KLA Corporation (NASDAQ:KLAC) Wells Fargo 7th Annual TMT Summit Conference November 29, 2023 12:30 PM ET Company Participants Bren Higgins - CFO Brian Lorig - EVP, Global Support and Services Conference Call Participants Joe Quatrochi - Wells Fargo Joe Quatrochi Perfect. All right, let's go ahead and get started. So I'm Joe Quatrochi, the semicap analyst here for Wells Fargo. Excited to have KLA here this morning, CFO, Bren Higgins; as well as Brian Lorig, the EVP of Global Support and Services to discuss K ...

KLA Corporation (NASDAQ:KLAC) UBS Global Technology Conference November 28, 2023 12:15 PM ET Company Participants Bren Higgins - Chief Financial Officer Conference Call Participants Timothy Arcuri - UBS Timothy Arcuri Great. We're going to get started. I'm, Tim Arcuri. I'm the semiconductor analyst here at UBS, and very pleased to have, KLA with us next with, and Bren Higgins, who is the CFO. I've known Bren for a long time. So very, very pleased to have you, Bren. Thank you. Bren Higgins Yes. Thank you for ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-09992 KLA CORPORATION (Exact name of registrant as specified in its charter) Delaware 04-2564110 (State or ...

Financial Data and Key Metrics - Revenue for the September quarter was $2.4 billion, at the upper end of the guidance range [24] - GAAP EPS was $5.41 and non-GAAP EPS was $5.74, both at the upper end of the guidance ranges [24] - Non-GAAP operating margin was 40.2% [32] - Cash flow from operations was $884 million, and free cash flow was $816 million [32] - The company ended the quarter with $3.35 billion in total cash, cash equivalents, and marketable securities [33] - The service business grew to $560 million in the September quarter, with high single-digit percent year-over-year growth expected for 2023 [29] Business Line Data and Key Metrics - The service business grew both sequentially and year-over-year, reaching $560 million in the September quarter [29] - The company's process control portfolio showed strength, particularly in legacy node investment globally and industry infrastructure investment [27] - The rapid growth of AI is enabling differentiation and driving industry growth, with the company leveraging AI to improve system performance [28] Market Data and Key Metrics - The company sees strength in markets served by legacy nodes, despite softness in memory and leading-edge logic and foundry investments [25] - China's market mix is approaching 50%, with new entrants and improving yields potentially driving higher investment in process control [6][7] - The company expects China's wafer infrastructure investment to flatten in 2024, but does not anticipate a significant decline [12] Company Strategy and Industry Competition - The company is focused on enabling innovation through technology advancements and transitions, which customers continue to prioritize across all business environments [44] - The company is leveraging AI expertise to improve inspection, metrology, and data analytics systems, helping customers solve challenges associated with current process technologies [35] - The company is well-positioned to support customers in the transition to gate-all-around architecture, with investments in Gen 4 technology and AI capabilities [93][94] Management Commentary on Operating Environment and Future Outlook - The overall business environment remains relatively stable, with strength in legacy node investment and industry infrastructure investment [25] - The company expects demand to stabilize around current levels into the first half of 2024, with no significant changes anticipated in China shipments [57] - The company is monitoring the slowdown in the electronics market and adjusting capacity plans as needed [26] Other Important Information - The company announced an incremental $2 billion share repurchase authorization, reflecting confidence in the business model and growth strategy [34] - The company increased its quarterly dividend to $1.45 per share, marking the 14th consecutive annual dividend increase [41] - The company is focused on employee safety and well-being, particularly in light of the situation in Israel, and is providing resources and support through the KLA Foundation [22][23] Q&A Session Summary Question: Stability in the first half of 2024 and memory recovery timing [56] - The company expects business levels to remain stable in the first half of 2024, with no significant changes in China shipments [57] - Memory customers indicate historical lows in the market, with no near-term changes expected in capacity increases [60] Question: Service business growth and assumptions for 2024 [62] - The company expects service growth to accelerate to the target range of 12% to 14% in 2024, driven by tools coming off warranty and moving into contracts [63] - Utilization rates are stabilizing and increasing in certain parts of the business, which is a positive indicator for service growth in 2024 [68] Question: China business sustainability and outlook [79] - The company sees sustainability in China's legacy node investments, particularly in industries like EV and infrastructure, with no significant changes expected in the near term [80][81] - The company expects China's business to remain elevated, with a meaningful backlog and deposits for future shipments [83] Question: Gate-all-around architecture opportunities [93] - The company is well-prepared for gate-all-around architecture, leveraging Gen 4 technology and AI capabilities to address inspection and metrology challenges [94][95] - The transition to gate-all-around will drive higher process control intensity, benefiting both inspection and metrology [96] Question: DRAM strength and outlook [98] - DRAM strength in the quarter was driven by shipments to China and R&D investment, with no significant decline expected in the December quarter [99] - The company continues to see strength in optical and macro inspection, with process control intensity remaining high [100] Question: 2024 WFE outlook and inventory management [123] - The company expects WFE investment to remain flat in 2024, with no significant changes anticipated in the near term [110] - Inventory levels are high due to long lead-time parts and commitments to suppliers, but the company is well-positioned for future demand [127][128] Question: OpEx outlook for 2024 [134] - The company expects a modest uptick in OpEx in 2024, in line with general post-living adjustments and long-term investment requirements [136][137] Question: Leading-edge foundry/logic weakness and outlook [139] - The company sees stabilization in leading-edge foundry/logic, with no further declines expected in 2024 [149] - The company expects to see more N3 and N2 activity in 2024, with investment focused on R&D and ramp phases [143]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to | Commission File Number 000-09992 | | | | --- | --- | --- | | KLA | CORPORATION | | | (Exact name of registrant as specified in its charter) | | ...

