Kla Corporation · NASDAQ:KLAC
Kla — Q1 2024 Earnings Presentation
19 slides from Kla's earnings presentation, Oct 25, 2023
Slide 1: Q1 Fiscal 2024 Earnings
Q1 Fiscal 2024 Earnings Quarter Ended September 30, 2023 • Reported October 25, 2023 KLA Non-Confidential | Unrestricted 1
Slide 2: Forward Looking Statements
Forward Looking Statements Statements in this letter other than historical facts, such as statements pertaining to: (i) future industry demand for semiconductors and WFE; (ii) future demand for our products and services; (iii) our market position for the future; (iv) our forecast of financial measur
Slide 3: Semiconductor Industry Demand Environment
Semiconductor Industry Demand Environment Long-Term Secular Drivers Demonstrate Strategic Value of Semiconductors Longer-term, the semiconductor industry is expected to grow due to new enabling technologies such as Generative AI, 5G, IoT, Cloud Computing, Automotive Electronics, and Advanced Packagi
Slide 4: September Quarter 2023 Business Highlights
September Quarter 2023 Business Highlights KLA’s Consistency Led By Execution and Market Leadership Market leadership in some of the most critical and fastest-growing segments of WFE fuels our growth. Quarterly revenue was $2.4 billion, driven by strength in legacy node 1 investment globally and ind
Slide 5: The KLA Operating Model
The KLA Operating Model Consistent Strategy and Execution Application of common processes and discipline Cascades throughout the organization Strong focus on talent development Management By Metrics Culture of performance and accountability Expectation of continuous improvement Superior
Slide 6: September Quarter 2023 Income Statement Highlights
September Quarter 2023 Income Statement Highlights $2,397M 62.4% 40.2% $786M Revenue Gross Margin* Operating Margin* Net Income* (Right) As the industry-standard for $5.74 inline monitoring, the 295x Series (“GEN4”) pairs sensitivity with Diluted EPS* optical wafer defect inspection speed, enabling
Slide 7: Breakdown of Revenue by Reportable Segments and End Markets
Breakdown of Revenue by Reportable Segments and End Markets Revenue Y/Y Q/Q Q1-FY24: Semi Process Control Revenue % Q1-FY24 ($M) Growth Growth % End Market System Revenue Semiconductor Process Control $2,135 -11% +2% 89% (Systems + Services) 67% Specialty Semiconductor Process $126 -1% -2% 5% (Syste
Slide 8: Breakdown of Revenue by Major Product and Region
Breakdown of Revenue by Major Product and Region Revenue Y/Y Q/Q Q1-FY24 Revenue % Q1-FY24 ($M) Growth Growth % Revenue by Region Wafer $1,010 -8% +6% 42% Inspection 17% 10% Patterning $543 -26% -7% 23% 7% Specialty 9% $112 -2% -4% 5% Semi Process PCB, Display and 10% $71 -47% +9% 3% Comp. Inspectio
Slide 9: Strong Balance Sheet With No Material Near-Term Maturities
Strong Balance Sheet With No Material Near-Term Maturities Balance Sheet Summary 1 ($M) Bond Maturity Profile Investment Grade Credit Ratings Total Cash2 $ 3,349 Bonds Outstanding $5.95B Moody’s A2 Working Capital $ 4,613 Total Assets $ 14,137 Weighted Average Rate 4.64% S&P A- Debt3 $ 5,892 Weighte
Slide 10: FCF Generation Fuels Consistent Capital Return to Shareholders
FCF Generation Fuels Consistent Capital Return to Shareholders Free Cash Flow 1 and FCF Margin 2 Investment Market Leadership and $3.2 in Growth and $3.0 New Products Differentiated Solutions $2.5 Value $1.8 Creation $1.3 $1.2 32% Capital Returns Strong Margins 30% 31% and FCF 23% 29% to Shareholder
Slide 11: Return to Shareholders Across Both Share Repurchases & Dividends
Return to Shareholders Across Both Share Repurchases & Dividends Share Repurchases 1 Track Record of Dividend Increases September 2023: Announced 14th consecutive annual dividend increase, up 12% to $1.45/share from $1.30/share 5.80 5.35 4,483 ~$248 3,455 ~15% 3.90 4.70 Avg price per share Dividend
Slide 12: Free Cash Flow and Capital Returns Highlights
Free Cash Flow and Capital Returns Highlights $455M $816M September Quarter Share Buyback September Quarter Free Cash Flow* $1,677M LTM Share Buyback1 34% September Quarter FCF Margin* $182M September Quarter Dividends Paid 104% $726M (Above) The 8 Series patterned wafer inspection systems detect a
Slide 13: Guidance for Q2 FY2024 – December 2023 Quarter
Guidance for Q2 FY2024 – December 2023 Quarter December 2023 Quarter Guidance Macro Assumptions Revenue $2.45B +/- $125M Semi PC Revenue By End Market Foundry/Logic: 68% Non-GAAP 61.5% +/- 1% Memory: 32% DRAM 85% | NAND 15% Gross Margin* Model Assumptions GAAP Diluted Non-GAAP Operating Expe
Slide 14: Appendix
Appendix Reconciliation of Financial Results
Slide 15: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures KLA Non-Confidential | Unrestricted 15
Slide 16: Reconciliation of Free Cash Flow and Related Metrics
Reconciliation of Free Cash Flow and Related Metrics KLA Non-Confidential | Unrestricted 16
Slide 17: Reconciliation of Guidance
Reconciliation of Guidance Q2 FY2024 Guidance Range: KLA Non-Confidential | Unrestricted 17
Slide 18: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures KLA Non-Confidential | Unrestricted 18
Slide 19: KLA Non-Confidential | Unrestricted
KLA Non-Confidential | Unrestricted 19