KLA Corporation's Revenue and Growth Performance in 2023
2024-01-30
KLA Corporation, a leading provider of process control and yield management solutions, held its December quarter 2023 earnings conference call and webcast on January 25, 2024. The call featured CEO Rick Wallace and CFO Bren Higgins as speakers, who presented the discussions on a non-GAAP financial basis, unless otherwise specified.
During the call, one of the key highlights was the revenue and growth performance of KLA for the 2023 calendar year. Despite a decline of 8% compared to the previous year, the company reported revenue of almost $9.7 billion. However, there were areas of growth in KLA's business segments, including the infrastructure business supporting wafer and mass manufacturers, automotive, and specialty semiconductor process equipment. The service business also saw growth of 7% to $2.2 billion.
Looking ahead to calendar year 2024, KLA's outlook remains uncertain, as the timing of a meaningful and sustainable resumption in wafer fabrication equipment (WFE) investment growth is still unknown. However, the company stated that its overall demand is stabilizing around current business levels.
During the Q&A session, various questions were asked about KLA's financial results, market share, customer projects, and future growth opportunities. The company reported revenue of $2.49 billion for the quarter, slightly above the guidance midpoint, and non-GAAP diluted EPS of $6.16.
In terms of market share, KLA expects China's market share to be flattish in 2024 compared to 2023. The company also discussed the impact of customer project delays on revenue and the expected return of sequential growth in the June quarter.
Regarding the WFE demand for 2024, KLA anticipates it to be in the mid to high $8 billion range, roughly flat to modestly up from the anticipated level in 2023. The memory and foundry logic segments are expected to see growth, with investments focused on high bandwidth memory capacity, leading-edge node development, and technology upgrades.
Looking ahead, KLA aims to deliver industry-leading financial and free cash flow performance through operational excellence. The company expressed confidence in the increasing importance of process control and technology advancements. Despite challenging near-term demand trends, KLA remains optimistic about its long-term growth outlook.
Overall, KLA Corporation's December quarter 2023 earnings conference call and webcast provided insights into the company's financial performance, market outlook, customer projects, and growth opportunities. Despite uncertainties in the industry, KLA remains focused on delivering value to its customers and driving innovation in the semiconductor industry.