KLA-Tencor: 3Q08 Financial Results

KLA-Tencor Corporation announced operating results for its third quarter of fiscal 2008, which ended on March 31, 2008. The Company reported GAAP net income of $111 million and GAAP earnings per diluted share of $0.61 on revenue of $602 million for third quarter of fiscal 2008.

“The challenging industry-wide demand environment presents an opportunity for us to further strengthen our industry leadership position. In order to capitalize on the opportunity, we continue to drive efficiencies throughout our business, while investing, internally and externally, in the technologies our customers will need to accelerate their development and production ramps,” said Rick Wallace, CEO of KLA-Tencor.

Non-GAAP results include the impact of stock-based compensation, but exclude the impact of acquisition, restatement or restructuring related items.

Highlights for the third quarter of fiscal 2008

• Announced an agreement under which KLA-Tencor agreed to make a tender offer to acquire ICOS Vision Systems Corporation NV, a leading supplier of packaging and interconnect inspection solutions for the semiconductor industry, as well as a leader in the inspection of photovoltaic solar technologies and LED lighting products.
• Declared and paid dividends of $27 million and repurchased $180 million of stock.
• Generated cash flow from operations of $148 million.
• Introduced TeraFab, a new family of Mask Inspection Systems that offers wafer fabs flexible options to qualify incoming masks and inspect production masks for contaminants. The TeraFab systems are offered in multiple configurations to provide chipmakers with advanced tools for cost-effective mask quality control.
• Introduced two additions to its Aleris family of films metrology systems – the Aleris 8310 and Aleris 8350. These systems utilize KLA-Tencor’s new generation of Broadband Spectroscopic Ellipsometry (BBSE) optics which allow chipmakers to measure multi-layer film thickness, refractive index, and stress, meeting advanced films metrology requirements.

KLA-Tencor Corporation