KLA Corp. Q2 FY2024 results: revenue $2.5 billion, down 16.7% on the year

KLA Corp. (KLAC) reported revenue of $2.5 billion for Q2 FY2024, the quarter ended 31 December 2023, down 16.7% on the same quarter a year earlier. Net income was $583 million, down 40.5% on the year, and diluted earnings per share $4.28. The figures are the company's own, from the 10-Q it filed with the SEC on 26 January 2024.

Revenue$2.5 billiondown 16.7%

Net income$583 milliondown 40.5%

Diluted EPS$4.28

QuarterQ2 FY2024ended 31 December 2023

The quarter, against the one before and a year earlier

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Revenue	2,487	2,397	n/a	n/a
Cost of revenue	977	947	n/a	n/a
Gross profit	1,510	1,450	n/a	n/a
Gross margin	60.7%	60.5%	n/a
Research and development	320	311	n/a	n/a
Selling, general and administrative	237	240	n/a	n/a
Interest expense	74.2	74.2	n/a	n/a
Pre-tax income	691	852	n/a	n/a
Income tax	109	110	n/a	n/a
Effective tax rate	15.7%	13.0%	n/a
Net income	583	741	n/a	n/a
Net margin	23.4%	30.9%	n/a
Diluted EPS	$4.28	$5.41	n/a	n/a

$ million except per share. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Operating cash flow	622	884	n/a	n/a
Capital expenditure	76.8	68.0	n/a	n/a
Free cash flow	545	816	n/a	n/a
Free cash flow margin	21.9%	34.0%	n/a
Depreciation and amortisation	99.1	102	n/a	n/a
Share-based compensation	48.6	48.8	n/a	n/a
Buybacks	438	455	n/a	n/a
Dividends paid	197	182	n/a	n/a
Dividend per share	$1.45	$1.30	n/a	n/a
Diluted shares, weighted	136m	137m	n/a	n/a
Shares outstanding at period end	135m	136m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Total assets	14,281	14,137	n/a	n/a
Cash and equivalents	1,665	1,712	n/a	n/a
Receivables	1,844	1,631	n/a	n/a
Inventory	3,039	3,008	n/a	n/a
Goodwill	2,086	2,279	n/a	n/a
Total debt, as filed	5,893	5,892	n/a	n/a
Long-term debt	5,143	5,892	n/a	n/a
Operating lease liabilities	156	139	n/a	n/a
Shareholders' equity	3,044	2,990	n/a	n/a

Quarterly results, the last 12 quarters

	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026	Q4 FY2026 *
Revenue	2,397	2,487	2,360	2,569	2,842	3,077	3,063	3,175	3,210	3,297	3,415	3,658
Cost of revenue	947	977	994	1,011	1,147	1,221	1,176	1,207	1,243	1,271	1,328	1,413
Gross profit	1,450	1,510	1,366	1,558	1,694	1,855	1,887	1,967	1,967	2,026	2,087	2,244
Gross margin	60%	61%	58%	61%	60%	60%	62%	62%	61%	61%	61%	61%
R&D	311	320	322	326	323	346	338	353	360	384	389	399
SG&A	240	237	238	255	251	267	249	263	269	280	291	291
Interest expense	74.2	74.2	80.0	82.8	82.2	75.0	71.9	73.1	71.1	69.7	70.4	73.3
Pre-tax income	852	691	702	945	1,079	973	1,264	1,329	1,309	1,330	1,417	1,549
Tax rate	13%	16%	14%	11%	12%	15%	14%	9%	14%	14%	15%	12%
Net income	741	583	602	836	946	825	1,088	1,203	1,121	1,146	1,201	1,363
Net margin	31%	23%	25%	33%	33%	27%	36%	38%	35%	35%	35%	37%
Diluted EPS	$5.41	$4.28	$4.43	$6.16	$7.01	$6.16	$8.16	$9.04	$8.47	$8.68	$9.12	n/a
Operating cash flow	884	622	910	893	995	850	1,072	1,165	1,162	1,368	707	906
Capital expenditure	68.0	76.8	71.8	60.7	60.4	92.3	82.1	100	95.9	106	85.2	89.3
Free cash flow	816	545	838	832	935	757	990	1,065	1,066	1,262	622	817
Buybacks	455	438	372	470	567	650	507	426	545	548	626	571
Dividends paid	182	197	197	197	198	227	226	254	254	250	249	305
Shares outstanding	136m	135m	135m	134m	134m	133m	132m	132m	131m	131m	131m	1,307m
Filing	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 31 December 2023, filed 26 January 2024, accession 0000319201-24-000006: the filing on EDGAR. All of KLA Corp.'s filings: EDGAR company page.

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