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KLA-Tencor Reports Operating Results For Third Fiscal Quarter 2001
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SAN JOSE, Calif., Apr. 18, 2001 - KLA-Tencor Corporation today announced its operating results for the third fiscal quarter ended March 31, 2001. Revenues were $529 million, a 28 percent increase from $413 million in the March 2000 quarter, and an 8 percent decrease from the previous quarter. Compared to the March 2000 quarter, net income increased 25 percent to $91 million and earnings per share increased from $0.38 to $0.48. On a quarter-to-quarter basis, net income declined 16 percent compared to $109 million, or $0.57 per share, in the December 2000 quarter.

Commenting on the quarter's results, KLA-Tencor's president and chief executive officer, Ken Schroeder, said, "Given today's uncertain business climate, we are pleased with this quarter's results. Although KLA-Tencor, like all semiconductor equipment companies, experienced some cancellations and push-outs as customers adjusted their capital spending, we benefited from continued strong interest in our leading-edge reticle inspection, wafer inspection and metrology tools."

Commenting on the company's philosophy in managing through the current cycle, Schroeder explained that the company is taking aggressive steps to reduce discretionary spending while maintaining strong investments in key areas such as customer service and R&D. "Specifically, the company is reducing discretionary spending in non-critical business operations. We have also implemented company-wide shutdowns for the fourth quarter of this fiscal year and first quarter of next fiscal year. We continue, however, to invest aggressively in the next-generation yield management technologies needed to secure our customers' future successes."

The Company ended the quarter with over six months backlog at current shipping levels. Gross margins declined from 57 percent last quarter to 54 percent, due primarily to lower production volumes and new product introduction costs. Total fixed costs decreased to $174 million from $191 million in the last fiscal quarter. Cash and investments increased by $119 million during the quarter to $936 million due to income from operations and reduced working capital requirements.

Forward Looking Statements: Statements in this press release regarding the current order backlog and future cost-saving measures are forward-looking statements, and are subject to the Safe Harbor provisions created by the Private Securities Litigation Reform Act of 1995. 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: delays or cancellations of orders by customers; shipments or acceptances; inability by the company to meet its production and/or product development schedules; the demand for semiconductors; and new and enhanced product offerings by competitors. For other factors that may cause actual results to differ from those projected, please refer to the company's Form 10-K, Forms 10-Q and other filings with the Securities and Exchange Commission. Actual results could differ materially from those anticipated in forward-looking statements in this release as a result of certain factors, including those set forth in the risk factors described in the Company's SEC filings.

Click here to view Condensed Consolidated Unaudited Balance Sheets and Unaudited Statements Of Operations

About KLA-Tencor: KLA-Tencor is the world leader in yield management and process control solutions for semiconductor manufacturing and related industries. Headquartered in San Jose, Calif., the company has sales and service offices around the world. An S&P 500 company, KLA-Tencor is traded on the Nasdaq National Market under the symbol KLAC.

Contact:
Meggan Powers
Director Corporate Communications

 

 

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