KLA-Tencor 1Q Earnings Rise Despite Revenue Slide

MILPITAS, Calif. (AP) — Chip manufacturing equipment maker KLA-Tencor Corp. said Thursday its fiscal 2010 first-quarter profit rose slightly as a steep decline in revenue was offset by lower expenses.

The company also attributed its results to sharp demand from some fabrication plants and a lower than normal tax rate.

The company earned $20.4 million, or 12 cents per share, compared with $19.3 million, or 11 cents per share, a year ago. Excluding one-time items, the company made 15 cents per share, compared with 32 cents a year earlier.

Revenue sank to $347.7 million from $532.5 million in the fiscal 2009 first quarter. KLA-Tencor said its total costs and operating expenses fell 34 percent.

The results topped Wall Street's expectations. Analysts polled by Thomson Reuters expected a profit of 2 cents per share on $333.3 million in sales.

The stock closed 3 percent higher in the regular session to end at $34.28.