Kulicke and Soffa Industries, Inc.NASDAQ
Kulicke & Soffa: Is The Market Really This Patient?
Tue, Nov. 15, 6:57 AM
Mon, Nov. 14, 5:35 PM
Wed, Aug. 3, 6:56 AM
Tue, Aug. 2, 5:30 PM
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Fri, May 20, 10:56 AM
- Lam Research (LRCX +4.1%), KLA-Tencor (KLAC +2.3%), ASML (ASML +2.2%), Axcelis (ACLS +3.9%), Kulicke & Soffa (KLIC +3%), Ultratech (UTEK +3.5%), Teradyne (TER +2.3%), Rudolph Technologies (RTEC +2.6%), and Xcerra (XCRA +2.7%) are outperforming after Applied Materials (AMAT +13.2%) beat FQ2 estimates, provided FQ3 guidance that was well above consensus, and reported FQ2 orders rose 52% Q/Q and 37% Y/Y to $3.45B. The Nasdaq is up 1.2%.
- Applied's order growth was fueled in large part by display equipment orders totaling $700M, up sharply from $183M in the prior quarter and $120M a year ago. On its earnings call, AMAT said display order strength is likely to continue "over the rest of 2016," and is being driven by mobile-related OLED investments - many reports have indicated Apple plans to bring iPhones sporting OLEDs to market next year.
- OLED materials/IP provider Universal Display (OLED +5.2%) is rallying. As are display panel makers LG Display (LPL +6.5%) and AU Optronics (AUO +3.2%), each of which have been stepping up their OLED investments, and industrial laser maker Coherent (COHR +2.5%), which has recently seen an OLED-related order surge.
- Also: Applied's NAND flash-related orders more than doubled Y/Y to nearly $1B thanks to its customers' 3D NAND investments. That more than offset softer DRAM and foundry-related chip equipment demand. On the call, Applied suggested NAND orders will slow a bit in the second half of FY16, but remain strong overall. Foundry demand is expected to grow somewhat this year, with Applied gaining share. Industry wafer fab equipment demand is expected to be flat to slightly up.
- B. Riley has upgraded Applied to Buy, and several firms have hiked their targets. Cowen's Tim Arcuri thinks $3 in annual EPS is now possible. Credit Suisse's Farhan Ahmad: "AMAT is clearly outgrowing peers this year, driven by favourable mix shift within WFE (NAND/Foundry increasing, DRAM declining) and strong growth in Display (China/OLED investments)."
Wed, May 4, 7:07 AM
- Kulicke and Soffa (NASDAQ:KLIC): FQ2 EPS of $0.07 beats by $0.03.
- Revenue of $156.4M (+7.7% Y/Y) beats by $21.4M.
Tue, May 3, 5:30 PM
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Wed, Feb. 3, 3:05 PM
- Kulicke & Soffa (KLIC +14.4%) has surged above $11 after beating FQ1 estimates and guiding for FQ2 revenue of $130M-$140M, above a $129.1M consensus.
- Fellow chip equipment maker Axcelis (ACLS -9.1%) is off sharply after providing in-line Q1 guidance - revenue in the "mid-$60 million range" and EPS of $0.00-$0.01 vs. a consensus of $65.8M and $0.00 - to go with a Q4 sales beat and in-line EPS.
- Kulicke CEO Jonathan Chou offered upbeat Q1 commentary: "Stabilizing inventory levels throughout the industry combined with our improved short-term guidance support our view of a recovering market environment. This improving external condition along with our ongoing focus on cost efficiency, prudent capital deployment, targeted development and the initial acceptance of our thermo-compression tool collectively demonstrate our comprehensive effort and execution."
- On its earnings call (transcript), Axcelis said it plans to seek shareholder approval for a reverse split at its May annual meeting. CEO Mary Puma: "A one-for-four reverse split would bring our share count in line with our peer group. We expect the stock split to ultimately result in an increase in our institutional shareholder base as well as provide final resolution in our earnings-per-share."
- Larger equipment makers such as Lam Research and ASML have indicated industry demand will grow strongly in Q2 following a soft Q1. Intel and TSMC plan to increase capex in 2016 (with Intel's growth coming off depressed levels); Samsung (an Axcelis client) is expected to cut capex due to lower DRAM-related spending. Axcelis received several earnings call question about memory spending.
- Kulicke & Soffa: FQ1 results, earnings release
- Axcelis: Q4 results, earnings release
Wed, Feb. 3, 6:56 AM
- Kulicke and Soffa (NASDAQ:KLIC): FQ1 EPS of $0.00 beats by $0.13.
- Revenue of $108.53M (+1.0% Y/Y) beats by $13.23M.
Tue, Feb. 2, 5:30 PM
Nov. 17, 2015, 11:28 AM
- Though Kulicke & Soffa's (NASDAQ:KLIC) FQ4 revenue of $119.2M was above both consensus and the $100M-$110M guidance range provided in its Sep. 9 warning, FQ1 guidance is for revenue of $90M-$100M, below a $103.5M consensus. Meanwhile, order backlog fell 34% Y/Y to $52.5M.
