Online information source for semiconductor professionals

KLA-Tencor has lowered guidance for the fourth quarter of 2008, citing a sharp deterioration in business as semiconductor manufacturers cut capital spending and push out fab expansions. Bookings have decline sequentially in 2008 for KLA-Tencor. The latest guidance indicates new bookings are expected to be in the range of US$235 - US$245 million, down from its original 3Q guidance of US$325 million, flat plus or minus 10%. Total revenue was expected to be in the range of US$410 and US$430 million, compared to the revised figure of between US$$390 - US$400 million.

“Global economic uncertainty, weak consumer demand, and turbulent financial markets have led our customers to scale back production operations and reduce capital expenditures. Business conditions in our markets have deteriorated sharply in recent weeks, leading to unanticipated shortfall in quarterly new orders, revenues and earnings for KLA-Tencor, with weak services revenue a key contributing factor to that result,” commented Rick Wallace, president and CEO of KLA-Tencor. “We cannot predict the severity or duration of this economic downturn. In light of these conditions, we recently announced actions we are taking that are intended to optimize our cost structure and lower our break-even level, while maintaining our strategic focus and strong financial position. We will continue to evaluate further cost savings as conditions merit.”

The company now expects to make a loss for the last quarter, which ended December 31, 2008.