KLA-Tencor's second-quarter revenue meets expectations
SAN FRANCISCO (Reuters) - KLA-Tencor Corp (KLAC.O) reported higher fiscal second-quarter revenue that met analysts' expectations as chipmakers implementing cutting-edge technology bought more process control tools.
Buoyed by booming mobile device sales, leading contract manufacturer TSMC (2330.TW) has been preparing new cutting-edge manufacturing lines, boosting demand for KLA-Tencor's products, which are used to measure the effectiveness of complicated manufacturing processes and reduce defects.
Top PC chipmaker Intel (INTC.O) has also been setting up and testing its new 14 nanometer lines, due to start production this quarter.
KLA-Tencor said in a release on Thursday its second-quarter revenue was $705 million, compared to $673 million a year earlier. Analysts, on average, were expecting second-quarter revenue of $705 million, according to Thomson Reuters I/B/E/S.
The company reported second-quarter net income of $139 million, or 83 cents a share, compared with $107 million, or 63 cents a share, in the year-ago quarter.
Non-GAAP earnings per share was 85 cents in the second quarter. That compared to 80 cents expected by analysts.
Last week, Intel said a newly built factory in Chandler, Arizona, originally slated to produce 14 nm chips would remain closed due to slow demand for PC chips. But it said other factories at the site would be updated for 14 nm production.
Also this month, Intel said it expects capital spending this year to be flat compared to 2013.
Shares of KLA-Tencor rose 0.77 percent in extended trade after closing down 0.20 percent at $63.53.
(Reporting by Noel Randewich; Editing by Bernard Orr)