KLA Corporation holds Investor Day; announces a $6 billion share buyback program and a 24% increase in the quarterly dividend; Confirms June 2022 guidelines
Announce a new $6 billion Authorization to buy back shares, comprising approximately $3 billion Accelerated Share Repurchase (ASR) to be completed over the next 3-6 months, with the remaining amount to be repurchased over the next 12-18 months, subject to market conditions.
announces a 24% increase in the level of the quarterly dividend to $1.30 per share of $1.05, KLA’s 13th consecutive annual dividend increase. Since its inception in 2006, KLA has increased the level of quarterly dividend at a compound annual growth rate of approximately 15%.
confirm current June 2022 quarterly forecasts, including a turnover of $2.3 billion at $2.55 billionand non-GAAP diluted earnings per share attributable to KLA of $4.93 at $6.03.
MILPITAS, Calif., June 16, 2022 /PRNewswire/ — KLA Corporation (NASDAQ: KLAC), will hold its 2022 Investor Day today at New York City with presentations from Rick WallacePresident and CEO, Bren Higgins, Executive Vice President and Chief Financial Officer, and other senior Company executives. A live stream of the event will begin at 8:30 a.m. ETand conclude about 12:30 p.m. ET. A link to the live stream and presentation material is available at ir.kla.com.
Management will present KLA’s strategies to deliver sustainable outperformance guided by KLA’s operating model, including in-depth reviews of semi-process control, electronics, packaging and component (EPC) businesses and Services. The company will also present its new 2026 target model.
In addition, the Company announces the authorization of the Board of Directors to buy back up to $6 billion ordinary shares of the Company. Management expects to effect this share repurchase authorization in the form of an accelerated share repurchase of approximately $3 billion to be completed over the next 3-6 months, with the remaining amount to be redeemed over the next 12-18 months. This is in addition to the existing share buyback authorisation, which had $699 million remaining from March 31, 2022. Share buybacks are expected to be funded by a combination of new debt and cash on the Company’s balance sheet. Redemptions may be made from time to time using various methods, which may include open market purchases, privately negotiated transactions, accelerated stock buyback programs or otherwise, all in accordance with the requirements of the Securities and Exchange Commission and other applicable legal requirements. . The precise timing, price and size of purchases will depend on prevailing stock prices, general economic and market conditions and other considerations. The repurchase programs do not obligate the Company to acquire any particular amount of its common stock, and the repurchase programs may be suspended or terminated at any time at the discretion of the Company.
The Company also announces an increase in the level of the quarterly dividend to $1.30 per share of $1.05 per share, the thirteenth consecutive annual increase in KLA’s quarterly dividend level. The declaration and payment of future dividends is subject to the discretion of the Board and will depend on financial and legal requirements and other considerations.
“We are delighted to host KLA Corporation’s 2022 Investor Day to provide the investment community with a better understanding of our business, our financial performance and the opportunities available to us as we execute on our strategic objectives.” , said Rick Wallace, President and CEO. “The semiconductor industry has become even more critical to a growing number of industries and geographies and is expected to grow and change in ways that benefit the KLA,” Wallace added. “Today’s announcements of further share buyback authorization and an increased quarterly dividend level reflect our longstanding focus on productive capital allocation and confidence in our business strategies.”
Event video webcast details
Presentations, which include question and answer sessions, will begin at 8:30 a.m. ET and should end around 12:30 p.m. ET. The public can access the event via a live webcast available at ir.kla.com. The presentation materials will be posted on the Investor Relations section of the Company’s website today, immediately following the presentations. A replay of the webcast will be available after the presentations at the same link listed above.
KLA Corporation develops state-of-the-art equipment and services that enable innovation throughout the electronics industry. We provide advanced process control and process enablement solutions for the manufacture of wafers and reticles, integrated circuits, packaging, printed circuit boards and flat panel displays. Working closely with leading customers around the world, our expert teams of physicists, engineers, data scientists and problem solvers design solutions that move the world forward. Investors and others should note that KLA is announcing material financial information, including SEC filings, press releases, earnings calls and conference webcasts using an investor relations website. (ir.kla.com). Additional information can be found at: ir.kla.com,
Note regarding forward-looking statements:
Statements contained in this press release other than historical facts, such as statements regarding the company’s expected level of dividend and stock repurchases or the timing of such actions, are forward-looking statements and are subject to the provisions of safe harbor created by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current information and expectations and involve a number of risks and uncertainties. Actual results may differ materially from those projected in these statements due to a variety of factors, including but not limited to: future decisions of the Board of Directors regarding the declaration of dividends, the impact of the COVID pandemic -19 on the global economy and the Company’s business, state and results of operations, including supply chain constraints the Company is experiencing due to the pandemic; economic, political and social conditions in the countries in which the Company, its customers and suppliers operate, including rising inflation and interest rates, Russia invasion of Ukraine and global trade policies; disruption of the Company’s manufacturing facilities or other operations, or the operations of its customers, due to catastrophic natural events, health epidemics or terrorism; ongoing changes in the technology industry, and the semiconductor industry in particular, including future growth rates, pricing trends in end markets, or changes in customer capital spending habits; the Company’s ability to timely develop new technologies and products that anticipate or successfully address changes in the semiconductor industry; the Company’s ability to maintain its technological advantage and protect its proprietary rights; the Company’s ability to compete with new products launched by its competitors; the Company’s ability to attract and retain key personnel; cybersecurity threats, cyber incidents affecting the systems and networks of the Company and its service providers and the Company’s ability to access information systems critical to day-to-day business operations; liability to the Company’s customers under indemnification provisions if its products fail to operate properly or contain defects or if its customers are sued by third parties in connection with its products; exposure to a highly concentrated customer base; the availability and cost of the wide range of materials used in the manufacture of the Company’s products; the Company’s ability to operate its business in accordance with its business plan; the legal, regulatory and tax environments in which the Company operates and does business and its ability to comply with applicable laws and regulations; the Company’s ability to pay interest and repay principal on its current debt depends on its ability to manage its business operations, its credit rating and the current interest rate environment, among other factors; instability in global credit and capital markets; the Company’s exposure to fluctuations in exchange rates or declining economic conditions in the countries where it operates; changes in the Company’s effective tax rate resulting from changes in the tax rates imposed by the jurisdictions where its profits are determined to be earned and taxed, the expiration of tax exemptions in certain jurisdictions, the resolution of issues arising tax audits with various authorities or changes in laws or the interpretation of such tax laws; and the Company’s ability to identify suitable acquisition targets and successfully integrate and manage acquired businesses. For other factors that could cause actual results to differ materially from those projected and anticipated in the forward-looking statements in this press release, please see the Company’s Annual Report on Form 10-K for the fiscal year ended. June 30, 2021, and other subsequent filings with the Securities and Exchange Commission (including, but not limited to, the risk factors described therein). The Company undertakes no obligation to update these forward-looking statements and does not currently intend to update them.
Reconciliation of GAAP Diluted EPS to Non-GAAP Diluted EPS
Three months ending June 30, 2022
(In millions of dollars, except per share amounts)
GAAP net earnings per diluted share attributable to KLA
Costs related to the acquisition
Tax impact of non-GAAP adjustments
Non-GAAP net earnings per diluted share attributable to KLA
Shares used in the calculation of diluted earnings per share
a. Acquisition-related expenses primarily include amortization of intangible assets and other acquisition-related adjustments, including adjustments for the fair valuation of inventory and order backlog, as well as transaction costs associated with our acquisitions.
b. The tax effect of the non-GAAP adjustments includes the tax effect of the excluded item mentioned above.
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