KLA said it decided to exit its flat panel display (FPD) business, part of its PCB, Display and Component Inspection segment, and expects to complete the exit by the end of FPD product manufacturing on December 31, 2024. It will continue to service the installed base for the discontinued product lines.

1. 01

   KLA said it decided to exit its flat panel display (FPD) business, part of its PCB, Display and Component Inspection segment, and expects to complete the exit by the end of FPD product manufacturing on December 31, 2024. It will continue to service the installed base for the discontinued product lines.

2. 02

   The company cited several factors for the exit decision, including the cancellation of a significant new technology project by a major customer. It said the FPD business accounted for 1.4% of its total revenue in calendar 2023.

3. 03

   KLA reaffirmed its revenue outlook of $2.3 billion, plus or minus $125 million, for the March 2024 quarter. The company said it expects non-cash expenses of $60 to $70 million to write off excess and obsolete inventory for the discontinued product lines, and impairment of goodwill and purchased intangible assets of $50 to $70 million.

4. 04

   KLA said that, as a result of the exit decision, it is revising its March 2024 quarter outlook: GAAP diluted EPS to $4.06 +/- $0.60, and non-GAAP diluted EPS to $4.83 +/- $0.60.

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AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

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