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KLA Corp.'s (KLAC) Frontline Cloud Services Boost Portfolio

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KLA Corporation (KLAC - Free Report) has been consistently strengthening its portfolio offerings on the back of advanced technologies.

This is evident from the fact that the company recently released a software solution named Frontline Cloud Services.

The cloud-based SaaS solution speeds up the process of design-for-manufacturability analysis and time-to-market for complex printed circuit boards.

The solution has the ability to minimize IT-related bottlenecks and the time used in analyses by transferring design-for-manufacturability analysis to the cloud.

Frontline Cloud Services also cater to the needs of the recent growing electronics trends like 5G and miniLED along with their increased design complexity.

It provides the highest cloud security standards, fast onboarding to the cloud-based system, and access to reliable and up-to-date services as well as tools.

Strong Prospects to Aid KLA Corp.

With the recent introduction of the Frontline Cloud Services solution, KLAC has positioned itself well to penetrate the global cloud services market, which is witnessing high growth due to the remote working trend owing to the coronavirus pandemic.

A report by Allied Market Research indicates that this market is expected to hit $1.62 trillion by 2030, witnessing a CAGR of 15.8% between 2021 and 2030.

Further, the launch of this service offering has helped the company expand its presence in the SaaS market, which is continuously growing as organizations are adopting SaaS solutions for various business functions.

Per a report by the same firm, the global SaaS market is likely to hit $702.2 billion by 2030, progressing at a CAGR of 18.8% from 2021 to 2030.

Wrapping Up

KLA’s latest move bodes well with its strong efforts toward expanding the portfolio in order to provide better services to customers.

Further, its offerings comprising innovative equipment, advanced process control and process-enabling solutions remain well suited for manufacturing wafers and reticles, integrated circuits, packaging, printed circuit boards, and flat panel displays in various industries.

We believe KLAC’s robust solutions will continue to help it gain momentum among customers.

Yet, disruptions in the supply chain caused by the ongoing coronavirus pandemic remain a major concern for the company.

Zacks Rank & Stocks to Consider

Currently, KLA Corp. carries a Zacks Rank #4 (Sell).

Investors interested in the broader technology sector can consider stocks like Apple (AAPL - Free Report) , Mimecast Limited and Teradata (TDC - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Apple has gained 29.6% in the past year. The long-term earnings growth rate for AAPL is currently projected at 12.5%.

Mimecast Limited has gained 94.1% in the past year. MIME’s long-term earnings growth rate is currently projected at 15%.

Teradata has gained 18.7% in the past year. The long-term earnings growth rate for TDC is currently projected at 19.5%.


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