MILPITAS, Calif., July 28, 2016 /PRNewswire/ -- KLA-Tencor Corporation (NASDAQ: KLAC) today announced operating results for its fourth quarter and fiscal year ended June 30, 2016. KLA-Tencor reported GAAP net income of $272 million and GAAP earnings per diluted share of $1.73 on revenues of $919 million for the fourth quarter of fiscal year 2016. For the fiscal year ended June 30, 2016, the company reported GAAP net income of $704 million and GAAP earnings per diluted share of $4.49 on revenues of $3 billion.

Logo - http://photos.prnewswire.com/prnh/20140123/SF50413LOGO

GAAP Results


Q4 FY 2016

Q3 FY 2016

Q4 FY 2015

Revenues

$919 million

$712 million

$756 million

Net Income

$272 million

$176 million

$142 million

Earnings per Diluted Share

$1.73

$1.12

$0.89





Non-GAAP Results


Q4 FY 2016

Q3 FY 2016

Q4 FY 2015

Net Income

$277 million

$179 million

$159 million

Earnings per Diluted Share

$1.77

$1.15

$0.99

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 publishes 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)

June 30, 2016


June 30, 2015

ASSETS




Cash, cash equivalents and marketable securities

$

2,491,294



$

2,387,111


Accounts receivable, net

613,233



585,494


Inventories

698,635



617,904


Other current assets

64,870



314,067


Land, property and equipment, net

278,014



314,591


Goodwill

335,177



335,263


Deferred income taxes, non-current

302,219



78,648


Purchased intangibles, net

4,331



11,895


Other non-current assets

174,659



181,039


  Total assets

$

4,962,432



$

4,826,012


LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$

106,517



$

103,342


Deferred system profit

174,551



148,691


Unearned revenue

59,147



71,335


Current portion of long-term debt



16,981


Other current liabilities

662,208



661,414


  Total current liabilities

1,002,423



1,001,763


Non-current liabilities:




Long-term debt

3,057,936



3,173,435


Unearned revenue

56,336



47,145


Other non-current liabilities

156,623



182,230


  Total liabilities

4,273,318



4,404,573


Stockholders' equity:




Common stock and capital in excess of par value

452,974



474,374


Retained earnings (accumulated deficit)

284,825



(12,362)


Accumulated other comprehensive income (loss)

(48,685)



(40,573)


  Total stockholders' equity

689,114



421,439


  Total liabilities and stockholders' equity

$

4,962,432



$

4,826,012


 

KLA-Tencor Corporation

Condensed Consolidated Unaudited Statements of Operations










Three months ended


Twelve months ended

(In thousands, except per share amounts)

June 30,
2016


June 30,
2015


June 30,
2016


June 30,
2015

Revenues:








Product

$

731,118



$

579,733



$

2,250,260



$

2,125,396


Service

188,053



176,599



734,233



688,653


Total revenues

919,171



756,332



2,984,493



2,814,049


Costs and expenses:








Costs of revenues

337,568



323,267



1,163,391



1,215,229


Research and development

127,454



128,839



481,258



530,616


Selling, general and administrative

103,797



101,739



379,399



406,864


Loss on extinguishment of debt and other, net







131,669


Interest expense and other, net

21,865



27,549



102,253



95,540


Income before income taxes

328,487



174,938



858,192



434,131


Provision for income taxes

56,946



32,919



153,770



67,973


Net income

$

271,541



$

142,019



$

704,422



$

366,158


Net income per share:








Basic

$

1.74



$

0.90



$

4.52



$

2.26


Diluted

$

1.73



$

0.89



$

4.49



$

2.24


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



$

2.08



$

18.50


Weighted-average number of shares:








Basic

155,712



158,635



155,869



162,282


Diluted

156,618



159,965



156,779



163,701


 

KLA-Tencor Corporation

Condensed Consolidated Unaudited Statements of Cash Flows



Three months ended

June 30,

(In thousands)

2016


2015

Cash flows from operating activities:




