KLA Corporation Reports Fiscal 2025 First Quarter Results
KLA (KLAC) reported strong fiscal 2025 first quarter results with revenues of $2.84 billion, exceeding guidance expectations. The company achieved GAAP net income of $945.9 million and GAAP EPS of $7.01. Operating cash flow reached $995.2 million, with free cash flow of $934.8 million. The company returned $765.5 million to shareholders during the quarter. Looking ahead, KLA provided Q2 FY2025 guidance with expected revenues of $2.95 billion ±$150 million and non-GAAP EPS guidance of $7.75 ±$0.60.
KLA (KLAC) ha riportato risultati finanziari solidi per il primo trimestre dell'anno fiscale 2025, con ricavi di $2,84 miliardi, superando le aspettative. L'azienda ha conseguito un reddito netto GAAP di $945,9 milioni e un utile per azione GAAP di $7,01. Il flusso di cassa operativo ha raggiunto i $995,2 milioni, con un flusso di cassa libero di $934,8 milioni. Durante il trimestre, l'azienda ha restituito $765,5 milioni agli azionisti. Guardando al futuro, KLA ha fornito indicazioni per il secondo trimestre dell'anno fiscale 2025, prevedendo ricavi di $2,95 miliardi ±$150 milioni e una guida per l'utile per azione non-GAAP di $7,75 ±$0,60.
KLA (KLAC) reportó resultados financieros sólidos para el primer trimestre del año fiscal 2025, con ingresos de $2.84 mil millones, superando las expectativas. La compañía logró un ingreso neto GAAP de $945.9 millones y una utilidad por acción GAAP de $7.01. El flujo de caja operativo alcanzó los $995.2 millones, con un flujo de caja libre de $934.8 millones. Durante el trimestre, la compañía devolvió $765.5 millones a los accionistas. De cara al futuro, KLA proporcionó orientación para el segundo trimestre del año fiscal 2025, esperando ingresos de $2.95 mil millones ±$150 millones y una guía de utilidad por acción no-GAAP de $7.75 ±$0.60.
KLA (KLAC)는 2025 회계연도 1분기에 28억 4천만 달러의 매출을 기록하며 가이던스 기대치를 초과하는 강력한 재무 실적을 보고했습니다. 회사는 GAAP 기준 순이익 9억 4천 5백 90만 달러와 GAAP 기준 주당순이익 7.01 달러를 달성했습니다. 운영 현금 흐름은 9억 9천 5백 20만 달러에 달하며, 자유 현금 흐름은 9억 3천 4백 80만 달러에 이릅니다. 회사는 분기 동안 주주에게 7억 6천 5백 50만 달러를 반환했습니다. 앞으로 KLA는 2025 회계연도 2분기 가이던스를 제공하며, 예상 매출을 29억 5천만 달러 ±1억 5천만 달러, 비GAAP 기준 주당순이익 가이던스를 7.75 달러 ±0.60 달러로 제시했습니다.
KLA (KLAC) a rapporté de solides résultats financiers pour le premier trimestre de l'exercice 2025, avec des revenus de 2,84 milliards de dollars, dépassant les attentes. L'entreprise a réalisé un bénéfice net GAAP de 945,9 millions de dollars et un BPA GAAP de 7,01 dollars. Les flux de trésorerie d'exploitation ont atteint 995,2 millions de dollars, avec un flux de trésorerie libre de 934,8 millions de dollars. Au cours du trimestre, l'entreprise a retourné 765,5 millions de dollars aux actionnaires. En perspective, KLA a fourni des prévisions pour le 2e trimestre de l'exercice 2025, avec des revenus attendus de 2,95 milliards de dollars ± 150 millions de dollars et une prévision de BPA non-GAAP de 7,75 dollars ± 0,60 dollar.
KLA (KLAC) berichtete über starke Ergebnisse für das erste Quartal des Geschäftsjahres 2025 mit Einnahmen von 2,84 Milliarden Dollar, die die Erwartungen übertrafen. Das Unternehmen erzielte einen GAAP-Nettoeinkommen von 945,9 Millionen Dollar und einen GAAP-EPS von 7,01 Dollar. Der operative Cashflow erreichte 995,2 Millionen Dollar, während der freie Cashflow 934,8 Millionen Dollar betrug. Das Unternehmen gab im Quartal 765,5 Millionen Dollar an die Aktionäre zurück. Ausblickend gab KLA eine Prognose für das 2. Quartal des Geschäftsjahres 2025 ab, mit erwarteten Einnahmen von 2,95 Milliarden Dollar ± 150 Millionen Dollar und einer Prognose für den Non-GAAP-EPS von 7,75 Dollar ± 0,60 Dollar.
