
(In thousands, except per share amounts)20222021
Revenues:
Product$2,195,609 $1,629,888 
Service528,815 453,950 
Total revenues2,724,424 2,083,838 
Costs and expenses:
Costs of revenues1,041,226 813,624 
Research and development318,515 258,153 
Selling, general and administrative253,980 193,261 
Interest expense74,395 38,312 
Loss on extinguishment of debt13,286 — 
Other expense (income), net(47,006)14,140 
Income before income taxes1,070,028 766,348 
Provision (benefit) for income taxes43,963 (302,137)
Net income1,026,065 1,068,485 
Less: Net loss attributable to non-controlling interest74 68 
Net income attributable to KLA$1,025,991 $1,068,417 
Net income per share attributable to KLA
Basic$7.23 $7.01 
Diluted$7.20 $6.96 
Weighted-average number of shares:
Basic141,829 152,330 
Diluted142,563 153,410 

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KLA Corporation
Condensed Consolidated Unaudited Statements of Cash Flows
Three Months Ended September 30,
(In thousands)20222021
Cash flows from operating activities:
Net income $1,026,065 $1,068,485 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization101,938 84,824 
Unrealized foreign exchange loss and other1,783 15,639 
Asset impairment charges9,156 5,962 
Disposal of non-controlling interest8,270 — 
Stock-based compensation expense34,982 25,216 
Deferred income taxes(156,226)(427,970)
Gain on sale of business(29,687)— 
Loss on extinguishment of debt13,286 — 
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions:
Accounts receivable(55,073)(180,354)
Inventories(265,530)(138,189)
Other assets45,637 4,673 
Accounts payable36,472 41,868 
Deferred system revenue(60,492)33,469 
Deferred service revenue(12,411)4,912 
Other liabilities313,375 325,262 
Net cash provided by operating activities1,011,545 863,797 
Cash flows from investing activities:
Net proceeds from sale of business75,358 — 
Business acquisitions, net of cash acquired(27,144)(37,986)
Capital expenditures(84,352)(68,955)
Purchases of available-for-sale securities(256,793)(264,000)
Proceeds from sale of available-for-sale securities26,608 14,954 
Proceeds from maturity of available-for-sale securities211,465 178,414 
Purchases of trading securities(19,512)(22,896)
Proceeds from sale of trading securities19,875 25,163 
Proceeds from other investments1,020 — 
Net cash used in investing activities(53,475)(175,306)
Cash flows from financing activities:
Payment of debt issuance costs(6,515)— 
Proceeds from revolving credit facility300,000 300,000 
Repayment of debt(662,250)(300,000)
Common stock repurchases(89,846)(399,677)
Payment of dividends to stockholders(187,984)(162,821)
Issuance of common stock115 — 
Tax withholding payments related to vested and released restricted stock units(54,952)(46,532)
Purchase of non-controlling interest(4,295)— 
Net cash used in financing activities(705,727)(609,030)
Effect of exchange rate changes on cash and cash equivalents(17,971)(4,507)
Net increase in cash and cash equivalents234,372 74,954 
Cash and cash equivalents at beginning of period1,584,908 1,434,610 
Cash and cash equivalents at end of period$1,819,280 $1,509,564 
Supplemental cash flow disclosures:
Income taxes paid, net$101,061 $57,532 
Interest paid$44,216 $39,717 
Non-cash activities:
Contingent consideration payable - financing activities$145 $12,810 
Dividends payable - financing activities$1,942 $1,783 
Unsettled common stock repurchase - financing activities$— $5,999 
Accrued purchase of land, property and equipment - investing activities$34,027 $22,962 

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KLA Corporation
Segment Information (Unaudited)
The following is a summary of results for each of our three reportable segments and reconciliations to total revenues for the indicated periods:
 Three Months Ended September 30,
(In thousands)
20222021
Revenues:
Semiconductor Process Control$2,397,759 $1,779,083 
Specialty Semiconductor Process127,867 102,029 
PCB, Display and Component Inspection200,745 202,808 
Total revenues for reportable segments2,726,371 2,083,920 
Corporate allocation and effects of foreign exchange rates(1,947)(82)
Total revenues$2,724,424 $2,083,838 


