The following is a summary of the KLA Corporation (KLAC) Q2 2024 Earnings Call Transcript:

Financial Performance:

KLA’s revenue in 2023 stood at approximately $9.7 billion, a drop of 8% from the previous year.
Non-GAAP operating margins reached 39% with a Gross margin of 62%.
Q4 2023 ended with revenue of $2.49 billion, 4% higher than the company projected.
Non-GAAP net income for Q4 2023 was $839 million, with GAAP EPS at $4.28 and non-GAAP EPS at $6.16.
KLA’s Q2 2024 revenue was $2.49 billion, slightly higher than the midpoint of the forecast.
Non-GAAP diluted EPS for Q2 2024 was $6.16, while GAAP diluted EPS was $4.28.
The company reported cash flow from operations of $622 million and registered a free cash flow of $545 million.

Business Progress:

KLA underwent growth in all three of its business segments during Q4, notably the 8900 Series platform.
It’s investing in AI to streamline its inspection and metrology products.
The company predicts a 12-14% revenue growth from its service business in 2024.
KLA aims to expand capacity in 2023 with significant node ramps occurring in 2025.
The company is staying prepared for high-NA technology, which it anticipates will widen opportunities in reticle space and process control.
It expects WFE demand to remain largely unchanged from the previous year, at mid to high $8 billion. The second half of 2024 is anticipated to boost WFE investment.
It’s considering strategic alternatives for the Display business segment that made up 1.4% of total revenue in 2023.