KLA-Tencor Updates Q3 Outlook After Mid-Quarter Completion Of Orbotech Deal

(RTTNews) - KLA-Tencor Corp. (KLAC) updated guidance for its fiscal third quarter ending March 31, 2019. The new guidance included the contribution from Orbotech to combined company results for the 39 days remaining in the March quarter, following completion of the Orbotech acquisition on February 20, 2019.

On January 29, 2019, KLA provided guidance for revenue for the third fiscal quarter of 2019 in the range of $880 million to $960 million. KLA now expects third-quarter revenue to be in the range of $1.025 billion to $1.115 billion, as a result of the expected revenue contribution of $145 million to $155 million from Orbotech for the stub period.

KLA's original guidance for GAAP earnings per share for the third fiscal quarter of 2019 was between $1.35 and $1.67 per share. The combined GAAP earnings per share for KLA and Orbotech is now expected to be in the range of $0.94 to $1.28 per share, as a result of the expected contribution from Orbotech for the stub period, the impact of charges related to the acquisition, and the incremental financing costs related to the transaction.

KLA's original guidance for non-GAAP earnings per share for the third fiscal quarter of 2019 was between $1.39 to $1.71 per share. The combined non-GAAP earnings per share for KLA and Orbotech is now expected to be in the range of $1.45 to $1.79 per share. The new earnings per share guidance is a result of the contribution from Orbotech for the stub period and the incremental financing costs related to the transaction.

Analysts polled by Thomson Reuters expect the company to report earnings of $1.58 per share and revenues of $1.04 billion for the third-quarter. Analysts' estimates typically exclude special items.