KLA-Tencor reported a 60% increase in Q3 net income to $154.8 million, or $0.76/share. Reuters reports EPS was $0.88 when excluding certain items, beating analysts' average estimate of $0.78/share. Revenue growth of 38% to $716.2m topped analysts' forecast of $709m. Orders decreased 5% to $689m and are expected to be off by a similar amount in Q4, according to the firm's CEO in its earnings conference call. Taiwan accounted for 31% of Q3 orders, ahead of a 20% historical average, but U.S. orders at 17%, were under a historical average of 25%. KLA-Tencor offered Q4 EPS guidance of $0.84 - $0.86, on sales of $700m - $715m -- both forecasts are higher than analysts' average estimates of $0.76/share on $698m of sales, based on a survey by Bloomberg. Shares of KLA-Tencor gained 1.4% to $55.58 in normal trading, but lost 0.25% to $55.44 in after-hours activity on volume of nearly 250,000.
Sources: KLA-Tencor F3Q07 Earnings Call Transcript, Press release, Bloomberg, MarketWatch, Reuters
Commentary: KLA-Tencor: Concerns Over June Orders • Semi Cap Equipment: Bad News Is Bad News, For A Change • Making Sense of Semis: Does the Industry Still Have What it Takes?
Stocks/ETFs to watch: KLA-Tencor Corporation (NASDAQ:KLAC). Competitors: Applied Materials (NASDAQ:AMAT). ETFs: Semiconductor HOLDRs (NYSEARCA:SMH), iShares Goldman Sachs Semiconductor (IGW), SPDR Semiconductor (NYSEARCA:XSD), Technology Select Sector SPDR (NYSEARCA:XLK)
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