[Fiscal 2024 Third Quarter Financial Highlights](index=1&type=section&id=KLA%20Corporation%20Reports%20Fiscal%202024%20Third%20Quarter%20Results) KLA reported strong Q3 FY2024 results with revenue of $2.36 billion and robust cash flow, exceeding guidance amid stabilizing market conditions [Q3 FY2024 Performance Summary](index=1&type=section&id=Q3%20FY2024%20Performance%20Summary) KLA reported Q3 FY2024 revenue of $2.36 billion with GAAP diluted EPS of $4.43 and non-GAAP diluted EPS of $5.26, exceeding adjusted guidance and reflecting stabilized market conditions Q3 FY2024 Key Financial Results | Metric | Q3 FY 2024 (in millions) | Q2 FY 2024 (in millions) | Q3 FY 2023 (in millions) | | :--- | :--- | :--- | :--- | | **GAAP Results** | | | | | Total Revenue | $2,360 | $2,487 | $2,433 | | Net Income | $602 | $583 | $698 | | Net Income per Diluted Share | $4.43 | $4.28 | $5.03 | | **Non-GAAP Results** | | | | | Net Income | $715 | $839 | $761 | | Net Income per Diluted Share | $5.26 | $6.16 | $5.49 | - CEO Rick Wallace stated that market conditions have **stabilized** and the company expects business levels to **improve through the year**, citing constructive discussions with customers about future leading-edge capacity investments[3](index=3&type=chunk) - Key financial achievements for the quarter include total revenues of **$2.36 billion**, GAAP and Non-GAAP diluted EPS near the upper end of adjusted guidance ranges, **$910.0 million** in cash flow from operations, **$838.2 million** in free cash flow, and **$569.4 million** returned to shareholders through dividends and buybacks[4](index=4&type=chunk) [Fourth Quarter Fiscal 2024 Guidance](index=1&type=section&id=Fourth%20Quarter%20Fiscal%202024%20Guidance) KLA projects Q4 FY2024 revenues between $2.375 billion and $2.625 billion, with non-GAAP diluted EPS ranging from $5.47 to $6.67 [Q4 FY2024 Outlook](index=1&type=section&id=Q4%20FY2024%20Outlook) For the fourth quarter of fiscal 2024, KLA anticipates total revenues to be in the range of $2.50 billion ± $125 million, with non-GAAP diluted EPS between $5.47 and $6.67 Q4 FY2024 Financial Guidance | Guidance Metric | Q4 FY 2024 Range | | :--- | :--- | | Total Revenues | $2.50 billion +/- $0.125 billion | | GAAP Gross Margin | 59.5% +/- 1.0% | | Non-GAAP Gross Margin | 61.5% +/- 1.0% | | GAAP Diluted EPS | $5.66 +/- $0.60 | | Non-GAAP Diluted EPS | $6.07 +/- $0.60 | [Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Consolidated%20Financial%20Statements%20%28Unaudited%29) Unaudited financial statements detail KLA's balance sheet growth, a slight revenue decline in operations, and significant cash flow from operating activities [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Unaudited%20Balance%20Sheets) As of March 31, 2024, KLA reported total assets of $14.96 billion, an increase from $14.07 billion at the end of fiscal year 2023, driven by marketable securities and inventories Condensed Consolidated Balance Sheets | Balance Sheet Item | March 31, 2024 (in billions) | June 30, 2023 (in billions) | | :--- | :--- | :--- | | Total current assets | $9.53 | $8.37 | | Total assets | $14.96 | $14.07 | | Total current liabilities | $4.46 | $3.74 | | Total liabilities | $11.86 | $11.15 | | Total stockholders' equity | $3.09 | $2.92 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Unaudited%20Statements%20of%20Operations) For the third quarter of fiscal 2024, total revenues were $2.36 billion, a decrease from $2.43 billion in the prior-year quarter, impacted by a $70.5 million impairment charge Condensed Consolidated Statements of Operations | Income Statement Item | Q3 FY 2024 (in millions) | Q3 FY 2023 (in millions) | | :--- | :--- | :--- | | Product Revenue | $1,769.4 | $1,903.5 | | Service Revenue | $590.5 | $529.1 | | **Total Revenues** | **$2,359.8** | **$2,432.6** | | Gross Profit (Revenues - Costs of revenues) | $1,366.0 | $1,427.3 | | Impairment of goodwill and assets | $70.5 | $0 | | **Net Income Attributable to KLA** | **$601.5** | **$697.8** | | **Diluted EPS** | **$4.43** | **$5.03** | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Unaudited%20Statements%20of%20Cash%20Flows) In Q3 FY2024, KLA generated $910.0 million in net cash from operating activities, used $858.0 million in investing activities, and generated $138.9 million from financing activities Condensed Consolidated Statements of Cash Flows | Cash Flow Item | Q3 FY 2024 (in millions) | Q3 FY 2023 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $910.0 | $1,010.9 | | Net cash used in investing activities | ($858.0) | ($113.2) | | Net cash provided by (used in) financing activities | $138.9 | ($902.7) | | Net increase (decrease) in cash | $183.1 | ($3.0) | [Segment and Supplemental Information (Unaudited)](index=6&type=section&id=Segment%20and%20Supplemental%20Information%20%28Unaudited%29) Supplemental information highlights Semiconductor Process Control as the main revenue driver, reconciles GAAP to non-GAAP results, and details free cash flow and capital returns [Segment Revenue](index=6&type=section&id=Segment%20Information) The Semiconductor Process Control segment remains the primary revenue driver, contributing $2.10 billion in Q3 FY2024, with other segments showing stable revenues Segment Revenue Breakdown | Segment Revenue | Q3 FY 2024 (in millions) | Q3 FY 2023 (in millions) | | :--- | :--- | :--- | | Semiconductor Process Control | $2,096.0 | $2,171.6 | | Specialty Semiconductor Process | $130.6 | $128.4 | | PCB, Display and Component Inspection | $133.4 | $131.9 | | **Total Revenues** | **$2,360.1** | **$2,431.9** | [GAAP to Non-GAAP Reconciliation](index=6&type=section&id=Reconciliation%20of%20GAAP%20Net%20Income%20to%20Non-GAAP%20Net%20Income) For Q3 FY2024, KLA's non-GAAP net income was $715.1 million, adjusted from GAAP net income of $601.5 million primarily due to impairment and acquisition-related charges GAAP to Non-GAAP Net Income Reconciliation | Reconciliation Item | Q3 FY 2024 (in millions) | | :--- | :--- | | **GAAP net income attributable to KLA** | **$601.5** | | Acquisition-related charges | $58.6 | | Restructuring, severance and other charges | $2.0 | | Impairment of goodwill and purchased intangible assets | $70.5 | | Income tax effect of non-GAAP adjustments | ($19.9) | | **Non-GAAP net income attributable to KLA** | **$715.1** | - The pre-tax impact of non-GAAP adjustments in Q3 FY2024 included **$45.6 million** to Costs of revenues, **$1.8 million** to R&D, **$13.2 million** to SG&A, and a **$70.5 million** impairment charge[16](index=16&type=chunk) [Free Cash Flow and Capital Returns](index=7&type=section&id=Free%20Cash%20Flow%20and%20Capital%20Returns) The company generated $838.2 million in free cash flow during Q3 FY2024 and returned $569.4 million to shareholders through dividends and stock repurchases Free Cash Flow | Metric | Q3 FY 2024 (in millions) | Q3 FY 2023 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $910.0 | $1,010.9 | | Capital expenditures | ($71.8) | ($84.9) | | **Free cash flow** | **$838.2** | **$925.9** | Capital Returns to Shareholders | Metric | Q3 FY 2024 (in millions) | Q3 FY 2023 (in millions) | | :--- | :--- | :--- | | Payments of dividends to stockholders | $197.2 | $180.9 | | Common stock repurchases | $372.3 | $478.2 | | **Capital returns** | **$569.4** | **$659.0** | [Guidance Reconciliation and Non-GAAP Disclosures](index=8&type=section&id=Guidance%20Reconciliation%20and%20Non-GAAP%20Disclosures) This section reconciles Q4 FY2024 guidance to non-GAAP measures and explains the rationale for non-GAAP adjustments, including a Q3 impairment charge [Q4 FY2024 Guidance Reconciliation](index=8&type=section&id=Q4%20FY2024%20Guidance%20Reconciliation) KLA provides a reconciliation for its Q4 FY2024 guidance, projecting non-GAAP diluted EPS between $5.47 and $6.67 and non-GAAP gross margin between 60.5% and 62.5% Q4 FY2024 Diluted EPS Guidance Reconciliation | EPS Reconciliation ($) | Low | High | | :--- | :--- | :--- | | GAAP net income per diluted share | $5.06 | $6.26 | | Acquisition-related charges | $0.44 | $0.44 | | Restructuring, severance and other charges | $0.14 | $0.14 | | Income tax effect of non-GAAP adjustments | ($0.17) | ($0.17) | | **Non-GAAP net income per diluted share** | **$5.47** | **$6.67** | Q4 FY2024 Gross Margin Guidance Reconciliation | Gross Margin Reconciliation (%) | Low | High | | :--- | :--- | :--- | | GAAP gross margin | 58.5% | 60.5% | | Acquisition-related charges | 1.9% | 1.9% | | Restructuring, severance and other charges | 0.1% | 0.1% | | **Non-GAAP gross margin** | **60.5%** | **62.5%** | [Explanation of Non-GAAP Measures](index=8&type=section&id=Explanation%20of%20Non-GAAP%20Measures) The company explains that non-GAAP measures enhance understanding of core operating performance by excluding specific non-recurring or non-cash items, such as the Q3 FY2024 impairment charge - Non-GAAP financial information is used to provide a better understanding of operating performance by excluding certain costs and expenses not indicative of **core operating results**, such as acquisition-related charges, restructuring, and severance[21](index=21&type=chunk)[22](index=22&type=chunk) - A **non-cash impairment charge** for goodwill and purchased intangible assets was recognized in Q3 FY2024, triggered by a **downward revision** of the financial outlook for the PCB and Display reporting units and the decision to **exit the Display business**, influenced by a **major customer canceling** a significant new technology project[23](index=23&type=chunk)