- Revenue increased 18.6% YoY to $2.84 billion
- GAAP net income grew 27.7% YoY to $946 million
- Strong cash flow from operations at $995.2 million
- Significant shareholder returns of $765.5 million in Q1
- Q2 FY2025 guidance projects further revenue growth to $2.95 billion
- Some customers facing near-term challenges
Insights
KLA delivered impressive Q1 FY2025 results with
Forward guidance suggests continued momentum with Q2 revenue projected at
Despite industry headwinds and customer challenges, KLA's sequential growth trajectory and optimistic outlook for late 2024 and 2025 signal resilience in the semiconductor equipment sector. The company's leadership in process control and inspection tools makes it a key beneficiary of AI-driven semiconductor investments.
The
- Total revenues were
, above the midpoint of the guidance range of$2.84 billion +/-$2.75 billion ;$150 million - GAAP diluted EPS was
and non-GAAP diluted EPS was$7.01 , both of which were near the upper end of the respective guidance ranges;$7.33 - Cash flow from operating activities for the quarter and last twelve months were
and$995.2 million , respectively, and free cash flow was$3.42 billion and$934.8 million , respectively; and$3.15 billion - Capital returns for the quarter and last twelve months were
and$765.5 million , respectively.$2.64 billion
"KLA's September quarter results demonstrate continued outperformance with results above expectations and consistent with our expectation of sequential quarterly growth in revenue over the course of the current calendar year," said Rick Wallace, president and CEO, KLA Corporation. "While some customers are facing near-term challenges, we are optimistic about continued semiconductor market growth in the fourth calendar quarter of 2024 and into calendar 2025. KLA's industry-leading portfolio combined with disciplined operational execution positions the company well to support customer investments, particularly in leading-edge AI and high-performance computing applications."
GAAP Results | |||
Q1 FY 2025 | Q4 FY 2024 | Q1 FY 2024 | |
Total Revenues | |||
Net Income | |||
Net Income per Diluted Share | |||
Non-GAAP Results | |||
Q1 FY 2025 | Q4 FY 2024 | Q1 FY 2024 | |
Net Income | |||
Net Income per Diluted Share |
A reconciliation between GAAP operating results and non-GAAP operating results is provided following the financial statements included in this release. KLA will discuss the results for its fiscal year 2025 first quarter, along with its outlook, on a conference call today beginning at 2 p.m. P.T. A webcast of the call will be available at: www.kla.com.
Second Quarter Fiscal 2025 Guidance
The following details our guidance for the second quarter of fiscal 2025 ending in Dec.:
- Total revenues is expected to be in a range of
+/-$2.95 billion $150 million - GAAP gross margin is expected to be in a range of
60.0% +/-1.0% - Non-GAAP gross margin is expected to be in a range of
61.5% +/-1.0% - GAAP diluted EPS is expected to be in a range of
+/-$7.45 $0.60 - Non-GAAP diluted EPS is expected to be in a range of
+/-$7.75 $0.60
For additional details and assumptions underlying our guidance metrics, please see the company's published Letter to Shareholders, Earnings Slide Presentation and Earnings Infographic on the KLA investor relations website. Such Letter to Shareholders, Earnings Slide Presentation and Earnings Infographic are not incorporated by reference into this earnings release.
About KLA:
KLA Corporation ("KLA") develops industry-leading equipment and services that enable innovation throughout the electronics industry. We provide advanced process control and process-enabling solutions for manufacturing wafers and reticles, integrated circuits, packaging and printed circuit boards. In close collaboration with leading customers across the globe, our expert teams of physicists, engineers, data scientists and problem-solvers design solutions that move the world forward. Investors and others should note that KLA announces material financial information including SEC filings, press releases, public earnings calls and conference webcasts using an investor relations website (ir.kla.com). Additional information may be found at: www.kla.com.
