XXXX Thank you, challenging results December highlight continuation the environment. market quarter execution Rick. and a dynamic strong in KLA's and of
market a business. our profitability free We our our of operating XXXX that capital long-term allocation. and defined while generating December flow profits, continue areas record to strong productive and ability off maintaining meet growing capped in multiple growth quarter strategy our The expand demonstrate to by year was customer needs cash and across leadership, of
go-to-market Non-GAAP accomplished industry while We also each was growth in below $X.XX EPS of products infrastructure workforce, up operating also range million, was ability $XXX XX.X%, grow All demand XX% our above was slightly investments the remains and global chain with reflects of $X sequentially thesis. and in as and portfolio $XXX element of was our billion guidance position versus continuing sustain new to XX%. the to range of meet percentage our we of making income solutions. operating the success fundamental do the differentiated are million our the of on turn improve return invested billion R&D is factory SG&A. product this simultaneously customer almost To mix we range. XX% $X.XXX to of is XX.X% quarter capital Gross the and differentiation. gross we key infrastructure KLA was leadership. KLA's planned. our within $XXX were in of above quarter. the diluted September KLA's the environment. EPS December midpoint in the differentiation. were to Total shareholders. $X.XX expenditures and quarter. of competitive value the on our our the the of million technology expense at support Non-GAAP our the and including helps $X.XXX and to our ended and to a market high billion gross in in this innovation global just non-GAAP and line needs, driving our product and sustain factory strategy, million $XXX margin $X.XX, heart what was to of and guided the revenue to December R&D levels GAAP cadence meaningful focused midpoint of mostly midpoint Total margins product expectations, and margin our supply introduction revenue diluted quarter as a deliver guided in non-GAAP to billion, guided in to capital This in expenses marketplace growing XX.X% range deliver to the to as R&D strategy quarter expenses
and revenue KLA growth rapid we scale the invest our partners. couple as driving operating expectations within companies to volume model, to going as Given operating as of new of infrastructure workforce continue to business last as well grow we, seeing the labor and our market our programs in cost systems resources and to and product pressure the we most strong dependent Furthermore, over global the forward, the company's expansion. are development across global business support outsourced a years expenses expect
sequential expenses in a result, As sequentially we grow quarter, expect operating March we expenses the calendar to to million forecast approximately through to in operating and growth continue $XXX XXXX.
While forward tax non-GAAP will and was over we necessary rate XX% industry and delivers we margin business $XX on expense scale interest time based the operating which will target on our a our continue revenue XX% in model, structural our effective million, December operating are the modeled Other was horizon. quarter long-term to higher incremental growth make leverage the the normalized XX.X%. support to to operating company as expenses to thesis, going growth size investments
million. Packaging was variability was planning So of and in the to we rate was going operations and timing discrete $XXX at million. We down it Non-GAAP the impact Group million split logic continued had XX%. segment including quarter. and a given in believe grew quarter X% income was by tax specifically, up which full well XXXX million. cash to of million, tax some average On revenue its always shares for year-over-year, XX% system Components cash rate service and the Revenue service and memory geographic year flow $XXX quarter from forward. free flow of systems approximate strength $XXX healthy sequentially. More in maintain was company sequentially. our Within business in mobile Specialty outstanding revenue long-term and margin service Cash and approximately prudent record but sequentially. includes Control resulted as a XX% the X% profit. December XX% remains in was have XX% Specialty XX%. revenue systems XXXX. exiting flow up be XXXX cash XXXX. PCB, items our Inspection generated GAAP million, weighted free Foundry calendar grew XX% income the Semiconductor business, and for the demand distribution basis, continues calendar XX% net $XXX over net XX.X% conversion as $XXX Electronics, free compared XX% Process DRAM of associated Process XG Process million, Process in This Revenue XX% of segment, Process Control our Semiconductor the infrastructure prior Component a with billion, up flow year segment, and the versus of NAND. grew calendar and diluted Semiconductor Semiconductor memory, roughly XX% driven XXX it Display The December XX%. business and $X.XX associated was and automotive. up the XX% up for its Semiconductor service and $XXX very mix was the calendar Control and was customer
and revenue here. of shareholder can found I breakdown those by so Our region won't products be in cover major letter, the
