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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 15, 1997
--------------------------------
KLA INSTRUMENTS CORPORATION
(Exact Name of Registrant as Specified in Charter)
Delaware 000-09992 04-2564110
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(State or other (Commission File No.) (IRS Employer Identification
jurisdiction Number)
of incorporation)
160 Rio Robles
San Jose, CA 95134
(Address of Principal Executive Offices)
(408) 468-4200
(Registrant's Telephone Number, Including Area Code)
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ITEM 5 OTHER EVENTS.
On April 15, 1997, KLA Instruments Corporation ("KLA") announced
earnings for the third quarter ended March 31, 1997.
A copy of the press release is attached hereto as Exhibit 99.1 and is
incorporated herein by reference.
ITEM 7 EXHIBITS.
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EXHIBIT NO. DESCRIPTION
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<S> <C>
99.1 Press Release of KLA dated April 15, 1997 regarding its
revenues and earnings per share for its third quarter of
fiscal 1997 ended March 31, 1997
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
KLA Instruments Corporation
Dated: April 16, 1997 By: /s/Robert J. Boehlke
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Robert J. Boehlke
Vice President Finance and
Chief Financial Officer
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EXHIBIT INDEX
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EXHIBIT NO. DESCRIPTION
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<S> <C>
99.1 Press Release of KLA dated April 15, 1997 regarding its
revenues and earnings per share for its third quarter of
fiscal 1997 ended March 31, 1997
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EXHIBIT 99.1
Contact: Robert J. Boehlke
Chief Financial Officer
160 Rio Robles
San Jose, CA 95134
(408) 468-6285
KLA REPORTS OPERATING RESULTS FOR THIRD QUARTER
SAN JOSE, Calif., April 15, 1997 - KLA Instruments Corporation today reported
third quarter sales of $157 million and net income of $23.7 million compared
with sales of $187 million and net income of $31.8 million for the third quarter
last year. Quarterly earnings per share were $0.44 this year compared with $0.61
last year.
New orders for the quarter continued to recover from the September lows and the
Company added moderately to its backlog. New order strength was led by continued
improvement in the wafer inspection and metrology areas. The wafer business
benefited from increases in the number of monitors in place at existing
fabrication facilities which accounted for over two-thirds of the new orders for
that business. Units at the top 10 fabs increased to more than 8.7 units per fab
and for the first time, each of the top 10 fabs had at least 8 units per fab.
Multiple system users increased from 147 last quarter to 155 at the end of this
quarter. New facility construction in the industry continues to be slower than
normal and provided less than one-third of the wafer business new orders.
The E-Beam metrology business booked record new orders and revenues during the
quarter. The new KLA 8100 continued to gain market share against competitive
alternatives in the U.S., Europe, Japan and Asia Pacific. New orders in the
optical metrology business were higher than the prior quarter due to higher
demand from the thin film head market.
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Geographically, orders in the U.S. were much stronger than the normal 30% of the
total because of the preponderance of microprocessor and logic customer activity
in the U.S. Orders from Japan were about normal, however, the Asia Pacific and
Europe regions were below the normal range.
Gross margins were 52.3% during the quarter, up from the trough recorded during
the previous quarter. The E-Beam metrology business recorded substantially
higher gross margins as that business began to cover overhead charges more
efficiently with higher sales volumes. Additionally, gross margins in all other
major business units increased slightly during the quarter.
Operating costs were 32.8% of sales primarily as a result of increases in net
R&D spending. Spending increased in the wafer business and the net spending in
Rapid was affected by reductions in the amount of external funding of R&D by
third parties. Commission expenses for sales in Japan are being phased out by
fiscal year end but, nevertheless, accounted for almost $3 million during the
quarter.
The Company's financial position improved again during the quarter. Receivables
were about flat on slightly higher sales while inventories declined slightly.
These improvements allowed cash and equivalents to increase by $38 million to a
quarter end total of $418 million.
KLA Instruments is the world's leading manufacturer of yield management and
process control systems for the semiconductor industry. The Company's pending
merger with Tencor Instruments is scheduled
for shareholder votes at both companies on April 30, 1997. If favorable votes
are obtained, the new company, KLA-Tencor, will commence business on May 1,
1997, and will continue to trade on the
Nasdaq National Market under the symbol "KLAC."
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KLA INSTRUMENTS CORPORATION
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SUMMARY CONSOLIDATED STATEMENT OF OPERATIONS
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Three Months Ended Nine Months Ended
March 31, March 31,
1996 1997 1996
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1997 (In thousands except per share amounts)
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Net sales $187,494 $157,761 $502,320 $473,586
Costs and expenses:
Cost of sales 85,215 75,322 227,239 224,508
Engineering, research and development 20,942 22,046 54,599 62,212
Selling, general and administrative 33,655 29,622 90,957 94,368
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139,812 126,990 372,795 381,088
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Income from operations 47,682 30,771 129,525 92,498
Interest income and other, net 2,306 5,466 10,401 13,190
Interest expense ( 273 ) ( 322 ) ( 897 ) ( 1,125 )
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Income before income taxes 49,715 35,915 139,029 104,563
Provision for income taxes 17,898 12,211 50,051 35,551
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Net income $31,817 $23,704 $88,978 $69,012
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Net income per share $0.61 $0.44 $1.70 $1.30
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Shares used in computing net income per share 52,170 53,830 52,321 53,014
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SUMMARY CONSOLIDATED BALANCE SHEET
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June 30, March 31,
1996 1997
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ASSETS (In thousands)
<S> <C> <C>
Cash, cash equivalents and marketable securities $261,411 $418,371
Accounts receivable 203,470 122,027
Inventories 132,377 118,289
Other current assets 34,029 42,665
Land, property and equipment, net 71,825 73,428
Other assets 9,660 13,512
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Total Assets $712,772 $788,292
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $169,203 $170,334
Deferred income taxes 6,320 6,316
Stockholders' equity 537,249 611,642
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Total Liabilities and Stockholders' Equity $712,772 $788,292
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