KLA-Tencor Earnings Cheat Sheet: Sales Sky High 74.4% Year Over Year

S&P 500 (NYSE:SPY) component KLA-Tencor Corporation (NASDAQ:KLAC) reported higher profit for the third quarter as revenue showed growth. KLA-Tencor Corporation 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 (IC) defect monitoring.

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KLA-Tencor Earnings Cheat Sheet for the Third Quarter

Results: Net income for KLA-Tencor Corporation rose to $209.8 million ($1.22/share) vs. $57 million (33 cents/share) in the same quarter a year earlier. A more than threefold rise from the year earlier quarter.

Revenue: Rose 74.4% to $834.1 million YoY.

Actual vs. Wall St. Expectations: KLAC‘s adjusted earnings of $1.31 per share beat the mean analyst estimate of $1.24/share, which typically exclude special charges. Estimates ranged from $1.16 per share to $1.35 per share.

Quoting Management: “KLA-Tencor’s solid third quarter financial results reflect the strong demand environment and our ability to deliver innovative solutions that enable our customers to meet their critical yield challenges,” commented Rick Wallace, KLA-Tencor’s president and CEO. “We’re continuing our focus on delivering strong financial performance by leveraging our market and technology leadership.”

Key Stats: The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 80.1%, with the biggest boost coming in the first quarter when revenue rose 99.1% from the year earlier quarter.

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 4.3 percentage points to 60.7% from the year earlier quarter. Over that span, margins have grown on average 14.5 percentage points per quarter on a year-over-year basis.

Competitors to Watch: Rudolph Technologies, Inc. (NASDAQ:RTEC), Nanometrics Incorporated (NASDAQ:NANO), Nova Measuring Instruments Ltd. (NASDAQ:NVMI), Applied Materials, Inc. (NASDAQ:AMAT), Intel (NASDAQ:INTC), 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).

Today’s Performance: Shares of KLAC are trading at $43.60 as of April 28, 2011 at 5:56 PM ET, up .55% from the previous closing price of $44.07.


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