MILPITAS, Calif., Jan. 22,
2015 /PRNewswire/ -- KLA-Tencor Corporation (NASDAQ: KLAC)
today announced operating results for its second quarter of fiscal
year 2015, which ended on December 31, 2014, and reported GAAP
net income of $20 million and GAAP
earnings per diluted share of $0.12
on revenues of $676 million.
Logo - http://photos.prnewswire.com/prnh/20140123/SF50413LOGO
"We are pleased with the Company's performance in the second
quarter," commented Rick Wallace,
President and Chief Executive Officer of KLA-Tencor. "Continued
market leadership and good execution led to revenue growth and
strong gross margins in the period."
|
GAAP
Results
|
|
Q2 FY
2015
|
Q1 FY
2015
|
Q2 FY
2014
|
|
Revenues
|
$676 million
|
$643 million
|
$705 million
|
|
Net Income
|
$20 million
|
$72 million
|
$139 million
|
|
Earnings per Diluted
Share
|
$0.12
|
$0.43
|
$0.83
|
|
|
|
|
|
Non-GAAP
Results
|
|
Q2 FY
2015
|
Q1 FY
2015
|
Q2 FY
2014
|
|
Net Income
|
$113 million
|
$79 million
|
$143 million
|
|
Earnings per Diluted
Share
|
$0.68
|
$0.47
|
$0.85
|
A reconciliation between GAAP operating results and non-GAAP
operating results is provided following the financial statements
that are part of this release. Non-GAAP results include the impact
of stock-based compensation, but exclude the impact of
acquisitions, restructuring, severance and other charges and debt
extinguishment loss and recapitalization charges.
KLA-Tencor will discuss the results for its fiscal year 2015
second quarter, along with its outlook, on a conference call today
beginning at 2:00 p.m. Pacific Standard
Time. A webcast 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
KLA-Tencor's ability to benefit from its market leadership
position, 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; the financial
condition of the global capital markets and the general
macroeconomic environment; new and enhanced product and technology
offerings by competitors; cancellation of orders by customers; the
ability of KLA-Tencor's research and development teams to
successfully innovate and develop technologies and products that
are responsive to customer demands; KLA-Tencor's ability to
successfully manage its costs; market acceptance of the company's
existing and newly issued products; and changing customer demands.
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 KLA-Tencor's Annual
Report on Form 10-K for the year ended June 30, 2014,
subsequently filed Quarterly Reports on Form 10-Q and other filings
with the Securities and Exchange Commission (including, but not
limited to, the risk factors described therein). KLA-Tencor assumes
no obligation to, and does not currently intend to, update these
forward-looking statements.
About KLA-Tencor:
KLA-Tencor Corporation (NASDAQ: KLAC), a leading provider of
process control and yield management solutions, partners with
customers around the world to develop state-of-the-art inspection
and metrology technologies. These technologies serve the
semiconductor, LED and other related nanoelectronics
industries. With a portfolio of industry-standard products and
a team of world-class engineers and scientists, the company has
created superior solutions for its customers for more than 35
years. Headquartered in Milpitas,
California, KLA-Tencor has dedicated customer operations and
service centers around the world. Additional information may be
found at www.kla-tencor.com. (KLAC-F)
Use of Non-GAAP Financial Information:
The non-GAAP and supplemental information provided in this press
release is a supplement to, and not a substitute for, KLA-Tencor's
financial results presented in accordance with United States
GAAP.
To supplement KLA-Tencor's condensed consolidated financial
statements presented in accordance with GAAP, the company provides
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 KLA-Tencor's operating performance and its
prospects in the future. Specifically, KLA-Tencor believes that the
non-GAAP information provides useful measures to both management
and investors regarding financial and business trends relating to
KLA-Tencor's financial performance by excluding certain costs and
expenses that the company believes are not indicative of its core
operating results. 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 (for example, determining which costs
and expenses to exclude when calculating such a metric) are
inherently subject to significant discretion. 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.