Net income

$

271,541



$

142,019


Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation and amortization

14,888



19,966


Asset impairment charges



428


Non-cash stock-based compensation expense

12,292



12,204


Excess tax benefit from equity awards

240



(217)


Net gain on sales of marketable securities and other investments

(1,782)



(143)


Changes in assets and liabilities:




Decrease in accounts receivable, net

21,400



43,714


Decrease in inventories

26,397



16,498


Decrease in other assets

29,758



49,382


Increase (decrease) in accounts payable

(19,847)



148


Increase (decrease) in deferred system profit

(18,668)



2,337


Increase in other liabilities

17,874



31,143


Net cash provided by operating activities

354,093



317,479


Cash flows from investing activities:




Capital expenditures, net

(7,508)



(9,237)


Proceeds from sale of assets

3,050




Purchases of available-for-sale securities

(301,733)



(297,695)


Proceeds from sale of available-for-sale securities

105,610



328,498


Proceeds from maturity of available-for-sale securities

130,009



134,825


Purchases of trading securities

(20,130)



(11,859)


Proceeds from sale of trading securities

21,449



13,309


Net cash provided by (used in) investing activities

(69,253)



157,841


Cash flows from financing activities:




Repayment of debt

(40,000)



(29,375)


Issuance of common stock

16,388



17,430


Tax withholding payments related to vested and released restricted stock units

(219)



(439)


Common stock repurchases



(167,858)


Payment of dividends to stockholders

(81,120)



(79,653)


Excess tax benefit from equity awards

(240)



217


Net cash used in financing activities

(105,191)



(259,678)


Effect of exchange rate changes on cash and cash equivalents

2,865



491


Net increase in cash and cash equivalents

182,514



216,133


Cash and cash equivalents at beginning of period

925,974



621,892


Cash and cash equivalents at end of period

$

1,108,488



$

838,025


Supplemental cash flow disclosures:




Income taxes paid, net

$

23,408



$

3,851


Interest paid

$

57,091



$

55,413


Non-cash activities:




Purchase of land, property and equipment - investing activities

$

2,035



$

1,843


Unsettled common stock repurchase - financing activities

$



$

5,968


Dividends payable - financing activities

$

19,556



$

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, 2016


March 31, 2016


June 30, 2015


June 30, 2016


June 30, 2015

GAAP net income


$

271,541



$

175,777



$

142,019



$

704,422



$

366,158


Adjustments to reconcile GAAP net income to non-GAAP net income











Acquisition-related charges

a

1,294



1,309



3,578



7,493



15,336


Restructuring, severance and other related charges

b



137



22,417



8,945



33,409


Merger-related charges

c

5,795



3,582





18,197




Debt extinguishment loss and recapitalization charges

d









134,147


Income tax effect of non-GAAP adjustments

e

(1,795)



(1,535)



(9,159)



(8,999)



(61,258)


Non-GAAP net income


$

276,835



$

179,270



$

158,855



$

730,058



$

487,792


GAAP net income per diluted share


$

1.73



$

1.12



$

0.89



$

4.49



$

2.24


Non-GAAP net income per diluted share


$

1.77



$

1.15



$

0.99



$

4.66



$

2.98


Shares used in diluted shares calculation


156,618



156,429



159,965



156,779



163,701


 

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 adjustment

Three months ended June 30, 2016








Costs of revenues

$

658



$



$

346



$

1,004


Research and development





1,223



1,223


Selling, general and administrative

636





4,226



4,862


Total in three months ended June 30, 2016

$

1,294



$



$

5,795



$

7,089


Three months ended March 31, 2016








Costs of revenues

$

663



$

121



$

238



$

1,022


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 June 30, 2015








Costs of revenues

$

2,282



$

7,458



$



$

9,740


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


 

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.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/kla-tencor-reports-fiscal-2016-fourth-quarter-and-full-year-results-300305310.html

SOURCE KLA-Tencor Corporation

Copyright 2016 PR Newswire

KLA (NASDAQ:KLAC)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more KLA Charts.
KLA (NASDAQ:KLAC)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more KLA Charts.