KLA-Tencor Corp Earnings Cheat Sheet: Profits Climb By Double Figures Again

S&P 500 (NYSE:SPY) component KLA-Tencor Corporation (NASDAQ:KLAC) reported its results for the first quarter. KLA-Tencor is a company that designs, manufactures, and markets process control and yield management solutions for the semiconductor and related nanoelectronics industries. Its primary offerings include wafer and integrated circuit defect monitoring.

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KLA-Tencor Earnings Cheat Sheet for the First Quarter

Results: Net income for the semiconductor company rose to $192 million ($1.13 per share) vs. $154.2 million (91 cents per share) in the same quarter a year earlier. This marks a rise of 24.5% from the year earlier quarter.

Revenue: Rose 16.7% to $796 million from the year earlier quarter.

Actual vs. Wall St. Expectations: KLAC reported adjusted net income of $1.17 per share. By that measure, the company fell in line with the mean estimate of $1.17 per share. Analysts were expecting revenue of $791.9 million.

Quoting Management: “KLA-Tencor’s market leadership and strong business model enabled us to deliver solid financial results in the first quarter of fiscal year 2012, despite a challenging global economic and industry environment,” commented Rick Wallace, president and chief executive officer of KLA-Tencor. “Though some of our customers are delaying capacity expansion plans today as they assess current macroeconomic and industry conditions, we are well-positioned to benefit from the investments that our customers are continuing to make in driving their advanced technology roadmaps.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 64.7%, with the biggest boost coming in the first quarter of the last fiscal year when revenue rose 99.1% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose more than twofold and in the third quarter of the last fiscal year, the figure rose more than threefold.

Gross margin shrank 4.1 percentage points to 57.2%. The contraction appeared to be driven by increased costs, which rose 28.9% from the year earlier quarter while revenue rose 16.7%.

The company fell in line with estimates last quarter after topping expectations in the previous two quarters. In the fourth quarter of the last fiscal year, it topped the mark by 14 cents, and in the third quarter of the last fiscal year, it was ahead by 7 cents.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 99 cents a share to 94 cents over the last ninety days. For the fiscal year, the average estimate has moved down from $4.23 a share to $3.93 over the last ninety days.

Competitors to Watch: Rudolph Technologies, Inc. (NASDAQ:RTEC), Nanometrics Incorporated (NASDAQ:NANO), Nova Measuring Instruments Ltd. (NASDAQ:NVMI), Applied Materials, Inc. (NASDAQ:AMAT), Zygo Corporation (NASDAQ:ZIGO), Camtek LTD. (NASDAQ:CAMT), CyberOptics Corporation (NASDAQ:CYBE), Lam Research Corporation (NASDAQ:LRCX), LTX-Credence Corporation (NASDAQ:LTXC), and Cohu, Inc. (NASDAQ:COHU).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)

 

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