|
KLA-Tencor
Corporation
|
|
|
|
|
Condensed
Consolidated Unaudited Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
December 31,
2014
|
|
June 30,
2014
|
|
ASSETS
|
|
|
|
|
Cash, cash
equivalents and marketable securities
|
$
|
2,366,833
|
|
$
|
3,152,637
|
|
Accounts receivable,
net
|
632,089
|
|
492,863
|
|
Inventories
|
662,799
|
|
656,457
|
|
Other current
assets
|
384,527
|
|
284,873
|
|
Land, property and
equipment, net
|
323,353
|
|
330,263
|
|
Goodwill
|
335,273
|
|
335,355
|
|
Purchased
intangibles, net
|
19,551
|
|
27,697
|
|
Other non-current
assets
|
262,941
|
|
258,519
|
|
Total
assets
|
$
|
4,987,366
|
|
$
|
5,538,664
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
|
108,307
|
|
$
|
103,422
|
|
Deferred system
profit
|
168,086
|
|
147,923
|
|
Unearned
revenue
|
64,257
|
|
59,176
|
|
Current portion of
long-term debt
|
37,500
|
|
—
|
|
Other current
liabilities
|
564,190
|
|
585,090
|
|
Total current
liabilities
|
942,340
|
|
895,611
|
|
Non-current
liabilities:
|
|
|
|
|
Long-term
debt
|
3,208,571
|
|
747,919
|
|
Unearned
revenue
|
54,900
|
|
57,500
|
|
Other non-current
liabilities
|
179,416
|
|
168,288
|
|
Total
liabilities
|
4,385,227
|
|
1,869,318
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock and
capital in excess of par value
|
613,122
|
|
1,220,504
|
|
Retained
earnings
|
24,770
|
|
2,479,113
|
|
Accumulated other
comprehensive income (loss)
|
(35,753)
|
|
(30,271)
|
|
Total stockholders'
equity
|
602,139
|
|
3,669,346
|
|
Total liabilities and
stockholders' equity
|
$
|
4,987,366
|
|
$
|
5,538,664
|
|
KLA-Tencor
Corporation
|
|
Condensed
Consolidated Unaudited Statements of Operations
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31,
|
|
Six months ended
December 31,
|
|
(In thousands,
except per share data)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Product
|
$
|
503,884
|
|
$
|
544,183
|
|
$
|
980,482
|
|
$
|
1,045,923
|
|
Service
|
172,473
|
|
160,946
|
|
338,776
|
|
317,543
|
|
Total
revenues
|
676,357
|
|
705,129
|
|
1,319,258
|
|
1,363,466
|
|
Costs and operating
expenses:
|
|
|
|
|
|
|
|
|
Costs of
revenues
|
283,213
|
|
285,814
|
|
571,680
|
|
563,471
|
|
Engineering, research
and development
|
133,557
|
|
134,587
|
|
277,194
|
|
266,860
|
|
Selling, general and
administrative
|
104,873
|
|
96,746
|
|
206,517
|
|
195,242
|
|
Total costs and
operating expenses
|
521,643
|
|
517,147
|
|
1,055,391
|
|
1,025,573
|
|
Income from
operations
|
154,714
|
|
187,982
|
|
263,867
|
|
337,893
|
|
Interest expense and
other, net
|
29,313
|
|
11,237
|
|
39,459
|
|
21,284
|
|
Loss on
extinguishment of debt and other, net
|
131,669
|
|
—
|
|
131,669
|
|
—
|
|
Income (loss) before
income taxes
|
(6,268)
|
|
176,745
|
|
92,739
|
|
316,609
|
|
Provision for
(benefit from) income taxes
|
(26,536)
|
|
37,499
|
|
238
|
|
66,166
|
|
Net income
|
$
|
20,268
|
|
$
|
139,246
|
|
$
|
92,501
|
|
$
|
250,443
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.12
|
|
$
|
0.84
|
|
$
|
0.56
|
|
$
|
1.51
|
|
Diluted
|
$
|
0.12
|
|
$
|
0.83
|
|
$
|
0.56
|
|
$
|
1.49
|
|
Cash dividends
declared per share (including a special cash dividend of $16.50 per share declared during
the three months ended December
31, 2014)
|
$
|
17.00
|
|
$
|
0.45
|
|
$
|
17.50
|
|
$
|
0.90
|
|
Weighted-average
number of shares:
|
|
|
|
|
|
|
|
|
Basic
|
164,036
|
|
166,414
|
|
164,440
|
|
166,150
|
|
Diluted
|
165,317
|
|
168,206
|
|
165,950
|
|
168,478
|
|
KLA-Tencor
Corporation
|
|
Condensed
Consolidated Unaudited Statements of Cash Flows
|
|
|
Three months
ended
|
|
December
31,
|
|
(In
thousands)
|
2014
|
|
2013
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
$
|
20,268
|
|
$
|
139,246
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
18,901
|
|
19,811
|
|
Asset impairment
charges
|
—
|
|
1,374
|
|
Loss on
extinguishment of debt and other, net
|
131,669
|
|
—
|
|
Non-cash stock-based
compensation expense
|
14,848
|
|
14,870
|
|
Excess tax benefit
from equity awards
|
(565)
|
|
(925)
|
|
Net gain on sale of
