Friday, April 26, 2013

KLA-Tencor sees revenue below expectations, economy weighs

By Noel Randewich

(Reuters) - Chip equipment maker KLA-Tencor Corp reported lower quarterly results and said its outlook for the rest of the year has weakened due to manufacturers' concerns about the global economy.

KLA-Tencor's stock fell nearly 5 percent in extended trade after Chief Executive Rick Wallace said on a conference call he was seeing a pause in demand from contract manufacturers and gave a current quarter revenue estimate that was below expectations.

Wallace said he expects chip companies to spend close to 10 percent less on capital expenditures this year compared to 2012. He had previously expected a dip of between 5 percent and 10 percent.

KLA-Tencor said it expects bookings in its fiscal fourth quarter, which ends in June, of between $625 million and $775 million. That was less than the $825 million expected by B. Riley & Co analyst Ben Pang.

A slowing PC industry and worries about the economy have hurt demand for chip manufacturing gear, although booming sales of smartphones and tablets have been a bright spot.

KLA-Tencor's products help measure the effectiveness of complicated manufacturing processes and reduce defects essential for chipmakers implementing challenging new technologies.

Net income for the company's third quarter fell to $166.4 million, or 98 cents per share, from $205.3 million, or $1.21 per share in the same quarter a year earlier, the company said in a statement on Thursday.

KLA-Tencor had adjusted earnings per share of $1.01, beating expectations of 86 cents.

Revenue declined to $729 million from $840.5 million a year earlier, but beat estimates. Analysts on average were expecting third-quarter revenue of $727 million.

The company said it expects fourth-quarter revenue between $670 million and $730 million. Analysts were expecting revenue of $763 million, according to Thomson Reuters I/B/E/S.

Shares of KLA-Tencor fell 4.95 percent in extended trade after closing up 0.74 percent at $55.90.

(Reporting by Noel Randewich; Editing by Phil Berlowitz and Carol Bishopric)

Source: http://news.yahoo.com/kla-tencor-sees-revenue-below-expectations-economy-weighs-231301068--finance.html

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