People In Business NASDAQ 1

USA

Edward W. Barnholt brings four bagger value to Kla-Tencor 17 October 2017

NEWS BITES - PEOPLE IN BUSINESS

Edward W. Barnholt was appointed Chairman of Kla-Tencor (NASDAQ:KLAC) eleven years ago on October 17, 2006. The present value of USD1,000 (PV1000) invested on the appointment date is $US4,885, for a capital gain of $US1,997 and dividend reinvested of $US1,888.

SECTION 1 BIOGRAPHY EDWARD W. BARNHOLT, CHAIRMAN

Mr. Barnholt has served as Chairman of the Board of KLA-Tencor since October 2006. From March 1999 to March 2005, Mr. Barnholt was President and Chief Executive Officer of Agilent Technologies, Inc., and he was Chairman of the Board of Directors of Agilent from November 2002 to March 2005. In March 2005, Mr. Barnholt retired as the Chairman, President and Chief Executive Officer of Agilent. Before being named Agilent's Chief Executive Officer, Mr. Barnholt served as Executive Vice President and General Manager of Hewlett-Packard Company's Measurement Organization from 1998 to 1999. From 1990 to 1998, he served as General Manager of Hewlett-Packard's Test and Measurement Organization. He was elected Senior Vice President of Hewlett-Packard in 1993 and Executive Vice President in 1996. Mr. Barnholt also currently serves on the Board of Trustees of the Packard Foundation and on the Boards of Directors of eBay Inc. and Adobe Systems Incorporated.

As the former President, Chief Executive Officer and Chairman of Agilent, as well as a former senior executive with Hewlett-Packard, Mr. Barnholt possesses significant leadership experience, which includes matters particularly relevant to companies with complex technology and international issues. Mr. Barnholt's experience as a Board member of KLA-Tencor provides him with an extensive knowledge of our business and industry, and, as a Board member of two other public companies, Mr. Barnholt also has strong corporate governance expertise.

SECTION 2 KLA-TENCOR CORPORATION PRICE PERFORMANCE SCORECARD (NASDAQ:KLAC):

+ KLA-Tencor Corporation is placed 531/2,193 in the BSS News Bites ranking of price performance of NASDAQ stocks in the past year, a percentile ranking of 75.

2.1 Moving Annual Return (Trailing 12 months):

Based on a dynamic start date of 5 years ago, the Moving Annual Return has consistently exceeded 14.0%.

KLACCloseDividendsCapital Gain / (Loss) %% YieldAnnual Return %
Last Traded Oct 16$US107.33$US2.2149.13.152.2
1 Year ago$US71.99$US2.0835.93.939.8
2 Years ago$US52.97$US18.52(3.4)33.830.3
3 Years ago$US54.86$US1.8510.93.714.6
4 Years ago$US49.46$US1.6540.24.744.9

Close 5 years ago $US35.28.

2.2 Present Value of $US1000 invested in the past

The present value of $US1000 invested a year ago is $US1,528

PV$10001-week1-month1-year
KLAC.NASDAQ1,0331,1011,528
NASDAQ-100 Index1,0091,0421,272

2.3 Trailing Price Change %

1-Year price change of 49.1% for Kla-Tencor outperformed the change of 27.2% in the NASDAQ-100 Index for a relative price change of 22.0%.

Price Change %1-Month3-Month1-Year
KLAC10.17.749.1
Semi equipment wafer sector13.718.186.0
NASDAQ-100 Index2.14.727.2

SECTION 3 KLA-TENCOR CORPORATION FINANCIALS AND GROWTH PERFORMANCE SCORECARD (NASDAQ:KLAC):

3.1 Key Financials (All figures percent)

Return on Equity has improved from 15.9% in 2014 to 69.8% in 2017, EPS Growth has improved from 8.1% in 2014 to 31.0% in 2017, Revenue Growth has improved from 3.0% in 2014 to 16.6% in 2017 and Operating Margin has improved from 26.9% in 2014 to 37.2% in 2017.

