MILPITAS, Calif., July 30,
2015 /PRNewswire/ -- KLA-Tencor Corporation (NASDAQ: KLAC)
today announced operating results for its fourth quarter and fiscal
year ended June 30, 2015. KLA-Tencor reported GAAP net income
of $142 million and GAAP earnings per
diluted share of $0.89 on revenues of
$756 million for the fourth quarter
of fiscal year 2015. For the fiscal year ended June 30, 2015,
the company reported GAAP net income of $366
million and GAAP earnings per diluted share of $2.24 on revenues of $2.8
billion.
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"KLA-Tencor posted solid results for the fourth quarter of
fiscal year 2015, delivering earnings near the top of our range of
guidance, demonstrating our market leadership and strong
operational execution," said Rick
Wallace, President and Chief Executive Officer.
"KLA-Tencor's advanced process control solutions and services play
an enabling role in helping our customers achieve their growth
strategies in leading edge semiconductor device manufacturing."
GAAP
Results
|
|
Q4 FY
2015
|
Q3 FY
2015
|
Q4 FY
2014
|
Revenues
|
$756 million
|
$738 million
|
$734 million
|
Net Income
|
$142 million
|
$132 million
|
$129 million
|
Earnings per Diluted
Share
|
$0.89
|
$0.81
|
$0.77
|
|
|
|
|
Non-GAAP
Results
|
|
Q4 FY
2015
|
Q3 FY
2015
|
Q4 FY
2014
|
Net Income
|
$159 million
|
$137 million
|
$133 million
|
Earnings per Diluted
Share
|
$0.99
|
$0.84
|
$0.80
|
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 related charges,
and debt extinguishment loss and recapitalization charges.
KLA-Tencor will discuss the results for its fiscal year 2015 fourth
quarter and full year, along with its outlook, on a conference call
today beginning at 2:00 p.m. Pacific
Daylight 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
and operational execution and enable its customers with its
solutions and services, 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
KLA-Tencor's existing and newly issued products; changing customer
demands; and industry transitions.
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, 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 nearly
40 years. Headquartered in Milpitas,
Calif., 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)
|
June 30,
2015
|
|
June 30,
2014
|
|
|
|
|
ASSETS
|
|
|
|
Cash, cash
equivalents and marketable securities
|
$
|
2,387,111
|
|
|
$
|
3,152,637
|
|
Accounts receivable,
net
|
585,494
|
|
|
492,863
|
|
Inventories
|
617,904
|
|
|
656,457
|
|
Other current
assets
|
314,067
|
|
|
284,138
|
|
Land, property and
equipment, net
|
314,591
|
|
|
330,263
|
|
Goodwill
|
335,263
|
|
|
335,355
|
|
Purchased
intangibles, net
|
11,895
|
|
|
27,697
|
|
Other non-current
assets
|
259,687
|
|
|
256,436
|
|
Total
assets
|
$
|
4,826,012
|
|
|
$
|
5,535,846
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
103,342
|
|
|
$
|
103,422
|
|
Deferred system
profit
|
148,691
|
|
|
147,923
|
|
Unearned
revenue
|
71,335
|
|
|
59,176
|
|
Current portion of
long term debt
|
16,981
|
|
|
—
|
|
Other current
liabilities
|
661,414
|
|
|
585,090
|
|
Total current
liabilities
|
1,001,763
|
|
|
895,611
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
Long-term
debt
|
3,173,435
|
|
|
745,101
|
|
Unearned
revenue
|
47,145
|
|
|
57,500
|
|
Other non-current
liabilities
|
182,230
|
|
|
168,288
|
|
Total
liabilities
|
4,404,573
|
|
|
1,866,500
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common stock and
capital in excess of par value
|
474,374
|
|
|
1,220,504
|
|
Retained earnings
(accumulated deficit)
|
(12,362)
|
|
|
2,479,113
|
|
Accumulated other
comprehensive income (loss)
|
(40,573)
|
|
|
(30,271)
|
|
Total
stockholders' equity
|
421,439
|
|
|
3,669,346
|
|
Total
liabilities and stockholders' equity
|
$
|
4,826,012
|
|
|
$
|
5,535,846
|
|
KLA-Tencor
Corporation
|
Condensed
Consolidated Unaudited Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
(In thousands,
except per share amounts)
|
June 30,
2015
|
|
June 30,
2014
|
|
June 30,
2015
|
|
June 30,
2014
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Product
