KLA-Tencor F3Q09 (Qtr End 3/31/09) Call Transcript

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2009-04-24 14:07:12.0

Tags: KLA-Tencor Corp., Margin, Product, Call Transcript, Product Development, Financial Services, Research & Development, Business Operations, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). Your first question comes from the line Brett Hodess with Bank of America/Merrill Lynch. Your line is open.

Brett Hodess - Bank of America/Merrill Lynch

Hi, good afternoon. And thanks for taking my question. Two questions, Rick it looks like your wafer inspection and reticle inspection orders actually grew quite strongly, sequentially versus the other businesses. And obviously technology driven but can you tell us if that sequential growth was new product driven? Or was it tied to a specific technology node, and was there share gain in those areas?

Richard Wallace

Sure, Brett. I guess it's really related to the investment we saw fundamentally in advance design which is as we said most of what's going on right now. But we believe that our share positions very strong. I think that in this environment there is a bit of flight-to-quality by our customers where there, they got to make sure their investment dollars are optimized and our new products are showing very well. Plus remember, we've continue to invest in our product development through the cycle.

So these are advanced products that are coming out. So we're seeing them being leveraged for the advance design rule work and at the same time, we're very strong from market share perspective.

Brett Hodess - Bank of America/Merrill Lynch

And then a follow on to that was when you look at the product mix these are usually your best margin products. So are you seeing the margins being maintained on a -- you have under absorption issues but are the margins being maintained on a product specific basis and you particularly pointed out like e-beam review which you're gaining share and does that have the kind of margins as the other inspection and products out?

Richard Wallace

Right as you know, we don't breakout by product roughly, but its clear in the market areas where we're stronger, we benefit from relative volume and so I would say that once we reach a normalized level we're in the same margin range that we've been in the past but we have some NAND absorption going on right now.

So, we're pleased with our margins, at the same time we have a customer base, a very mindful of value. So, our pricing strategy; well, we've not really reduced prices in this environment but we've maintained margins equivalent to what we've had in the past.

 

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