By Noel Randewich
SAN FRANCISCO Jan 23 KLA-Tencor Corp
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 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 has also been setting up and
testing its new 14 nanometer lines, due to start production this
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.