KLA Corporation is a leading supplier of equipment and services that enable innovation in the electronics industry. They provide process control and process-enabling solutions for manufacturing wafers, reticles/masks, chemicals/materials, integrated circuits, packaged ICs and printed circuit boards. Their products and services help customers improve yields, reduce waste, risks and costs. The company operates through three reportable segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB and Component Inspection. KLA serves a global customer base with a significant presence in Asia, the U.S., and Europe.

KLA's competitive advantages stem from its leading technology and continuous investment in R&D, enabling them to offer advanced solutions that address the evolving needs of the semiconductor and related industries. They maintain close relationships with customers to remain responsive to their needs.

• Employees: Approximately 15,000 full-time employees and 230 part-time and temporary employees (as of June 30, 2024)
• Geographic Footprint: Operations in 18 regions, including Asia, the U.S., and Europe
• Headquarters: Milpitas, California
• Founded: 1997 (through the merger of KLA Instruments Corporation and Tencor Instruments)
• Number of locations/facilities: Not explicitly stated in the 10-K
• Revenue: $9.81 billion (FY2024)
• Market Capitalization: Approximately $78.54 billion (as of December 31, 2023)
• Key Subsidiaries/Brands: Not explicitly stated in the 10-K

• CEO: Richard P. Wallace
• CFO: Bren D. Higgins
• Senior Vice President and Chief Accounting Officer: Virendra A. Kirloskar
• Board Chair: Robert M. Calderoni

Key leaders have extensive experience in their respective fields. The CISO has over 20 years of experience in information technology, including cybersecurity. The company has an ESG Steering Committee composed of global leaders.

• Annual Revenue: $9.81 billion (FY2024)
• Net Income: $2.76 billion (FY2024)
• Market Cap: $78.54 billion (as of December 31, 2023)
• Total Assets: $15.43 billion (as of June 30, 2024)
• Employees: Approximately 15,000 full-time employees and 230 part-time and temporary employees (as of June 30, 2024)
• Key Financial Highlights: Revenue decreased by 7% year-over-year. Net income decreased from $3.39 billion in FY2023 to $2.76 billion in FY2024.

KLA offers a wide range of products and services across three segments:

• Semiconductor Process Control: Inspection, metrology and software products, and related services for IC, wafer, reticle/mask, and chemical/materials manufacturers.
• Specialty Semiconductor Process: Advanced vacuum deposition and etch process tools for MEMS, RF communication semiconductors, and power semiconductors.
• PCB and Component Inspection: Products and services for inspecting, testing, and measuring PCBs, IC substrates, and packaged ICs.

Flagship offerings include the Surfscan series, Archer series, and Klarity product family, among others. The company also provides comprehensive support and services across its installed base.

KLA operates through three reportable segments:

• Semiconductor Process Control: This segment accounted for the majority of the company's revenue. Revenue decreased by 6% year-over-year.
• Specialty Semiconductor Process: This segment's revenue decreased by 3% year-over-year.
• PCB and Component Inspection: This segment's revenue decreased by 13% year-over-year.

KLA's strategy focuses on enabling technological advances and improving manufacturing yields in the semiconductor industry. Key strategic initiatives include:

• Investing significantly in product R&D to maintain a competitive position.
• Building long-term relationships with customers and providing comprehensive resources.
• Expanding technologies, product offerings, and distribution capabilities through strategic acquisitions and alliances.
• Focusing on sustainability and environmental responsibility through its ESG initiatives.

The company is committed to innovation, customer satisfaction, and long-term growth. They also emphasize employee development and well-being.

KLA operates in the highly competitive semiconductor capital equipment industry. Key market trends include:

• Increasing demand for semiconductors driven by AI, 5G, electric vehicles, and digitization.
• Regionalization of semiconductor manufacturing as a matter of national security.
• Growing complexity and cost of advanced IC fabrication.
• Increasing customer demand for productivity and higher returns from manufacturing equipment.

Major competitors include Applied Materials, ASML, Hitachi High-Technologies Corporation, Onto Innovation, and Lasertec. KLA maintains its market position through its industry-leading portfolio of products and services. The company's market share information was not explicitly stated in the 10-K.

• Commercial and Financial Risks: Vulnerability to financial market conditions, risks related to international operations, potential limitations on selling products, IP disputes, increasing attention to ESG matters, reliance on third-party service providers, cybersecurity incidents, and fluctuations in interest rates and market values of investments.
• Industry Risks: Rapid technological changes, a highly concentrated customer base, and economic conditions that may affect customer purchasing decisions.
• Business Model and Capital Structure Risks: Inability to maintain technology advantage, compete with new products, receive components in a timely manner, comply with debt covenants, and repay indebtedness.
• Regulatory Risks: Changes in export regulations, trade restrictions, and compliance with environmental and other laws.
• Operational Risks: Disruptions in manufacturing, supply chain issues, and dependence on key personnel.