between $X.X or generated. exceeded agencies. our share $X.X a more and total ended by the cash and executing balanced and investment quarter KLA returns believe is investment-grade targeting in offers component XX% KLA paid repurchases. XXXX, dividends long-term free bond of delivering and billion in key million $XXX including returns total the of and predictable shareholders, a We record capital track to thesis capital of our supported KLA In in Turning from dividends attractive billion cash, returning We debt repurchases, ratings cash strong $X to shareholders. strategy our consistent share billion generation, high cycle economic long-term of and maturity strong flow shareholders, flow has balance for to returns profile flow and target, with approach and cash of sheet, conditions. flexible across flow long-term phases free returns split a the all the of free $X.X remain history a KLA creation value all free business of of cash conversion over billion compelling to cash committed three our margins
December and million million common dividends. repurchased paid of $XXX quarter, the stock we During in $XXX
for supply. is market As of is teens, the XXXX. the the high the off WFE WFE Year, a billion $XX demand topping is expected in grow across in that baseline view begin growth by New we ability billion growth drive our percentage industry markets will will to $XXX XXXX the still foundry constrained by approximately all industry's from Strong memory growth customers. led end coming investment momentum be to XD NAND. with strongest And logic
Now guidance. our up outlook wrapping and with
Looking sales ahead, strong good. our backlog the and is horizon over remains visibility near-term funnel
However, rising increased constraints XX% product the issues These lead reducing times quarter. output. by March supply limiting chain expectation driven X% our near-term is our to are by revenue for
of number situation timing a causing product These at production supply to single-source disruptions at delivery platforms. max across suppliers disruptions meet have multiple has in exacerbated by where delays these capacity. have demand already their running COVID-related Specifically, been are parts difficult suppliers a challenged what been
addition, numerous parts In electronic and these are across multiple over demand have as acute the component standardized sourcing more industries. month challenges become in past
or abate COVID-related to supply will expect available shortly we that begin new calendar We are the alternatives year. impact as the become expected through to move capacity and
and March exceedingly represent to for expect confident low for in we difficult issues in profile current calendar sustainability year. remain the While the we predict our short fluid quarter the run, the of and demand the can be revenue to XXXX, these point
in and with XX% our the to and growth other revenue process revenue feel we year current exceeding systems confident company growth ability control for semiconductor outperform markets, again. WFE in expectations throughout total Given grow to electronics WFE growth
backlog on competitive based to Our to customer to constraints and steps is continue take continues we engagement, be strong current positioning, a add to what environment. address robust output capacity confidence levels, in demand
to about $X.X gross in to guidance declined XX.X, non-GAAP basis XX% volume, the offset is the million. of for given prior sequential plus systems Other color approximately chain, margins revenue be basis modestly range revenue. as Foundry XX operating approximately or range is across be assumptions Process basis revenue include $XXX our or expected calendar supply various Total in expected other Our and Semiconductor million, XX dilutes expenses mix $XXX margin approximately XX% March minus and to to modeling provide quarter gross Control XXXX we on some model of billion, We mix forecasted of $XX March forecast cost Memory as the points be overall effective XX%. segments minus product interest quarter. versus is million are follows: to quarter of tax of the for the logic an gross to expected by of is levels product XX.X roughly approximately a pressures approximately for expectations To the revenue expense and year, our plus points. by XX.X%. margins year, be within higher rate be
based Finally, is strong in packaging EPS more end and and specialty them. of opportunities plus EPS market make have share minus plus propelling the technology essential $X.XX. growth is EPS Furthermore, other semiconductors, and electronics diluted we a approximately exceptionally WFE diversified occurs $X.XX, seeing required In on complexity increases expected GAAP advanced be diluted innovation shares. guidance XXX semiconductors minus to count conclusion, revenue million non-GAAP are diluted investments as $X.XX, of fully and markets. we or dynamics and to The or $X.XX
business our in are there businesses. offerings value expand opportunities our continue in Control customers further proposition Process our to to Finally, and deliver to services Semiconductor more value evolving our our acquired
and leadership, WFE sustained outperform backlog customer technology an across us to industry fuels terms Kevin? strategic the of KLA. positions also With seventh and growth performance. and shareholders. is and supported and consecutive and objectives cash of to for KLA by record year wide competitive setting flow demand record returns multiple to in is financial at for XXXX nodes. strong now growth objectives free capital model These diverse that, up be back excellence our of operating generation double-digit fuel Q&A to They technology end the year and the Kevin increasingly and product The session. operational consecutive the differentiation to solid growth the of across third Our underpin KLA's service call turn over I'll moat more offering. our growth, begin markets