KLACRevenue GrowthEPS GrowthOperating MarginROE
201716.63137.269.8
201640.4101.832.9102.2
201568.6-35.425.486.9
201438.126.915.9

3.2 Revenue and Net Profit

In the last 10 years Compound Annual Growth Rate (CAGR) averaged 2.5% for Total Revenue and 5.8% for Net Profit.

DescriptionAnnual ($US M)10-year Avg ($US M)10-year CAGR %
Total Revenue3,4802,938.62.5
EBITDA1,295.7769.16.6
Operating Profit1,295.7691.26.6
Net Profit926.1472.15.8

CAGR = Compound Annual Growth Rate

3.3 Performance (All figures in %)

Net Profit Margin 10-year average is 13.6% and Return on Equity 10-year average is 33.9%.

DescriptionAnnual10-year Avg
EBITDA Margin37.225.5
Operating Profit Margin37.221.5
Net Profit Margin26.613.6
Return on Equity69.833.9
Return on Assets16.78.9
Return on Capital Employed30.616.6

3.4 High Performance Indicators:

DescriptionValueRank In NASDAQ Market
Turnover in Quarter$US7 billionIn Top 5%
Return on Capital Employed [ROCE] %30.6In Top 7%
Return on Assets [ROA] %16.7In Top 7%
Price Change %1.9In Top Quartile
Price/MAP501.11In Top Quartile
EBITDA Margin %37.2In Top Quartile
Earnings Yield %5.5In Top Quartile

SECTION 4 KLA-TENCOR CORPORATION MARKET POSITION AND GLOBAL RANK (NASDAQ:KLAC):

4.1 Market Position

KLA-Tencor Corporation (NASDAQ:KLAC), NASDAQ's 3rd largest Semi Equipment Wafer company by market cap, soared $US35.36 (or 49.1%) in the trailing 12 months to October 16, 2017 to close at $US107.33. Compared with the NASDAQ-100 Index which has risen 27.2% over the same period, this is a relative price increase of 22.0%. Average daily volume in the trailing 12 months equalled average trading of 1.7 million shares in the previous year. In the trailing 12 months the market cap has jumped $US5.6 billion.

4.2 Global Rank

Global Rank [out of 47,796 stocks]

DescriptionValueRankQuartile
MCap (US$)16.8B917Top
Total Assets (US$)5.5B3,854Top
Revenue (US$)3.5B2,910Top
Net Profit (US$)926.1M1,075Top
Return on Equity %69.8357Top
Net Profit Margin %26.64,195Top
Price to Book17.231,737Third
Price Earnings17.810,645Top
Yield %2.111,318Top
PV$1000 (1Year) US$1,5287,806Top
US$ Change (1Year) %47.68,003Top
Rel Strength 6 Mo (US$)7213,467Second

SECTION 5 OTHER DIRECTORS OF KLA-TENCOR CORPORATION

Richard P. Wallace, Chief Executive Officer & President

Edward W. Barnholt, Chairman

Bren Higgins, Chief Financial Officer

Robert M. Calderoni, Director

Emiko Higashi, Director

Kiran M. Patel, Director

John T. Dickson, Independent Director

Kevin J. Kennedy, Independent Director

Brian Martin, Executive Vice President & Corporate Secretary

Virendra A. Kirloskar, Senior Vice President

SECTION 6 KLA-TENCOR CORPORATION ACTIVITIES

KLA-Tencor Corporation (KLA-Tencor) is a supplier of process control and yield management solutions for the semiconductor and related microelectronics industries. Its products are also used in a number of other industries, including light emitting diode (LED) and data storage manufacturing, and solar process development and control. The Company's portfolio of products, services and software are designed to help integrated circuit (IC) manufacturers manage yield throughout the entire fabrication process, from research and development to final volume production. In June 2008, KLA-Tencor completed its acquisition of ICOS Vision Systems Corporation NV, a supplier of packaging and interconnect inspection solutions for the semiconductor industry. Its offerings are categorized into four groups: Defect Inspection, Metrology, Product related services and Software. In October 2008, the Company acquired Microelectronic Inspection Equipment (MIE) business unit of Vistec Semiconductor Systems.

