Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) Q3 2019 Earnings Conference Call - Final Transcript

Aug 01, 2019 • 06:00 pm ET


Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) Q3 2019 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the Kulicke & Soffa 2019 the Third Fiscal Quarter Results Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Joseph Elgindy, Senior Director, Investor Relations and Strategic Initiatives for Kulicke & Soffa. Joseph, you may begin.

Joseph Elgindy

Welcome, everyone, to Kulicke & Soffa's Third Quarter Fiscal 2019 Conference Call. Joining us on the call today are Fusen Chen, President and Chief Executive officer; and Lester Wong, Chief Financial Officer and General Counsel. 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 our 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. Throughout this unique industry conditions, we continued to generate profit, invest to our organic development program, reduce our shares outstanding and to drive market acceptance of several new offering. Several of our end market continued to be generally soft, with a limit capital spending visibility, partially due to the current macro environment. Despite this limit near-term visibility, we are confident in general improving demand and also our longer-term market driver and the product opportunity into fiscal 2020.

We reported earlier today that we had shipped several PIXALUX system to multiple locations in the June quarter and expect additional shipment in the current September quarters. The shipment of this tool, ongoing customer interest and additional planned shipment further increase our confidence that PIXALUX will help accelerate market adoption of mini and the microLED technology. As many of you are aware, this is not our only high potential market-expanding opportunity.

Our APAMA Thermo-Compression tool is very competitive and in production for a premium logic application. Separately, Katalyst, our high accuracy flip chip tool, was recently shown at the SEMICON West and continue to generate significant customer interest for leading-edge memory in the logic applications. I will provide a more detail update to our growth initiative after the financial review. For the June quarter, we recognize revenue of $127.1 million, an increase of nearly 10% sequentially, driven by an increase in demand from our OSAT customers.

We see exposure to general semiconductor and also an increase in demand for our LED products. Company has continue in automotive, memory and for advanced packaging products. Capital equipment sales increased by 11.5% sequentially