KLA CORPORATION REPORTS FISCAL 2025 FOURTH QUARTER AND FULL YEAR RESULTS
KLA Corporation (NASDAQ: KLAC) reported strong financial results for Q4 and full fiscal year 2025. Q4 revenues reached $3.175 billion, with GAAP EPS of $9.06 and non-GAAP EPS of $9.38. The company achieved record quarterly free cash flow of $1.06 billion.
For FY2025, KLA posted total revenues of $12.16 billion with GAAP net income of $4.06 billion. Looking ahead to Q1 FY2026, KLA projects revenues of $3.15 billion ±$150 million and non-GAAP EPS guidance of $8.53 ±$0.77.
The company highlighted its crucial role in supporting AI infrastructure development and semiconductor innovation across foundry/logic and memory markets.
KLA Corporation (NASDAQ: KLAC) ha annunciato risultati finanziari solidi per il quarto trimestre e l'intero anno fiscale 2025. I ricavi del quarto trimestre hanno raggiunto 3,175 miliardi di dollari, con un utile per azione GAAP di 9,06 dollari e un utile per azione non-GAAP di 9,38 dollari. L'azienda ha registrato un flusso di cassa libero trimestrale record di 1,06 miliardi di dollari.
Per l'anno fiscale 2025, KLA ha riportato ricavi totali di 12,16 miliardi di dollari e un utile netto GAAP di 4,06 miliardi di dollari. Guardando al primo trimestre del 2026, KLA prevede ricavi di 3,15 miliardi di dollari ±150 milioni e una stima di utile per azione non-GAAP di 8,53 ±0,77 dollari.
L'azienda ha sottolineato il suo ruolo fondamentale nel supportare lo sviluppo dell'infrastruttura per l'intelligenza artificiale e l'innovazione nei semiconduttori nei mercati foundry/logic e memoria.
KLA Corporation (NASDAQ: KLAC) reportó sólidos resultados financieros para el cuarto trimestre y el año fiscal completo 2025. Los ingresos del cuarto trimestre alcanzaron los 3.175 millones de dólares, con un BPA GAAP de 9,06 dólares y un BPA no GAAP de 9,38 dólares. La compañía logró un flujo de caja libre trimestral récord de 1.060 millones de dólares.
Para el año fiscal 2025, KLA registró ingresos totales de 12.160 millones de dólares con un ingreso neto GAAP de 4.060 millones de dólares. De cara al primer trimestre del 2026, KLA proyecta ingresos de 3.150 millones de dólares ±150 millones y una guía de BPA no GAAP de 8,53 ±0,77.
La compañía destacó su papel crucial en el apoyo al desarrollo de infraestructuras de IA y la innovación en semiconductores en los mercados de fundición/lógica y memoria.
KLA Corporation (NASDAQ: KLAC)는 2025 회계연도 4분기 및 전체 연도에 강력한 재무 실적을 보고했습니다. 4분기 매출은 31억 7,500만 달러에 달했으며, GAAP 주당순이익은 9.06달러, 비-GAAP 주당순이익은 9.38달러였습니다. 회사는 분기별 자유현금흐름 기록인 10억 6천만 달러를 달성했습니다.
2025 회계연도 전체 매출은 121억 6천만 달러이며, GAAP 순이익은 40억 6천만 달러였습니다. 2026 회계연도 1분기 전망으로는 매출 31억 5천만 달러 ±1억 5천만 달러, 비-GAAP 주당순이익 가이던스는 8.53 ±0.77달러를 제시했습니다.
회사는 파운드리/로직 및 메모리 시장 전반에서 AI 인프라 개발 및 반도체 혁신 지원에 중요한 역할을 하고 있음을 강조했습니다.
KLA Corporation (NASDAQ : KLAC) a publié de solides résultats financiers pour le quatrième trimestre et l'ensemble de l'exercice fiscal 2025. Les revenus du quatrième trimestre ont atteint 3,175 milliards de dollars, avec un BPA GAAP de 9,06 dollars et un BPA non-GAAP de 9,38 dollars. L'entreprise a réalisé un flux de trésorerie disponible trimestriel record de 1,06 milliard de dollars.
