MILPITAS, Calif.,
April 26, 2016 /PRNewswire/ -- KLA-Tencor Corporation (NASDAQ:
KLAC) today announced operating results for its third quarter of
fiscal year 2016, which ended on March 31, 2016, reporting
GAAP net income of $176 million and
GAAP earnings per diluted share of $1.12 on revenues of $712
million.
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GAAP
Results
|
|
Q3 FY
2016
|
Q2 FY
2016
|
Q3 FY
2015
|
Revenues
|
$712 million
|
$710 million
|
$738 million
|
Net Income
|
$176 million
|
$152 million
|
$132 million
|
Earnings per Diluted
Share
|
$1.12
|
$0.98
|
$0.81
|
|
|
|
|
Non-GAAP
Results
|
|
Q3 FY
2016
|
Q2 FY
2016
|
Q3 FY
2015
|
Net Income
|
$179 million
|
$162 million
|
$137 million
|
Earnings per Diluted
Share
|
$1.15
|
$1.04
|
$0.84
|
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,
merger-related charges, and debt extinguishment loss and
recapitalization charges.
In light of the pending merger transaction with Lam Research
Corporation, KLA-Tencor has discontinued conducting quarterly
earnings conference calls to discuss financial results, but instead
publish a quarterly stockholder letter and other supplemental data
on the Investor Relations section of the KLA-Tencor website.
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, 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)
|
March 31,
2016
|
|
June 30,
2015
|
ASSETS
|
|
|
|
Cash, cash
equivalents and marketable securities
|
$
|
2,241,310
|
|
|
$
|
2,387,111
|
|
Accounts receivable,
net
|
624,818
|
|
|
585,494
|
|
Inventories
|
721,493
|
|
|
617,904
|
|
Other current
assets
|
318,852
|
|
|
314,067
|
|
Land, property and
equipment, net
|
287,874
|
|
|
314,591
|
|
Goodwill
|
335,205
|
|
|
335,263
|
|
Purchased
intangibles, net
|
5,625
|
|
|
11,895
|
|
Other non-current
assets
|
246,925
|
|
|
259,687
|
|
Total
assets
|
$
|
4,782,102
|
|
|
$
|
4,826,012
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
126,322
|
|
|
$
|
103,342
|
|
Deferred system
profit
|
193,219
|
|
|
148,691
|
|
Unearned
revenue
|
51,820
|
|
|
71,335
|
|
Current portion of
long-term debt
|
—
|
|
|
16,981
|
|
Other current
liabilities
|
626,331
|
|
|
661,414
|
|
Total current
liabilities
|
997,692
|
|
|
1,001,763
|
|
Non-current
liabilities:
|
|
|
|
Long-term
debt
|
3,097,306
|
|
|
3,173,435
|
|
Unearned
revenue
|
51,065
|
|
|
47,145
|
|
Other non-current
liabilities
|
159,467
|
|
|
182,230
|
|
Total
liabilities
|
4,305,530
|
|
|
4,404,573
|
|
Stockholders'
equity:
|
|
|
|
Common stock and
capital in excess of par value
|
424,474
|
|
|
474,374
|
|
Retained earnings
(accumulated deficit)
|
95,121
|
|
|
(12,362)
|
|
Accumulated other
comprehensive income (loss)
|
(43,023)
|
|
|
(40,573)
|
|
Total stockholders'
equity
|
476,572
|
|
|
421,439
|
|
Total liabilities and
stockholders' equity
|
$
|
4,782,102
|
|
|
$
|
4,826,012
|
|
KLA-Tencor
Corporation
|
|
|
|
|
|
|
Condensed
Consolidated Unaudited Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
Nine months ended
March 31,
|
(In thousands,
except per share amounts)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenues:
|
|
|
|
|
|
|
|
Product
|
$
|
530,623
|
|
|
$
|
565,181
|
|
|
$
|
1,519,142
|
|
|
$
|
1,545,663
|
|
Service
|
181,810
|
|
|
173,278
|
|
|
546,180
|
|
|
512,054
|
|
Total
revenues
|
712,433
|
|
|
738,459
|
|
|
2,065,322
|
|
|
2,057,717
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Costs of
revenues
|
274,599
|
|
|
320,282
|
|
|
825,823
|
|
|
891,962
|
|
Engineering, research
and development
|
115,589
|
|
|
124,583
|
|
|
353,804
|
|
|
401,777
|
|
Selling, general and
administrative
|
87,407
|
|
|
98,608
|
|
|
275,602
|
|
|
305,125
|
|
Interest expense and
other, net
|
24,907
|
|
|
28,532
|
|
|
80,388
|
|
|
67,991
|
|
Loss on
