Liquidity and Working Capital - Working capital increased to $4.60 billion as of March 31, 2023, up by $302.4 million from $4.30 billion as of June 30, 2022 [232] - The company's principal sources of liquidity as of March 31, 2023, included $2.89 billion in cash, cash equivalents, and marketable securities [232] - The company's liquidity is supported by a $1.50 billion Revolving Credit Facility, which is sufficient to meet working capital needs, capital expenditures, and other obligations for at least the next 12 months [232] Investment Portfolio and Market Risks - The company's fixed income securities portfolio was valued at $1.08 billion as of March 31, 2023, with a potential decline of $9.4 million if interest rates increased by 100 bps [238] - The company's investment portfolio is subject to interest rate risk, with a potential decline in value if market interest rates increase [238] - The fair value of the company's equity investment in a publicly traded company was $19.8 million as of March 31, 2023, with a potential decline of $10 million if market prices fell by 50% [241] - The company had net forward and option contracts to buy $235.7 million in foreign currency as of March 31, 2023, with a potential decrease of $80.5 million in fair value if currency exchange rates moved adversely by 10% [243] Debt and Credit Facilities - The fair value of the company's long-term fixed interest rate Senior Notes was $5.79 billion as of March 31, 2023, with a principal amount of $5.95 billion [239] - The company had no outstanding borrowings under its Revolving Credit Facility as of March 31, 2023, with an annual commitment fee of 9 bps [240] - The company's credit ratings as of March 31, 2023, were A from Fitch, A2 from Moody's, and A from S&P [234] Internal Controls and Financial Reporting - No changes in internal control over financial reporting during the most recent fiscal quarter that materially affected or are likely to materially affect the company's financial reporting [249] - Disclosure Controls are designed to ensure timely and accurate reporting of required information under the Exchange Act, including components of internal control over financial reporting [247] - Limitations of Disclosure Controls include the inability to prevent all errors and fraud due to inherent system constraints, resource limitations, and potential circumvention [248] - CEO and CFO certifications are included in the report, referencing Rule 13a-14 of the Exchange Act, and should be read in conjunction with the Controls and Procedures section [246]

Financial Data and Key Metrics Changes - Revenue for the March quarter was $2.43 billion, representing a 6% year-over-year growth but down 18% sequentially [5][11] - GAAP EPS was $5.03 and non-GAAP EPS was $5.49, both above the midpoint of their respective guidance ranges [5][11] - Non-GAAP operating expenses were $534 million, below the expectation of $545 million due to headcount reductions and cost management [12] - Quarterly free cash flow was $926 million, leading to a 20% increase in the last 12 months' free cash flow to $3.2 billion [26] Business Line Data and Key Metrics Changes - Services revenue grew to $529 million, up 8% year-over-year and 2% sequentially, driven by an increasing installed base and customer adoption of long-term service agreements [8] - The automotive-focused business showed rapid growth, with automotive semiconductor demand increasing significantly [7] Market Data and Key Metrics Changes - Foundry/Logic is expected to account for approximately 77% of semiconductor process control systems revenue, while memory is forecasted to be around 23% [14] - In memory, DRAM is expected to represent about 85% of the segment mix, with NAND at approximately 15% [14] Company Strategy and Development Direction - The company is focused on market diversification, particularly in the automotive sector, and is working to standardize in-line defect screening methodologies [7] - KLA aims to maintain its market leadership through innovation and high levels of R&D investment, with a market share gain of approximately 300 basis points in 2022 [24] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are near-term headwinds due to the global macro economy, automotive demand and legacy markets remain strong [23] - The company expects WFE investments in memory to decline by 35% to 40% as customers adjust production to align with demand [30] - Management remains confident in the long-term semiconductor industry demand and investments, despite current market challenges [32] Other Important Information - The company returned $5.1 billion to shareholders over the last 12 months, including $4.4 billion in share repurchases and $711 million in dividends [13] - KLA ended the quarter with $2.9 billion in cash and cash equivalents, and $5.95 billion in debt [29] Q&A Session Summary Question: What is the outlook for foundry WFE in 2023? - Management indicated that lead times on optical inspection remain long, and customers continue to invest in their technology roadmaps, suggesting a stable demand environment [41] Question: How does management view memory demand recovery? - Management noted that memory sales were low at 14% in the March quarter, but they expect some stabilization in the second half of the year, albeit at low levels [44] Question: What is the expected growth for service revenues this year? - Management expects service revenues to grow in the mid- to high single-digit range, despite some headwinds from export controls [96] Question: How is the company addressing the impact of export controls on shipments to China? - Management clarified that they expect to recoup over $200 million in the second half of the year due to clarifications on export controls [94] Question: What is the expected performance of the EPC business? - Management anticipates the EPC business to improve modestly in the second half but expects it to decline year-over-year more than WFE-centric businesses [60]

