KLA Corporation Reports Fiscal 2025 Second Quarter Results
KLA (KLAC) reported strong fiscal Q2 2025 results with total revenues of $3.08 billion, reaching the upper end of guidance. The company achieved GAAP diluted EPS of $6.16 and non-GAAP diluted EPS of $8.20. Notable financial metrics include operating cash flow of $849.5 million for the quarter and $3.65 billion for the last twelve months.
The quarter saw capital returns of $876.9 million, while GAAP net income reached $824.5 million. However, results were impacted by a $239.1 million impairment charge for goodwill and purchased intangible assets. Looking ahead, KLA provided Q3 FY2025 guidance with expected revenues of $3.0 billion ±$150 million and non-GAAP diluted EPS of $8.05 ±$0.60.
The company highlighted strong growth momentum in leading-edge technology, driven by AI and high-performance computing investments, despite navigating through new U.S. government export controls.
KLA (KLAC) ha riportato risultati fiscali solidi per il secondo trimestre del 2025, con ricavi totali di 3,08 miliardi di dollari, raggiungendo il limite superiore delle previsioni. L'azienda ha registrato un utile per azione (EPS) diluito GAAP di $6,16 e un EPS diluito non GAAP di $8,20. Tra i principali indicatori finanziari si evidenzia un flusso di cassa operativo di $849,5 milioni per il trimestre e $3,65 miliardi per gli ultimi dodici mesi.
Nel trimestre sono stati realizzati ritorni di capitale pari a $876,9 milioni, mentre l'utile netto GAAP ha raggiunto $824,5 milioni. Tuttavia, i risultati sono stati influenzati da un onere di svalutazione pari a $239,1 milioni per avviamento e attività immateriali acquisite. Guardando al futuro, KLA ha fornito indicazioni per il terzo trimestre dell'anno fiscale 2025, con ricavi attesi di $3,0 miliardi ±$150 milioni e un EPS diluito non GAAP di $8,05 ±$0,60.
L'azienda ha messo in evidenza un forte slancio di crescita nelle tecnologie all'avanguardia, sostenuto da investimenti in intelligenza artificiale e calcolo ad alte prestazioni, nonostante le nuove restrizioni alle esportazioni del governo degli Stati Uniti.
KLA (KLAC) reportó resultados fiscales sólidos para el segundo trimestre de 2025, con ingresos totales de 3,08 mil millones de dólares, alcanzando el extremo superior de la guía. La compañía logró un EPS diluido GAAP de $6.16 y un EPS diluido no GAAP de $8.20. Métricas financieras notables incluyen un flujo de caja operativo de $849.5 millones para el trimestre y $3.65 mil millones para los últimos doce meses.
Durante el trimestre se realizaron devoluciones de capital por $876.9 millones, mientras que el ingreso neto GAAP alcanzó los $824.5 millones. Sin embargo, los resultados se vieron afectados por un cargo de deterioro de $239.1 millones por buena voluntad y activos intangibles adquiridos. De cara al futuro, KLA proporcionó una guía para el tercer trimestre del año fiscal 2025 con ingresos esperados de $3.0 mil millones ±$150 millones y un EPS diluido no GAAP de $8.05 ±$0.60.
La empresa destacó un fuerte impulso de crecimiento en tecnología de vanguardia, impulsada por inversiones en IA y computación de alto rendimiento, a pesar de navegar por nuevos controles de exportación del gobierno de EE. UU.
KLA (KLAC)는 2025 회계연도 2분기 실적을 발표하며 총 수익 30억 8천만 달러로 가이던스의 상한선을 기록했습니다. 회사는 GAAP 기준으로 희석 EPS $6.16, 비 GAAP 기준으로 희석 EPS $8.20을 달성했습니다. 주요 재무 지표로는 분기 동안 운영 현금 흐름 $8억 4천 9백 50만 달러, 지난 12개월 동안 $36억 5천만 달러가 포함됩니다.
