MILPITAS, Calif., Oct. 20, 2016 /PRNewswire/ -- KLA-Tencor Corporation (NASDAQ: KLAC) today announced operating results for its first quarter of fiscal year 2017, which ended on September 30, 2016, and reported GAAP net income of $178 million and GAAP earnings per diluted share of $1.13 on revenues of $751 million.
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"KLA-Tencor's Q1 results finished above the midpoint of the range of guidance for shipments and revenue for the quarter, and exceeded the range for Non-GAAP diluted earnings per share," commented Rick Wallace, President and Chief Executive Officer of KLA-Tencor. "Our performance in Q1 was fueled by strong customer acceptance of new products and a business model that consistently delivers superior operating leverage, providing the resources to rank KLA-Tencor among the top tier of all companies in tech in terms of cash returns to stockholders."
GAAP Results Q1 FY 2017 Q4 FY 2016 Q1 FY 2016 Revenues $751 million $919 million $643 million -------- ------------ ------------ ------------ Net Income $178 million $272 million $105 million ------------ ------------ ------------ Earnings per Diluted Share $1.13 $1.73 $0.66 -------- ----- ----- ----- Non-GAAP Results Q1 FY 2017 Q4 FY 2016 Q1 FY 2016 Net Income $182 million $277 million $112 million ------------ ------------ ------------ Earnings per Diluted Share $1.16 $1.77 $0.71 -------- ----- ----- -----
A reconciliation between GAAP operating results and non-GAAP operating results is provided following the financial statements that are part of this release. Non-GAAP results include the impact of stock-based compensation, but exclude the impact of acquisitions, restructuring, severance and other related charges, and merger-related charges. KLA-Tencor will discuss the results for its fiscal year 2017 first quarter, along with its outlook, on a conference call today beginning at 2:00 p.m. Pacific Daylight Time. A webcast of the call will be available at: www.kla-tencor.com.
About KLA-Tencor:
KLA-Tencor Corporation, a leading provider of process control and yield management solutions, partners with customers around the world to develop state-of-the-art inspection and metrology technologies. These technologies serve the semiconductor, LED and other related nanoelectronics industries. With a portfolio of industry-standard products and a team of world-class engineers and scientists, the company has created superior solutions for its customers for 40 years. Headquartered in Milpitas, Calif., KLA-Tencor has dedicated customer operations and service centers around the world. Additional information may be found at http://www.kla-tencor.com. (KLAC-F)
Use of Non-GAAP Financial Information:
The non-GAAP and supplemental information provided in this press release is a supplement to, and not a substitute for, KLA-Tencor's financial results presented in accordance with United States GAAP.
To supplement KLA-Tencor's condensed consolidated financial statements presented in accordance with GAAP, the company provides certain non-GAAP financial information, which is adjusted from results based on GAAP to exclude certain costs and expenses, as well as other supplemental information. The non-GAAP and supplemental information is provided to enhance the user's overall understanding of KLA-Tencor's operating performance and its prospects in the future. Specifically, KLA-Tencor believes that the non-GAAP information provides useful measures to both management and investors regarding financial and business trends relating to KLA-Tencor's financial performance by excluding certain costs and expenses that the company believes are not indicative of its core operating results. The non-GAAP information is among the budgeting and planning tools that management uses for future forecasting. However, because there are no standardized or generally accepted definitions for most non-GAAP financial metrics, definitions of non-GAAP financial metrics (for example, determining which costs and expenses to exclude when calculating such a metric) are inherently subject to significant discretion. As a result, non-GAAP financial metrics may be defined very differently from company to company, or even from period to period within the same company, which can potentially limit the usefulness of such information to an investor. The presentation of non-GAAP and supplemental information is not meant to be considered in isolation or as a substitute for results prepared and presented in accordance with United States GAAP.
