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KLA Sales Rise, Income on Hold

Sales are up 30%, but the chipmaker doesn't give a net income figure because of an options review.

Chip-equipment company KLA-Tencor (KLAC) - Get KLA Corporation (KLAC) Report posted strong year-over-year salesgrowth that beat Wall Street expectations.

But investors were left in the dark about itsprofitability and other key financial metrics becauseof the company's involvement in the controversy overstock-option backdating.

KLA said it generated $630 million in sales duringthe three months ended Sept. 30, at the high endof its guidance, which set a range of $610 million to$630 million. Analysts polled by Thomson First Callwere expecting $623.5 million in revenue.

At this time last year, KLA had sales of $484million.

"We had strong performance this quarter assemiconductor manufacturers continue to invest inprocess control for 65nm production and 45nmdevelopment," CEO Rick Wallace said in a statement."Our products and services deliver the most advancedprocess control technology to help our customersshorten their development, ramp faster and increasetheir yields."

Shares of KLA were off 1.1%, or 51 cents, at$25.25 in extended trading.

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San Jose, Calif.-based KLA said it ended itsfiscal first quarter with more than eight months ofproduct-related shipments and revenue backlog.

KLA said it ended the quarter with $2.4 billion incash and short-term investments, while its accountsreceivables decreased by $25 million.

The incomplete earnings report is only part of thehavoc wreaked on the company stemming from its use ofsuspicious stock-option accounting practices known asbackdating.

KLA, which along with many companies under scrutiny forbackdating, has received subpoenas from the U.S.Justice Department, said it will incur noncashcharges of less than $400 million as a resultincorrect measurement dates on certain options issuedbetween 1997 and 2002.

Earlier this month, KLA announced that companyfounder and Chairman Kenneth Levy was stepping down,along with the company's top in-house lawyer.

Thecompany said it has repriced all outstandingbackdated stock options for the two executives and has canceledall such options held by former CEO Kenneth Schroeder.

While a special team within KLA wraps up theinternal investigation into backdating and determinesthe exact amount of charges to restate, the companysaid it is unable to provide a complete earningsreport.