Pour l'exercice 2025, KLA a enregistré un chiffre d'affaires total de 12,16 milliards de dollars avec un bénéfice net GAAP de 4,06 milliards de dollars. Pour le premier trimestre de l'exercice 2026, KLA prévoit des revenus de 3,15 milliards de dollars ±150 millions et une prévision de BPA non-GAAP de 8,53 ±0,77.
L'entreprise a souligné son rôle clé dans le soutien au développement des infrastructures d'IA et à l'innovation dans les marchés des semiconducteurs, notamment dans les segments fonderie/logique et mémoire.
KLA Corporation (NASDAQ: KLAC) meldete starke Finanzergebnisse für das vierte Quartal und das gesamte Geschäftsjahr 2025. Die Umsätze im vierten Quartal erreichten 3,175 Milliarden US-Dollar, mit einem GAAP-Gewinn je Aktie von 9,06 US-Dollar und einem Non-GAAP-Gewinn je Aktie von 9,38 US-Dollar. Das Unternehmen erzielte einen Rekord-Quartals-Frei-Cashflow von 1,06 Milliarden US-Dollar.
Für das Geschäftsjahr 2025 verzeichnete KLA einen Gesamtumsatz von 12,16 Milliarden US-Dollar und einen GAAP-Nettogewinn von 4,06 Milliarden US-Dollar. Für das erste Quartal des Geschäftsjahres 2026 prognostiziert KLA Umsätze von 3,15 Milliarden US-Dollar ±150 Millionen und eine Non-GAAP-Gewinnprognose von 8,53 ±0,77.
Das Unternehmen hob seine entscheidende Rolle bei der Unterstützung der Entwicklung von KI-Infrastrukturen und der Innovation im Halbleiterbereich in den Foundry/Logic- und Speichermärkten hervor.
- Record quarterly free cash flow of $1.06 billion in Q4
- Q4 revenue grew 23.6% year-over-year to $3.175 billion
- Q4 GAAP net income increased 43.9% year-over-year to $1.203 billion
- Strong capital returns of $679.7 million in Q4
- Robust Q1 FY2026 revenue guidance of $3.15 billion ±$150 million
- Sequential decline in projected Q1 FY2026 EPS compared to Q4 FY2025
- Expected slight sequential revenue decline for Q1 FY2026
Insights
KLA delivered strong Q4 results with record free cash flow, driven by AI demand and maintaining its leading position in semiconductor inspection.
KLA's Q4 financial results demonstrate exceptional performance in a high-demand semiconductor equipment market. Revenue reached
Most impressive is KLA's free cash flow generation, which surpassed
KLA's gross margins remain robust, with Q1 FY2026 non-GAAP gross margin guidance of
The company's commentary about enabling AI infrastructure buildout aligns with broader industry trends where inspection and metrology tools become increasingly critical as process complexity increases for advanced logic and memory chips powering AI applications. KLA's tools are essential for maintaining yield and quality in these complex manufacturing processes, positioning them well in the ongoing semiconductor super-cycle driven by artificial intelligence demands.
- For the quarter, total revenues were
, towards the upper end of the guidance range;$3.17 5 billion - GAAP diluted EPS was
, at the upper end of the guidance range, and non-GAAP diluted EPS was$9.06 , above the upper end of the guidance range;$9.38 - Cash flow from operating activities for the quarter and fiscal year was
and$1.16 billion , respectively, and free cash flow was$4.08 billion and$1.06 billion , respectively. Quarterly free cash flow topped$3.75 billion for the first time in the June quarter; and$1 billion - Capital returns for the quarter and fiscal year were
and$679.7 million , respectively.$3.05 billion
"KLA delivered strong across-the-board results for the June quarter including generating record quarterly free cash flow. These results reflect the unique and compelling opportunity within semiconductor capital equipment for KLA's continued role in enabling and supporting the AI infrastructure buildout," said Rick Wallace, president and CEO of KLA Corporation. "We continue to see growing relevancy for KLA's industry-leading technologies across our product portfolio in driving semiconductor-based innovation for our global customers in the leading-edge foundry/logic and memory markets, in addition to the evolving opportunities in advanced semiconductor packaging."