KLA-Tencor Corporation Condensed Consolidated Unaudited Balance Sheets (In thousands) September 30, 2016 June 30, 2016 ------------- ------------------ ------------- ASSETS Cash, cash equivalents and marketable securities $2,494,621 $2,491,294 Accounts receivable, net 654,699 613,233 Inventories 703,262 698,635 Other current assets 76,580 64,870 Land, property and equipment, net 272,351 278,014 Goodwill 335,198 335,177 Deferred income taxes, non- current 267,793 302,219 Purchased intangibles, net 3,065 4,331 Other non-current assets 188,529 174,659 Total assets $4,996,098 $4,962,432 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $105,066 $106,517 Deferred system profit 185,640 174,551 Unearned revenue 54,841 59,147 Other current liabilities 629,194 662,208 ------- ------- Total current liabilities 974,741 1,002,423 Non-current liabilities: Long-term debt 3,018,567 3,057,936 Unearned revenue 60,279 56,336 Other non-current liabilities 161,002 156,623 ------- ------- Total liabilities 4,214,589 4,273,318 Stockholders' equity: Common stock and capital in excess of par value 447,018 452,974 Retained earnings 381,124 284,825 Accumulated other comprehensive income (loss) (46,633) (48,685) ------- ------- Total stockholders' equity 781,509 689,114 ------- ------- Total liabilities and stockholders' equity $4,996,098 $4,962,432 ========== ==========
KLA-Tencor Corporation Condensed Consolidated Unaudited Statements of Operations Three months ended September 30, -------------------------------- (In thousands, except per share amounts) 2016 2015 -------------- ---- ---- Revenues: Product $561,753 $460,739 Service 188,920 181,905 ------- ------- Total revenues 750,673 642,644 Costs and expenses: Costs of revenues 277,836 270,244 Research and development 129,233 119,943 Selling, general and administrative 94,388 91,663 Interest expense and other, net 26,996 26,495 ------ ------ Income before income taxes 222,220 134,299 Provision for income taxes 44,119 29,402 Net income $178,101 $104,897 ======== ======== Net income per share: Basic $1.14 $0.67 Diluted $1.13 $0.66 Cash dividends declared per share $0.52 $0.52 ----- ----- Weighted- average number of shares: Basic 156,129 156,820 Diluted 157,021 157,984
KLA-Tencor Corporation Condensed Consolidated Unaudited Statements of Cash Flows Three months ended September 30, ------------- (In thousands) 2016 2015 ----------- ---- ---- Cash flows from operating activities: Net income $178,101 $104,897 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 14,422 19,735 Asset impairment charges 358 - Non-cash stock-based compensation expense 11,478 12,248 Excess tax benefit from equity awards - (10,159) Net gain on sales of marketable securities and other investments (204) (1,233) Changes in assets and liabilities: Decrease (increase) in accounts receivable, net (38,241) 124,925 Decrease (increase) in inventories 1,187 (31,243) Decrease in other assets 19,477 34,381 Increase (decrease) in accounts payable (1,547) 4,158 Increase (decrease) in deferred system profit 11,089 (14,504) Decrease in other liabilities (26,343) (49,423) ------- ------- Net cash provided by operating activities 169,777 193,782 Cash flows from investing activities: Acquisition of non- marketable securities (1,470) - Capital expenditures, net (9,883) (7,341) Purchases of available- for-sale securities (457,512) (343,358) Proceeds from sale of available- for-sale securities 111,106 200,353 Proceeds from maturity of available- for-sale securities 197,100 184,973 Purchases of trading securities (52,465) (18,267) Proceeds from sale of trading securities 45,301 15,540 ------ ------ Net cash provided by (used in) investing activities (167,823) 31,900 Cash flows from financing activities: Repayment of debt (40,000) (40,000) Tax withholding payments related to vested and released restricted stock units (17,376) (21,526) Common stock repurchases - (142,592) Payment of dividends to stockholders (89,313) (101,674) Excess tax benefit from equity awards - 10,159 --- ------ Net cash used in financing activities (146,689) (295,633) Effect of exchange rate changes on cash and cash equivalents 2,572 (4,377) ----- ------ Net decrease in cash and cash equivalents (142,163) (74,328) Cash and cash equivalents at beginning of period 1,108,488 838,025 --------- ------- Cash and cash equivalents at end of period $966,325 $763,697 ======== ======== Supplemental cash flow disclosures: Income taxes paid, net $39,411 $7,844 Interest paid $3,243 $3,149 Non-cash activities: Purchase of land, property and equipment - investing activities $1,974 $1,490 Unsettled common stock repurchase - financing activities $ - $9,610 Dividends payable - financing activities $12,045 $20,892
KLA-Tencor Corporation Condensed Consolidated Unaudited Supplemental Information (In thousands, except per share amounts) Reconciliation of GAAP Net Income to Non-GAAP Net Income -------------------------------------------------------- Three months ended ------------------ September 30, 2016 June 30, 2016 September 30, 2015 ------------------ ------------- ------------------ GAAP net income $178,101 $271,541 $104,897 Adjustments to reconcile GAAP net income to non-GAAP net income: --------------------------------- Acquisition-related charges a 1,267 1,294 3,581 Restructuring, severance and other related charges b - - 7,066 Merger-related charges c 3,605 5,795 - Income tax effect of non-GAAP adjustments d (1,259) (1,795) (3,348) Non-GAAP net income $181,714 $276,835 $112,196 ======== ======== ======== GAAP net income per diluted share $1.13 $1.73 $0.66 ===== ===== ===== Non-GAAP net income per diluted share $1.16 $1.77 $0.71 ===== ===== ===== Shares used in diluted shares calculation 157,021 156,618 157,984 ======= ======= =======