extinguishment of debt and other, net
|
—
|
|
|
—
|
|
|
—
|
|
|
131,669
|
|
Income before income
taxes
|
209,931
|
|
|
166,454
|
|
|
529,705
|
|
|
259,193
|
|
Provision for income
taxes
|
34,154
|
|
|
34,816
|
|
|
96,824
|
|
|
35,054
|
|
Net income
|
$
|
175,777
|
|
|
$
|
131,638
|
|
|
$
|
432,881
|
|
|
$
|
224,139
|
|
Net income per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
1.13
|
|
|
$
|
0.81
|
|
|
$
|
2.78
|
|
|
$
|
1.37
|
|
Diluted
|
$
|
1.12
|
|
|
$
|
0.81
|
|
|
$
|
2.76
|
|
|
$
|
1.36
|
|
Cash dividends
declared per share (including a special cash dividend of $16.50 per
share declared during the three months ended December 31,
2014)
|
$
|
0.52
|
|
|
$
|
0.50
|
|
|
$
|
1.56
|
|
|
$
|
18.00
|
|
Weighted-average
number of shares:
|
|
|
|
|
|
|
|
Basic
|
155,690
|
|
|
161,559
|
|
|
155,921
|
|
|
163,494
|
|
Diluted
|
156,429
|
|
|
162,794
|
|
|
156,797
|
|
|
164,930
|
|
KLA-Tencor
Corporation
Condensed
Consolidated Unaudited Statements of Cash Flows
|
|
|
|
Three months
ended
|
March
31,
|
(In
thousands)
|
2016
|
|
2015
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
|
175,777
|
|
|
$
|
131,638
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
15,780
|
|
|
20,510
|
|
Asset impairment
charges
|
1,038
|
|
|
1,698
|
|
Non-cash stock-based
compensation expense
|
9,185
|
|
|
12,767
|
|
Excess tax benefit
from equity awards
|
(635)
|
|
|
(398)
|
|
Net gain on sales of
marketable securities and other investments
|
(2,847)
|
|
|
(60)
|
|
Changes in assets and
liabilities:
|
|
|
|
Increase in accounts
receivable, net
|
(186,715)
|
|
|
(1,213)
|
|
Decrease (increase)
in inventories
|
(26,065)
|
|
|
23,745
|
|
Decrease in other
assets
|
8,322
|
|
|
20,096
|
|
Increase (decrease)
in accounts payable
|
3,751
|
|
|
(5,054)
|
|
Increase (decrease)
in deferred system profit
|
61,371
|
|
|
(21,732)
|
|
Increase in other
liabilities
|
52,535
|
|
|
60,420
|
|
Net cash provided by
operating activities
|
111,497
|
|
|
242,417
|
|
Cash flows from
investing activities:
|
|
|
|
Capital expenditures,
net
|
(8,954)
|
|
|
(10,326)
|
|
Proceeds from sale of
assets
|
2,811
|
|
|
—
|
|
Purchases of
available-for-sale securities
|
(249,126)
|
|
|
(339,580)
|
|
Proceeds from sale of
available-for-sale securities
|
147,120
|
|
|
223,438
|
|
Proceeds from
maturity of available-for-sale securities
|
146,102
|
|
|
181,151
|
|
Purchases of trading
securities
|
(13,243)
|
|
|
(9,383)
|
|
Proceeds from sale of
trading securities
|
16,162
|
|
|
13,765
|
|
Net cash provided by
investing activities
|
40,872
|
|
|
59,065
|
|
Cash flows from
financing activities:
|
|
|
|
Repayment of
debt
|
(35,000)
|
|
|
(9,375)
|
|
Issuance of common
stock
|
2
|
|
|
175
|
|
Tax withholding
payments related to vested and released restricted stock
units
|
(1,702)
|
|
|
(1,990)
|
|
Common stock
repurchases
|
—
|
|
|
(168,670)
|
|
Payment of dividends
to stockholders
|
(82,109)
|
|
|
(82,250)
|
|
Excess tax benefit
from equity awards
|
635
|
|
|
398
|
|
Net cash used in
financing activities
|
(118,174)
|
|
|
(261,712)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
5,188
|
|
|
(2,743)
|
|
Net increase in cash
and cash equivalents
|
39,383
|
|
|
37,027
|
|
Cash and cash
equivalents at beginning of period
|
886,591
|
|
|
584,865
|
|
Cash and cash
equivalents at end of period
|
$
|
925,974
|
|
|
$
|
621,892
|
|
Supplemental cash
flow disclosures:
|
|
|
|
Income taxes paid,
net
|
$
|
22,304
|
|
|
$
|
8,101
|
|
Interest
paid
|
$
|
3,482
|
|
|
$
|
4,341
|
|
Non-cash
activities:
|
|
|
|
Purchase of land,
property and equipment - investing activities
|
$
|
2,311
|
|
|
$
|
2,255
|
|
Unsettled common
stock repurchase - financing activities
|
$
|
—
|
|
|
$
|
12,862
|
|
Dividends payable -
