Company News
Chip toolmaker KLA flags weak Q3 as customers use up inventory
U.S. chip toolmaker KLA Corp on Thursday forecast third-quarter revenue and profit below Wall Street estimates, the latest company to signal a hit from easing demand as customers seek to reduce excess inventory.
The company’s shares fell more than 5% in trading after the bell.
“As we begin 2023, it is clear that this will be a year of industry capacity adjustments,” the company said in a shareholder letter, adding that customers were adapting their capex plans for 2023 to reflect lower end demand.
KLA had earlier said its systems & service revenues could be affected in the near term by the U.S. export regulations on the sale of U.S. semiconductor technology to China.
The company expects third-quarter revenue between $2.2 billion and $2.5 billion, falling short of analysts’ average expectation of $2.55 billion, according to Refinitiv IBES.
It sees current-quarter adjusted profit in the range of $4.52 to $5.92 per share, the midpoint of which was below expectation of $5.89.
The downbeat forecast came after KLA managed to beat Wall Street estimates for profit and revenue for the October-December quarter, benefiting from increased customer demand across each of the major product group in the quarter. MSN
You must be logged in to post a comment Login