By Noel Randewich
April 25 Chip equipment maker KLA-Tencor Corp
reported lower quarterly results and said its outlook
for the rest of the year has weakened due to manufacturers'
concerns about the global economy.
KLA-Tencor's stock fell nearly 5 percent in extended trade
after Chief Executive Rick Wallace said on a conference call he
was seeing a pause in demand from contract manufacturers and
gave a current quarter revenue estimate that was below
Wallace said he expects chip companies to spend close to 10
percent less on capital expenditures this year compared to 2012.
He had previously expected a dip of between 5 percent and 10
KLA-Tencor said it expects bookings in its fiscal fourth
quarter, which ends in June, of between $625 million and $775
million. That was less than the $825 million expected by B.
Riley & Co analyst Ben Pang.
A slowing PC industry and worries about the economy have
hurt demand for chip manufacturing gear, although booming sales
of smartphones and tablets have been a bright spot.
KLA-Tencor's products help measure the effectiveness of
complicated manufacturing processes and reduce defects essential
for chipmakers implementing challenging new technologies.
Net income for the company's third quarter fell to $166.4
million, or 98 cents per share, from $205.3 million, or $1.21
per share in the same quarter a year earlier, the company said
in a statement on Thursday.
KLA-Tencor had adjusted earnings per share of $1.01, beating
expectations of 86 cents.
Revenue declined to $729 million from $840.5 million a year
earlier, but beat estimates. Analysts on average were expecting
third-quarter revenue of $727 million.
The company said it expects fourth-quarter revenue between
$670 million and $730 million. Analysts were expecting revenue
of $763 million, according to Thomson Reuters I/B/E/S.
Shares of KLA-Tencor fell 4.95 percent in extended trade
after closing up 0.74 percent at $55.90.