KLATencor Corp. (KLAC) filed Quarterly Report for the period ended 2009-09-30.
KLA-Tencor Corporation is one of the world's leading suppliers of process control and yield management solutions for the semiconductor and related microelectronics industries. Its comprehensive portfolio of products software analysis services and expertise is designed to help integrated circuit manufacturers manage yield throughout the entire wafer fabrication process. Klatencor Corp. has a market cap of $5.85 billion; its shares were traded at around $34.28 with and P/S ratio of 3.8. The dividend yield of Klatencor Corp. stocks is 1.7%. Klatencor Corp. had an annual average earning growth of 16.4% over the past 10 years.
Highlight of Business Operations:
System revenues recognized without a written acceptance from the customer were approximately 17%, 17% and 14% of total revenues for the three months ended September 30, 2009, June 30, 2009 and September 30, 2008, respectively. Shipping charges billed to customers are included in system revenues, and the related shipping costs are included in costs of revenues.
Product revenues increased by 30% during the three months ended September 30, 2009 from the three months ended June 30, 2009 as our customers accelerated their capital spending due to improved factory utilization and demand for their products, as well as increased demand from our customers for inspection and measurement equipment to support their advanced technology development programs. These factors contributed to an increase in the number of tools that we sold within each of our major product lines, as evidenced by the fact that, from the three months ended June 30, 2009 to the three months ended September 30, 2009, revenues from sales of defect inspection equipment increased by 30% while metrology equipment sales revenue increased by 13%.
Product revenues decreased by 43% during the three months ended September 30, 2009 from the three months ended September 30, 2008 as a result of a reduction in capital spending by our customers due to the weakness in the semiconductor industry and a deteriorating macroeconomic environment. These factors contributed to a significant decline in the number of tools that we sold within each of our major product lines, as evidenced by the fact that, from the three months ended September 30, 2008 to the three months ended September 30, 2009, revenues from sales of defect inspection equipment declined by 43% while metrology equipment sales revenues fell by 47%. The decrease in the quantity of tools sold that we experienced during the three months ended September 30, 2009, as compared to the three months ended September 30, 2008, was a function of a number of converging factors in our industry and in the macroeconomic environment. These factors included customers delaying capital investments (including purchases and installations of our products) and otherwise reducing capital spending in an effort to conserve cash in response to their business environment, even as their need for more precise diagnostics capabilities increases with technological advances, as well as customers having reduced access to the capital necessary to fund investments in new equipment due to the weak macroeconomic and credit environments during three months ended September 30, 2009. Our product revenues may continue to be adversely affected by various factors, such as global economic conditions.
KLAC is in the portfolios of PRIMECAP Management, Kenneth Fisher of Fisher Asset Management, LLC.
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