GAAP Results | |||
Q4 FY 2025 | Q3 FY 2025 | Q4 FY 2024 | |
Total Revenues | |||
Net Income | |||
Net Income per Diluted Share | |||
Non-GAAP Results | |||
Q4 FY 2025 | Q3 FY 2025 | Q4 FY 2024 | |
Net Income | |||
Net Income per Diluted Share |
A reconciliation between GAAP operating results and non-GAAP operating results is provided following the financial statements included in this release. KLA will discuss the results for its fiscal year 2025 fourth quarter and full year, along with its outlook, on a conference call today beginning at 2:00 p.m. P.T. A webcast of the call will be available at: www.kla.com.
First Quarter Fiscal 2026 Guidance
The following details our guidance for the first quarter of fiscal 2026 ending in September:
- Total revenues is expected to be in a range of
+/-$3.15 billion $150 million - GAAP gross margin is expected to be in a range of
60.7% +/-1.0% - Non-GAAP gross margin is expected to be in a range of
62.0% +/-1.0% - GAAP diluted EPS is expected to be in a range of
+/-$8.28 $0.77 - Non-GAAP diluted EPS is expected to be in a range of
+/-$8.53 $0.77
For additional details and assumptions underlying our guidance metrics, please see the company's published Letter to Shareholders, Earnings Slide Presentation and Earnings Infographic on the KLA investor relations website (ir.kla.com). Such Letter to Shareholders, Earnings Slide Presentation and Earnings Infographic are not incorporated by reference into this earnings release.
About KLA:
KLA Corporation ("KLA") develops industry-leading equipment and services that enable innovation throughout the electronics industry. We provide advanced process control and process-enabling solutions for manufacturing wafers and reticles, integrated circuits, packaging and printed circuit boards. In close collaboration with leading customers across the globe, our expert teams of physicists, engineers, data scientists and problem-solvers design solutions that move the world forward. Investors and others should note that KLA announces material financial information including SEC filings, press releases, public earnings calls and conference webcasts using an investor relations website (ir.kla.com). Additional information may be found at: www.kla.com
Note Regarding Forward-Looking Statements:
Statements in this press release other than historical facts, such as statements pertaining to the amount and timing of dividends, the amount and timing of share repurchases, total revenues, GAAP and non-GAAP gross margin and GAAP and non-GAAP diluted EPS for the quarter ending September 30, 2025, are forward-looking statements and are subject to the Safe Harbor provisions created by the Private Securities Litigation Reform Act of 1995. 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: our vulnerability to a weakening in the condition of the financial markets and the global economy; risks related to our international operations; evolving Bureau of Industry and Security of the
KLA Corporation | |||
Condensed Consolidated Unaudited Balance Sheets | |||
(In thousands) | June 30, 2025 | June 30, 2024 | |
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 2,078,908 | $ 1,977,129 | |
Marketable securities | 2,415,715 | 2,526,866 | |
Accounts receivable, net | 2,263,915 | 1,833,041 | |
Inventories | 3,212,149 | 3,034,781 | |
Other current assets | 728,102 | 659,327 | |
Total current assets | 10,698,789 | 10,031,144 | |
Land, property and equipment, net | 1,252,775 | 1,109,968 | |