|
$
|
579,733
|
|
|
$
|
570,431
|
|
|
$
|
2,125,396
|
|
|
$
|
2,286,437
|
|
Service
|
176,599
|
|
|
163,912
|
|
|
688,653
|
|
|
642,971
|
|
Total
revenues
|
756,332
|
|
|
734,343
|
|
|
2,814,049
|
|
|
2,929,408
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Costs of
revenues
|
323,267
|
|
|
326,665
|
|
|
1,215,229
|
|
|
1,232,962
|
|
Engineering, research
and development
|
128,839
|
|
|
138,448
|
|
|
530,616
|
|
|
539,469
|
|
Selling, general and
administrative
|
101,739
|
|
|
96,216
|
|
|
406,864
|
|
|
384,907
|
|
Loss on
extinguishment of debt and other, net
|
—
|
|
|
—
|
|
|
131,669
|
|
|
—
|
|
Interest expense and
other, net
|
27,549
|
|
|
6,408
|
|
|
95,540
|
|
|
37,609
|
|
Income before income
taxes
|
174,938
|
|
|
166,606
|
|
|
434,131
|
|
|
734,461
|
|
Provision for income
taxes
|
32,919
|
|
|
37,875
|
|
|
67,973
|
|
|
151,706
|
|
Net income
|
$
|
142,019
|
|
|
$
|
128,731
|
|
|
$
|
366,158
|
|
|
$
|
582,755
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.90
|
|
|
$
|
0.78
|
|
|
$
|
2.26
|
|
|
$
|
3.51
|
|
Diluted
|
$
|
0.89
|
|
|
$
|
0.77
|
|
|
$
|
2.24
|
|
|
$
|
3.47
|
|
Cash dividends
declared per share (including a special cash dividend of $16.50 per
share declared during the three months ended December 31,
2014)
|
$
|
0.50
|
|
|
$
|
0.45
|
|
|
$
|
18.50
|
|
|
$
|
1.80
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares:
|
|
|
|
|
|
|
|
Basic
|
158,635
|
|
|
165,510
|
|
|
162,282
|
|
|
166,016
|
|
Diluted
|
159,965
|
|
|
167,345
|
|
|
163,701
|
|
|
168,118
|
|
KLA-Tencor
Corporation
|
Condensed
Consolidated Unaudited Statements of Cash Flows
|
|
|
Three months
ended
|
June
30,
|
(In
thousands)
|
2015
|
|
2014
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
|
142,019
|
|
|
$
|
128,731
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
19,966
|
|
|
22,010
|
|
Asset impairment
charges
|
428
|
|
|
—
|
|
Non-cash stock-based
compensation expense
|
12,204
|
|
|
14,128
|
|
Excess tax benefit
from equity awards
|
(217)
|
|
|
(367)
|
|
Net gain on sale of
marketable securities and other investments
|
(143)
|
|
|
(4,192)
|
|
Changes in assets and
liabilities:
|
|
|
|
Decrease in accounts
receivable, net
|
43,714
|
|
|
66,784
|
|
Decrease in
inventories
|
16,498
|
|
|
21,308
|
|
Decrease (increase)
in other assets
|
49,382
|
|
|
(17,559)
|
|
Increase (decrease)
in accounts payable
|
148
|
|
|
(17,454)
|
|
Increase (decrease)
in deferred system profit
|
2,337
|
|
|
(25,672)
|
|
Increase in other
liabilities
|
31,143
|
|
|
60,923
|
|
Net cash provided by
operating activities
|
317,479
|
|
|
248,640
|
|
Cash flows from
investing activities:
|
|
|
|
Capital expenditures,
net
|
(9,237)
|
|
|
(13,066)
|
|
Proceeds from sale of
assets
|
—
|
|
|
3,836
|
|
Purchase of
available-for-sale securities
|
(297,695)
|
|
|
(678,116)
|
|
Proceeds from sale of
available-for-sale securities
|
328,498
|
|
|
264,287
|
|
Proceeds from
maturity of available-for-sale securities
|
134,825
|
|
|
140,952
|
|
Purchase of trading
securities
|
(11,859)
|
|
|
(11,007)
|
|
Proceeds from sale of
trading securities
|
13,309
|
|
|
12,390
|
|
Net cash provided by
(used in) investing activities
|
157,841
|
|
|
(280,724)
|
|
Cash flows from
financing activities:
|
|
|
|
Repayment of
debt
|
(29,375)
|
|
|
—
|
|
Issuance of common
stock
|
17,430
|
|
|
20,121
|
|
Tax withholding
payments related to vested and released restricted stock
units
|
(439)
|
|
|
(392)
|
|
Common stock
repurchases
|
(167,858)
|
|
|
(60,157)
|
|
Payment of dividends
to stockholders
|
(79,653)
|
|
|
(74,466)
|
|
Excess tax benefit
from equity awards
|
217
|
|
|
367
|
|
Net cash used in
financing activities
|
(259,678)
|
|
|
(114,527)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
491
|
|
|
1,249
|
|
Net increase
(decrease) in cash and cash equivalents
|
216,133
|
|
|
(145,362)
|
|
Cash and cash
equivalents at beginning of period
|
621,892
|
|
|
776,223
|
|
Cash and cash
equivalents at end of period
|
$
|
838,025
|
|
|
$
|
630,861
|
|
|
|
|
|
Supplemental cash
flow disclosures:
|
|
|
|
Income taxes paid,
net
|
$
|
3,851
|
|
|
$