분기 동안 자본 환수는 $8억 7천 6백 90만 달러였고, GAAP 기준 순이익은 $8억 2천 4백 50만 달러에 도달했습니다. 그러나 이러한 결과는 goodwill 및 인수한 무형자산에 대한 $2억 3천 9백 10만 달러의 자산 손상 비용에 의해 영향을 받았습니다. 앞으로 KLA는 2025 회계연도 3분기에 대한 가이던스를 제공하며 예상 수익은 $30억 달러 ±$1억 5천만 달러, 비 GAAP 기준 희석 EPS는 $8.05 ±$0.60로 설정했습니다.
회사는 AI 및 고성능 컴퓨팅 투자가 주도하는 최첨단 기술에서 강력한 성장 모멘텀을 강조하였으며, 미국 정부의 새로운 수출 통제 속에서도 이를 추진하고 있습니다.
KLA (KLAC) a rapporté des résultats financiers solides pour le deuxième trimestre de 2025, avec des revenus totaux de 3,08 milliards de dollars, atteignant la limite supérieure des prévisions. L'entreprise a atteint un BPA dilué GAAP de 6,16 $ et un BPA dilué non GAAP de 8,20 $. Parmi les indicateurs financiers notables, on trouve un flux de trésorerie opérationnel de 849,5 millions de dollars pour le trimestre et de 3,65 milliards de dollars pour les douze derniers mois.
Le trimestre a vu des retours de capital de 876,9 millions de dollars, tandis que le résultat net GAAP a atteint 824,5 millions de dollars. Cependant, les résultats ont été affectés par une charge de dépréciation de 239,1 millions de dollars liée au goodwill et aux actifs incorporels acquis. En perspective, KLA a fourni des prévisions pour le troisième trimestre de l'exercice 2025 avec des revenus attendus de 3,0 milliards de dollars ±150 millions de dollars et un BPA dilué non GAAP de 8,05 $ ±0,60.
L'entreprise a souligné une forte dynamique de croissance dans les technologies de pointe, soutenue par des investissements en IA et en calcul haute performance, malgré la navigation à travers de nouveaux contrôles à l'exportation du gouvernement américain.
KLA (KLAC) hat starke Ergebnisse für das zweite Quartal 2025 berichtet, mit Gesamterlösen von 3,08 Milliarden Dollar, was das obere Ende der Prognose erreicht. Das Unternehmen erzielte ein verwässertes EPS nach GAAP von 6,16 $ und ein verwässertes EPS nach non-GAAP von 8,20 $. Zu den bemerkenswerten finanziellen Kennzahlen gehören ein operativer Cashflow von 849,5 Millionen Dollar für das Quartal und 3,65 Milliarden Dollar für die letzten zwölf Monate.
Im Quartal wurden Kapitalrückflüsse von 876,9 Millionen Dollar verzeichnet, während der GAAP-Nettogewinn 824,5 Millionen Dollar erreichte. Die Ergebnisse wurden jedoch durch eine Abwertung von 239,1 Millionen Dollar für Firmenwert und erworbene immaterielle Vermögenswerte beeinflusst. Ausblickend gab KLA eine Prognose für das dritte Quartal des Geschäftsjahres 2025 mit erwarteten Einnahmen von 3,0 Milliarden Dollar ±150 Millionen Dollar und einem verwässerten non-GAAP EPS von 8,05 $ ±0,60 bekannt.
Das Unternehmen hob ein starkes Wachstum momentum in der Spitzentechnologie hervor, das durch Investitionen in KI und leistungsstarkes Computing angetrieben wird, trotz der neuen Exportkontrollen der US-Regierung.
- Revenue increased 23.7% YoY to $3.08 billion
- Non-GAAP diluted EPS grew 33.1% YoY to $8.20
- Strong free cash flow of $757.2 million for the quarter
- Significant capital returns of $876.9 million to shareholders
- Robust guidance for Q3 FY2025 with expected revenues of $3.0 billion
- $239.1 million impairment charge for goodwill and intangible assets
- Impact of new U.S. government export controls on business operations
- Sequential decline in GAAP net income from $946M to $825M
Insights
KLA's Q2 FY2025 results reveal a company executing exceptionally well in a complex semiconductor landscape. The
Three key factors stand out: First, the robust free cash flow generation of
The
Most compelling is KLA's positioning in the AI and high-performance computing segment. The company's process control solutions are becoming increasingly critical as chip manufacturers push the boundaries of technology, particularly in advanced nodes where error margins are microscopic. This aligns perfectly with the industry's shift toward more complex semiconductor devices and increasing design starts.