Note Regarding Forward-Looking Statements:
Statements in this press release other than historical facts, such as statements pertaining to total revenues, GAAP and non-GAAP gross margin and GAAP and non-GAAP diluted EPS for the quarter ending Dec. 31, 2024, 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: our vulnerability to a weakening in the condition of the financial markets and the global economy; risks related to our international operations; evolving Bureau of Industry and Security of the
KLA Corporation | |||
Condensed Consolidated Unaudited Balance Sheets | |||
(In thousands) | Sept. 30, 2024 | June 30, 2024 | |
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 1,977,202 | $ 1,977,129 | |
Marketable securities | 2,652,514 | 2,526,866 | |
Accounts receivable, net | 1,953,156 | 1,833,041 | |
Inventories | 3,109,837 | 3,034,781 | |
Other current assets | 535,730 | 659,327 | |
Total current assets | 10,228,439 | 10,031,144 | |
Land, property and equipment, net | 1,118,312 | 1,109,968 | |
Goodwill, net | 2,015,721 | 2,015,726 | |
Deferred income taxes | 981,591 | 915,241 | |
Purchased intangible assets, net | 612,011 | 668,764 | |
Other non-current assets | 725,663 | 692,723 | |
Total assets | $ 15,681,737 | $ 15,433,566 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 376,505 | $ 359,487 | |
Deferred system revenue | 877,207 | 985,856 | |
Deferred service revenue | 512,470 | 501,926 | |
Current portion of long-term debt | 749,984 | 749,936 | |
Other current liabilities | 2,282,048 | 2,063,569 | |
Total current liabilities | 4,798,214 | 4,660,774 | |
Long-term debt | 5,881,372 | 5,880,199 | |
Deferred tax liabilities | 471,575 | 486,690 | |
Deferred service revenue | 319,794 | 294,460 | |
Other non-current liabilities | 651,068 | 743,115 | |
Total liabilities | 12,122,023 | 12,065,238 | |
Stockholders' equity: | |||
Common stock and capital in excess of par value | 2,257,052 | 2,280,133 | |
Retained earnings | 1,328,166 | 1,137,270 | |
Accumulated other comprehensive loss | (25,504) | (49,075) | |
Total stockholders' equity | 3,559,714 | 3,368,328 | |
Total liabilities and stockholders' equity | $ 15,681,737 | $ 15,433,566 |
KLA Corporation | |||
Condensed Consolidated Unaudited Statements of Operations | |||
Three Months Ended Sept. 30, | |||
(In thousands, except per share amounts) | 2024 | 2023 | |
Revenues: | |||
Product | $ 2,197,389 | $ 1,836,664 | |
Service | 644,152 | 560,292 | |
Total revenues | 2,841,541 | 2,396,956 | |
Costs and expenses: | |||
Costs of revenues | 1,147,431 | 946,891 | |
Research and development | 323,145 | 311,214 | |
Selling, general and administrative | 251,042 | 239,645 | |
Interest expense | 82,171 | 74,234 | |
Other expense (income), net | (40,935) | (26,739) | |
Income before income taxes | 1,078,687 | 851,711 | |
Provision for income taxes | 132,836 | 110,336 | |
Net income | $ 945,851 | $ 741,375 | |
Net income per share | |||
Basic | $ 7.05 | $ 5.43 | |
Diluted | $ 7.01 | $ 5.41 | |
Weighted-average number of shares: | |||
Basic | 134,134 | 136,412 | |
Diluted | 134,858 | 137,104 |
KLA Corporation | |||
Condensed Consolidated Unaudited Statements of Cash Flows | |||
Three Months Ended Sept. 30, | |||
(In thousands) | 2024 | 2023 | |
Cash flows from operating activities: | |||
Net income | $ 945,851 | $ 741,375 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 95,823 | 102,403 | |
Unrealized foreign exchange loss and other | 7,718 | 9,970 | |
Stock-based compensation expense | 61,700 | 48,772 | |
Deferred income taxes | (81,682) | (71,322) | |
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions: | |||
Accounts receivable | (91,660) | 107,018 | |
Inventories | (59,326) | (138,419) | |
Other assets | 152,641 | (7,520) | |
Accounts payable | (12,463) | 8,345 | |
Deferred system revenue | (108,648) | 14,057 | |
Deferred service revenue | 35,863 | 5,901 | |
Other liabilities | 49,421 | 63,160 | |
Net cash provided by operating activities | 995,238 | 883,740 | |
Cash flows from investing activities: | |||
Capital expenditures | (60,393) | (68,045) | |