|
40,471
|
|
Interest
paid
|
$
|
55,413
|
|
|
$
|
26,038
|
|
Non-cash
activities:
|
|
|
|
Purchase of land,
property and equipment - investing activities
|
$
|
1,843
|
|
|
$
|
3,457
|
|
Dividends payable -
financing activities
|
$
|
42,002
|
|
|
$
|
—
|
|
KLA-Tencor
Corporation
|
Condensed
Consolidated Unaudited Supplemental Information
|
(In thousands,
except per share amounts)
|
|
Reconciliation of
GAAP Net Income to Non-GAAP Net Income
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
June 30,
2015
|
|
March 31,
2015
|
|
June 30,
2014
|
|
June 30,
2015
|
|
June 30,
2014
|
GAAP net
income
|
|
$
|
142,019
|
|
|
$
|
131,638
|
|
|
$
|
128,731
|
|
|
$
|
366,158
|
|
|
$
|
582,755
|
|
Adjustments to
reconcile GAAP net income to non-GAAP net income
|
|
|
|
|
|
|
|
|
|
|
Acquisition related
charges
|
a
|
3,578
|
|
|
3,928
|
|
|
4,216
|
|
|
15,336
|
|
|
15,812
|
|
Restructuring,
severance and other related charges
|
b
|
22,417
|
|
|
3,636
|
|
|
2,459
|
|
|
33,409
|
|
|
5,698
|
|
Debt extinguishment
loss and recapitalization charges
|
c
|
—
|
|
|
—
|
|
|
—
|
|
|
134,147
|
|
|
—
|
|
Income tax effect of
non-GAAP adjustments
|
d
|
(9,159)
|
|
|
(1,840)
|
|
|
(2,168)
|
|
|
(61,258)
|
|
|
(6,810)
|
|
Non-GAAP net
income
|
|
$
|
158,855
|
|
|
$
|
137,362
|
|
|
$
|
133,238
|
|
|
$
|
487,792
|
|
|
$
|
597,455
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income per
diluted share
|
|
$
|
0.89
|
|
|
$
|
0.81
|
|
|
$
|
0.77
|
|
|
$
|
2.24
|
|
|
$
|
3.47
|
|
Non-GAAP net income
per diluted share
|
|
$
|
0.99
|
|
|
$
|
0.84
|
|
|
$
|
0.80
|
|
|
$
|
2.98
|
|
|
$
|
3.55
|
|
Shares used in
diluted shares calculation
|
|
159,965
|
|
|
162,794
|
|
|
167,345
|
|
|
163,701
|
|
|
168,118
|
|
Pre-tax impact of
items included in Condensed Consolidated Unaudited Statements of
Operations
|
|
|
Acquisition
related charges
|
|
Restructuring,
severance and
other related
charges
|
|
Total pre-tax
GAAP to non-GAAP
adjustment
|
Three months ended
June 30, 2015
|
|
|
|
|
|
Costs of
revenues
|
$
|
2,282
|
|
|
$
|
7,458
|
|
|
$
|
9,740
|
|
Engineering, research
and development
|
650
|
|
|
6,310
|
|
|
6,960
|
|
Selling, general and
administrative
|
646
|
|
|
8,649
|
|
|
9,295
|
|
Total in three months
ended June 30, 2015
|
$
|
3,578
|
|
|
$
|
22,417
|
|
|
$
|
25,995
|
|
|
|
|
|
|
|
Three months ended
March 31, 2015
|
|
|
|
|
|
Costs of
revenues
|
$
|
2,507
|
|
|
$
|
211
|
|
|
$
|
2,718
|
|
Engineering, research
and development
|
700
|
|
|
680
|
|
|
1,380
|
|
Selling, general and
administrative
|
721
|
|
|
2,745
|
|
|
3,466
|
|
Total in three months
ended March 31, 2015
|
$
|
3,928
|
|
|
$
|
3,636
|
|
|
$
|
7,564
|
|
|
|
|
|
|
|
Three months ended
June 30, 2014
|
|
|
|
|
|
Costs of
revenues
|
$
|
2,623
|
|
|
$
|
245
|
|
|
$
|
2,868
|
|
Engineering, research
and development
|
872
|
|
|
1,811
|
|
|
2,683
|
|
Selling, general and
administrative
|
721
|
|
|
403
|
|
|
1,124
|
|
Total in three months
ended June 30, 2014
|
$
|
4,216
|
|
|
$
|
2,459
|
|
|
$
|
6,675
|
|
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.
a.
|
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 is
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.
|
|
|
b.
|
Restructuring,
severance and other related charges include costs associated with
employee severance and other exit costs, impairment of certain long
lived assets. 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.
|
|
|
c.
|
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 the fiscal year ended 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.
|
|
|
d.
|
Income tax effect of
non-GAAP adjustments includes the income tax effects of the
excluded items noted above as well as additional true up adjustment
to the tax rate arising from the tax impacts associated with the
pre-tax loss on extinguishment of debt that was recognized in the
three months ended December 31, 2014. 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.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/kla-tencor-reports-fiscal-2015-fourth-quarter-and-full-year-results-300120137.html
SOURCE KLA-Tencor Corporation