SECTION 7 RECENT NEWS ON DIRECTORS

7.1 SHAREHOLDER VALUE ADDED BY DIRECTORS

30 August 2017

Bren Higgins starts fifth year as Kla-Tencor CFO

Bren Higgins was appointed CFO of Kla-Tencor (NASDAQ:KLAC) four years ago in Aug 2013. In the last 3 years the average annualized return to shareholders was 27.2%. The present value of USD1,000 (PV1000) invested 3 years ago is now $US2,072, a gain of $US522 and dividend reinvested of $US550.

7.2 RECENT REPORTED SELLING

08 September 2017

Kla-Tencor senior vice president Virendra A. Kirloskar sells

Kla-Tencor (NASDAQ:KLAC) Senior Vice President Virendra A. Kirloskar sold 1,020 shares worth $US95,605 on September 06. The selling price was $US93.73.

08 September 2017

Kla-Tencor chief financial officer Bren Higgins sells

Kla-Tencor (NASDAQ:KLAC) Chief Financial Officer Bren Higgins sold 2,559 shares worth $US239,855 on September 06. The selling price was $US93.73.

16 August 2017

Kla-Tencor chief executive officer and president Richard P. Wallace sells

Kla-Tencor (NASDAQ:KLAC) Chief Executive Officer and President Richard P. Wallace sold 37,377 shares worth $US3,396,120 on August 15. The selling price was $US90.86.

10 August 2017

Kla-Tencor senior vice president Virendra A. Kirloskar sells

Kla-Tencor (NASDAQ:KLAC) Senior Vice President Virendra A. Kirloskar sold 436 shares worth $US40,108 on August 08. The selling price was $US91.99.

10 August 2017

Kla-Tencor chief financial officer Bren Higgins sells

Kla-Tencor (NASDAQ:KLAC) Chief Financial Officer Bren Higgins sold 1,093 shares worth $US100,545 on August 08. The selling price was $US91.99.

08 August 2017

Kla-Tencor senior vice president Virendra A. Kirloskar sells

Kla-Tencor (NASDAQ:KLAC) Senior Vice President Virendra A. Kirloskar sold 6,307 shares worth $US562,269 on August 07. The selling price was $US89.15. The shares hit a five-day high on the day.

7.3 UPDATED DIRECTOR PROFILES

25 September 2017

Edward W. Barnholt - Kla-Tencor updates chairman's profile

Kla-Tencor recently released their definitive SEC filing DEF 14A. The updated profile of Edward W. Barnholt (74), Chairman is shown below.Mr. Barnholt has served as Chairman of the Board of KLA-Tencor since October 2006. From March 1999 to March 2005, Mr. Barnholt was President and Chief Executive Officer of Agilent Technologies, Inc., and he was Chairman of the Board of Directors of Agilent from November 2002 to March 2005. In March 2005, Mr. Barnholt retired as the Chairman, President and Chief Executive Officer of Agilent. Before being named Agilent's Chief Executive Officer, Mr. Barnholt served as Executive Vice President and General Manager of Hewlett-Packard Company's Measurement Organization from 1998 to 1999. From 1990 to 1998, he served as General Manager of Hewlett-Packard's Test and Measurement Organization. He was elected Senior Vice President of Hewlett-Packard in 1993 and Executive Vice President in 1996. Mr. Barnholt also currently serves on the Board of Trustees of the Packard Foundation and on the Boards of Directors of eBay Inc. and Adobe Systems Incorporated.As the former President, Chief Executive Officer and Chairman of Agilent, as well as a former senior executive with Hewlett-Packard, Mr. Barnholt possesses significant leadership experience, which includes matters particularly relevant to companies with complex technology and international issues. Mr. Barnholt's experience as a Board member of KLA-Tencor provides him with an extensive knowledge of our business and industry, and, as a Board member of two other public companies, Mr. Barnholt also has strong corporate governance expertise.

