Updated from 5:03 p.m. EDTKLA-Tencor ( KLAC) reported an 18% increase in fiscal fourth-quarter sales, but was tight-lipped about other financial results because of its ongoing investigation into past stock option-accounting practices. The San Jose, Calif., maker of semiconductor manufacturing equipment said revenue for its fourth quarter totaled $579 million, compared with $492 million a year ago and slightly above the average analysts' expectation of $574 million. While analysts polled by Thomson Financial expected KLA to earn 58 cents a share, the company did not disclose its net income or EPS. In a statement, CEO Rick Wallace said that operating profit, excluding stock-option expenses, was above the company's expectations for the quarter and that KLA experienced "a good quarter for customer orders with strong demand for our leading-edge yield management solutions." Memory-chip manufacturing drove KLA's equipment orders in the fourth quarter, accounting for 60% of all bookings. Flash-memory equipment represented half of those orders. The increasing popularity of flash memory, which retains data even when power is switched off, and the chip-manufacturing industry's push to make chips with smaller circuitry are boosting demand for KLA's inspection and measurement products, which allow manufacturers to increase yields. In a conference call with investors, management said KLA expects half of its orders by the end of the calendar year to be for equipment designed to make chips with a circuitry of 65 nanometers and below. The largest chipmakers are currently transitioning from 90-nanometer circuitry to more-advanced 65-nanometer chips. KLA executives also said the company is now aware of 17 new projects to construct chip-fabrication facilities featuring advanced, 300mm equipment -- up from its previous estimate of 15 such facilities. Customer orders in the fourth quarter were stronger than normal in Taiwan, Korea, China and Singapore, while Europe lagged its historical average.