The company announced the end of manufacturing of most Display products by December 31, 2024, although it will continue to provide services to the installed base of Display products for existing customers.

The company is focused on providing advanced process control and process-enabling solutions for manufacturing wafers, reticles, ICs, packaging, PCBs, IC substrates and flat and flexible panel displays. This is a core focus of the company.

The company notes that customers are purchasing equipment with lead times that are longer than historical experience. This may increase the risk of order modifications, pushouts or cancellations.

The company is taking measures to comply with export regulations and is applying for export licenses, when required. It also notes that it is monitoring the financial condition of suppliers and taking steps to minimize production interruptions.

The company's sales, service and marketing efforts aim to build deep long-term relationships with customers and provide comprehensive resources for process control and yield management solutions.

The company is making significant investments in product R&D for the timely development of new products and enhancements necessary to maintain its competitive position. This includes investments in process control and process-enabling solutions.

The company states that its business is vulnerable to a weakening in the condition of the financial markets and the global economy, which could cause customers to decrease, cancel or delay orders.

The company notes that it is exposed to risks related to its international operations, including tariffs, trade restrictions, political instability, and difficulties associated with staffing and managing international operations.

The company is subject to various rules and regulations issued by the BIS that have impacted its ability to sell certain products and services to certain customers in China. These rules and regulations may harm the company's business unless it is able to obtain required licenses.

The company acknowledges that the market for its products is highly competitive, with important competitive factors including system performance, ease of use, reliability, technical service and support, and overall cost of ownership.

The company notes that it has many competitors, including Applied Materials, ASML, Hitachi High-Technologies, Onto Innovation and Lasertec, some of which may have greater financial, research, engineering, manufacturing and marketing resources.

The company maintains its market position by building long-term relationships with its customers to meet their dynamic needs and by anticipating future market demands.

The company utilizes an outsourcing strategy to manufacture components and major subassemblies, while performing system design, assembly and testing in-house. This strategy is intended to lower costs but also reduces direct control.

The company is seeking to reduce its dependence on sole and limited source suppliers to minimize the risk of production interruptions, but notes that this is not always possible.

The company conducts proactive risk assessments and audits to constantly improve its efforts and has implemented a global standard for incidents to ensure consistency across regions.

The company is focused on developing new technologies and products that successfully address changes in the industry, and it makes significant investments in product R&D to maintain its competitive position.

The company is increasingly incorporating AI capabilities into the development of technologies and its business operations, and into its products and services. However, it acknowledges the risks associated with this technology.

The company protects its proprietary technology through reliance on a variety of IP laws, including patent, copyright and trade secret. It also acquires license rights under patents and other proprietary rights of third parties.

The company has a significant amount of outstanding indebtedness, consisting of senior notes and a revolving credit facility. This leveraged capital structure may impact the company's ability to borrow needed funds or require it to repay debt sooner.

The company has a stock repurchase program and as of June 30, 2024, approximately $2.18 billion remained available for repurchases. This program is intended to mitigate dilution from equity incentive plans and return excess cash to stockholders.

The company intends to continue to pay quarterly dividends, subject to capital availability and periodic determinations by the Board of Directors. However, future dividends may be affected by various factors.

The company has established environmental sustainability goals, including using 100% renewable electricity across its global operations by 2030 and reducing Scope 1 and 2 emissions from its 2021 baseline by 50% by 2030.

The company has an ESG Steering Committee composed of global leaders within the organization that implements and executes its ESG strategy under the oversight of the KLA executive team and the Board of Directors.

The company recognizes that its competitive advantage is its people and the technology they develop. It is focused on attracting, motivating and retaining a diverse and innovative team of employees.

The company's business is impacted by the cyclical nature of the semiconductor industry, which is largely a function of customers' capital spending patterns and need for expanded manufacturing capacity.

The company is exposed to global trade issues and changes in and uncertainties with respect to trade policies, including the ability to obtain required import and export licenses, trade sanctions, tariffs and international trade disputes.

The company is exposed to political and social attitudes, laws, rules, regulations and policies within countries that favor domestic companies over non-domestic companies, including customer- or government-supported efforts to promote the development and growth of local competitors.