25 September 2017

Robert M. Calderoni - Kla-Tencor updates director's profile

Kla-Tencor recently released their definitive SEC filing DEF 14A. The updated profile of Robert M. Calderoni (57), Director is shown below.Mr. Calderoni has more than 30 years of executive experience in the technology industry. He currently serves as Executive Chairman at Citrix Systems, Inc., and as a Senior Advisor to Silver Lake Partners, a large technology focused private equity firm. From October 2015 to January 2016, Mr. Calderoni served as the interim Chief Executive Officer and President of Citrix. Prior to that, he was President of SAP AG's cloud business following SAP's October 2012 acquisition of Ariba, Inc., a leading provider of cloud software solutions where he served as Chairman and Chief Executive Officer. Prior to the acquisition, Mr. Calderoni served as Chief Executive Officer and a member of the Board of Directors of Ariba from October 2001 until the company was acquired, and he also served as Ariba's Chairman of the Board of Directors from July 2003 until the acquisition date. Before becoming Chief Executive Officer of Ariba, Mr. Calderoni served as Ariba's Chief Financial Officer from January 2001 to October 2001. Prior to joining Ariba, Mr. Calderoni was Chief Financial Officer at Avery Dennison Corporation, a global manufacturing company. He also held numerous senior financial executive positions at major technology companies, including Senior Vice President Finance at Apple Inc., and Vice President Finance at IBM.As a senior executive officer of Citrix and former senior executive with SAP and Ariba, Mr. Calderoni provides our Board with extensive and relevant leadership and international operations experience in the technology industry. In addition, Mr. Calderoni is well-qualified to serve as a Board member and as the Chairman of our Audit Committee as a result of his over 20 years of experience as a finance executive, including his past service as the Chief Financial Officer of two publicly traded technology companies. As a Board member of three public companies, Mr. Calderoni also has familiarity with a range of corporate governance issues.

25 September 2017

Bren Higgins - Kla-Tencor updates CFO's profile

Kla-Tencor recently released their definitive SEC filing DEF 14A. The updated profile of Bren Higgins (47), CFO is shown below.Bren D. Higgins has served as KLA-Tencor's Executive Vice President and Chief Financial Officer since August 2013. In this role, Mr. Higgins oversees and manages the Company's finance operations and control processes, global manufacturing operations, corporate procurement, information technology and investor relations functions. Prior to his promotion to Chief Financial Officer, Mr. Higgins oversaw the Company's treasury and investor relations functions and supported its business development efforts in his role as Vice President of Corporate Finance from January 2012 to August 2014, and as Senior Director of Corporate Finance from August 2011 to January 2012. Before that, he served as the Company's Senior Director of Financial Planning and Analysis from August 2008 to August 2011. Mr. Higgins has also held various financial and investor relations positions since he began his tenure at the Company in 1999, including multiple product division controller assignments and serving as Group Controller of the Company's Wafer Inspection Group from 2006 to 2008. Mr. Higgins received his bachelor's degree from the University of California at Santa Barbara and his master's degree in business administration with a concentration in finance from the University of California at Davis.

