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KLA-Tencor Posts Earnings Of $45 Million On Revenues Of $339 Million For Second Quarter Of Fiscal 2004
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SAN JOSE, Calif., January 22, 2004--KLA-Tencor Corporation (NASDAQ: KLAC) today announced operating results for its second quarter of fiscal 2004, ended December 31, 2003. The company reported net income of $45 million and diluted earnings per share of $0.22 on revenues of $339 million -- an increase on both a year-over-year and sequential basis. In comparison, the second quarter of fiscal 2003 resulted in net income of $29 million and diluted earnings per share of $0.15 on revenues of $335 million, while in its first fiscal quarter of fiscal 2004 KLA-Tencor realized net income of $37 million and diluted earnings per share of $0.18 on revenues of $318 million.

According to Chief Executive Officer Ken Schroeder, "Rising chip demand fueled by an improving global economy, coupled with high capacity-utilization rates due to years of industry under-investment, is driving a strong upswing in capacity-related tool orders. Ramping yields of leading-edge processes remains a challenging task and our process control systems are playing a pivotal role in the industry's accelerating capacity expansion efforts. At the same time, we continue to benefit from new technology orders for process control equipment as chipmakers also work to develop even more challenging next-generation processes."

Geographically, Korea, China, Singapore and Japan exhibited the strongest order growth compared to historical averages. The U.S. was 24 percent of orders, below its historical average of 25-30 percent; Taiwan was 18 percent, below its historical average of 20 percent; Korea, China and Singapore combined was 18 percent, higher than their historical average of 15 percent; Japan was 26 percent, higher than its historical average of 20 percent, and Europe was 14 percent, at its historical average of 15 percent.

Gross margins improved three percent sequentially to 54 percent, which helped drive net income higher by 21 percent over the previous quarter. Improvements in capacity absorption and manufacturing efficiencies contributed to the gain in gross margins.

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

KLA-Tencor increased cash, cash equivalents and marketable securities by $63 million to $1.63 billion, while the balance sheet remained free of long-term debt. Higher product shipments led to an increase in accounts receivables of $37 million to $246 million. However, strong collections resulted in shipments based Days Sales Outstanding of 59 days. Inventory increased by $14 million to $288 million, as the Company expanded production to meet rising customer demand.

The company has scheduled a live webcast of its second quarter fiscal 2004 earnings conference call for Thursday, January 22, 2004, at 2:00 p.m. (PT).

Forward Looking Statements: Statements in this press release regarding the causes of an upswing in capacity-related tool orders, the industry's accelerating capacity expansion efforts, chipmakers developing more challenging next-generation processes, current order backlog, 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. The company assumes no obligation to update the information in this press release.


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., with operations around the world, KLA-Tencor ranked #6 on S&P's 2002 index of the top 500 companies in the U.S. KLA-Tencor is traded on the Nasdaq National Market under the symbol KLAC. Additional information about the company is available on the Internet at http://www.kla-tencor.com.

Contact:
Meggan Powers
Director Corporate Communications

 

 

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