KLA reported higher revenue and profit for its September quarter, with sales exceeding the midpoint of its own forecast. The semiconductor process-control supplier also generated substantial free cash flow and returned capital to shareholders. Management set a higher revenue midpoint for the December quarter, while presenting its earnings outlook separately from completed results.
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Revenue exceeds the earlier forecast midpoint
KLA, the semiconductor manufacturing process-control supplier, released its first-quarter fiscal results on October 28. Revenue and earnings increased from the corresponding period a year earlier. The quarter ended on September 30, opening the company's 2027 financial year. Its equipment and services cover semiconductor wafers, circuits, packaging and printed circuit boards.[1], [2]
Revenue reached 4.136 billion dollars, compared with 3.658 billion dollars in the preceding quarter and 3.210 billion dollars a year earlier. It exceeded the midpoint of management's previous guidance, which had been 4 billion dollars with a tolerance of 200 million dollars in either direction.[1]
Profit and cash generation increase
Net income under generally accepted accounting principles was 1.549 billion dollars, against 1.363 billion dollars in the preceding quarter and 1.121 billion dollars a year earlier. Adjusted net income was 1.603 billion dollars. Diluted earnings were 1.18 dollars per share under standard accounting and 1.22 dollars on the adjusted measure. The per-share figures reflect the ten-for-one stock split that took effect in June.[1]
Operating cash flow was 1.53 billion dollars for the quarter and 4.51 billion dollars for the trailing twelve months. Free cash flow for those periods was 1.34 billion dollars and 4.04 billion dollars. KLA returned 1.24 billion dollars of capital to shareholders during the quarter and 3.79 billion dollars over twelve months.[1]
December revenue midpoint reaches 4.7 billion dollars
For the fiscal quarter ending in December, management forecast revenue of 4.7 billion dollars, plus or minus 200 million dollars. Its standard-accounting gross-margin outlook was 61.8 percent, while adjusted gross margin was projected at 62.5 percent, each with a tolerance of one percentage point. Diluted earnings guidance was 1.41 dollars per share under standard accounting and 1.44 dollars after adjustments, each plus or minus 0.11 dollars. These are management forecasts for the next quarter.[1]
