Rick. Thanks,
the results success strong and position. execution of Our market reinforce our
our Control Process Semiconductor the expenses diluted enhanced towards higher-than-expected focus coming $XXX expanding needs strategy quarter. generating pace SG&A. the of Market increasing R&D was of Leadership, upper range in revenue revenue, the to robust while a We mix and long-term was demand flow, were in on profit, due billion midpoint operating of the free guided Non-GAAP was our $XXX expectation range above EPS Quarterly XX.X%, planned. from $X.XX. margin productive $XXX components Systems product operating the of hiring, the new of growing for to were than cash capital billion to allocation. revenue, upper $XXX the gross and million, was $X.X million, continue GAAP billion. Total was end in end million of maintaining $X.XX. the environment, $X.XX upside performed guidance customer $X.XXX originally expected, the at mostly $X.XX, various guided to below expenses which the meeting strong diluted of of slower mostly comprised of which also Non-GAAP operating EPS as at million with gross $X.X as Non-GAAP
we seeing effect company growth. are dependent the expansion rapid into most investing driving structural the process KLA resources for in to last and volume labor in revenue continue systems March. a to across backdrop, as scale as against expansion of going our our that programs position expect and development demand our infrastructure growth workforce adjustments Furthermore, business market thesis. strong and to strong our went couple execute operating cost forward, to to over we pressure we, during support long-term of related the This business global our model expectations our our merit years business invest companies, annual to global the the includes facilitate and product new to Given
the operating approximately As XXXX, in to expenses sequential growth balance we grow June of expectations. quarter expenses our we to forecast million quarterly revenue over expect with the and a result, along higher operating to $XXX trend
supply as leverage operating delivers Non-GAAP margin the over our model, our the of to We XX.X% guidance income revenue incremental normalized strong a on Other XX% a reflecting investment. expense target company growth in million, time March quarter. million, mark-to-market the operating size continue guidance to XX% which $XX variance from on once again percentage of revenue with horizon. operating income with net the at of and impact based strategic was $XX was compared
tax million. income The Non-GAAP income free guided and forecast share $XXX was $X.XX. XX.X%, earnings June net quarterly Non-GAAP flow operations was quarter, from of million. guided at above free at of been approximately margin tax net $XX and per have was we XX.X%. rate resulting the our free XX.X%. conversion effective expense income net cash rate was would For other the tax $XXX cash flow was flow $XX GAAP $XXX flow million, XX% million. Cash million. in of And cash rate
over and Control our by XG specialty segments further for by at process which continues year-over-year customers business, Revenue segment, breakdown automotive, foundry Within on packaging. XX% its as Revenue a approximately Component The revenue Inspection logic generated of approximate sequentially and to $XXX was Looking customers for Memory in be and million, was Process $XXX approximately and from a includes basis. service was segment, and revenue XX%, up up X% EPC was including the of year down from markets. X% billion, XX% X% driven business, mix revenue semiconductor Semiconductor X% EPC, advanced down sequential service $X.XX NAND. its up segment Process DRAM strength Display expected. prior reportable with end year-over-year comprised XX%. PCB, up Control group associated the sequentially. and the associated system for and million, customer Semiconductor XX% XX%
products of letter the please in For revenue see shareholder an additional slides. major and breakdown by region,
balance the quarter debt total agencies. a strong the profile and maturity investment flexible ratings cash, $X.X and from supported $X.X ended of attractive In with billion, KLA in sheet, billion bond all grade terms three of by
and the returns our are of a and confidence dividends shareholders, growing repurchases. have cash increased enables long growing that to share in over We consistent to business run committed strategy
we free target returning generated. at flow the cash of XX% Over long-term, least
of our Our thesis. remains an capital important return investment strategy element underscores deployment, of and predictable and differentiating record strong productive capital KLA the
the free has last impressive all cash free million flow and cash of economic paid. in of XX conditions. in $XXX cash returned conversion high flow $X.X share $X.X a months, generation, billion Over cycle across and flow KLA phases history an and has strong shareholders, to repurchases dividends including the consistent business free KLA margin
to Turning outlook. the
remains for Our overall semiconductor demand XXXX and unchanged. outlook WFE calendar
approximately in higher the reported a the over WFE assessing $XXX calendar to quarter. the mid-teens $XX XXXX market in in billion expect We results for after to off grow December billion XXXX, base of
will Although, of strength reflects appears half reporting, based on loading segments. customer increase pure second company broad-based March the demand the it all the year. This that industry across supply continued the issues in of
capacity chain our KLA to add constrain continue and suppliers, supply we demand. our ability While to with shortages meet customer at
country. is closely. installations Furthermore, past mobility months. and the In and potential impact improved systems revenue visibility duration calendar in see in the the XX%. addition, monitored delay challenging could three acceptance suppliers and with sequential situation customer adversely some remains in are expansion to not COVID-XX-related fluid for unknown expect affected of operations the revenue exceed areas. throughout In resource over the short, lockdowns overall growth restrictions due and lockdowns China processes, could the quarterly year Supplier calendar to and and has Still XXXX be to growth will these
in in exceed of overall. year believe remainder Semiconductor business continue and addition, position our sustainable relative the calendar to year. of is Control demand that we In supply another deliver KLA strong through the will Process to growth outperformance
profile. remain Looking the and of demand our sustainability we by strength current ahead, encouraged
positions us momentum and outperform bookings backlog WFE. to Our strong
we growing requirements. and global XXXX, our customers’ this strategically support Process footprint our are Control adding calendar in manufacturing As outlook across capacity to
forecast about Process chain to total follows; XX% XX%. and memory, or be billion, range Control in expected in $X.XXX June a Process EPC versus sequential be weaker margins quarter modestly quarter as margin expected within dilute to revenue. to to product mix guidance expect and plus a Control about $XXX we We a March revenue gross forecasted is non-GAAP DRAM revenue in benefits XX.X%, of is be be Semiconductor labor to be memory logic range as the is are and growth rising seen revenue to is expected foundry surpassing approximately XX% of NAND XX% minus supply cost million, quarter. environment. to forecasted inflation, economies to Within the the is in normally Our Semi global Longer investments, of approximately is XX.X% be of strength rising costs of of scale Systems infrastructure segment the term, logistics slightly and in
XX%, expect and a margins of of XX for Other of year, basis in other assumptions for expectations non-GAAP effective be expense we plus range net or the million, tax million XXXX approximately model quarter $XXX gross calendar the that of June and income an for include; expenses XX.X%. $XX approximately continue to minus points. rate will Given revenue operating approximately
is million of of fully XXX secular and are diluted customer based EPS strong guidance in growth the investments The driving resilient investments a and EPS Broad WFE a across GAAP diluted are range trends is the compelling in simultaneous $X.XX Finally, technology current $X.XX. the diluted $X.XX trends. shares. and and approximately based $X.XX nodes of to in to non-GAAP closing, EPS to expected count range macroeconomic demand headwinds. In semiconductor despite be share on
the have outlook. leading visibility, bookings to our us in required business to our our capabilities confidence our motivates We in expanding for and invest the business, which support indicators and including backlog infrastructure
fuel leadership, product excellence an of and objectives element record across multiyear differentiation objectives. outperform sustained to future. increasingly Kevin KLA and that, over track of strategic to to positions leading our capital consistent operational diverse back generation session. growth, industry wide also I guides And model begin financial service outlook moat, turn longstanding with operating our investment demand offering. the stability us the plans flow and for foundation performance, strong Kevin? our to and well the They Q&A of an competitive customers’ are important These provide reliable Our the free cash technology shareholders. returns our call will in the