- Total revenues were
, at the upper end of the guidance range of$3.08 billion +/-$2.95 billion ;$150 million - GAAP diluted EPS was
. Non-GAAP diluted EPS was$6.16 , near the upper end of the guidance range. GAAP EPS was impacted by a$8.20 impairment charge for goodwill and purchased intangible assets, or$239.1 million per diluted share.$1.76 - Cash flow from operating activities for the quarter and last twelve months were
and$849.5 million , respectively, and free cash flow was$3.65 billion and$757.2 million , respectively; and$3.36 billion - Capital returns for the quarter and last twelve months were
and$876.9 million , respectively.$2.88 billion
"KLA's December quarter results were above the midpoint of our guidance ranges despite navigating through the business impact of new
GAAP Results | |||
Q2 FY 2025 | Q1 FY 2025 | Q2 FY 2024 | |
Total Revenues | |||
Net Income | |||
Net Income per Diluted Share | |||
Non-GAAP Results | |||
Q2 FY 2025 | Q1 FY 2025 | Q2 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 second quarter, along with its outlook, on a conference call today beginning at 3 p.m. P.T. A webcast of the call will be available at: www.kla.com.
Third Quarter Fiscal 2025 Guidance
The following details our guidance for the third quarter of fiscal 2025 ending in March:
- Total revenues is expected to be in a range of
+/-$3.0 billion $150 million - GAAP gross margin is expected to be in a range of
60.6% +/-1.0% - Non-GAAP gross margin is expected to be in a range of
62.0% +/-1.0% - GAAP diluted EPS is expected to be in a range of
+/-$7.77 $0.60 - Non-GAAP diluted EPS is expected to be in a range of
+/-$8.05 $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 March 31, 2025, 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) | Dec. 31, 2024 | June 30, 2024 | |
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 1,838,278 | $ 1,977,129 | |
Marketable securities | 1,942,127 | 2,526,866 | |
Accounts receivable, net | 2,334,977 | 1,833,041 | |
Inventories | 3,046,340 | 3,034,781 | |
Other current assets | 610,882 | 659,327 | |
Total current assets | 9,772,604 | 10,031,144 | |
Land, property and equipment, net | 1,173,928 | 1,109,968 | |
Goodwill, net | 1,785,297 | 2,015,726 | |
Deferred income taxes | 1,002,169 | 915,241 | |
Purchased intangible assets, net | 548,645 | 668,764 | |
Other non-current assets | 719,053 | 692,723 | |
Total assets | $ 15,001,696 | $ 15,433,566 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 432,891 | $ 359,487 | |
Deferred system revenue | 1,072,565 | 985,856 | |
Deferred service revenue | 521,424 | 501,926 | |
Current portion of long-term debt | — | 749,936 | |
Other current liabilities | 2,111,378 | 2,063,569 | |
Total current liabilities | 4,138,258 | 4,660,774 | |
Long-term debt | 5,882,387 | 5,880,199 | |
Deferred tax liabilities | 423,626 | 486,690 | |
Deferred service revenue | 333,758 | 294,460 | |
Other non-current liabilities | 639,118 | 743,115 | |
Total liabilities | 11,417,147 | 12,065,238 | |
Stockholders' equity: | |||
Common stock and capital in excess of par value | 2,346,346 | 2,280,133 | |
Retained earnings | 1,284,589 | 1,137,270 | |
Accumulated other comprehensive loss | (46,386) | (49,075) | |
Total stockholders' equity | 3,584,549 | 3,368,328 | |
Total liabilities and stockholders' equity | $ 15,001,696 | $ 15,433,566 |
KLA Corporation | |||||||
Condensed Consolidated Unaudited Statements of Operations | |||||||
Three Months Ended Dec. 31, | Six Months Ended Dec. 31, | ||||||
