KLA to Exit Flat-Panel Display Business
By Ben Glickman
KLA plans to stop producing flat-panel displays by the end of the year after a major customer cancelled a project.
The Milpitas, Calif.-based company, which makes equipment for the semiconductor industry, said in a regulatory filing Monday that it would continue to provide services to its installed base for discontinued product lines after stopping manufacturing by the end of 2024.
KLA said multiple factors led to its decision to exit the business, including one major customer cancelling a "significant new technology project." The company disclosed it was looking at alternatives for the business in its letter to shareholders following fiscal second-quarter results.
The exit from the business may have a favorable impact on profit margins in the longer term, the company said.
The company's flat-panel display business is part of its PCB, display and component inspection reporting segment.
KLA backed its revenue forecast for the quarter ending this month, but said it expected to incur $60 million to $70 million in non-cash expenses related to written-off inventory and $50 million to $70 million on impairment of goodwill and purchased intangible assets.
KLA now expects to post an adjusted profit of $4.23 to $5.43 a share for the quarter, compared with a prior guidance range of $4.66 to $5.86 a share.
Write to Ben Glickman at ben.glickman@wsj.com
(END) Dow Jones Newswires
March 18, 2024 18:10 ET (22:10 GMT)
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