25 September 2017

John T. Dickson - Kla-Tencor updates director's profile

Kla-Tencor recently released their definitive SEC filing DEF 14A. The updated profile of John T. Dickson (71), Independent Director is shown below.Most recently, from May 2010 to January 2012, Mr. Dickson served as Executive Vice President and head of operations of Alcatel-Lucent, a global telecommunications corporation, also serving as a member of Alcatel-Lucent's Management Committee. From July 2010 to December 2011, Mr. Dickson also served as a member of the Board of Directors and Audit Committee of Alcatel-Lucent Shanghai Bell, a joint venture between Alcatel-Lucent and the Chinese government's State-Owned Assets Supervision and Administration Commission. Mr. Dickson is the former President and Chief Executive Officer of Agere Systems, Inc., a leader in semiconductors and software solutions for storage, mobility and networking markets, a position he held from August 2000 until October 2005, and he also served as a member of the Board of Directors of Agere from March 2001 until October 2005. Prior to joining Agere, Mr. Dickson held positions as the Executive Vice President of Lucent's Microelectronics and Communications Technologies Group; Vice President of AT&T Corporation's integrated circuit business unit; and Chairman and Chief Executive Officer of SHOgraphics, Inc., a developer of three-dimensional graphics systems, as well as senior roles with ICL, Plc, a computer hardware, software and service company, in the United Kingdom and Texas Instruments, Inc. in Europe.As a result of his former positions as a senior executive at global technology organizations such as Agere, Alcatel-Lucent, Lucent and AT&T, Mr. Dickson provides the Board with significant leadership, operations and technology experience, including extensive knowledge of the semiconductor industry and experience managing international business operations. Also, from his current and past service as a Board member with other companies, including several other semiconductor companies, Mr. Dickson offers a broad understanding of the role and responsibilities of the Board and valuable insight on a variety of significant industry issues.

25 September 2017

Kevin J. Kennedy - Kla-Tencor updates director's profile

Kla-Tencor recently released their definitive SEC filing DEF 14A. The updated profile of Kevin J. Kennedy (61), Independent Director is shown below.Mr. Kennedy currently serves as President, Chief Executive Officer and member of the Board of Directors of Avaya Inc., a leading global provider of business communications applications, systems and services, positions he has held since January 2009. In January 2017, Avaya Inc. filed a Chapter 11 restructuring plan with the U.S. Bankruptcy Court for the Southern District of New York. Mr. Kennedy is retiring from Avaya effective October 1, 2017. Prior to joining Avaya, Mr. Kennedy was Chief Executive Officer of JDS Uniphase Corporation, a provider of optical products and test and measurement solutions for the communications industry, from September 2003 to December 2008, also serving as JDS Uniphase's President from March 2004 to December 2008. From 2001 to 2003, he served as Chief Operating Officer of Openwave Systems, Inc., a provider of software solutions for the communication and media industries. Previously, Mr. Kennedy spent nearly eight years at Cisco Systems, Inc. and 17 years at Bell Laboratories. In 1987, Mr. Kennedy was a Congressional Fellow to the U.S. House of Representatives on Science, Space and Technology. In January 2011, Mr. Kennedy was appointed to the President's National Security Telecommunications Advisory Committee by former President Barack Obama.As the current President and Chief Executive Officer of Avaya and a former senior executive at JDS Uniphase and Openwave, Mr. Kennedy possesses a vast amount of leadership and operational experience with companies in high technology industries. Also as the holder of a Ph.D. degree in engineering from Rutgers University, a member of President Obama's National Security Telecommunications Advisory Committee, a former Congressional Fellow to the U.S. House of Representatives Committee on Science, Space and Technology, and the author of more than 30 papers on computational methods, data networking and technology management, Mr. Kennedy offers relevant expertise in a broad range of technology matters. In addition, as a result of his experience on the Boards of Directors of several public companies, Mr. Kennedy offers our Board a deep understanding of corporate governance matters.

25 September 2017

Richard P. Wallace - Kla-Tencor updates CEO and president's profile

Kla-Tencor recently released their definitive SEC filing DEF 14A. The updated profile of Richard P. Wallace (57), CEO and President is shown below.Mr. Wallace currently serves as our President and Chief Executive Officer. He has been our Chief Executive Officer since January 2006 and has also served as our President since November 2008. He began at KLA Instruments in 1988 as an applications engineer and has held various general management positions throughout his 29 years with us, including positions as President and Chief Operating Officer from July 2005 to December 2005, Executive Vice President of the Customer Group from May 2004 to July 2005, and Executive Vice President of the Wafer Inspection Group from July 2000 to May 2004. Earlier in his career, he held positions with Ultratech Stepper and Cypress Semiconductor. Mr. Wallace previously served as a member of the Board of Directors of SEMI (Semiconductor Equipment and Materials International), a prominent industry association, including as SEMI's Chairman of the Board. He earned his bachelor's degree in electrical engineering from the University of Michigan and his master's degree in engineering management from Santa Clara University, where he also taught strategic marketing and global competitiveness courses after his graduation.As our President and Chief Executive Officer and a KLA-Tencor employee for 29 years, Mr. Wallace brings to the Board extensive leadership and semiconductor industry experience, including a deep knowledge and understanding of our business, operations and employees, the opportunities and risks faced by KLA-Tencor, and management's strategy and plans for accomplishing our goals. In addition, Mr. Wallace's current service as a member of the Boards of Directors of KLA-Tencor, NetApp, and Proofpoint give him a strong understanding of his role as a Director and a broad perspective on key industry issues and corporate governance matters.

