Vince Martin
Long/short equity, value, gambling

Kulicke & Soffa: Q1 Was Solid, But Long-Term Issues Remain

I was bearish on Kulicke & Soffa (NASDAQ:KLIC) in September at $9, and stayed that way near $12 in December, even taking a long look at buying near-term puts into fiscal Q1 earnings. So it should be unsurprising that I'm a bit skeptical of the 16% gain shares posted on Wednesday, following that Q1 release, and still leaning bearish at Monday's price of $11.31.

There was some strength in the quarter, with revenue coming in well ahead of the guided range, and Q2 guidance for a sequential increase takes the worst-case scenario off the table. But both Q1 and Q2 also benefited from low expectations - post-Q4 guidance implied a reasonably significant loss in Q1 -

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