financing activities
|
$
|
18,827
|
|
|
$
|
41,412
|
|
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
|
|
Nine months
ended
|
|
|
|
March 31,
2016
|
|
December 31,
2015
|
|
March 31,
2015
|
|
March 31,
2016
|
|
March 31,
2015
|
GAAP net
income
|
|
$
|
175,777
|
|
|
$
|
152,207
|
|
|
$
|
131,638
|
|
|
$
|
432,881
|
|
|
$
|
224,139
|
|
Adjustments to
reconcile GAAP net income to non-GAAP net income
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
charges
|
a
|
1,309
|
|
|
1,309
|
|
|
3,928
|
|
|
6,199
|
|
|
11,758
|
|
|
Restructuring,
severance and other related charges
|
b
|
137
|
|
|
1,742
|
|
|
3,636
|
|
|
8,945
|
|
|
10,992
|
|
|
Merger-related
charges
|
c
|
3,582
|
|
|
8,820
|
|
|
—
|
|
|
12,402
|
|
|
—
|
|
|
Debt extinguishment
loss and recapitalization charges
|
d
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
134,147
|
|
|
Income tax effect of
non-GAAP adjustments
|
e
|
(1,535)
|
|
|
(2,321)
|
|
|
(1,840)
|
|
|
(7,204)
|
|
|
(52,099)
|
|
Non-GAAP net
income
|
|
$
|
179,270
|
|
|
$
|
161,757
|
|
|
$
|
137,362
|
|
|
$
|
453,223
|
|
|
$
|
328,937
|
|
GAAP net income per
diluted share
|
|
$
|
1.12
|
|
|
$
|
0.98
|
|
|
$
|
0.81
|
|
|
$
|
2.76
|
|
|
$
|
1.36
|
|
Non-GAAP net income
per diluted share
|
|
$
|
1.15
|
|
|
$
|
1.04
|
|
|
$
|
0.84
|
|
|
$
|
2.89
|
|
|
$
|
1.99
|
|
Shares used in
diluted shares calculation
|
|
156,429
|
|
|
155,996
|
|
|
162,794
|
|
|
156,797
|
|
|
164,930
|
|
Pre-tax impact of
items included in Condensed Consolidated Unaudited Statements of
Operations
|
|
|
Acquisition-related charges
|
|
Restructuring,
severance and other related charges
|
|
Merger-related
charges
|
|
Total pre-tax GAAP
to non-GAAP adjustments
|
Three months ended
March 31, 2016
|
|
|
|
|
|
|
|
Costs of
revenues
|
$
|
663
|
|
|
$
|
121
|
|
|
$
|
238
|
|
|
$
|
1,022
|
|
Engineering, research
and development
|
—
|
|
|
5
|
|
|
508
|
|
|
513
|
|
Selling, general and
administrative
|
646
|
|
|
11
|
|
|
2,836
|
|
|
3,493
|
|
Total in three months
ended March 31, 2016
|
$
|
1,309
|
|
|
$
|
137
|
|
|
$
|
3,582
|
|
|
$
|
5,028
|
|
Three months ended
December 31, 2015
|
|
|
|
|
|
|
|
Costs of
revenues
|
$
|
663
|
|
|
$
|
470
|
|
|
$
|
67
|
|
|
$
|
1,200
|
|
Engineering, research
and development
|
—
|
|
|
479
|
|
|
—
|
|
|
479
|
|
Selling, general and
administrative
|
646
|
|
|
793
|
|
|
8,753
|
|
|
10,192
|
|
Total in three months
ended December 31, 2015
|
$
|
1,309
|
|
|
$
|
1,742
|
|
|
$
|
8,820
|
|
|
$
|
11,871
|
|
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
|
|
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.
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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 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.
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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, 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.
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c.
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Merger-related
charges that are directly related to the pending merger between
KLA-Tencor and Lam as announced on October 21, 2015. Charges
primarily includes costs for advisory services, appraisals, legal
services, employee-related expense and auditing services.
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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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 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.
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e.
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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-2016-third-quarter-results-300257830.html
SOURCE KLA-Tencor Corporation