KLA-Tencor Misses Profit Estimates
SAN FRANCISCO --
KLA-Tencor's
(KLAC) - Get Report
profit narrowed in its fiscal third quarter, as slackening demand in the chip equipment sector took a bite out of sales.
The San Jose, Calif., company posted net income of $111 million, or 61 cents a share, compared with $155 million net income, or 76 cents a share at this time last year.
Analysts polled by Thomson Financial were expecting 63 cents.
KLA reported sales that exceeded the company's forecast, but were down sharply year over year. The company said revenue for the three months ended March 31 totaled $602 million, vs. $716 million in the year-ago period. Analysts were looking for $586 million.
KLA's earnings report follows disappointing results from chip equipment firm
Novellus
(NVLS)
, which cited delayed tool orders as chipmakers digest the glut of memory chips on the market.
KLA CEO Rick Wallace said in a statement Thursday that the company was continuing to "drive efficiencies" throughout the business amid challenging, industry-wide demand conditions. He said KLA is also investing in internal and external technology in order to bolster the company's position supplying chipmakers with manufacturing equipment.
The company did not provide a forecast for the current quarter, although a conference call was scheduled for later Thursday.
Shares of KLA were up 10 cents at $44.85 in extended trading Thursday.