Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) Q2 2017 Earnings Conference Call - Final Transcript
May 03, 2017 • 08:00 am ET
Greetings, and welcome to the Kulicke & Soffa Second Fiscal Quarter 2017 Results Call. At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. (Operator Instructions) It is now my pleasure to introduce your host, Joseph Elgindy, Director of IR and Strategic Initiatives for Kulicke & Soffa. Thank you, Mr. Elgindy. You may now begin.
Thank you, Manny. Welcome, everyone to Kulicke & Soffa's Second Quarter Fiscal 2017 Conference Call. Joining us on the call today is Dr. Fusen Chen, our President and CEO; and Jonathan Chou, our EVP and CFO.For those of you who have not received a copy of today's results, the release, as well as the latest investor presentation are both available in the Investor Relations section of our website at investor.kns.com.
(Forward-Looking Cautionary Statements)
I would now like to turn the call over to Fusen Chen for the business overview. Please go ahead, Fusen.
Dr. Fusen Chen
Thanks, Joe. We are very pleased to have exceeded our guidance with 199.8 million of revenue in the March quarter. This 33% sequential ramp reasonably surpassed our expectations and has generated 29 million of net income. Our execution during this rapid phase of industry expansion highlights the flexibility of our operating model and the strength of our core business.
This strength drove a diversified base of customers during our March quarter, adding much credibility to the anticipated 2017 semiconductor growth forecast. While Advanced Packaging continued to be central to our long-term strategy, and that is anticipated to create meaningful value in the future.
The current demand is being driven by our dominant market positions within our large and the highly cash generative businesses. The current robust level of wire bonding, wedge bonding and the expendable tools demand highlights the pervasiveness of our core solutions. These solutions are directly supporting the industry's broad capacity ramp serving a breadth of high-volume production from the most cost sensitive to the most technically challenging applications. Considering healthy utilization rate and improving semiconductor unit forecasts and our broad customer mix in the March quarter, there are many underlying end market driving the current level of business.
Specifically, we are seeing continued demand within automotive, industrial, mobile, LED, in addition to IoT and other wireless connectivity related applications. Although equipment capacity is fundamentally cyclical, these underlying markets are expected to continue supporting longer-term unit count forecast as packaging requirements for these applications are all highly complementary to our core offerings. For the March quarter, wire bonding sales increased by 46.1% over the December quarter. The end markets driving this demand was mobile, LED as well as IoT and wireless communication applications supporting RF, WiFi and LTE build-outs.
As we have mentioned in many prior calls, this end applications nicely complement our wire bonding solutions. While we had very strong demand stemming from NAND memory last quarter, we have seen this demand return to more normal level during the March quarter. Considering growing need for storage and the