Statements in this presentation other than historical facts, such as statements pertaining to: (i) future industry demand for semiconductors and WFE; (ii) future development of regulatory landscape; (iii) our market position for the future; (iv) our forecast of financial measures for the following quarter and 2023; (v) our long-term financial targets and underlying assumptions; (vi) our future investment plan on R&D, technology and infrastructure; and (vii) future shareholder returns, are forward-looking st ...

Okay. Great. That's helpful. As a follow-up, speaking of China, I know the revenue is now back to the 30% level you talked about some of the shipments that came in a little earlier. But I want to ask if this is a little bit different angle. It's clear that there is a big push of self-sufficiency in China, but certain process are harder to replace than others. Can you give us maybe a little bit of color on the competitive dynamics there that some of your process control requirements could be satisfied by dom ...

Liquidity and Working Capital - Working capital increased to $4.60 billion as of March 31, 2023, up by $302.4 million from $4.30 billion as of June 30, 2022 [232] - The company's principal sources of liquidity as of March 31, 2023, included $2.89 billion in cash, cash equivalents, and marketable securities [232] - The company's liquidity is supported by a $1.50 billion Revolving Credit Facility, which is sufficient to meet working capital needs, capital expenditures, and other obligations for at least the next 12 months [232] Investment Portfolio and Market Risks - The company's fixed income securities portfolio was valued at $1.08 billion as of March 31, 2023, with a potential decline of $9.4 million if interest rates increased by 100 bps [238] - The company's investment portfolio is subject to interest rate risk, with a potential decline in value if market interest rates increase [238] - The fair value of the company's equity investment in a publicly traded company was $19.8 million as of March 31, 2023, with a potential decline of $10 million if market prices fell by 50% [241] - The company had net forward and option contracts to buy $235.7 million in foreign currency as of March 31, 2023, with a potential decrease of $80.5 million in fair value if currency exchange rates moved adversely by 10% [243] Debt and Credit Facilities - The fair value of the company's long-term fixed interest rate Senior Notes was $5.79 billion as of March 31, 2023, with a principal amount of $5.95 billion [239] - The company had no outstanding borrowings under its Revolving Credit Facility as of March 31, 2023, with an annual commitment fee of 9 bps [240] - The company's credit ratings as of March 31, 2023, were A from Fitch, A2 from Moody's, and A from S&P [234] Internal Controls and Financial Reporting - No changes in internal control over financial reporting during the most recent fiscal quarter that materially affected or are likely to materially affect the company's financial reporting [249] - Disclosure Controls are designed to ensure timely and accurate reporting of required information under the Exchange Act, including components of internal control over financial reporting [247] - Limitations of Disclosure Controls include the inability to prevent all errors and fraud due to inherent system constraints, resource limitations, and potential circumvention [248] - CEO and CFO certifications are included in the report, referencing Rule 13a-14 of the Exchange Act, and should be read in conjunction with the Controls and Procedures section [246]

KLA Corporation (NASDAQ:KLAC) Q3 2023 Earnings Conference Call April 26, 2023 5:00 PM ET Company Participants Harlan Sur - JPMorgan C.J. Muse - Evercore Vivek Arya - Bank of America Securities Krish Sankar - Cowen Joe Quatrochi - Wells Fargo Atif Malik - Citi Timothy Arcuri - UBS Sidney Ho - Deutsche Bank Toshiya Hari - Goldman Sachs Joe Moore - Morgan Stanley Blayne Curtis - Barclays Brian Chin - Stifel Mehdi Hosseini - SIG Good afternoon. My name is Chelsea, and I will be your conference operator today. A ...

Forward Looking Statements 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 ...