Kla Corp 8-K, filed Feb 4, 2020

Kla Corp (KLAC)

8-K 2020-02-04 For: 2020-02-04

View Original

Added on April 02, 2026

About this 8-K

Kla Corp filed this 8-K on February 4, 2020.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →



KLA CORPORATION
(Exact name of registrant as specified in its charter)

Delaware	000-09992		04-2564110
(State or other jurisdiction of incorporation)	(Commission File Number)		(I.R.S. Employer Identification No.)

One Technology Drive	Milpitas	California		95035
(Address of principal executive offices)				(Zip Code)

Registrant’s telephone number, including area code:		(408) 875-3000

(Former name or former address, if changed since last report)



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value per share	KLAC	The Nasdaq Stock Market, LLC
		The Nasdaq Global Select Market




Exhibit No.		Description

99.1		Text of press release dated February 4, 2020 issued by KLA Corporation




	KLA CORPORATION

Date: February 4, 2020	By:	/s/ TERI A. LITTLE
	Name:	Teri A. Little
	Title:	Executive Vice President and Chief Legal Officer



Investor Relations:		Media Relations:
Kevin Kessel, CFA		Randi Polanich
Vice President, Investor Relations		Chief Communications Officer
(408) 875-6627		(408) 875-6633
kevin.kessel@kla.com		randi.polanich@kla.com



☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)



☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)



☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))



If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
	☐


•	Earnings on both a GAAP and non-GAAP basis were records for the quarter with GAAP EPS of $2.40 per share and non-GAAP EPS of $2.66 per share



GAAP Results
	Q2 FY 2020	Q1 FY 2020	Q2 FY 2019
Revenues	$1,509 million	$1,413 million	$1,120 million
Net Income Attributable to KLA	$381 million	$347 million	$369 million
Earnings per Diluted Share Attributable to KLA	$2.40	$2.16	$2.42

Non-GAAP Results
	Q2 FY 2020	Q1 FY 2020	Q2 FY 2019
Net Income Attributable to KLA	$422 million	$398 million	$372 million
Earnings per Diluted Share Attributable to KLA	$2.66	$2.48	$2.44



KLA Corporation
Condensed Consolidated Unaudited Balance Sheets

(In thousands)	December 31, 2019			June 30, 2019
ASSETS
Cash, cash equivalents and marketable securities	$	1,677,522		$	1,739,385
Accounts receivable, net	1,191,035			990,113
Inventories	1,251,400			1,262,500
Other current assets	257,486			323,077
Land, property and equipment, net	489,980			448,799
Goodwill	2,299,781			2,211,858
Deferred income taxes, non-current	213,255			206,141
Purchased intangible assets, net	1,492,450			1,560,670
Other non-current assets	377,811			265,973
Total assets	$	9,250,720		$	9,008,516
LIABILITIES, NON-CONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	256,646		$	202,416
Deferred system revenue	247,103			282,348
Deferred service revenue	204,284			206,669
Current portion of long-term debt	—			249,999
Other current liabilities	1,010,210			827,054
Total current liabilities	1,718,243			1,768,486
Non-current liabilities:
Long-term debt	3,399,877			3,173,383
Deferred tax liabilities	680,929			702,285
Deferred service revenue	99,969			98,772
Other non-current liabilities	663,732			587,897
Total liabilities	6,562,750			6,330,823
Stockholders’ equity:
Common stock and capital in excess of par value	2,017,521			2,017,312
Retained earnings	719,001			714,825
Accumulated other comprehensive income (loss)	(66,758		)	(73,029		)
Total KLA stockholders' equity	2,669,764			2,659,108
Non-controlling interest in consolidated subsidiary	18,206			18,585
Total stockholders’ equity	2,687,970			2,677,693
Total liabilities and stockholders’ equity	$	9,250,720		$	9,008,516



KLA Corporation
Condensed Consolidated Unaudited Statements of Operations

	Three Months Ended December 31,					Six Months Ended December 31,
(In thousands, except per share amounts)	2019			2018		2019			2018
Revenues:
Product	$	1,144,550		$	852,201	$	2,202,525		$	1,681,428
Service	364,903			267,697		720,342			531,730
Total revenues	1,509,453			1,119,898		2,922,867			2,213,158
Costs and expenses:
Costs of revenues	633,618			408,260		1,237,859			789,647
Research and development	220,751			165,903		431,331			319,433
Selling, general and administrative	192,253			112,462		380,598			226,900
Interest expense and other, net	37,904			17,310		76,636			33,647
Income before income taxes	424,927			415,963		796,443			843,531
Provision for income taxes	44,622			46,863		69,742			78,487
Net income	380,305			369,100		726,701			765,044
Less: Net loss attributable to non-controlling interest	(250		)	—		(379		)	—
Net income attributable to KLA	$	380,555		$	369,100	$	727,080		$	765,044
Net income per share attributable to KLA:
Basic	$	2.42		$	2.43	$	4.60		$	4.98
Diluted	$	2.40		$	2.42	$	4.56		$	4.96
Weighted-average number of shares:
Basic	157,290			152,148		157,994			153,684
Diluted	158,620			152,648		159,314			154,389



