KLA-Tencor announce recapitalization
Chip equipment supplier KLA-Tencor (KLAC) this afternoon reported fiscal Q1 revenue and earnings per share that topped analysts' expectations, and announced a recapitalization involving stepped-up buybacks and a one-time cash dividend.
Revenue in the three months ended in September rose to $643 million.
KLA said it had decided upon "a plan to significantly accelerate its strategy to drive stockholder returns." The company is going to pursue a leveraged recapitalization that will involve a special cash dividend of $16.50 per share, or $2.75 billion in aggregate, to be paid "before December 31st."
The company also increased its buyback authorization by $250 million on top of the existing $1 billion outstanding. The company adds up all those amounts to constitute $4 billion in return of cash to shareholders.
CEO Rick Wallace remarked,
KLA-Tencor's strong business model and the ongoing successful execution of our strategic plans enable us to continue to invest in our business at a high level to fuel our growth and support our customers' needs, while also delivering meaningful returns to stockholders. These factors, coupled with a strong balance sheet and the Company's ongoing focus on cash distributions, will enable our stockholders to continue to benefit from KLA-Tencor's sustained success in the marketplace. This is another major step forward for the Company in executing our capital allocation strategies in support of our strategic objectives, while increasing returns to stockholders.
