UPDATE 3-KLA-Tencor profit beats Street, shares tick up - News

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UPDATE 3-KLA-Tencor profit beats Street, shares tick up

By: AFX | 29 Oct 2009 | 07:55 PM ET

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By Ian Sherr SAN FRANCISCO, Oct 29 (Reuters) - Chip-equipment maker KLA-Tencor Corp gave stronger-than-expected forecasts for current quarter revenue and earnings, underscoring a semiconductor industry rebound. KLA-Tencor, which managed a slim fiscal first-quarter profit after losing money the three previous quarters, had been expected to turn in a strong performance after good numbers from rivals such as Novellus Systems, which raised its fourth-quarter outlook as demand for consumer electronics begins to recover. On Thursday, KLA forecast second-quarter adjusted earnings of 24 to 30 cents a share on revenue of $420 million to $450 million. Analysts had been forecasting, on average, 12 cents of earnings on revenue of $376.2 million. "At this point, it feels like the worst is behind us," said KLA-Tencor Chief Executive Richard Wallace, adding that the company is seeing a broader range of customers moving ahead with capital investment plans. The company also said it will consider stock buybacks. KLA-Tencor, which competes with Applied Materials Inc to provide systems that monitor and analyze chip products, on Thursday reported net income of $20 million, or 12 cents a share, compared with $19 million, or 11 cents a share, a year earlier. Excluding items, it earned 15 cents a share, sharply ahead of the average analysts' estimate of 2 cents a share, according to Thomson Reuters I/B/E/S. Revenue for the first quarter fell to $343 million but exceeded the average Wall Street estimate of $332.5 million. KLA-Tencor's results are the latest positive sign from the semiconductor industry as demand for consumer electronics begins to recover, particularly spending on personal computers. Shares of KLA-Tencor closed 3.1 percent higher at $34.28 in regular trading on the Nasdaq and rose another 0.7 percent to $34.51 in after-hours trading. (Editing by Leslie Gevirtz and Steve Orlofsky) Keywords: KLATENCOR/ (ian.sherr@thomsonreuters.com; +1 415.677.2542; Reuters Messaging: ian.sherr.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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