KLA-Tencor Q1 Profit, Revenue Drop - Update

(RTTNews) - KLA-Tencor Corp. (KLAC), a provider of process control and yield management solutions, Thursday said profit for the first quarter declined from the prior year, amid lower revenues. Yet, both earnings and revenues topped Wall Street expectations. The stock fell more than 3 percent in the extended trade.

Net income declined to $111.2 million or $0.66 per share from $135.37 million or $0.80 per share last year.

On an adjusted basis, earnings per share were $0.68, while it totaled $0.84 last year. On average, 17 analysts polled by Thomson Reuters expected the company to report profit per share of $0.66 for the quarter. Analysts' estimates typically exclude special items.

Revenue decreased to $658.34 million from $720.71 million last year. Analysts expected revenue of $657.02 million for the quarter.

Rick Wallace, president and CEO of KLA-Tencor, said, "KLA-Tencor delivered solid results for the first quarter of fiscal year 2014, generating revenue and EPS in the upper half of the guided range for the period, and new orders well above the upper end of the range."

The company reportedly expects second-quarter adjusted earnings of $0.67 to $0.87 per share and revenue in the range of $670 million to $730 million, citing delay on the part of foundry customers. Analysts look for earnings of $0.96 per share and revenues of $760.30 million.

KLAC closed up 1.1 percent on Thursday at $63.73, but slid 3.5 percent in the extended trade to $61.50.