Purchases of available-for-sale securities | (837,935) | (530,842) | |
Proceeds from sale of available-for-sale securities | 55,322 | 7,983 | |
Proceeds from maturity of available-for-sale securities | 671,925 | 201,149 | |
Purchases of trading securities | (17,581) | (49,958) | |
Proceeds from sale of trading securities | 17,623 | 48,042 | |
Net cash used in investing activities | (171,039) | (391,671) | |
Cash flows from financing activities: | |||
Common stock repurchases | (567,383) | (455,412) | |
Payment of dividends to stockholders | (198,079) | (181,507) | |
Tax withholding payments related to vested and released restricted stock units | (72,246) | (68,237) | |
Net cash used in financing activities | (837,708) | (705,156) | |
Effect of exchange rate changes on cash and cash equivalents | 13,582 | (3,208) | |
Net increase (decrease) in cash and cash equivalents | 73 | (216,295) | |
Cash and cash equivalents at beginning of period | 1,977,129 | 1,927,865 | |
Cash and cash equivalents at end of period | $ 1,977,202 | $ 1,711,570 | |
Supplemental cash flow disclosures: | |||
Income taxes paid, net | $ 96,395 | $ 99,388 | |
Interest paid | $ 131,126 | $ 113,236 | |
Non-cash activities: | |||
Contingent consideration payable - financing activities | $ — | $ (920) | |
Dividends payable - financing activities | $ 2,009 | $ 1,853 | |
Unsettled common stock repurchase - financing activities | $ 5,499 | $ 11,000 | |
Accrued purchase of land, property and equipment - investing activities | $ 13,849 | $ 22,729 |
KLA Corporation | |||
The following is a summary of results for each of our three reportable segments and reconciliations to total revenues for the indicated periods: | |||
Three Months Ended Sept. 30, | |||
(In thousands) | 2024 | 2023 | |
Revenues: | |||
Semiconductor Process Control | $ 2,575,151 | $ 2,135,478 | |
Specialty Semiconductor Process | 128,334 | 126,719 | |
PCB and Component Inspection | 137,983 | 136,043 | |
Total revenues for reportable segments | 2,841,468 | 2,398,240 | |
Corporate allocations and effects of changes in foreign currency exchange rates | 73 | (1,284) | |
Total revenues | $ 2,841,541 | $ 2,396,956 |
KLA Corporation | |||||||
Three Months Ended | |||||||
(In thousands, except per share amounts) | Sept. 30, | June 30, | Sept. 30, | ||||
GAAP net income | $ 945,851 | $ 836,446 | $ 741,375 | ||||
Adjustments to reconcile GAAP net income to non-GAAP net income: | |||||||
Acquisition-related charges | a | 56,694 | 58,777 | 63,244 | |||
Restructuring, severance and other charges | b | 2,862 | 17,721 | — | |||
Income tax effect of non-GAAP adjustments | c | (19,486) | (23,227) | (20,399) | |||
Discrete tax items | d | 2,233 | 3,092 | 2,255 | |||
Non-GAAP net income | $ 988,154 | $ 892,809 | $ 786,475 | ||||
GAAP net income per diluted share | $ 7.01 | $ 6.18 | $ 5.41 | ||||
Non-GAAP net income per diluted share | $ 7.33 | $ 6.60 | $ 5.74 | ||||
Shares used in diluted net income per share calculation | 134,858 | 135,342 | 137,104 |
Pre-tax Impact of GAAP to Non-GAAP Adjustments Included in Condensed Consolidated Unaudited Statements of Operations | |||||
(In thousands) | Acquisition - | Restructuring, | Total Pre-tax GAAP | ||
Three Months Ended Sept. 30, 2024 | |||||
Costs of revenues | $ 44,090 | $ 901 | $ 44,991 | ||
Research and development | — | 1,087 | 1,087 | ||
Selling, general and administrative | 12,604 | 874 | 13,478 | ||
Total in three months ended Sept. 30, 2024 | $ 56,694 | $ 2,862 | $ 59,556 | ||
Three Months Ended June 30, 2024 | |||||
Costs of revenues | $ 45,937 | $ 2,240 | $ 48,177 | ||
Research and development | — | 2,230 | 2,230 | ||
Selling, general and administrative | 12,840 | 13,251 | 26,091 | ||
Total in three months ended June 30, 2024 | $ 58,777 | $ 17,721 | $ 76,498 | ||
Three Months Ended Sept. 30, 2023 | |||||
Costs of revenues | $ 46,078 | $ — | $ 46,078 | ||
Selling, general and administrative | 17,166 | — | 17,166 | ||
Total in three months ended Sept. 30, 2023 | $ 63,244 | $ — | $ 63,244 |
Free Cash Flow Reconciliation | |||||||
