KLA Corporation reported strong financial performance for the three months ended September 30, 2024, with total revenues reaching $2,841.5 million, an 18.5% increase from $2,396.9 million in the same period of 2023. This growth was driven by a 20% rise in product revenues, totaling $2,197.4 million, and a 15% increase in service revenues, which amounted to $644.2 million. The Semiconductor Process Control segment was a significant contributor, generating $2,575.2 million in revenues, up 21% year-over-year.

Net income for the quarter was $945.9 million, compared to $741.4 million in Q3 2023, reflecting a substantial increase in profitability. Basic earnings per share rose to $7.05 from $5.43, while diluted earnings per share increased to $7.01 from $5.41. The company’s income before income taxes also improved, reaching $1,078.7 million, up from $851.7 million in the prior year.

KLA's total current assets increased to $10,228.4 million as of September 30, 2024, from $10,031.1 million at the end of June 2024. Total assets rose to $15,681.7 million, while total stockholders’ equity increased to $3,559.7 million, up from $3,368.3 million. Retained earnings also saw growth, reaching $1,328.2 million compared to $1,137.3 million in the previous quarter.

The company faced challenges due to U.S. export regulations affecting its operations in China, which accounted for 42% of total revenues in Q3 2024. Despite these restrictions, KLA reported increased investments in process control products from both American and Korean customers, indicating a shift in market dynamics.

KLA's cash flow from operating activities improved to $995.2 million, up from $883.7 million in the same period last year. The company utilized $171.0 million in investing activities, a significant decrease from $391.7 million in Q3 2023, while financing activities saw an increase in cash used, totaling $837.7 million, primarily due to stock repurchases and dividend payments.

Restructuring charges rose to $2.9 million from $0.6 million in the prior year, reflecting ongoing adjustments within the company. KLA continues to focus on innovation and product development, with plans to exit the Display business by December 31, 2024, while maintaining service for existing customers. The company remains committed to enhancing its product offerings in response to evolving market demands, particularly in the semiconductor industry.

About KLA CORP

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