Goodwill, net | 1,792,193 | 2,015,726 | |
Deferred income taxes | 1,105,770 | 915,241 | |
Purchased intangible assets, net | 444,785 | 668,764 | |
Other non-current assets | 773,614 | 692,723 | |
Total assets | $ 16,067,926 | $ 15,433,566 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 458,509 | $ 359,487 | |
Deferred system revenue | 816,834 | 985,856 | |
Deferred service revenue | 548,011 | 501,926 | |
Current portion of long-term debt | — | 749,936 | |
Other current liabilities | 2,262,441 | 2,063,569 | |
Total current liabilities | 4,085,795 | 4,660,774 | |
Long-term debt | 5,884,257 | 5,880,199 | |
Deferred tax liabilities | 446,945 | 486,690 | |
Deferred service revenue | 348,844 | 294,460 | |
Other non-current liabilities | 609,632 | 743,115 | |
Total liabilities | 11,375,473 | 12,065,238 | |
Stockholders' equity: | |||
Common stock and capital in excess of par value | 2,511,922 | 2,280,133 | |
Retained earnings | 2,179,330 | 1,137,270 | |
Accumulated other comprehensive income (loss) | 1,201 | (49,075) | |
Total stockholders' equity | 4,692,453 | 3,368,328 | |
Total liabilities and stockholders' equity | $ 16,067,926 | $ 15,433,566 |
KLA Corporation | |||||||
Condensed Consolidated Unaudited Statements of Operations | |||||||
Three Months Ended June 30, | Twelve Months Ended June 30, | ||||||
(In thousands, except per share amounts) | 2025 | 2024 | 2025 | 2024 | |||
Revenues: | |||||||
Product | $ 2,472,182 | $ 1,954,837 | $ 9,472,854 | $ 7,482,679 | |||
Service | 702,559 | 613,898 | 2,683,308 | 2,329,568 | |||
Total revenues | 3,174,741 | 2,568,735 | 12,156,162 | 9,812,247 | |||
Costs and expenses: | |||||||
Costs of revenues | 1,207,286 | 1,010,551 | 4,751,867 | 3,928,073 | |||
Research and development | 352,989 | 325,759 | 1,360,334 | 1,278,981 | |||
Selling, general and administrative | 262,706 | 255,106 | 1,029,734 | 969,509 | |||
Impairment of goodwill and purchased intangible assets | — | — | 239,100 | 289,474 | |||
Interest expense | 73,125 | 82,836 | 302,166 | 311,253 | |||
Other expense (income), net | (50,164) | (50,560) | (171,487) | (155,075) | |||
Income before income taxes | 1,328,799 | 945,043 | 4,644,448 | 3,190,032 | |||
Provision for income taxes | 125,950 | 108,597 | 582,805 | 428,136 | |||
Net income | $ 1,202,849 | $ 836,446 | $ 4,061,643 | $ 2,761,896 | |||
Net income per share: | |||||||
Basic | $ 9.11 | $ 6.22 | $ 30.53 | $ 20.41 | |||
Diluted | $ 9.06 | $ 6.18 | $ 30.37 | $ 20.28 | |||
Weighted-average number of shares: | |||||||
Basic | 132,032 | 134,462 | 133,030 | 135,345 | |||
Diluted | 132,734 | 135,342 | 133,750 | 136,187 |
KLA Corporation Condensed Consolidated Unaudited Statements of Cash Flows | |||
Three Months Ended June 30, | |||
(In thousands) | 2025 | 2024 | |
Cash flows from operating activities: | |||
Net income | $ 1,202,849 | $ 836,446 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 96,252 | 101,001 | |
Unrealized foreign exchange (gain) loss and other | (8,648) | 4,214 | |
Asset impairment charges | — | 11,307 | |
Stock-based compensation expense | 71,269 | 58,621 | |
Deferred income taxes | (60,482) | (30,634) | |
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions: | |||
Accounts receivable | (67,608) | (221,958) | |
Inventories | (48,519) | (32,843) | |
Other assets | (86,564) | (65,884) | |
Accounts payable | (8,601) | 24,177 | |
Deferred system revenue | (51,515) | (8,613) | |
Deferred service revenue | 35,850 | 74,096 | |