(In thousands, except per share amounts) | 2024 | 2023 | 2024 | 2023 | |||
Revenues: | |||||||
Product | $ 2,409,462 | $ 1,921,809 | $ 4,606,851 | $ 3,758,473 | |||
Service | 667,389 | 564,917 | 1,311,541 | 1,125,209 | |||
Total revenues | 3,076,851 | 2,486,726 | 5,918,392 | 4,883,682 | |||
Costs and expenses: | |||||||
Costs of revenues | 1,221,461 | 976,746 | 2,368,892 | 1,923,637 | |||
Research and development | 346,157 | 320,418 | 669,302 | 631,632 | |||
Selling, general and administrative | 267,081 | 237,244 | 518,123 | 476,889 | |||
Impairment of goodwill and purchased intangible assets | 239,100 | 219,000 | 239,100 | 219,000 | |||
Interest expense | 74,981 | 74,202 | 157,152 | 148,436 | |||
Other expense (income), net | (44,458) | (32,154) | (85,393) | (58,893) | |||
Income before income taxes | 972,529 | 691,270 | 2,051,216 | 1,542,981 | |||
Provision for income taxes | 148,002 | 108,736 | 280,838 | 219,072 | |||
Net income | $ 824,527 | $ 582,534 | $ 1,770,378 | $ 1,323,909 | |||
Net income per share | |||||||
Basic | $ 6.18 | $ 4.30 | $ 13.24 | $ 9.74 | |||
Diluted | $ 6.16 | $ 4.28 | $ 13.17 | $ 9.69 | |||
Weighted-average number of shares: | |||||||
Basic | 133,327 | 135,539 | 133,730 | 135,976 | |||
Diluted | 133,926 | 136,254 | 134,415 | 136,684 |
KLA Corporation | |||
Condensed Consolidated Unaudited Statements of Cash Flows | |||
Three Months Ended Dec. 31, | |||
(In thousands) | 2024 | 2023 | |
Cash flows from operating activities: | |||
Net income | $ 824,527 | $ 582,534 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Impairment of goodwill and purchased intangible assets | 239,100 | 219,000 | |
Depreciation and amortization | 103,922 | 99,063 | |
Unrealized foreign exchange (gain) loss and other | 11,346 | (34,346) | |
Stock-based compensation expense | 61,841 | 48,620 | |
Deferred income taxes | (68,976) | (65,158) | |
Net gain on sale of assets | (161) | — | |
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions: | |||
Accounts receivable | (394,604) | (160,265) | |
Inventories | 64,958 | (21,189) | |
Other assets | (90,845) | (104,872) | |
Accounts payable | 67,080 | 2,692 | |
Deferred system revenue | 195,357 | 218,250 | |
Deferred service revenue | 22,927 | 68,821 | |
Other liabilities | (186,957) | (230,908) | |
Net cash provided by operating activities | 849,515 | 622,242 | |
Cash flows from investing activities: | |||
Proceeds from sale of assets | 161 | 5,079 | |
Capital expenditures | (92,323) | (76,801) | |
Purchases of available-for-sale securities | (489,033) | (451,800) | |
Proceeds from sale of available-for-sale securities | 183,097 | 7,252 | |
Proceeds from maturity of available-for-sale securities | 1,010,660 | 427,128 | |
Purchases of trading securities | (17,276) | (16,049) | |
Proceeds from sale of trading securities | 18,420 | 16,715 | |
Net cash provided by (used in) investing activities | 613,706 | (88,476) | |
Cash flows from financing activities: | |||
Repayment of debt | (750,000) | — | |
Common stock repurchases | (650,121) | (437,817) | |
Payment of dividends to stockholders | (226,776) | (196,859) | |
Issuance of common stock | 47,538 | 48,433 | |
Tax withholding payments related to vested and released restricted stock units | (3,608) | (3,005) | |
Contingent consideration payable and other, net | — | (1,676) | |
Net cash used in financing activities | (1,582,967) | (590,924) | |
Effect of exchange rate changes on cash and cash equivalents | (19,178) | 10,642 | |
