KLA Corporation is a leading supplier of process control and yield management solutions for the semiconductor and related electronics industries . The company provides a range of inspection, metrology, and software products, along with services that help manufacturers optimize their production processes . KLA is organized into three main segments: Semiconductor Process Control, Specialty Semiconductor Process, and PCB and Component Inspection . Additionally, KLA's service business is a significant part of their operations, driven by long-term subscription contracts .
- Semiconductor Process Control - Offers a comprehensive portfolio of inspection, metrology, and software products, as well as related services, to help manufacturers achieve target yields throughout the fabrication process .
- Specialty Semiconductor Process - Focuses on advanced vacuum deposition and etch process tools used by manufacturers of microelectromechanical systems (MEMS), radio frequency (RF) communication semiconductors, and power semiconductors for automotive and industrial applications .
- PCB and Component Inspection - Provides products and services for inspecting, testing, and measuring PCBs, IC substrates, and packaged ICs .
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Richard Wallace ExecutiveBoard | President and Chief Executive Officer (CEO) | Board Member at Marvell Technology, Inc. | Joined KLA in 1988; became CEO in 2006 and President in 2008; extensive leadership in the semiconductor industry; previously held roles such as COO and EVP of Wafer Inspection Group. | View Report → |
Ahmad Khan Executive | President, Semiconductor Process Control, Electronics, Packaging and Components, and KLA Instruments | None | Joined KLA in 2003; oversees unified product and customer organization; previously EVP of Global Products Group and Patterning Division. | View Report → |
Bren Higgins Executive | Executive Vice President and Chief Financial Officer | None | Joined KLA in 1999; CFO since 2013; oversees finance operations, global manufacturing, and investor relations; previously VP of Corporate Finance. | |
Brian Lorig Executive | Executive Vice President, Global Support and Services | None | Joined KLA in 1998; oversees Global Support and Services organization; previously VP of U.S. Manufacturing and Operations Group. | |
Mary Beth Wilkinson Executive | Executive Vice President, Chief Legal Officer, and Corporate Secretary | None | Joined KLA in 2020; oversees legal, compliance, and corporate governance; previously General Counsel at O-I Glass, Inc.. | |
Oreste Donzella Executive | Executive Vice President and Chief Strategy Officer | SEMI North America Advisory Board | Joined KLA in 1999; previously EVP of Electronics, Packaging, and Components; extensive experience in marketing and product management. | |
Virendra Kirloskar Executive | Senior Vice President and Chief Accounting Officer | None | Joined KLA in 1993; rejoined in 2003 as VP and Corporate Controller; became Chief Accounting Officer in 2008. | |
Emiko Higashi Board | Director | Board Member at Takeda Pharmaceutical Company Ltd. and Rambus, Inc. | Director at KLA since 2010; founder of Tohmon Capital Partners; extensive experience in M&A and strategy. | |
Jeneanne Hanley Board | Director | Board Member at QuantumScape Corporation | Director at KLA since 2019; no prior roles at KLA; brings expertise in automotive and technology industries. | |
Kevin Kennedy Board | Director | Director at Digital Realty Trust, Inc. and UL Solutions Inc. | Director at KLA since 2007; extensive experience in technology and corporate governance; former CEO of Avaya Inc.. | |
Michael McMullen Board | Director | Senior Advisor at Agilent Technologies, Inc.; Director at Bristol-Myers Squibb Company | Director at KLA since 2023; retired CEO of Agilent Technologies; extensive leadership experience in life sciences and technology. | |
Robert Calderoni Board | Chairman of the Board | Board Member at Ansys, Inc. | Director at KLA since 2007; became Chairman in 2022; extensive leadership experience, including as CEO of Citrix Systems and President of SAP's cloud business. | |
Robert Rango Board | Director | Director at Keysight Technologies, Inc. and Microchip Technology, Inc. | Director at KLA since 2014; former CEO of Enevate Corporation; extensive experience in semiconductors and wireless technologies. | |
Victor Peng Board | Director | None | Director at KLA since 2019; retired President of Adaptive, Embedded, and AI Group at AMD; former CEO of Xilinx, Inc.. |
- Given that your gross margin is forecasted to decline to 61.5% plus or minus 1% in the September quarter , can you elaborate on the weaker anticipated product mix and whether you expect further margin pressure in the coming quarters?
- Your 12-month shippable RPO decreased by about $70 million quarter on quarter, remaining flattish compared to last quarter ; what factors contributed to this decline, and how confident are you in bookings increasing over the next few quarters?
