KLA(KLAC)2025-01-30 21:06Financial Performance - KLA Corporation reported GAAP net income of $824.5 million and revenues of $3.08 billion for Q2 FY 2025, representing a 23.6% increase in revenue compared to $2.49 billion in Q2 FY 2024[2][3]. - Non-GAAP net income for Q2 FY 2025 was $1.10 billion, with non-GAAP net income per diluted share at $8.20, up from $6.16 in Q2 FY 2024[3][10]. - KLA Corporation reported a net income of $824,527,000 for the three months ended December 31, 2024, compared to $582,534,000 for the same period in 2023, representing an increase of 41.6%[11]. - Total revenues for reportable segments reached $3,077,230,000 for the three months ended December 31, 2024, up from $2,487,176,000 in 2023, reflecting a growth of 23.7%[12]. - KLA Corporation's non-GAAP net income for the three months ended December 31, 2024, was $1,098,444,000, compared to $839,202,000 in 2023, an increase of 30.9%[13]. - KLA Corporation's GAAP net income per diluted share for the three months ended December 31, 2024, was $6.16, up from $4.28 in 2023, reflecting a growth of 44.0%[13]. Revenue and Segment Performance - The Semiconductor Process Control segment generated revenues of $2,755,743,000, a 25.6% increase from $2,194,079,000 in the prior year[12]. - The company expects total revenues for Q3 FY 2025 to be in the range of $3.0 billion +/- $150 million, with GAAP diluted EPS projected between $7.77 and $8.37[4][5]. Cash Flow and Capital Expenditures - Cash flow from operating activities for the last twelve months was $3.65 billion, with free cash flow at $3.36 billion[4]. - KLA Corporation's free cash flow for the three months ended December 31, 2024, was $757,192,000, compared to $545,441,000 in 2023, marking an increase of 38.7%[15]. - The company reported capital expenditures of $92,323,000 for the three months ended December 31, 2024, compared to $76,801,000 in 2023, representing an increase of 20.2%[15]. Asset and Liability Management - Total current assets decreased to $9.77 billion as of December 31, 2024, down from $10.03 billion as of June 30, 2024[9]. - KLA's total liabilities were reported at $11.42 billion, a decrease from $12.07 billion as of June 30, 2024[9]. - KLA's total stockholders' equity increased to $3.58 billion as of December 31, 2024, compared to $3.37 billion as of June 30, 2024[9]. - KLA Corporation's total cash and cash equivalents at the end of the period were $1,838,278,000, compared to $1,665,054,000 at the end of the same period in 2023, an increase of 10.4%[11]. Impairment and Charges - The company experienced a $239.1 million impairment charge for goodwill and purchased intangible assets, impacting GAAP EPS by $1.76 per diluted share[4][10]. - Impairment charges for goodwill and purchased intangible assets were recognized due to downward revisions in financial outlook for PCB and Display reporting units[21]. - The impairment charge in fiscal 2024 was due to a downward revision in the PCB business forecast, while fiscal 2025 saw continued deterioration in long-term forecasts[21]. Stock Repurchase - The company repurchased $650,121,000 worth of common stock during the three months ended December 31, 2024, compared to $437,817,000 in the same period of 2023, indicating a rise of 48.3%[16]. Non-GAAP Financial Information - The company provides non-GAAP financial information to enhance understanding of operating performance and future prospects[20]. - Non-GAAP metrics include non-GAAP net income, non-GAAP net income per diluted share, non-GAAP gross margin, and free cash flow, which help compare performance across periods and with other companies[20]. - The income tax effect of non-GAAP adjustments includes tax impacts from excluded items and discrete tax items related to foreign currency gains/losses[22]. - Discrete tax items in fiscal 2024 included recognition of a deferred tax asset, while fiscal 2023 had a one-time tax benefit from restructuring international ownership of intellectual property[22].