Thread by @dnystedt

KLA Corp. #semiconductor equipment maker.
Dec. quarter earnings:
Revenue US$2.98 billion vs analysts estimated $2.81 bln
Net Profit $978.8 bln
EPS (Adjusted): $7.38 vs estimated $7.01
2022 Revenue +28% to $10.5 bln
Free Cash Flow +18% to $3 bln
Inventories $2.535 bln
$KLAC 1/8

2/8 KLA Outlook
Calendar year 2023 “will be a year of contraction after 3 strong years of growth,” as industry spending slows due to rising macroeconomic concerns, KLA said.
-WFE (wafer fab equipment) demand seen -20% from 2022’s $94-$95 billion (to around $75 billion) $KLAC

3/8 KLA Guidance (Q3 2023)
Revenue $2.2 - $2.5 billion
Non-GAAP Gross Margin 60.5-62.5%
EPS (Adjusted) $4.52 - $5.92

Foundry-logic forecast to be 85% of process control revenue, memory is expected to be around 15%.
(Note, process control = 89% of KLA revenue in Dec quarter)

4/8 KLA Outlook
Demand continues to come from:
-multiple production nodes
-strategic role semiconductors play in national industrial policy
-robust design at leading edge
-growing semiconductor content
$KLAC #semiconductors

5/8 KLA on Memory
KLA is expecting memory capex reductions will to be broad, not just 1 or 2 customers. “I think it’s pretty broad across all our customers,” said CFO Bren Higgins, during KLA's earnings call.
$MU #Samsung #SKhynix

6/8 KLA on EUV lithography-related products
-Main KLA product directly related to EUV is print check (inspection)
-Reticle equipment also
-Around 15-20% of KLA biz is directly related to EUV
-advanced tech more resilient due to long term build outs
$KLAC #semiconductors

7/8 KLA on China export restrictions
KLA view same as previously announced: $500 million to $900 million impact across the business in 2023. China was 23% of KLA revenue in Dec quarter.
#China $KLAC #semiconductors

8/8 KLA December quarter revenue by product
Wafer inspection systems: 42% of revenue
Patterning: 29%
Specialty Semi Process: 5%
PCB, Display, Comp. inspection: 4%
Services: 17%
Other: 3%
$KLAC #semiconductors

Link to KLA's IR documents and earnings call: ir.kla.com/financial-info…