Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) Q4 2019 Earnings Conference Call - Final Transcript
Nov 14, 2019 • 06:00 pm ET
Greetings and welcome to the Kulicke & Soffa 2019 Fourth Fiscal Quarter Results Call. [Operator Instructions] As a reminder, this conference is being recorded.
It's now my pleasure to introduce your host, Joseph Elgindy, Senior Director, Investor Relations and Strategic Initiatives for Kulicke & Soffa. Joseph, you may begin.
Thank you, Lori. Welcome everyone to Kulicke & Soffa's fourth 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.
Thank you, Joe. Since the March quarter, we observed a gradual recovery in our overall businesses. Improved fuel utilization rate, the increased demand within both capital equipment and the APS segment, continued progress within our advanced packaging progress and we recognized revenue of several PIXALUX and micro and mini LED systems. Considering this improvement and the state of our industry, we will include comparisons from the March quarter in addition to sequential comparisons to provide a broader perspective during today's call.
In parallel with improving market conditions, we continue to operate very efficiently, generating strong gross margin and executing on near-term cost-saving opportunities without jeopardizing our ongoing development projects. For the September quarters, we recognized revenue on $139.8 million, an increase of approximately 10% sequentially and over 20% from the March quarters. The sequential increase in both capital equipment and aftermarket product and service segments was driven by improvement in general semiconductor, LED and advanced packaging. Demand from general semiconductor and LED, our largest end market increased by nearly 17% sequentially and 74% from the March quarters. We have also continued to see improving demand from our OSAT customers during the September quarter.
As you may recall, demand from memory and automotive end market declined fairly dramatically in the June quarters, partially offsetting the same period improvement within the larger general semiconductor and the LED market. However, demand has largely stabilized within automotive and memory end markets through the September quarters. This stabilized demand, improved NAND pricing and the growing semiconductor opportunities in automotive provides confidence. Overall, our automotive and memory solution remained highly competitive, and we anticipate general