marketable securities and other investments
|
(281)
|
|
(1,213)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Increase in accounts
receivable, net
|
(200,282)
|
|
(136,562)
|
|
Decrease (increase)
in inventories
|
10,702
|
|
(2,938)
|
|
Increase in other
assets
|
(79,856)
|
|
(30,567)
|
|
Increase in accounts
payable
|
478
|
|
26,997
|
|
Increase in deferred
system profit
|
79,285
|
|
77,672
|
|
Increase in other
liabilities
|
15,917
|
|
7,506
|
|
Net cash provided by
operating activities
|
11,084
|
|
115,271
|
|
Cash flows from
investing activities:
|
|
|
|
|
Capital expenditures,
net
|
(12,783)
|
|
(14,465)
|
|
Purchase of
available-for-sale securities
|
(469,416)
|
|
(448,777)
|
|
Proceeds from sale of
available-for-sale securities
|
709,123
|
|
317,034
|
|
Proceeds from
maturity of available-for-sale securities
|
248,035
|
|
18,831
|
|
Purchase of trading
securities
|
(16,999)
|
|
(11,256)
|
|
Proceeds from sale of
trading securities
|
17,807
|
|
12,513
|
|
Net cash provided by
(used in) investing activities
|
475,767
|
|
(126,120)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from
issuance of debt, net of issuance costs
|
3,224,906
|
|
—
|
|
Repayment of
debt
|
(877,367)
|
|
—
|
|
Issuance of common
stock
|
24,726
|
|
37,719
|
|
Tax withholding
payments related to vested and released restricted stock
units
|
(632)
|
|
(945)
|
|
Common stock
repurchases
|
(141,521)
|
|
(60,302)
|
|
Payment of dividends
to stockholders
|
(2,796,739)
|
|
(74,983)
|
|
Excess tax benefit
from equity awards
|
565
|
|
925
|
|
Net cash used in
financing activities
|
(566,062)
|
|
(97,586)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(5,607)
|
|
(3,132)
|
|
Net decrease in cash
and cash equivalents
|
(84,818)
|
|
(111,567)
|
|
Cash and cash
equivalents at beginning of period
|
669,683
|
|
904,949
|
|
Cash and cash
equivalents at end of period
|
$
|
584,865
|
|
$
|
793,382
|
|
Supplemental cash
flow disclosures:
|
|
|
|
|
Income taxes paid,
net
|
$
|
37,368
|
|
$
|
48,189
|
|
Interest
paid
|
$
|
33,092
|
|
$
|
26,084
|
|
Non-cash
activities:
|
|
|
|
|
Purchase of land,
property and equipment - investing activities
|
$
|
3,962
|
|
$
|
5,923
|
|
Dividends payable -
financing activities
|
$
|
42,829
|
|
$
|
—
|
|
KLA-Tencor
Corporation
|
|
Condensed
Consolidated Unaudited Supplemental Information
|
|
(In thousands,
except per share data)
|
|
|
Reconciliation of
GAAP Net Income to Non-GAAP Net Income
|
|
|
|
|
|
|
Three months
ended
|
|
|
Six months
ended
|
|
|
December 31,
2014
|
|
September 30,
2014
|
|
December 31,
2013
|
|
December 31,
2014
|
|
December 31,
2013
|
|
GAAP net
income
|
|
$
|
20,268
|
|
$
|
72,233
|
|
$
|
139,246
|
|
$
|
92,501
|
|
$
|
250,443
|
|
Adjustments to
reconcile GAAP net income to non-GAAP net income
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition related
charges
|
a
|
3,832
|
|
3,998
|
|
3,599
|
|
7,830
|
|
7,768
|
|
Restructuring,
severance and other related charges
|
b
|
3,299
|
|
4,057
|
|
2,002
|
|
7,356
|
|
3,239
|
|
Debt extinguishment
loss and recapitalization charges
|
c
|
134,147
|
|
—
|
|
—
|
|
134,147
|
|
—
|
|
Income tax effect of
non-GAAP adjustments
|
d
|
(48,720)
|
|
(1,539)
|
|
(1,777)
|
|
(50,259)
|
|
(3,449)
|
|
Non-GAAP net
income
|
|
$
|
112,826
|
|
$
|
78,749
|
|
$
|
143,070
|
|
$
|
191,575
|
|
$
|
258,001
|
|
GAAP net income per
diluted share
|
|
$
|
0.12
|
|
$
|
0.43
|
|
$
|
0.83
|
|
$
|
0.56
|
|
$
|
1.49
|
|
Non-GAAP net income
per diluted share
|
|
$
|
0.68
|
|
$
|
0.47
|
|
$
|
0.85
|
|
$
|
1.15
|
|
$
|
1.53
|
|
Shares used in
diluted shares calculation
|
|
165,317
|
|
166,580
|
|
168,206
|
|
165,950
|
|
168,478
|
|
Pre-tax impact of
items included in Condensed Consolidated Unaudited Statements of
Operations
|
|
|
Acquisition
related charges
|
|
Restructuring,
severance and other related charges
|
|
Debt
extinguishment loss and recapitalization charges
|
|
Total pre-tax GAAP
to non-GAAP adjustments
|
|
Three months ended
December 31, 2014
|
|
|
|
|
|
|
|
|
Costs of
revenues
|
$
|
2,577
