KLA-Tencor Q3 Profit Up 22%, Results Beat View; But Issues Weak Outlook

(RTTNews) - KLA-Tencor Corp. (KLAC), a provider of process control and yield management solutions, on Thursday reported a 22 percent increase in profit for the third quarter from last year, reflecting fewer charges and higher revenues. Both revenue and adjusted earnings for the quarter beat analysts' estimates.

However, shares of the company declined more than 5 percent in extended trades after the company, in a conference call, reportedly forecast earnings and revenue for the fourth quarter below Street expectations.

KLA-Tencor's third-quarter net income increased to $203.58 million or $1.21 per share from $166.38 million or $0.98 per share in the year-ago period.

Adjusted net income for the quarter was $206.22 million or $1.23 per share, compared to $171.20 million or $1.01 per share in the year-ago quarter. On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $1.12 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter rose 14 percent to $831.60 million from $729.03 million in the same period last year and beat analysts' consensus revenue estimate of $822.64 million for the quarter.

Product revenues increased 16 percent from the year-ago quarter to $670.08 million, while service revenues grew 8 percent to $161.52 million.

Looking ahead, Rick Wallace, President and CEO of KLA-Tencor said, "Semiconductor device manufacturers are facing enormous challenges in transitioning from planar to 3D transistor structures and in implementing new process technologies at the leading edge such as multi-patterning lithography."

Wallace added, "Although the semiconductor capital equipment industry is currently experiencing a pause in demand after a strong initial ramp of some of these new technologies, we remain focused on partnering with our customers to address yield issues associated with these ramps."

In a conference call, KLA-Tencor reportedly forecast earnings for the fourth quarter in a range of $0.75 to $0.95 per share, and revenues of $700 million to $760 million. Analysts expect the company to earn $1.16 per share for the quarter on revenues of $832.49 million.

KLAC closed Thursday's regular trading session at $67.74, up $1.02 or 1.53 percent on a volume of 2.47 million shares. However, in after-hours, the stock declined $3.74 or 5.52 percent to $64.00.