KLA(US:KLAC)2023-08-03 16:00Financial Performance - Total revenues for the year ended June 30, 2023, reached $10.50 billion, up 13.9% from $9.21 billion in 2022[335] - Net income attributable to the company for the year ended June 30, 2023, was $3.39 billion, compared to $3.32 billion in 2022, representing a growth of 2.1%[335] - Basic net income per share attributable to KLA for 2023 was $24.28, up from $22.07 in 2022, reflecting an increase of 10%[514] - Diluted net income per share attributable to KLA for 2023 was $24.15, compared to $21.92 in 2022, marking an increase of 10.6%[514] - Net income for the year ended June 30, 2023, was $3,387,351, an increase of 1.96% compared to $3,322,060 in 2022[338] - Total comprehensive income attributable to KLA for the year ended June 30, 2023, was $3,378,407, slightly up from $3,369,893 in 2022[338] Assets and Liabilities - As of June 30, 2023, the total assets of the company were $14.07 billion, an increase from $12.60 billion in 2022, reflecting a growth of approximately 11.7%[333] - The total liabilities increased to $2,303.5 million in 2023 from $1,545.0 million in 2022, representing an increase of approximately 48.9%[439] - The company’s total debt as of June 30, 2023, was $5,890.7 million, down from $6,660.7 million as of June 30, 2022[469] - The fair value of the company's long-term fixed interest rate Senior Notes was $5.69 billion as of June 30, 2023[325] - The company had $172.4 million in total lease liabilities as of June 30, 2023, after accounting for imputed interest[484] Cash Flow and Investments - Net cash provided by operating activities increased to $3,669,805 in 2023, up from $3,312,702 in 2022, representing a growth of 11%[344] - Cash and cash equivalents at the end of the period rose to $1,927,865, compared to $1,584,908 at the end of 2022, marking an increase of 22%[344] - The company had an investment portfolio of fixed income securities valued at $1.23 billion as of June 30, 2023[324] - Net cash used in investing activities decreased to $482,571 in 2023 from $876,458 in 2022, indicating a reduction of 45%[344] Research and Development - The company reported a research and development expense of $1.30 billion for the year ended June 30, 2023, which is an increase of 17.3% from $1.11 billion in 2022[335] Stockholder Activities - Cash dividends declared were $733,547, with a per share dividend of $5.20[341] - The company repurchased common stock worth $1,329,714 during the year[341] - The total cost of stock repurchases in 2023 was approximately $1.33 billion, a decrease from $3.96 billion in 2022[512] - Payment of dividends to stockholders increased to $732,556 in 2023 from $638,528 in 2022, representing a rise of 15%[344] Inventory and Receivables - Total inventories increased to $2,876.8 million in 2023, up from $2,146.9 million in 2022, representing a significant increase of approximately 34%[439] - As of June 30, 2023, accounts receivable decreased by 3% to $1,753.4 million from $1,811.9 million in the previous year[419] Contractual Obligations - Remaining performance obligations (RPO) amounted to $11.40 billion, with an expectation to recognize approximately 40% to 50% as revenue beyond the next 12 months[422] - Contract liabilities rose by 24% to $1,245.0 million from $1,007.3 million in the prior year[419] - Revenue recognized from contract liabilities was $819.0 million for the fiscal year ended June 30, 2023[421] Goodwill and Intangible Assets - As of June 30, 2023, the company reported total goodwill of $2,278.8 million, a decrease from $2,320.0 million as of June 30, 2022[460] - The company’s total purchased intangible assets as of June 30, 2023, amounted to $2,159.1 million, with $935.3 million net after accumulated amortization[465] Pension and Employee Benefits - The projected benefit obligation for foreign defined benefit pension plans decreased from $124,585 thousand in 2022 to $113,136 thousand in 2023, a reduction of 9.2%[518] - The underfunded status of the pension plans decreased from $80,992 thousand in 2022 to $67,206 thousand in 2023, a decline of 17.2%[519] - The employer contributions to the pension plans increased from $6,955 thousand in 2022 to $8,396 thousand in 2023, reflecting a growth of 20.7%[518] Market Conditions and Risks - The company experienced a macro-driven slowdown impacting semiconductor device demand, leading to adjustments in customer capital expenditure plans for 2023[422] - The U.S. government imposed new export licensing requirements affecting the company's ability to provide certain products and services to customers in China[422] Environmental and Sustainability - The company’s performance against environmental sustainability key performance indicators resulted in reduced fees associated with the Revolving Credit Facility[478]