	Three Months Ended
	December 31,
(In thousands)	2019			2018
Cash flows from operating activities:
Net income	$	380,305		$	369,100
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	88,534			15,806
Loss (gain) on unrealized foreign exchange and other	(5,450		)	895
Stock-based compensation expense	26,789			15,695
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions:
Accounts receivable	(126,682		)	(55,869		)
Inventories	(1,477		)	(15,109		)
Other assets	3,558			34,978
Accounts payable	35,258			(2,440		)
Deferred system revenue	(30,412		)	(19,723		)
Deferred service revenue	1,220			12,211
Other liabilities	16,088			(73,372		)
Net cash provided by operating activities	387,731			282,172
Cash flows from investing activities:
Capital expenditures	(34,874		)	(26,366		)
Purchases of available-for-sale securities	(144,715		)	(2,686		)
Proceeds from sale of available-for-sale securities	10,287			107,370
Proceeds from maturity of available-for-sale securities	158,699			128,052
Purchases of trading securities	(12,852		)	(27,481		)
Proceeds from sale of trading securities	15,307			29,722
Net cash (used in) provided by investing activities	(8,148		)	208,611
Cash flows from financing activities:
Proceeds from revolving credit facility	250,000			—
Repayment of debt	(275,000		)	—
Common stock repurchases	(284,593		)	(250,213		)
Payment of dividends to stockholders	(134,696		)	(114,562		)
Issuance of common stock	24,499			20,556
Tax withholding payments related to equity awards	(12,237		)	(3,233		)
Payment of contingent consideration payable	(3		)	—
Net cash used in financing activities	(432,030		)	(347,452		)
Effect of exchange rate changes on cash and cash equivalents	3,963			1,137
Net (decrease) increase in cash and cash equivalents	(48,484		)	144,468
Cash and cash equivalents at beginning of period	988,348			1,649,514
Cash and cash equivalents at end of period	$	939,864		$	1,793,982
Supplemental cash flow disclosures:
Income taxes paid	$	50,884		$	87,854
Interest paid	$	53,140		$	51,136
Non-cash activities:
Business acquisition holdback amounts - investing activities	$	—		$	440
Contingent consideration payable - financing activities	$	(3,540	)	$	2,529
Dividends payable - financing activities	$	1,638		$	5,404
Unsettled common stock repurchase - financing activities	$	4,000		$	—
Accrued purchase of land, property and equipment - investing activities	$	13,755		$	7,705



			Three Months Ended									Six Months Ended
			December 31, 2019			September 30, 2019			December 31, 2018			December 31, 2019			December 31, 2018
GAAP net income attributable to KLA			$	380,555		$	346,525		$	369,100		$	727,080		$	765,044
Adjustments to reconcile GAAP net income to non-GAAP net income:
	Acquisition-related charges	a	60,393			73,363			4,281			133,756			9,832
	Restructuring, severance and other related charges	b	2,786			—			—			2,786			—
	Income tax effect of non-GAAP adjustments	c	(21,505		)	(22,266		)	(276		)	(43,771		)	(586		)
	Discrete tax items	d	—			—			(765		)	—			(17,871		)
Non-GAAP net income attributable to KLA			$	422,229		$	397,622		$	372,340		$	819,851		$	756,419
GAAP net income (loss) per diluted share attributable to KLA			$	2.40		$	2.16		$	2.42		$	4.56		$	4.96
Non-GAAP net income per diluted share attributable to KLA			$	2.66		$	2.48		$	2.44		$	5.15		$	4.90
Shares used in diluted shares calculation			158,620			160,131			152,648			159,314			154,389



FORM	8-K



Emerging growth company	☐



Item 2.02	Results of Operations and Financial Condition.



Item 9.01	Financial Statements and Exhibits.



	Acquisition - Related Charges		Restructuring, Severance and Other Related Charges		Total pre-tax GAAP to non-GAAP Adjustments
Three months ended December 31, 2019
Costs of revenues	$	40,590	$	831	$	41,421
Research and development	—		802		802
Selling, general and administrative	19,803		1,153		20,956
Total in three months ended December 31, 2019	$	60,393	$	2,786	$	63,179
Three months ended September 30, 2019
Costs of revenues	$	49,999	$	—	$	49,999
Selling, general and administrative	23,364		—		23,364
Total in three months ended September 30, 2019	$	73,363	$	—	$	73,363
Three months ended December 31, 2018
Costs of revenues	$	967	$	—	$	967
Selling, general and administrative	3,314		—		3,314
Total in three months ended December 31, 2018	$	4,281	$	—	$	4,281