KLA-Tencor Posts Bigger Than Expected 3Q Loss

Revenue dropped nearly 49 percent from $602.2 million in the year-ago quarter to $309.6 million. That result beat analysts' forecast of nearly $299.9 million. While KLA-Tencor's revenue from its services segment fell nearly 19 percent, its product segment — which accounts for the bulk of revenue — plunged by 56 percent.

But President and Chief Executive Rick Wallace said he saw some hopeful signs that business conditions will improve, despite economic turmoil that has forced many of his customers to cut their capital budgets.

"Although demand remains at low levels today, we are encouraged to see investments in technology development activity in the March quarter for customers at the leading edge," Wallace said.

KLA-Tencor announced fiscal third-quarter results after its shares fell 8 cents to close at $25.70. The stock has ranged from $14.81 to $47.07 over the past year.