Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) Q1 2019 Earnings Conference Call - Final Transcript

Jan 31, 2019 • 06:00 pm ET


Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) Q1 2019 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the Kulicke and Soffa 2019 First Fiscal Quarter 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 Investor Relations and Strategic Initiatives for Kulicke & Soffa. Joseph, you may begin.

Joseph Elgindy

Thank you, Jeremy. Welcome, everyone, to Kulicke & Soffa's First Quarter Fiscal 2019 Conference Call. Joining us on the call today are Fusen Chen, President and Chief Executive Officer; and Lester Wong, General Counsel 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.

In addition to historical statements, today's remarks will contain statements relating to future events and/or future results. These statements are forward-looking statements within the meaning of the Private Securities litigation Reform Act of 1995. Our actual results and financial condition may differ materially from what is indicated in those forward-looking statements. For a complete discussion of the risks associated with Kulicke & Soffa that could affect our future results and financial condition, please refer to our recent SEC filings, specifically, the 10-K for the year ended September 29, 2018.

I would now like to turn the call over to Fusen Chen for the business overview. Please go ahead, Fusen.

Fusen Chen

Thank you, Joe. We were again able to achieve our quarterly revenue targets due to a softer period of demand, despite the current market headwinds, which, we believe, are near-term in nature. Our entire organization remained extremely focused to drive long-term business enhancements and the sustainable growth. Specifically, we expect to benefit from three primary areas: execution of our fundamental optimization plan, ongoing semiconductor unit growth within our core offering and the higher volume production of advanced packaging. We have made a meaningful improvement to the business over the past two years, including a more aggressive approach to capital allocation and the shareholder return and also fundamental improvement supported through organizational change and a renewed set of priorities, which have already strengthened our operation and have provide new vector of growth.

Today, we also announced our fourth $100 million shares repurchase authorization. Lester will provide some additional detail on our repurchase activity shortly. Despite the near-term environment, we are very excited about our current business prospects. Our product portfolio and the development pipeline is extremely in line with LED, NAND and IoT capacity expansion, electric and autonomous vehicle adoption and there are several technology inception, providing new advanced packaging opportunities.

Our development team continued to rapidly develop new tool to strengthen our competitive position and expand our served market.

The entire organization is committed to exiting these near-term periods, a stronger, more diversified and a more profitable organization.

Looking back as of December quarters, we delivered revenue of $157.2 million, at the higher end of our guidance, gross