Three Months Ended Sept. 30, | Twelve Months Ended Sept. 30, | ||||||
(In thousands) | 2024 | 2023 | 2024 | 2023 | |||
Net cash provided by operating activities | $ 995,238 | $ 883,740 | $ 3,420,073 | $ 3,542,000 | |||
Capital expenditures | (60,393) | (68,045) | (269,732) | (325,284) | |||
Free cash flow | $ 934,845 | $ 815,695 | $ 3,150,341 | $ 3,216,716 |
Capital Returns Calculation | |||||||
Three Months Ended Sept. 30, | Twelve Months Ended Sept. 30, | ||||||
(In thousands) | 2024 | 2023 | 2024 | 2023 | |||
Payments of dividends to stockholders | $ 198,079 | $ 181,507 | $ 789,613 | $ 726,079 | |||
Common stock repurchases | 567,383 | 455,412 | 1,847,717 | 1,677,430 | |||
Capital returns | $ 765,462 | $ 636,919 | $ 2,637,330 | $ 2,403,509 |
Second Quarter Fiscal 2025 Guidance | ||||
Three Months Ending Dec. 31, 2024 | ||||
(In millions, except per share amounts) | Low | High | ||
GAAP net income per diluted share | ||||
Acquisition-related charges | a | 0.42 | 0.42 | |
Restructuring, severance and other charges | b | 0.02 | 0.02 | |
Income tax effect of non-GAAP adjustments | c | (0.14) | (0.14) | |
Non-GAAP net income per diluted share | ||||
Shares used in net income per diluted share calculation | 134.1 | 134.1 |
Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin | ||||
Three Months Ending Dec. 31, 2024 | ||||
Low | High | |||
GAAP gross margin | 59.0 % | 61.0 % | ||
Acquisition-related charges | a | 1.5 % | 1.5 % | |
Non-GAAP gross margin | 60.5 % | 62.5 % |
The non-GAAP and supplemental information provided in this press release is a supplement to, and not a substitute for, KLA's financial results presented in accordance with United States GAAP.
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 gains, 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, including non-GAAP net income, non-GAAP net income per diluted share, non-GAAP gross margin and free cash flow, 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 to help investors compare our operating performances with our results in prior periods as well as with the performance of other companies. 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 are inherently subject to significant discretion (for example, determining which costs and expenses to exclude when calculating such a metric). 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. The following are descriptions of the adjustments made to reconcile GAAP net income to non-GAAP net income:
a. | Acquisition-related charges primarily include amortization of intangible assets, transaction costs associated with our acquisitions and dispositions, as well as intangible asset impairment charges. Although we exclude the effect of amortization of all acquired intangible assets from these non-GAAP financial measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase price accounting arising from acquisitions, and such amortization of intangible assets related to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Investors should note that the use of these intangible assets contributed to our revenues earned during the periods presented and are expected to contribute to our future period revenues as well. |
b. | Restructuring, severance and other charges primarily include costs associated with employee severance and, in the three months ended June 30, 2024, writedowns of certain right of use assets and fixed assets that were abandoned. |
c. | Income tax effect of non-GAAP adjustments includes the income tax effects of the excluded items noted above. |
d. | Discrete tax items in the three months ended June 30, 2024 included a tax impact resulting from changes made to our international structure to better align ownership of certain intellectual property rights with how our business operates. Discrete tax items in all periods presented included a tax impact relating to the amortization of the aforementioned tax item or similar tax items recorded in other periods. |
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SOURCE KLA Corporation
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