Other liabilities | 90,708 | 142,685 | |
Net cash provided by operating activities | 1,164,991 | 892,615 | |
Cash flows from investing activities: | |||
Acquisition of intellectual property | (2,100) | — | |
Capital expenditures | (100,408) | (60,745) | |
Proceeds from capital-related government assistance | 5,948 | — | |
Purchases of available-for-sale securities | (748,014) | (602,081) | |
Proceeds from sale of available-for-sale securities | 128,116 | 36,816 | |
Proceeds from maturity of available-for-sale securities | 394,759 | 488,779 | |
Purchases of trading securities | (30,013) | (21,635) | |
Proceeds from sale of trading securities | 26,367 | 18,644 | |
Proceeds from other investments | — | 1,430 | |
Net cash used in investing activities | (325,345) | (138,792) | |
Cash flows from financing activities: | |||
Common stock repurchases | (425,697) | (470,266) | |
Payment of dividends to stockholders | (253,965) | (197,521) | |
Issuance of common stock | 103,976 | 96,501 | |
Tax withholding payments related to vested and released restricted stock units | (54,127) | (47,508) | |
Contingent consideration payable and other, net | — | (67) | |
Net cash used in financing activities | (629,813) | (618,861) | |
Effect of exchange rate changes on cash and cash equivalents | 11,053 | (6,000) | |
Net increase in cash and cash equivalents | 220,886 | 128,962 | |
Cash and cash equivalents at beginning of period | 1,858,022 | 1,848,167 | |
Cash and cash equivalents at end of period | $ 2,078,908 | $ 1,977,129 | |
Supplemental cash flow disclosures: | |||
Income taxes paid, net | $ 231,115 | $ 65,553 | |
Interest paid, net of capitalized interest | $ 7,772 | $ 25,171 | |
Non-cash activities: | |||
Dividends payable - financing activities | $ 2,300 | $ 1,953 | |
Unsettled common stock repurchase - financing activities | $ 5,500 | $ 5,500 | |
Accrued purchase of land, property and equipment - investing activities | $ 25,740 | $ 13,849 |
KLA Corporation Segment Information (Unaudited) | |||||||
The following is a summary of results for each of our three reportable segments and reconciliations to total revenues for the indicated periods: | |||||||
Three Months Ended June 30, | Twelve Months Ended June 30, | ||||||
(In thousands) | 2025 | 2024 | 2025 | 2024 | |||
Revenues: | |||||||
Semiconductor Process Control | $ 2,877,647 | $ 2,307,994 | $ 10,947,359 | $ 8,733,556 | |||
Specialty Semiconductor Process | 141,866 | 121,268 | 587,107 | 528,701 | |||
PCB and Component Inspection | 154,106 | 140,017 | 621,721 | 552,491 | |||
Total revenues for reportable segments | 3,173,619 | 2,569,279 | 12,156,187 | 9,814,748 | |||
Corporate allocations and effects of changes in foreign | 1,122 | (544) | (25) | (2,501) | |||
Total revenues | $ 3,174,741 | $ 2,568,735 | $ 12,156,162 | $ 9,812,247 |
KLA Corporation Condensed Consolidated Unaudited Supplemental Information | ||||||||||
Reconciliation of GAAP Net Income to Non-GAAP Net Income | ||||||||||
Three Months Ended | Twelve Months Ended | |||||||||
(In thousands, except per share amounts) | June 30, 2025 | March 31, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |||||
GAAP net income | $ 1,202,849 | $ 1,088,416 | $ 836,446 | $ 4,061,643 | $ 2,761,896 | |||||
Adjustments to reconcile GAAP net income to | ||||||||||
Acquisition-related charges | a | 50,677 | 53,663 | 58,777 | 219,690 | 239,901 | ||||
Restructuring, severance and other charges | b | 2,133 | — | 17,721 | 7,128 | 21,033 | ||||
