* Second-quarter revenue $673 million vs estimated $633.8
* Earnings/share $0.63 vs. estimated $0.56
* Expects third-quarter revenue $690-$750 million
* Expects third-quarter earnings $0.76-$0.96/share
* Shares up 4 percent, after-market
By Himank Sharma
Jan 24 Chip equipment maker KLA-Tencor Corp
gave a strong outlook after its second-quarter results
convincingly beat analysts' estimates on sustained demand from
Shares of the company, whose products help measure the
effectiveness of complicated manufacturing processes and reduce
defects essential for chipmakers implementing challenging new
technologies, rose 4 percent in extended trading after closing
at $51.97 on the Nasdaq on Thursday.
Booming sales of smartphones and tablets have fueled the
capital spending by chipmakers boosting orders for equipment
used in semiconductor assembly.
The company said it expects a profit of between 76 and 96
cents per share on revenue of between $690 million and $750
million in the third quarter.
Analysts were expecting a 81 cents per share profit on
$708.9 million in revenue, according to Thomson Reuters I/B/E/S.
"Definitely seems like they've benefited from TSMC's capex
spend. And when you look at Intel and some of the other
foundries, they stand to book some more orders there,"
Morningstar analyst Andy NG said.
KLA Tencor said it expects $690 million to $750 million in
bookings, up from between $550 million and $750 million it
projected for the second quarter.
Top chipmaker Intel Corp said last week that its
annual capital spending would increase to $13 billion from $11
billion. Much of that spending will go toward cutting-edge
production lines due to ramp up next year.
Leading contract chipmaker TSMC said last
month that it will boost its annual capital spending to a record
$9 billion from $8.3 billion.
KLA Tencor's net income fell to $107 million, or 63 cents
per share, from $122 million, or 72 cents per share, a year
earlier, hurt by higher costs. Revenue rose to $673 million from
Analysts on average were expecting a profit of 56 cents per
share on $633.8 million in revenue, according to Thomson Reuters