KLA-Tencor Corp. (KLAC) Thursday reported a decline in third-quarter profit, as the chip-gear maker was hurt by lower revenues. However, both quarterly earnings and revenue came in above Wall Street estimates. Following the results, KLA-Tencor lost about five percent in after-hours trade on the Nasdaq.
KLA-Tencor is a major provider of process diagnostics and control solutions. The company delivers quality assurance tools in the form of testing equipment that can be used in the semiconductor manufacturing process to increase yield and minimize defects.
While weak PC sales and economic softness has impacted demand for its products, a surge in sales of tablets and smartphones has prompted semiconductor firms to invest in chip-making equipments, thereby benefiting KLA-Tencor.
Milpitas, California-based KLA-Tencor reported quarterly revenues of $729 million, compared to $841 million last year. On average, 14 analysts polled by Thomson Reuters expected revenues of $726.82 million for the quarter.
The company posted quarterly net income of $166 million or $0.98 per share, compared to $205.80 million or $1.21 per share a year ago.
Excluding special items, adjusted earnings for the quarter were $171 million or $1.01 per share, compared to $216 million or $1.27 per share in the prior year.
Analysts on consensus estimated earnings of $0.86 per share for the quarter. Analysts' estimates typically exclude special items.
Engineering, research and development costs for the quarter totaled $118.8 million, up from $110 million last year.
KLA-Tencor stock closed Thursday at $55.90, up 0.74%, on a volume of about 2.5 million shares. In after hours, the stock dropped $2.77 or 4.96%. In the past year, the stock has traded in a range of $43.21 - $57.97.
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