Impairment of goodwill and purchased intangible assets | c | — | — | — | 239,100 | 289,474 | ||||
Income tax effect of non-GAAP adjustments | d | (18,559) | (18,306) | (23,227) | (79,511) | (86,311) | ||||
Discrete tax items | e | 7,322 | (3,113) | 3,092 | 3,630 | 7,630 | ||||
Non-GAAP net income | $ 1,244,422 | $ 1,120,660 | $ 892,809 | $ 4,451,680 | $ 3,233,623 | |||||
GAAP net income per diluted share | $ 9.06 | $ 8.16 | $ 6.18 | $ 30.37 | $ 20.28 | |||||
Non-GAAP net income per diluted share | $ 9.38 | $ 8.41 | $ 6.60 | $ 33.28 | $ 23.74 | |||||
Shares used in diluted net income per share calculation | 132,734 | 133,303 | 135,342 | 133,750 | 136,187 |
Pre-tax Impact of GAAP to Non-GAAP Adjustments Included in Condensed Consolidated Unaudited Statements of Operations | |||||
(In thousands) | Acquisition-Related | Restructuring, | Total Pre-tax GAAP to | ||
Three Months Ended June 30, 2025 | |||||
Costs of revenues | $ 39,024 | $ 1,233 | $ 40,257 | ||
Research and development | — | (3) | (3) | ||
Selling, general and administrative | 11,653 | 903 | 12,556 | ||
Total in three months ended June 30, 2025 | $ 50,677 | $ 2,133 | $ 52,810 | ||
Three Months Ended March 31, 2025 | |||||
Costs of revenues | $ 41,838 | $ — | $ 41,838 | ||
Selling, general and administrative | 11,825 | — | 11,825 | ||
Total in three months ended March 31, 2025 | $ 53,663 | $ — | $ 53,663 | ||
Three Months Ended June 30, 2024 | |||||
Costs of revenues | $ 45,937 | $ 2,240 | $ 48,177 | ||
Research and development | — | 2,230 | 2,230 | ||
Selling, general and administrative | 12,840 | 13,251 | 26,091 | ||
Total in three months ended June 30, 2024 | $ 58,777 | $ 17,721 | $ 76,498 |
Free Cash Flow Reconciliation | ||||||||
Three Months Ended June 30, | Twelve Months Ended June 30, | |||||||
(In thousands) | 2025 | 2024 | 2025 | 2024 | ||||
Net cash provided by operating activities | $ 1,164,991 | $ 892,615 | $ 4,081,903 | $ 3,308,575 | ||||
Capital expenditures | (100,408) | (60,745) | (335,259) | (277,384) | ||||
Free cash flow | $ 1,064,583 | $ 831,870 | $ 3,746,644 | $ 3,031,191 |
Capital Returns Calculation | ||||||||
Three Months Ended June 30, | Twelve Months Ended June 30, | |||||||
(In thousands) | 2025 | 2024 | 2025 | 2024 | ||||
Payments of dividends to stockholders | $ 253,965 | $ 197,521 | $ 904,594 | $ 773,041 | ||||
Common stock repurchases | 425,697 | 470,266 | 2,149,946 | 1,735,746 | ||||
Capital returns | $ 679,662 | $ 667,787 | $ 3,054,540 | $ 2,508,787 |
First Quarter Fiscal 2026 Guidance | ||||
Reconciliation of GAAP Diluted EPS to Non-GAAP Diluted EPS | ||||
Three Months Ending September 30, 2025 | ||||
(In millions, except per share amounts) | Low | High | ||
GAAP net income per diluted share | ||||
Acquisition-related charges | a | 0.38 | 0.38 | |
Restructuring, severance and other charges | b | 0.01 | 0.01 | |
Income tax effect of non-GAAP adjustments | d | (0.14) | (0.14) | |
Non-GAAP net income per diluted share | ||||
Shares used in net income per diluted share calculation | 132.4 | 132.4 |
Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin | ||||
Three Months Ending September 30, 2025 | ||||
Low | High | |||
GAAP gross margin | 59.7 % | 61.7 % | ||
Acquisition-related charges | a | 1.3 % | 1.3 % | |
Non-GAAP gross margin | 61.0 % | 63.0 % |
The non-GAAP and supplemental information provided in this press release is a supplement to, and not a substitute for, KLA's financial results presented in accordance with United States GAAP.