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,
2022		June 30,
2022		September 30,
2021
GAAP net income attributable to KLA$1,025,991 $805,374 $1,068,417 
Adjustments to reconcile GAAP net income to non-GAAP net income:
Acquisition-related chargesa75,260 64,450 60,168 
Restructuring, severance and other chargesb(5,189)2,837 125 
Loss on extinguishment of debtc13,286 — — 
Income tax effect of non-GAAP adjustmentsd(27,282)(19,465)(19,684)
Discrete tax itemse(75,476)13,496 (397,000)
Non-GAAP net income attributable to KLA$1,006,590 $866,692 $712,026 
GAAP net income per diluted share attributable to KLA$7.20 $5.40 $6.96 
Non-GAAP net income per diluted share attributable to KLA$7.06 $5.81 $4.64 
Shares used in diluted shares calculation142,563 149,117 153,410 

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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 ChargesDebt Extinguishment LossDiscrete Tax ItemTotal Pre-tax GAAP to Non-GAAP Adjustments
Three Months Ended September 30, 2022
Costs of revenues$45,056 $— $— $— $45,056 
Research and development9,156 — — — 9,156 
Selling, general and administrative21,048 16,228 — — 37,276 
Loss on extinguishment of debt— — 13,286 — 13,286 
Other expense (income), net— (21,417)— (3,711)(25,128)
Total in three months ended September 30, 2022$75,260 $(5,189)$13,286 $(3,711)$79,646 
Three Months Ended June 30, 2022
Costs of revenues$44,331 $— $— $— $44,331 
Selling, general and administrative20,119 — — — 20,119 
Other expense (income), net— 2,837 — — 2,837 
Total in three months ended June 30, 2022$64,450 $2,837 $— $— $67,287 
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 

Free Cash Flow Reconciliation
Three Months Ended September 30,Twelve Months Ended September 30,
(In thousands)2022202120222021
Net cash provided by operating activities$1,011,545 $863,797 $3,460,450 $2,536,650 
Capital expenditures(84,352)(68,955)(322,717)(244,657)
Free cash flow$927,193 $794,842 $3,137,733 $2,291,993 

Capital Returns Reconciliation
Three Months Ended September 30,Twelve Months Ended September 30,
(In thousands)2022202120222021
Payments of dividends to stockholders$187,984 $162,821 $663,691 $581,010 
Common stock repurchases89,846 399,677 3,657,975 1,150,387 
Forward contract for accelerated share repurchases— — 900,000 — 
Capital returns$277,830 $562,498 $5,221,666 $1,731,397 
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Second Quarter Fiscal 2023 Guidance
Reconciliation of GAAP Diluted EPS to Non-GAAP Diluted EPS
Three Months Ending December 31, 2022
(In millions, except per share amounts)
LowHigh
GAAP net income per diluted share attributable to KLA$5.94$7.34
Acquisition-related chargesa0.490.49
Restructuring, severance and other chargesb0.010.01
Income tax effect of non-GAAP adjustmentsd(0.14)(0.14)
Non-GAAP net income per diluted share attributable to KLA$6.30$7.70
Shares used in net income per diluted share calculation140.3140.3

Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin
Three Months Ending December 31, 2022
LowHigh
GAAP gross margin59.8%62.0%
Acquisition-related chargesa1.7%1.5%
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 gains, 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, interest expense on unrecognized tax benefits, charges related to liquidation of legal entities, gains and losses from exiting non-core businesses, adjustments related to non-controlling interest and other exit costs. Restructuring, severance and other charges in the quarter ended September 30, 2022 include a gain on the sale of Orbograph, Ltd. (“Orbograph”), which was sold in the quarter, partially offset by certain transaction bonuses triggered by the sale of Orbograph.
c.Loss on extinguishment of debt includes a pre-tax loss on early extinguishment of the $500 million 4.650% Senior Notes due in November 2024.
d.Income tax effect of non-GAAP adjustments includes the income tax effects of the excluded items noted above.
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e.Discrete tax items in the three months ended September 30, 2022 include an adjustment of the net benefit of the Orbotech Ltd. 2012 to 2018 Israel tax audit settlement, for which the net benefit includes the liability on the audit settlement less reductions in unrecognized tax positions and deferred tax assets and liabilities. Discrete tax items in this quarter also include a tax impact from the sale of Orbograph and 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 June 30, 2022 include an increase in unrecognized tax benefits related to the transition tax on accumulated foreign earnings from the Tax Cuts and Jobs Act. Discrete tax items in the three months ended September 30, 2021 include 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.
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