Net decrease in cash and cash equivalents | (138,924) | (46,516) | |
Cash and cash equivalents at beginning of period | 1,977,202 | 1,711,570 | |
Cash and cash equivalents at end of period | $ 1,838,278 | $ 1,665,054 | |
Supplemental cash flow disclosures: | |||
Income taxes paid, net | $ 361,833 | $ 506,046 | |
Interest paid | $ 25,059 | $ 24,818 | |
Non-cash activities: | |||
Contingent consideration payable - financing activities | $ — | $ 155 | |
Dividends payable - financing activities | $ 2,104 | $ 2,132 | |
Unsettled common stock repurchase - financing activities | $ 5,500 | $ 10,999 | |
Accrued purchase of land, property and equipment - investing activities | $ 11,354 | $ 18,312 |
KLA Corporation |
Segment Information (Unaudited) |
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 Dec. 31, | Six Months Ended Dec. 31, | ||||||
(In thousands) | 2024 | 2023 | 2024 | 2023 | |||
Revenues: | |||||||
Semiconductor Process Control | $ 2,755,743 | $ 2,194,079 | $ 5,330,894 | $ 4,329,557 | |||
Specialty Semiconductor Process | 160,407 | 150,065 | 288,741 | 276,784 | |||
PCB and Component Inspection | 161,080 | 143,032 | 299,063 | 279,075 | |||
Total revenues for reportable segments | 3,077,230 | 2,487,176 | 5,918,698 | 4,885,416 | |||
Corporate allocations and effects of changes in foreign currency exchange rates | (379) | (450) | (306) | (1,734) | |||
Total revenues | $ 3,076,851 | $ 2,486,726 | $ 5,918,392 | $ 4,883,682 |
KLA Corporation Condensed Consolidated Unaudited Supplemental Information Reconciliation of GAAP Net Income to Non-GAAP Net Income | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||
(In thousands, except per share amounts) | Dec. 31, | Sept. 30, | Dec. 31, | Dec. 31, | Dec. 31, | ||||||
GAAP net income | $ 824,527 | $ 945,851 | $ 582,534 | $ 1,770,378 | $ 1,323,909 | ||||||
Adjustments to reconcile GAAP net income to non-GAAP net income: | |||||||||||
Acquisition-related charges | a | 58,656 | 56,694 | 59,307 | 115,350 | 122,551 | |||||
Restructuring, severance and other charges | b | 2,133 | 2,862 | 1,270 | 4,995 | 1,270 | |||||
Impairment of goodwill and purchased intangible assets | c | 239,100 | — | 219,000 | 239,100 | 219,000 | |||||
Income tax effect of non-GAAP adjustments | d | (23,160) | (19,486) | (22,806) | (42,646) | (43,205) | |||||
Discrete tax items | e | (2,812) | 2,233 | (103) | (579) | 2,152 | |||||
Non-GAAP net income | $ 1,098,444 | $ 988,154 | $ 839,202 | $ 2,086,598 | $ 1,625,677 | ||||||
GAAP net income per diluted share | $ 6.16 | $ 7.01 | $ 4.28 | $ 13.17 | $ 9.69 | ||||||
Non-GAAP net income per diluted share | $ 8.20 | $ 7.33 | $ 6.16 | $ 15.52 | $ 11.89 | ||||||
Shares used in diluted net income per share calculation | 133,926 | 134,858 | 136,254 | 134,415 | 136,684 |
Pre-tax Impact of GAAP to Non-GAAP Adjustments Included in Condensed Consolidated Unaudited Statements of Operations | |||||||
(In thousands) | Acquisition - | Restructuring, | Goodwill and | Total Pre-tax GAAP | |||
Three Months Ended Dec. 31, 2024 | |||||||
Costs of revenues | $ 43,348 | $ 429 | $ — | $ 43,777 | |||
Research and development | 2,994 | 1,166 | — | 4,160 | |||
Selling, general and administrative | 12,314 | 538 | — | 12,852 | |||
Impairment of goodwill and purchased intangible assets | — | — | 239,100 | 239,100 | |||
Total in three months ended Dec. 31, 2024 | $ 58,656 | $ 2,133 | $ 239,100 | $ 299,889 | |||
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 Dec. 31, 2023 | |||||||