Monty Rakusen Semiconductor stocks have stalled out since notching an all-time high back on March 8. Shares of the VanEck Vectors Semiconductor ETF (SMH) spiked to near $240 on high volume before falling sharply during the trading day, closing near the lows of the session and under $225. It had the hallmarks of what technicians call a “blow-off top.” Then, earlier this month, SMH printed a bearish engulfing pattern (April 4). These are important clues for an industry that has grown to become a material ...

In the latest trading session, KLA (KLAC) closed at $682.84, marking a +1.5% move from the previous day. This move outpaced the S&P 500's daily gain of 1.11%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 1.24%.The maker of equipment for manufacturing semiconductors's stock has dropped by 6.98% in the past month, falling short of the Computer and Technology sector's gain of 0.85% and the S&P 500's gain of 0.48%.The upcoming earnings release of KLA will be of great interest to inv ...

MILPITAS, Calif., April 4, 2024 /PRNewswire/ -- KLA Corporation (NASDAQ: KLAC) today announced that the company will review third quarter fiscal year 2024 earnings on Thursday, April 25, 2024 at 3 p.m. PT. The company's results will be published on the same day after the stock market closes, as well as supplemental disclosures including a shareholder letter and earnings slide presentation. All earnings disclosures as well as the live earnings webcast will be available on the Investor Relations page of KLA's ...

The most recent trading session ended with KLA (KLAC) standing at $690.70, reflecting a +0.99% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily gain of 0.63%. Meanwhile, the Dow experienced a rise of 0.2%, and the technology-dominated Nasdaq saw an increase of 0.82%.The maker of equipment for manufacturing semiconductors's stock has climbed by 3.41% in the past month, exceeding the Computer and Technology sector's gain of 1.16% and the S&P 500's ga ...

In the latest market close, KLA (KLAC) reached $698.40, with a +1.9% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 1.12%. Meanwhile, the Dow experienced a rise of 0.61%, and the technology-dominated Nasdaq saw an increase of 1.54%.The maker of equipment for manufacturing semiconductors's stock has climbed by 5.76% in the past month, exceeding the Computer and Technology sector's loss of 0.4% and the S&P 500's gain of 2.06%.Investors will be eagerly watching for the pe ...

KLA Corporation (NASDAQ:KLAC) Morgan Stanley Technology, Media & Telecom Conference Call March 4, 2024 3:40 PM ET Company Participants Bren Higgins - EVP & CFO Conference Call Participants Joseph Moore - Morgan Stanley Joseph Moore Great. Thank you, everybody. Welcome back. I'm Joe Moore. Very happy to have with us today, the CFO of KLA, Bren Higgins. So Bren, maybe you could start out just with a little bit of an overview. We'll dig a little bit deeper into your targets and so forth. But maybe first, just ...