25 September 2017

Emiko Higashi - Kla-Tencor updates director's profile

Kla-Tencor recently released their definitive SEC filing DEF 14A. The updated profile of Emiko Higashi (58), Director is shown below.Ms. Higashi is a founder of Tomon Partners, LLC, a strategy and M&A advisory firm based in San Francisco and primarily serving companies in technology- and healthcare-related fields since 2003. Ms. Higashi also serves on the boards of MetLife Insurance K.K., a subsidiary of MetLife, Inc. (NYSE), Takeda Pharmaceutical Company Ltd. (TSE), Rambus, Inc. (Nasdaq), and Tara Health Foundation (private). Ms. Higashi also serves as a senior advisor to several private consulting firms. Prior to Tomon Partners, she was a co-founder and Chief Executive Officer of Gilo Ventures, a technology-focused venture capital firm, from 2000 to 2002. Before that, Ms. Higashi spent 15 years in investment banking. After beginning her investment banking career at Lehman Brothers from 1985 to 1988, Ms. Higashi was a founding member of Wasserstein Parella and the head of that firm's technology M&A business from 1988 to 1994, and subsequently served as a managing director in charge of Merrill Lynch's global technology M&A practice from 1994 until 2000. Prior to her investment banking career, Ms. Higashi spent two years as a consultant at McKinsey & Co. in Tokyo, Japan.As a result of her extensive career in technology-focused investment banking and finance, Ms. Higashi brings to the Board significant strategic, business development, mergers and acquisitions and financial experience related to the business and financial issues facing large global technology corporations, a comprehensive understanding of international business matters, particularly in Asia, and knowledge of the semiconductor industry. In addition, as a founder and partner of several consulting firms and a founding member of an investment banking firm, Ms. Higashi also possesses significant leadership and entrepreneurial experience.

25 September 2017

Kiran M. Patel - Kla-Tencor updates director's profile

Kla-Tencor recently released their definitive SEC filing DEF 14A. The updated profile of Kiran M. Patel (69), Director is shown below.Mr. Patel retired in September 2013 from his position as Executive Vice President and General Manager, Small Business Group of Intuit Inc., a provider of personal finance and small business software, a position he had held since December 2008. Mr. Patel previously served as Intuit's Senior Vice President and General Manager, Consumer Tax Group and as its Senior Vice President and Chief Financial Officer. Before joining Intuit in September 2005, he was Executive Vice President and Chief Financial Officer of Solectron Corporation from August 2001 to September 2005. He previously worked for Cummins Inc. for 27 years in a variety of finance and business positions, most recently as Chief Financial Officer and Executive Vice President. Mr. Patel currently serves as a Trustee of the Charles Schwab Funds and as a member of the Boards of Directors of Avaya Inc., a leading global provider of business communications applications, systems and services, and Exact Software, a private Netherlands company.As a former senior officer of Intuit, Solectron and Cummins, Mr. Patel possesses significant international operating and leadership skills, including extensive experience in global sourcing, sales and other business management aspects within manufacturing and technology industries, often involving living and managing businesses overseas. In addition, as a result of his past service as the Chief Financial Officer of several global organizations, Mr. Patel offers a vast understanding of critical finance matters, which enables him to make significant contributions as a member of our Board and its Audit Committee.

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