- With China revenues expected to remain relatively flat , while peers indicate that China mature nodes are in a digesting mode and calendar Q1 was the peak , are you anticipating any slowdown in China sales into next year, and how might this impact your overall growth?
- The revenue guidance range for the September quarter has widened to plus or minus $150 million from the usual $125 million ; does this reflect increased uncertainty or volatility in your business, and can you provide more color on the factors influencing this wider range?
- Advanced packaging revenue run rate has increased to $500 million from $400 million three months ago ; is this growth primarily due to market expansion, or are you gaining share in new markets like macro inspection where competitors have traditionally been stronger, and how sustainable is this growth?
Research analysts who have asked questions during KLA earnings calls.
Harlan Sur
JPMorgan Chase & Co.
5 questions for KLAC
Thomas O’Malley
Barclays Capital
5 questions for KLAC
Timothy Arcuri
UBS
5 questions for KLAC
Vivek Arya
Bank of America Corporation
4 questions for KLAC
Atif Malik
Citigroup Inc.
3 questions for KLAC
Brian Chin
Stifel Financial Corp.
3 questions for KLAC
Christopher Muse
Cantor Fitzgerald
3 questions for KLAC
Joseph Quatrochi
Wells Fargo Securities, LLC
3 questions for KLAC
Sreekrishnan Sankarnarayanan
Wolfe Research, LLC
3 questions for KLAC
Srinivas Pajjuri
Raymond James & Associates, Inc.
3 questions for KLAC
Charles Shi
Needham & Company
2 questions for KLAC
CJ Muse
Cantor Fitzgerald
2 questions for KLAC
Joe Quatrochi
Wells Fargo
2 questions for KLAC
Shane Brett
Morgan Stanley
2 questions for KLAC
Yu Shi
Susquehanna International Group, LLP
2 questions for KLAC
Blayne Curtis
Jefferies Financial Group
1 question for KLAC
Christopher Caso
Wolfe Research
1 question for KLAC
Joseph Moore
Morgan Stanley
1 question for KLAC
Melissa Weathers
Deutsche Bank
1 question for KLAC
Michael Mani
Bank of America
1 question for KLAC
Timm Schulze-Melander
Rothschild & Co Redburn
1 question for KLAC
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
In each of our product markets, we have many competitors, including companies such as Applied Materials, Inc., some of which may have greater financial, research, engineering, manufacturing and marketing resources than we have. | |
In each of our product markets, we have many competitors, including companies such as ASML Holding N.V., some of which may have greater financial, research, engineering, manufacturing and marketing resources than we have. | |
Hitachi High-Technologies Corporation | In each of our product markets, we have many competitors, including companies such as Hitachi High-Technologies Corporation, some of which may have greater financial, research, engineering, manufacturing and marketing resources than we have. |
In each of our product markets, we have many competitors, including companies such as Onto Innovation, Inc., some of which may have greater financial, research, engineering, manufacturing and marketing resources than we have. | |
Lasertec, Inc. | In each of our product markets, we have many competitors, including companies such as Lasertec, Inc., some of which may have greater financial, research, engineering, manufacturing and marketing resources than we have. |
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Taiwan Semiconductor Manufacturing Company Limited (TSMC) | Major foundry customer for advanced process control solutions | Semiconductor Process Control | FY2025: 19% of total revenue / FY2024: 13% / FY2023: 18% |
Samsung Electronics Co., Ltd. | Major semiconductor manufacturer for process control solutions | Semiconductor Process Control | FY2023: 15% of total revenue |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
ECI Technology, Inc. | 2022 | ECI Technology, Inc. was acquired on February 28, 2022 for $431.5 million in cash to extend and enhance KLA’s product and service portfolio, with key allocations including $271.8 million in goodwill and $208.4 million in identifiable intangible assets. |
Another Privately Held Company (May) | 2022 | This company was acquired on May 1, 2022 for $8.6 million in cash, with the purchase price allocated primarily to tangible, identified intangible assets and residual goodwill assigned to the Wafer Inspection and Patterning reporting unit, although the strategic purpose was not specified. |
Another Privately Held Company (August) | 2022 | Acquired on August 9, 2022 for $32.7 million in cash, the deal was aimed at securing the supply of materials for existing products and included allocations such as $30.0 million to intangible assets, $6.8 million to goodwill (assigned to the Wafer Inspection and Patterning reporting unit), among other asset and liability items. |
Recent press releases and 8-K filings for KLAC.
