(KLAC) - Get Report

bottom line was cut nearly in half in its fiscal fourth quarter, due to slower sales and hefty acquisition charges.

But the Milpitas, Calif., chip equipment maker nonetheless beat Wall Street's lackluster expectations.

KLA said it earned $76 million, or 43 cents a share, vs. net income of $147 million, or 75 cents a share at this time last year.

The results included $50 million of charges related to its recent acquisition of ICOS Vision Systems. Excluding those charges, as well as various other one-time items, KLA said it earned 60 cents a share, three cents above the average analyst expectation.

Shares of KLA were up 2.4% to $38.50 in extended trading Thursday.

For the three months ended June 30, KLA had sales of $591 million, down 20% year-over-year, but ahead of the average analyst expectation of $572.8 million.

While KLA's service revenue actually increased year-over-year to $128 million, its product sales were plunged 26% to $462 million.

In a statement, KLA CEO Rick Wallace called the current demand environment "very challenging," but said the company had expanded its potential market opportunity with the ICOS deal and delivered good operating performance.

The company did not provide immediate financial guidance, though it is scheduled to hold a conference call with analysts discussing its earnings results Thursday.