Company and Industry Overview * **Company**: KLA Corporation (NASDAQ: KLAC) * **Industry**: Semiconductor Equipment and Materials * **Event**: Morgan Stanley Technology, Media & Telecom Conference Call, March 4, 2024 Key Points Corporate Priorities and Financial Targets * **2026 Financial Targets**: Revenue of $38 billion and earnings per share of $38. * **Revenue Growth**: Semiconductor revenue growth expected to be 2x GDP, aligning with McKinsey's projection of $1 trillion in semiconductor revenue by 2030. * **Capital Intensity**: Capital intensity has been climbing since 2013-2014, with recent elevated levels due to investments in China. * **Market Mix**: Memory expected to grow at GDP plus rates, with logic foundry growing faster, resulting in a mix of approximately 60-70% logic foundry. * **Process Control**: Process control intensity is higher in logic and foundry than in memory, benefiting KLA's strong position in process control. * **Service Business**: Growing 12-14% in 2024, driven by high complexity, low redundancy, and long-term contracts. * **EPC Business**: Expected to grow about 10%, with Specialty Semiconductor being the strongest part of the business. * **Gross Margins and Operating Margins**: Gross margins in the low 60s, with a target of 63%. Operating margin target of 40-50% incremental. * **Capital Structure**: Actions to drive EPS level about 1.5x revenue growth rate, with 85% of cash flow returned to shareholders. Process Control Intensity and Growth Drivers * **Process Control Intensity**: Increased from low 6% in 2021 to high 7s in 2023, driven by adoption of leading-edge design rules and HBM. * **Growth Drivers**: Incremental scaling, changes in architecture, power distribution, and competitive dynamics in leading-edge technology. * **Optical Inspection**: Grew at about 1.7x the rate of WFE from 2019 to 2022, driven by adoption of EUV and scaling of devices. Semiconductor Equipment Market * **2023 WFE**: Estimated at $87-88 billion. * **2024 WFE**: Expected to be flattish to slightly up in the high 80s. * **Leading Edge**: Expected to improve, driven by 3-nanometer activity. * **Memory**: Expected to grow modestly, mostly in DRAM, with HBM and advanced DRAM as drivers. * **China**: Expected to be flattish, with some inefficiency in investment and over time, some rationalization. Advanced Packaging * **Growth Drivers**: Rising complexity, pitch shrinking, and increased metrology requirements. * **Revenue**: Expected to grow at least 2x WFE growth rates, potentially reaching $1 billion by the back half of this decade. Memory * **DRAM**: Utilization has improved slightly, with core DRAM CapEx expected to remain healthy. * **NAND**: Spending has been low, with capacity investment expected to follow a similar path into next year. Services * **Growth**: Expected to grow 12-14% in 2024, driven by utilization improvement and tools coming off warranty. * **Visibility**: Good visibility into future revenue due to long-term contracts and high attach rates on services. Other Key Points * **Supply Chain**: Managed well through 2022, with strong partnerships with suppliers and investments in capacity. * **Geopolitics**: Not speculating on government actions, but acknowledging the desire for self-sufficiency in China and potential inefficiencies in investment. * **High NA**: Expected to drive scaling and adoption of EUV, benefiting KLA's high-end inspection capabilities. * **Competitive Dynamics**: Strong competitive dynamics in leading-edge technology, with multiple markets driving adoption of leading-edge nodes.

The latest trading session saw KLA (KLAC) ending at $682.30, denoting a +1.38% adjustment from its last day's close. The stock outpaced the S&P 500's daily gain of 0.52%. Elsewhere, the Dow saw an upswing of 0.12%, while the tech-heavy Nasdaq appreciated by 0.9%.Shares of the maker of equipment for manufacturing semiconductors have appreciated by 13.29% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.9% and the S&P 500's gain of 3.85%.The investment community ...

MILPITAS, Calif., Feb. 14, 2024 /PRNewswire/ -- KLA Corporation (NASDAQ: KLAC) today announced the webcast for an upcoming investor conference: Monday, March 4, 2024 - Morgan Stanley Technology, Media & Telecom Conference at 12:40 p.m. PT The live webcast will be available on the Investor Relations page of KLA's website at http://ir.kla.com/ and a replay of the webcast will be posted after the event. Logo: https://mma.prnewswire.com/media/806571/KLA_Corporation_Logo.jpg  About KLA: KLA Corporation ("KLA") ...