- KLA delivered $3.175 B in Q4 revenue, non-GAAP EPS of $9.38, GAAP EPS of $9.06, and record free cash flow exceeding $1 B.
- Advanced Packaging momentum continues, with 2025 systems revenue now expected to exceed $925 M, up from over $500 M in 2024.
- Q1 FY2026 guidance: revenue of $3.15 B ± $150 M, gross margin of 62% ± 1 ppt, and non-GAAP EPS of $8.53 ± $0.77.
- Strong balance sheet and capital returns: $4.5 B in cash, $5.9 B debt, 12% dividend increase to $1.90/share per quarter, and a $5 B share repurchase authorization.
- On July 3, 2025, KLA Corporation entered into a five-year unsecured revolving credit facility of $1.5 billion, including a $150 million letter of credit sublimit and $15 million swingline, replacing its June 2022 facility, with an accordion option up to $500 million; maturity on July 3, 2030 plus two one-year extension options.
- Borrowings bear interest at Term SOFR + 0.625%–1.00% or ABR + 0.00%, with a facility fee of 0.040%–0.100% on undrawn amounts, all payable quarterly; loans may be repaid and reborrowed at any time without penalty.
- The agreement includes a sustainability-linked pricing component, adjusting interest rates and facility fees based on meeting or missing greenhouse gas emissions and renewable energy usage targets.
- Proceeds may be used for general corporate purposes, including repayment of outstanding debt, with JPMorgan Chase, BofA Securities, Citibank, and Wells Fargo among the lead arrangers and agents.
- KLA emphasized continued strength in its leading edge process control portfolio with rising investments at the two nanometer node and strong performance in advanced packaging markets.
- The company highlighted its robust service business, noting sustained low double-digit growth, extended tool lifetimes, and a transition to higher revenue capture in service contracts.
- Guidance remarks pointed to a near-term revenue outlook around $3 billion with improving gross margins in the mid-60s, supported by balanced commercial exposure including a stable 30% contribution from China.
- KLA outlined robust growth drivers in wafer equipment spending and process control, noting structural improvements in capital intensity and advanced node transitions that support a low double-digit growth outlook and stronger margins.
- The company highlighted significant market share gains, including a 700 basis point increase in its e-beam inspection segment and an accelerated advanced packaging revenue trajectory from $500M to $850M year-over-year.
- KLA Corp declared a quarterly cash dividend of $1.90 per share, payable on June 3, 2025 with a record date of May 19, 2025.
- The Board appointed Susan J.S. Taylor and accepted the retirement of Robert A. Rango effective May 8, 2025.
- Q3 2025 Financial Performance: KLA delivered total revenues of approximately $3.06B, GAAP EPS of $8.16 (non‐GAAP EPS of $8.41), GAAP net income of $1.088B, and generated $990M in free cash flow at a 32% margin .
- Q4 FY2025 Guidance: The company projects revenues of about $3.075B ± $150M with GAAP diluted EPS of around $8.28 ± $0.78, highlighting continued strength .
- June Quarter Guidance: Revenue is expected to reach roughly $3.75B ± $150M with a gross margin forecast of approximately 63% ±1%, despite tariff headwinds .
- Dividend & Capital Returns: A quarterly dividend increase from $1.70 to $1.90 per share and a newly approved $5B share repurchase program bolster shareholder returns .
- Market Leadership & Advanced Packaging: Advanced packaging revenue is on track to exceed $850M in calendar 2025, while Semiconductor Process Control contributed 89% of Q3 revenue, underscoring robust market demand and strategic execution .
- KLA Corp expects a mid-single-digit growth in 2025 with key industry drivers including increased wafer fab equipment (WFE) levels reaching between $100 billion and $105 billion and record revenue in 2024, reflecting strong performance in both legacy and advanced process control markets.
- The executives highlighted significant progress in e-beam technology, noting its complementary role to optical inspection and its early wins, which are expected to enhance market share through advanced applications including AI-enhanced inspection.
- Advanced packaging opportunities are emphasized, with discussions on the growth potential in high-bandwidth memory (HBM) and cost-effective process control for both packaging and logic-based die improvements, signaling further market expansion.
- The call also addressed increased process control intensity in leading-edge foundry nodes, as well as a strategic reduction in China’s business share from around 41% to 29%, with expectations to stabilize between 20% and 25% over time.