To supplement our Condensed Consolidated Financial Statements presented in accordance with GAAP, we provide certain non-GAAP financial information, which is adjusted from results based on GAAP to exclude certain gains, costs and expenses, as well as other supplemental information. The non-GAAP and supplemental information is provided to enhance the user's overall understanding of our operating performance and our prospects in the future. Specifically, we believe that the non-GAAP information, including non-GAAP net income, non-GAAP net income per diluted share, non-GAAP gross margin and free cash flow, provides useful measures to both management and investors regarding financial and business trends relating to our financial performance by excluding certain costs and expenses that we believe are not indicative of our core operating results to help investors compare our operating performances with our results in prior periods as well as with the performance of other companies. The non-GAAP information is among the budgeting and planning tools that management uses for future forecasting. However, because there are no standardized or generally accepted definitions for most non-GAAP financial metrics, definitions of non-GAAP financial metrics are inherently subject to significant discretion (for example, determining which costs and expenses to exclude when calculating such a metric). As a result, non-GAAP financial metrics may be defined very differently from company to company, or even from period to period within the same company, which can potentially limit the usefulness of such information to an investor. The presentation of non-GAAP and supplemental information is not meant to be considered in isolation or as a substitute for results prepared and presented in accordance with United States GAAP. The following are descriptions of the adjustments made to reconcile GAAP net income to non-GAAP net income:
a) | Acquisition-related charges primarily include amortization of intangible assets and write-offs due to abandonment of in-process research and development projects. Although we exclude the effect of amortization of all acquired intangible assets from these non-GAAP financial measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase price accounting arising from acquisitions, and such amortization of intangible assets related to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Investors should note that the use of these intangible assets contributed to our revenues earned during the periods presented and are expected to contribute to our future period revenues as well. |
b) | Restructuring, severance and other charges primarily include costs associated with employee severance and, in the three months ended June 30, 2024, write-downs of certain right of use assets and fixed assets that were abandoned. |
c) | Impairment of goodwill and purchased intangible assets in the three months ended Dec. 31, 2024, March 31, 2024 and Dec. 31, 2023, include non-cash expense recognized as a result of the company's testing for goodwill impairment and long-lived assets impairment. The impairment charge in fiscal 2025 resulted from the continued deterioration of the long-term forecast for our PCB business. The impairment charge in fiscal 2024 resulted from the downward revision of financial outlook for our PCB and Display reporting units and the subsequent decision to exit the Company's Display business that was based on many factors, including the cancellation of a significant new technology project by a major customer in the third quarter of fiscal 2024. Management believes that it is appropriate to exclude these impairment charges as they are not indicative of ongoing operating results and therefore limit comparability. Management also believes excluding this item helps investors compare our operating performance with our results in prior periods as well as with the performance of other companies. |
d) | Income tax effect of non-GAAP adjustments includes the income tax effects of the excluded items noted above. |
e) | Discrete tax items in the three months ended March 31, 2025 include a deferred tax impact relating to the amortization of certain intellectual property as a result of an internal restructuring of ownership rights to better align with how our business operates. Discrete tax items in the three and twelve months ended June 30, 2025 also include the recognition of a net deferred tax liability on foreign currency gains/losses resulting from new tax legislation and a tax benefit from an internal restructuring. Discrete tax items in the twelve months ended June 30, 2024 include a one-time tax benefit resulting from changes made to our international structure to better align ownership of certain intellectual property rights with how our business operates. Discrete tax items in all periods presented include a tax impact relating to the amortization of the aforementioned tax benefits or similar tax benefits recorded in other periods. |
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SOURCE KLA Corporation