Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) Q4 2017 Earnings Conference Call Transcript
Nov 14, 2017 • 08:00 am ET
Greetings and welcome to the Kulicke & Soffa 2017 Fourth Fiscal Quarter and Full-Year Results Call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Joseph Elgindy, Director of Investor Relations and Strategic Initiatives for Kulicke & Soffa. Joseph, you may begin.
Thank you, Rob. Welcome everyone to Kulicke & Soffa's fourth quarter fiscal 2017 conference call. Joining us on the call today is Fusen Chen, our President and Chief Executive Officer; and Jonathan Chou, our Executive Vice President and Chief Financial Officer.
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.
We have completed our fiscal year by generating $809 million in revenue, $112 million in net income and $1.55 of earnings per share. During the September quarter, we surpassed our guidance range by delivering $215.9 million of revenue, $36.6 million of net income and $0.51 of diluted EPS, significantly better than consensus.
Before discussing the quarterly performance, I would like to take a few minutes to summarize some of our broader accomplishments and also some of the organizational and technical improvements intended to enhance our value creation process and further enable ongoing growth.
From an organizational standpoint, we have repositioned our R&D and the sales organization to drive responsibility, responsiveness, accountability and to better enable our longer-term objectives. Earlier in the year shortly after I joined, we restructured our sales organization and moved (ph) P&L responsibility of our Expendable Tool, Service, and the Spare Part business under the Aftermarket Products and Support segment. A new business unit, this Aftermarket Product and Support segment APS combines our Spares and the Service business and our Expendable Tools segment.
This recurring revenue business was previously not a corporate focus area. And there is new structures there will be (inaudible). Our goal over the coming three years is to increase our APS revenue from 20% to 30%. Leveraging our equipment position and the increase in this revenue stream is important to further enhancing our sales (ph) cycle performance.
The other organizational change, which went into press during the September quarter was to decentralize our global R&D group and shift ownership of the majority of this global team to our respective business units. We continue to maintain a centralized R&D group, which support more common competencies such as Servo and the Electrical system. This centralized team also assists in seeking out and examining the fit of emerging organic and inorganic opportunities. Ultimately, this subtle organizational change creates a more responsive and a business-centric organization with a clear (inaudible) of responsibility and accountability.
More technically from a business execution standpoint, we closed on Liteq, a strategic and highly complementary acquisition, and also closed and