Pre-tax impact of items included in Condensed Consolidated Unaudited Statements of Operations --------------------------------------------------------------------------------------------- Acquisition- Restructuring, Merger- Total pre-tax related severance and related GAAP to non- charges other related charges GAAP charges adjustments ------------- --------------- -------- -------------- Three months ended September 30, 2016 ------------------- Costs of revenues $650 $ - $260 $910 Research and development - - 982 982 Selling, general and administrative 617 - 2,363 2,980 Total in three months ended September 30, 2016 $1,267 $ - $3,605 $4,872 ====== === === ====== ====== Three months ended June 30, 2016 ------------------ Costs of revenues $658 $ - $346 $1,004 Research and development - - 1,223 1,223 Selling, general and administrative 636 - 4,226 4,862 --- --- ----- Total in three months ended June 30, 2016 $1,294 $ - $5,795 $7,089 ====== === === ====== ====== Three months ended September 30, 2015 ------------------- Costs of revenues $2,285 $2,770 $ - $5,055 Research and development 650 1,010 - 1,660 Selling, general and administrative 646 3,286 - 3,932 Total in three months ended September 30, 2015 $3,581 $7,066 $ - $10,647 ====== ====== === === =======
To supplement our condensed consolidated financial statements presented in accordance with GAAP, we provide certain non-GAAP financial information, which is adjusted from results based on GAAP to exclude certain costs and expenses, as well as other supplemental information. The non-GAAP and supplemental information is provided to enhance the user's overall understanding of our operating performance and our prospects in the future. Specifically, we believe that the non-GAAP information provides useful measures to both management and investors regarding financial and business trends relating to our financial performance by excluding certain costs and expenses that we believe are not indicative of our core operating results. The non-GAAP information is among the budgeting and planning tools that management uses for future forecasting. However, because there are no standardized or generally accepted definitions for most non-GAAP financial metrics, definitions of non-GAAP financial metrics (for example, determining which costs and expenses to exclude when calculating such a metric) are inherently subject to significant discretion. As a result, non-GAAP financial metrics may be defined very differently from company to company, or even from period to period within the same company, which can potentially limit the usefulness of such information to an investor. The presentation of non-GAAP and supplemental information is not meant to be considered in isolation or as a substitute for results prepared and presented in accordance with United States GAAP.
a. Acquisition-related charges includes amortization of intangible assets associated with acquisitions. Management believes that the expense associated with the amortization of acquisition related intangible assets is appropriate to be excluded because a significant portion of the purchase price for acquisitions may be allocated to intangible assets that have short lives, and exclusion of these expenses allows comparisons of operating results that are consistent over time for both KLA-Tencor's newly acquired and long-held businesses. Management believes excluding these items helps investors compare our operating performance with our results in prior periods as well as with the performance of other companies. b. Restructuring, severance and other related charges include costs associated with employee severance and other exit costs. Management believes excluding these items helps investors compare our operating performance with our results in prior periods as well as with the performance of other companies. c. Merger-related charges that are directly related to the proposed merger between KLA-Tencor and Lam that was terminated on October 5, 2016. Charges primarily includes employee-related expenses, legal expenses and other costs. Management believes that it is appropriate to exclude these items as they are not indicative of ongoing operating results and therefore limit comparability and excluding these items helps investors compare our operating performance with our results in prior periods as well as with the performance of other companies. d. Income tax effect of non-GAAP adjustments includes the income tax effects of the excluded items noted above. Management believes that it is appropriate to exclude the tax effects of the items noted above in order to present a more meaningful measure of non-GAAP net income.To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/kla-tencor-reports-fiscal-2017-first-quarter-results-300348624.html
SOURCE KLA-Tencor Corporation