|
|
$
|
—
|
|
$
|
—
|
|
$
|
2,577
|
|
Engineering, research
and development
|
700
|
|
1,289
|
|
—
|
|
1,989
|
|
Selling, general and
administrative
|
555
|
|
2,010
|
|
2,478
|
|
5,043
|
|
Loss on
extinguishment of debt and other, net
|
—
|
|
—
|
|
131,669
|
|
131,669
|
|
Total in three months
ended December 31, 2014
|
$
|
3,832
|
|
$
|
3,299
|
|
$
|
134,147
|
|
$
|
141,278
|
|
Three months ended
September 30, 2014
|
|
|
|
|
|
|
|
|
Costs of
revenues
|
$
|
2,577
|
|
$
|
355
|
|
$
|
—
|
|
$
|
2,932
|
|
Engineering, research
and development
|
700
|
|
2,933
|
|
—
|
|
3,633
|
|
Selling, general and
administrative
|
721
|
|
769
|
|
—
|
|
1,490
|
|
Total in three months
ended September 30, 2014
|
$
|
3,998
|
|
$
|
4,057
|
|
$
|
—
|
|
$
|
8,055
|
|
Three months ended
December 31, 2013
|
|
|
|
|
|
|
|
|
Costs of
revenues
|
$
|
1,921
|
|
$
|
469
|
|
$
|
—
|
|
$
|
2,390
|
|
Engineering, research
and development
|
836
|
|
1,132
|
|
—
|
|
1,968
|
|
Selling, general and
administrative
|
842
|
|
401
|
|
—
|
|
1,243
|
|
Total in three months
ended December 31, 2013
|
$
|
3,599
|
|
$
|
2,002
|
|
$
|
—
|
|
$
|
5,601
|
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 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. 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 (for example, determining
which costs and expenses to exclude when calculating such a metric)
are inherently subject to significant discretion. 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.
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a.
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Acquisition related
charges includes amortization of intangible assets associated with
acquisitions. Management believes that the expense associated with
the amortization of acquisition related intangible assets are
appropriate to be excluded because a significant portion of the
purchase price for acquisitions may be allocated to intangible
assets that have short lives, and exclusion of these expenses
allows comparisons of operating results that are consistent over
time for both KLA-Tencor's newly acquired and long-held businesses.
Management believes excluding these items helps investors compare
our operating performance with our results in prior periods as well
as with the performance of other companies.
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b.
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Restructuring,
severance and other related charges include costs associated with
employee severance and other exit costs. Management believes
excluding these items helps investors compare our operating
performance with our results in prior periods as well as with the
performance of other companies.
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c.
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Debt extinguishment
loss and recapitalization charges include a pre-tax loss on early
extinguishment of debt related to the 6.900% Senior Notes due in
2018, net and certain other expenses incurred in connection with
the leveraged recapitalization plan which was completed in the
second quarter of fiscal year ending June 30, 2015. Management
believes that it is appropriate to exclude these items as they are
not indicative of ongoing operating results and therefore limit
comparability and excluding these items helps investors compare our
operating performance with our results in prior periods as well as
with the performance of other companies.
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d.
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Income tax effect of
non-GAAP adjustments includes the income tax effects of the
excluded items noted above. Management believes that it is
appropriate to exclude the tax effects of the items noted above in
order to present a more meaningful measure of non-GAAP net
income.
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/kla-tencor-reports-fiscal-2015-second-quarter-results-300023941.html
SOURCE KLA-Tencor Corporation