Forward Looking Statements These forward-looking statements are based on current information and expectations and involve a number of risks and uncertainties. Actual results may differ materially from those projected in such statements due to various factors, including but not limited to: the impact of the COVID-19 pandemic on the global economy and on our business, financial condition and results of operations, including the supply chain constraints we are experiencing as a result of the pandemic; economic ...

KLA Corporation (NASDAQ:KLAC) Q2 2023 Earnings Conference Call January 26, 2023 6:00 PM ET Company Participants Kevin Kessel - Vice President of Investor Relations & Market Analytics Rick Wallace - Chief Executive Officer Bren Higgins - Chief Financial Officer Conference Call Participants C.J. Muse - Evercore Joe Quatrochi - Wells Fargo Harlan Sur - JPMorgan Vivek Arya - Bank of America Brian Chin - Stifel Sidney Ho - Deutsche Bank Atif Malik - Citi Tim Arcuri - UBS Krish Sankar - Cowen & Company Toshiya Ha ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|---------------------------------|-------|-------|--------------------------------------------------------|-------|--------------------------------------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Quarter Ended December 31, 2022 | | | Q2 Fiscal 2023 Earnings • Reported On January 26, 2023 | ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 KLA CORPORATION (Exact name of registrant as specified in its charter) Delaware 04-2564110 (State or other jurisdiction of incorporation or organization) One Technology Drive, Milpitas, California 95035 (I.R.S. Employer Identification No.) For the quarterly period ended December 31, 2022 or ☐ TRANSITION REPORT ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-09992 KLA CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|----------------------------------|-------|-------|-------|-------|--------------------------------------------------------|-------|--------------------------------------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Quarter Ended September 30, 2022 | | | | | Q1 Fiscal 2023 Earnings • ...

KLA Corporation (NASDAQ:KLAC) Q1 2023 Earnings Conference Call October 26, 2022 5:00 PM ET Company Participants Kevin Kessel - Vice President, Investor Relations & Market Analytics Rick Wallace - Chief Executive Officer Bren Higgins - Chief Financial Officer Conference Call Participants Harlan Sur - JPMorgan Krish Sankar - Cowen and Company C.J. Muse - Evercore Vivek Arya - Bank of America Securities Joe Moore - Morgan Stanley Joe Quatrochi – Wells Fargo Sidney Ho - Deutsche Bank Timothy Arcuri - UBS Toshiy ...

Table of Contents | Commission File Number 000-09992 | | | | --- | --- | --- | | KLA | CORPORATION | | | (Exact name of registrant as specified in its charter) | | | | Delaware | | 04-2564110 | | (State or other jurisdiction of | | (I.R.S. Employer | | incorporation or organization) | | Identification No.) | | One Technology Drive, Milpitas, | California | 95035 | | (Address of Principal Executive Offices) | | (Zip Code) | | Registrant's Telephone Number, Including Area Code: (408) 875-3000 | | | | Securiti ...