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 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.