Thursday after the bell, semiconductor equipment maker KLA-Tencor Corp. (KLAC) reported a profit for the for the second quarter compared to a big loss in the year-ago period, when its results were weighed down by charges related to acquisitions, restructuring as well as goodwill and purchased intangible asset impairment. The company's quarterly earnings per share, excluding items, beat analysts' estimate by a penny.
The Milpitas, California-based company reported GAAP net income for the second quarter of $21.8 million or $0.13 per share, compared to a GAAP net loss of $434.3 million or $2.57 per share for the year-ago quarter.
Excluding items, non-GAAP net income for the second quarter was $49.4 million or $0.28 per share, compared to a non-GAAP net loss of $19.9 million or $0.12 per share in the prior year quarter.
On average, 17 analysts polled by Thomson Reuters expected the company to earn $0.27 per share for the second quarter. Analysts' estimates typically exclude special items.
Total revenue for the second quarter rose 11% to $440.36 million from $396.59 million in the same quarter last year. Thirteen analysts had a consensus revenue estimate of $437.88 million for the second quarter.
Product revenue for the quarter increased to $314.9 million from $273.1 million a year ago, while service revenue grew to $125.4 million from $123.5 million last year.
"KLA-Tencor delivered strong results for the quarter from improved demand from foundry customers ramping leading edge capacity and continued investment by logic and memory customers pursuing technology transition roadmaps," said Rick Wallace, KLA-Tencor's president and chief executive officer.
For the first six months of its fiscal year, the company reported GAAP net income of $42.2 million or $0.24 per share, compared to a GAAP net loss of $415.0 million or $2.43 per share for the same period the previous year.
Non-GAAP net income for the first-half was $75.5 million or $0.44 per share, compared to $35.4 million or $0.21 per share in the prior year period.
Total revenue for the first-half fell 16% to $783.04 million from $929.10 million in the corresponding year-ago period.
Semiconductor gear makers had been in red due to a difficult semiconductor industry environment. During the recession, demand for manufactured electronic items continues to fall off coercing chipmakers to live through sinking sales. However, recent results have shown a marked improvement in new orders, signaling that the market may have bottomed out.
Lam Research Corp. (LRCX) said Thursday that it turned to profit in the second quarter, as shipments and revenue improved.
KLA-Tencor shares, which have traded in a range of $15.28 to $37.71 over the past year, closed Thursday's regular trading session at $29.38, down $1.47 or 4.76% and lost an additional 46 cents or 1.57% in after hours trading.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.