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KLA-Tencor CEO Rick Wallace on the company’s growth despite the uncertainties due to the debt negotiations and expectations of declining PC sales.
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Economy Kla-Tencor.
Reported Blockbuster results for its fourth quarter but few years.
A falling demand for PC's and uncertainty in Washington is weighing on the company's future -- I spoke to Kla-Tencor CEO Rick Wallace earlier -- asked him how closely he's watching the ongoing debate.
On Capitol Hill and here's -- -- at December.
The citizen I'm paying a lot of attention but from a Kla-Tencor perspective.
I think it's more about the uncertainty in the business climate and the -- that house and our customers and as you know.
Business doesn't like uncertainties so I think it is partly responsible.
For.
A pause if you will from.
Some of our customers when they look at their capital investments have from that standpoint it would be great -- -- got resolved -- One thing that I know you have going in -- news right now is yesterday you reported your quarterly results as stellar quarter.
The review reported blow out record revenues earnings cash flows your stock is up 30% to more than 30% in the last year.
Tell us about the trends said 88 your recent quarter.
Yeah thank you we had a great quarter and and a tremendous year in FY eleven which just ended in June.
And I think we've benefited from a couple of trends may be the biggest one is just the proliferation of devices that there really going around the world to help people would mobility so if you think about whether it's tablets are Smartphones.
Those drive the need for the kind of products that our products -- -- so we end up benefiting from that trend.
And we did -- you know thinking back on -- -- record year with a pretty lackluster US economic.
Environment which means I think we're positioned well when the US does finally recovery.
This driven primarily by -- growth in the emerging markets where a lot of demand where.
One area of weakness divide could point that out what is your current quarter forecasts it really came on the heels of predictions of few where.
PC sales can you walk us through that.
Yes sir I I think there's two things one.
Is there was an expected.
Sense of a correction coming in there and then that's no surprise to anybody in our industry.
When you see the kind of investment that have been going on really for sixth consecutive quarters of increased growth.
It's only natural that there would be applies see how that natural industry correction plus they're slowing economic growth worldwide.
Which I think is another cause for some of our customers -- to take a break if you well so we expect probably a three to six month.
Softening period then what we expect growth resume after that.
Is this an industrywide phenomenon records it's a Kelly KLA -- -- specific.
Issue.
Now it's definitely industrywide and in fact I think what will hold up better than some of our peers who are strictly associated with capacity because for Kla-Tencor.
We support technological advances which tend to go on even in slow periods -- our customers keep wanting to get to the next technology -- There are some -- we have that are more capacity related that is just the absolute volume.
And they'll actually go down further than a company like Calif and -- well.
That was the CEO of Kla-Tencor.
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