KLA-Tencor Provides Updated Guidance and Announces Live Webcast of Earnings Call for Fiscal 2009 Second Quarter
MILPITAS, Calif., Jan 12, 2009 (BUSINESS WIRE) -- KLA-Tencor Corporation (NASDAQ: KLAC) today revised its previously issued
financial outlook for the second quarter of fiscal 2009 ended December
31, 2008, reflecting further deterioration of the condition of the
semiconductor and related industries.
"Global economic uncertainty, weak consumer demand, and turbulent
financial markets have led our customers to scale back production
operations and reduce capital expenditures. Business conditions in our
markets have deteriorated sharply in recent weeks, leading to
unanticipated shortfall in quarterly new orders, revenues and earnings
for KLA-Tencor, with weak services revenue a key contributing factor to
that result," commented Rick Wallace, president and CEO of KLA-Tencor.
"We cannot predict the severity or duration of this economic downturn.
In light of these conditions, we recently announced actions we are
taking that are intended to optimize our cost structure and lower our
break-even level, while maintaining our strategic focus and strong
financial position. We will continue to evaluate further cost savings as
conditions merit."
KLA-Tencor now expects that its performance for the quarter ended
December 31, 2008 will be as follows:
-- New Bookings: $235 - $245 million
-- Revenue: $390 - $400 million
KLA-Tencor is in the process of conducting its annual evaluation of the
value of its goodwill and intangible assets for potential impairment.
Based on the result to date of the company's continuing evaluation,
KLA-Tencor currently anticipates incurring a material non-cash
impairment charge on certain of its goodwill and intangible assets in
the second quarter of fiscal 2009. KLA-Tencor is unable to provide an
estimate of its GAAP or Non-GAAP earnings per share until the completion
of the ongoing evaluation of the value of its goodwill and intangible
assets, but expects that it will report a loss from operations for the
quarter, even before taking into account the impairment charge described
above.
KLA-Tencor expects that the loss for the second quarter of fiscal 2009,
in addition to being impacted by lower revenues, will reflect (1) as
noted above, a material non-cash charge resulting from the impairment of
the company's goodwill and intangible assets, (2) an increase in
inventory reserves, driven by declines in KLA-Tencor's product build
plans and service inventory usage, and (3) an increase in reserves for
potential losses relating to heightened risk of non-payment of accounts
receivable as certain customers face financial difficulty. The actual
amounts of such impairment charge and reserve increases will be
communicated along with the announcement of KLA-Tencor's results for the
quarter ended December 31, 2008.
KLA-Tencor today also announced that the company will provide a live
webcast of its upcoming second quarter fiscal 2009 earnings call,
scheduled for Thursday, January 29, 2009, at 2:00 p.m. (PST). The
webcast will be available on KLA-Tencor's Website at http://www.kla-tencor.com,
on the Investors page.
Forward-Looking Statements:
Statements in this press release other than historical facts, such as
statements regarding KLA-Tencor's anticipated bookings, revenues and
earnings/loss for the quarter ended December 31, 2008, the existence,
materiality or amounts of charges related to impairment, inventory
reserves or other reserves expected to be taken for the quarter ended
December 31, 2008, anticipated market conditions, the duration of the
current economic downturn, anticipated steps designed to reduce
KLA-Tencor's costs, and the success of and costs associated with such
efforts, KLA-Tencor's ability to sustain its current market position in
the future, and demand for KLA-Tencor's products, are forward-looking
statements, and are subject to the Safe Harbor provisions created by the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements are based on current information and expectations, and
involve a number of risks and uncertainties. Actual results may differ
materially from those projected in such statements due to various
factors, including but not limited to: the demand for semiconductors;
the financial condition of the global capital markets and the general
macroeconomic environment; new and enhanced product offerings by
competitors; cancellation of orders by customers; and changing customer
demands. For other factors that may cause actual results to differ
materially from those projected and anticipated in forward-looking
statements in this release, please refer to KLA-Tencor's Annual Report
on Form 10-K for the year ended June 30, 2008, subsequently filed
Quarterly Reports on Form 10-Q and other filings with the Securities and
Exchange Commission (including, but not limited to, the risk factors
described therein). KLA-Tencor assumes no obligation to, and does not
currently intend to, update these forward-looking statements.
About KLA-Tencor:
KLA-Tencor Corporation is the world's leading supplier of process
control and yield management solutions for the semiconductor and related
nanoelectronics industries. Headquartered in Milpitas, California, the
company has sales and service offices around the world. An S&P 500
company, KLA-Tencor is traded on the NASDAQ Global Select Market under
the symbol KLAC. Additional information about the company is available
at http://www.kla-tencor.com.
(KLAC-F)
SOURCE: KLA-Tencor Corporation
KLA-Tencor Corporation
Ed Lockwood, 408-875-9529 (Investor Relations)
Sr. Director, Investor Relations
ed.lockwood@kla-tencor.com
Meggan Powers, 408-875-8733 (Media Relations)
Sr. Director, Corporate Communications
meggan.powers@kla-tencor.com
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