TMCnet News
KLA-Tencor Shares Down 4% On Weak Outlook, Q2 Adj. Profit Miss View(dpa-AFX International Compact Via Acquire Media NewsEdge) MILPITAS (dpa-AFX) - Chip equipment maker KLA-Tencor Corp. (KLAC) reported Thursday a profit for the fourth quarter that declined from last year, reflecting higher charges as well as costs and operating expenses. Adjusted earnings per share missed analysts' expectations, while quarterly revenues topped their estimates by a whisker. Shares of the company declined more than four in extended trades after the company, in a conference call, reportedly forecast earnings and revenue for the first significantly below Street view. "KLA-Tencor's fourth quarter results culminate a year of strong operating and financial performance for the company, as well as solid execution of our strategic objectives," President and CEO Rick Wallace said in a statement. The Milpitas, California-based company reported net income of $128.73 million or $0.77 per share for the fourth quarter, lower than $134.77 million or $0.80 per share in the prior-year quarter. Excluding items, adjusted net income for the quarter was $133.24 million or $0.80 per share, compared to $138.58 million or $0.82 per share in the year-ago quarter. On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $0.86 per share for the quarter. Analysts' estimates typically exclude special items. Revenues for the quarter rose 2 percent to $734.34 million from $720.03 million in the same quarter last year and topped seventeen Wall Street analysts' consensus estimate of $733.71 million by a whisker. Product revenues for the quarter remained flat with last year at $570 million, while service revenues grew 9 percent to $164 million from last year. Total costs and operating expenses increased to $561.33 million from $532.40 million last year. "Our market leadership was highlighted by the second-highest net bookings result in the company's history in fiscal year 2014, including record bookings for our Wafer Inspection products. This demonstrates our customer focus and market leadership, as well as the critical role KLA-Tencor plays in helping our customers address the higher cost and complexity associated with competing at the leading edge," Wallace added. In a conference call, KLA-Tencor reportedly forecast earnings for the first quarter in a range of $0.34 to $0.54 per share on projected revenues between $590 million to $650 million. This assumes bookings of $600 million to $800 million, and a gross profit margin of 54 to 55 percent. Analysts expect the company to earn $0.88 per share for the quarter on revenues of $739.95 million. KLAC closed Thursday's regular trading session at $73.02, down $0.24 or 0.33% on a volume of 2.28 million shares. The stock lost a further $3.02 or 4.14% in after-hours trading. Copyright RTT News/dpa-AFX |