Message Font: Serif | Sans-Serif
No. of Recommendations: 0
As promised, I'll share whatever I find out. I must say that I just read the May 14, 2001 Quarterly report and didn't find any answers to my questions. The Annual report offers a few insights though it was released some time ago, Sept. 28, 2000. Nevertheless, here's what I've found out related to customers...


To support our growing, global customer base, we maintain a significant presence throughout the United States, Europe, Asia-Pacific and Japan, staffed with local sales and applications engineers, customer and field service engineers and yield management consultants. We count among our largest customers leading semiconductor manufacturers from each of these regions. In fiscal 2000, 1999 and 1998, no single customer accounted for more than 10% of our revenues.

Our business depends upon the capital expenditures of semiconductor manufacturers, which in turn depend on the current and anticipated market demand for integrated circuits and products utilizing integrated circuits. We do not consider our business to be seasonal in nature, but it is cyclical with respect to the capital equipment procurement practices of semiconductor manufacturers
and is impacted by the investment patterns of such manufacturers in different global markets. Downturns in the semiconductor industry or slowdowns in the worldwide economy could have a material adverse effect on our future business and financial results.

I'm encouraged by KLAC's customer base being fairly broad. However, has this changed with the slowdown in the industry and are the manufacturers themselves R&Ding to ween themselves away from the KLAC's?

Who are KLAC's competitors and where do they stand? It seems that a lot of the products produced by KLAC are patentable, which may widen the "moat" a bit more...I'll continue to chip away at these questions and will share what I find out. Hopefully the real Guru will show up and elighten us all.

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.