Costs of revenues | $ 46,078 | $ 467 | $ — | $ 46,545 | |||
Research and development | — | 417 | — | 417 | |||
Selling, general and administrative | 13,229 | 386 | — | 13,615 | |||
Impairment of goodwill and purchased intangible assets | — | — | 219,000 | 219,000 | |||
Total in three months ended Dec. 31, 2023 | $ 59,307 | $ 1,270 | $ 219,000 | $ 279,577 |
Free Cash Flow Reconciliation | |||||||
Three Months Ended Dec. 31, | Twelve Months Ended Dec. 31, | ||||||
(In thousands) | 2024 | 2023 | 2024 | 2023 | |||
Net cash provided by operating activities | $ 849,515 | $ 622,242 | $ 3,647,346 | $ 3,475,952 | |||
Capital expenditures | (92,323) | (76,801) | (285,254) | (308,443) | |||
Free cash flow | $ 757,192 | $ 545,441 | $ 3,362,092 | $ 3,167,509 |
Capital Returns Calculation | |||||||
Three Months Ended Dec. 31, | Twelve Months Ended Dec. 31, | ||||||
(In thousands) | 2024 | 2023 | 2024 | 2023 | |||
Payments of dividends to stockholders | $ 226,776 | $ 196,859 | $ 819,530 | $ 738,730 | |||
Common stock repurchases | 650,121 | 437,817 | 2,060,021 | 1,760,240 | |||
Capital returns | $ 876,897 | $ 634,676 | $ 2,879,551 | $ 2,498,970 |
Third Quarter Fiscal 2025 Guidance Reconciliation of GAAP Diluted EPS to Non-GAAP Diluted EPS | ||||
Three Months Ending March 31, 2025 | ||||
(In millions, except per share amounts) | Low | High | ||
GAAP net income per diluted share | ||||
Acquisition-related charges | a | 0.40 | 0.40 | |
Restructuring, severance and other charges | b | 0.02 | 0.02 | |
Income tax effect of non-GAAP adjustments | d | (.14) | (.14) | |
Non-GAAP net income per diluted share | ||||
Shares used in net income per diluted share calculation | 133.3 | 133.3 |
Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin | ||||
Three Months Ending March 31, 2025 | ||||
Low | High | |||
GAAP gross margin | 59.6 % | 61.6 % | ||
Acquisition-related charges | a | 1.4 % | 1.4 % | |
Non-GAAP gross margin | 61.0 % | 63.0 % |
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 and write-offs due to abandonment of in-process research and development projects. 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. |
c. | Impairment of goodwill and purchased intangible assets in the three and six months ended Dec. 31, 2024 as well as the three and six months ended Dec. 31, 2023 included non-cash expense recognized as a result of the company's testing for goodwill impairment and long-lived assets impairment. The impairment charge in fiscal 2024 resulted from the downward revision of financial outlook for our PCB and Display reporting units. The impairment charge in fiscal 2025 resulted from the continued deterioration of the long-term forecast for our PCB business. Management believes that it is appropriate to exclude these impairment charges as they are not indicative of ongoing operating results and therefore limit comparability. Management also believes excluding this item 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. |
e. | Discrete tax items in the three and six months ended Dec. 31, 2024 include the recognition of a deferred tax asset on foreign currency gains/losses resulting from new tax legislation. Discrete tax items in the three and six months ended Dec. 31, 2023 included a one-time tax benefit 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 benefit or similar tax benefits recorded in other periods. |
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SOURCE KLA Corporation
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