- Kulicke notes it ended FY15 in a "challenging market environment" - various chip equipment makers have been hurt by Intel and TSMC's multiple capex budget cuts. The company adds it "drove further improvements to our operating model as well as refinements to our development initiatives which reduces our break-even point and further aligns our R&D efforts with market opportunities expected to drive the most meaningful and long-term shareholder returns."
- $1.9M in restructuring charges were recorded in FQ4. Excluding the charges, GAAP operating expenses were down fractionally Y/Y to $54.7M. That helped keep EPS positive in the face of a 38% Y/Y revenue drop, as did buybacks: 6.4M shares (over 8% of outstanding shares) were repurchased as of the end of FQ4, up from 3.8M at the end of FQ3. Also: Gross margin rose 180 bps Q/Q and 150 bps Y/Y to 48.9%.
- Kulicke ended FQ4 with $498.6M in cash (equal to 68% of its current market cap), and no debt.
- FQ4 results, PR
Nov. 17, 2015, 6:58 AM
- Kulicke and Soffa (NASDAQ:KLIC): FQ4 EPS of $0.13 misses by $0.04.
- Revenue of $119.17M (-38.8% Y/Y) beats by $5.42M.
Nov. 16, 2015, 5:30 PM
Oct. 21, 2015, 11:33 AM
- Up yesterday in response to Intel's flash manufacturing plans, chip equipment makers are higher today after Lam Research (LRCX +5.6%) announced it's buying KLA-Tencor (KLAC +22.5%) for $10.6B, with the goal of creating an industry giant on par with Applied Materials (AMAT +1%).
- In addition to Lam, KLA, and Applied, gainers include ASML (ASML +2.3%), Kulicke & Soffa (KLIC +2.9%), Teradyne (TER +4.6%), Mattson (MTSN +2.6%), and Xcerra (XCRA +2.3%). Ahead of the deal announcement, Tokyo Electron (OTCPK:TOELF) rose 4% in Tokyo, aided by the Intel news and a rally in Japanese equities.
- Lam/KLA assert the deal combines "Lam's best-in-class capabilities in deposition, etch, and clean [equipment] with KLA-Tencor's leadership in inspection and metrology." Gartner estimates Lam and KLA respectively had 9.4% and 6.4% of the 2013 chip equipment market. Applied (competes with both KLA and Lam) had 16.2%, ASML (dominant in lithography) 15.7%, and Tokyo 9.1%.
- Lam is paying the equivalent of $32/share in cash and 0.5 shares (current value of $37) for each KLA share. It plans to finance the deal with $1.9B in cash on hand from both companies, and $3.9B in debt. KLA shareholders can elect to be paid solely in cash, solely in stock, or through a mixture of cash and stock.
- The deal is expected to close in mid-2016. Lam CEO Martin Anstice will run the combined firm.
Oct. 14, 2015, 3:10 PM
- Though still well below its May/June highs, the Philadelphia Semi Index (SOXX +2.9%) has reached its highest levels since August following calendar Q3 results from Intel, Linear Technology, and ASML, and reports SanDisk and Fairchild are in buyout talks with potential suitors (respectively Micron/Western Digital and ON Semi/Infineon). The Nasdaq is down slightly.
- Intel (up 1.5%) beat Q3 estimates and provided in-line Q4 guidance. ASP strength and signs of stabilizing PC demand are overshadowing a full-year guidance cut for Intel's server CPU division, Linear (up 4.6%) posted mixed FQ1 results and issued above-consensus FQ2 guidance.
- Lithography equipment giant ASML (ASML -0.4%) beat Q3 EPS estimates and posted nearly in-line sales, but also guided for Q4 revenue of €1.4B ($1.61B), below a $1.77B consensus. Soft demand from foundry clients is blamed. Credit Suisse and Cowen argue ASML is hurt by a lack of exposure to the 3D NAND flash ramp.
- Aside from Linear and companies associated with the SanDisk/Fairchild reports, chipmakers seeing big gains include NXP (NXPI +4.6%), Freescale (FSL +3.6%), Himax (HIMX +4.2%), Qorvo (QRVO +4.9%), Cypress (CY +6.9%), AppliedMicro (AMCC +4.9%), and Linear/Fairchild peers Semtech (SMTC +4.7%), MangaChip (MX +4.6%), Diodes (DIOD +4%), and Power Integrations (POWI +4.2%). Chip packaging/testing firms ChipMOS (IMOS +3.8%) and Amkor (AMKR +5.9%) are also rallying.
- With much already priced in, chip equipment makers are also doing well, in spite of ASML's guidance, a fresh $400M cut to Intel's 2015 capex budget (to $7.3B), and a Gartner forecast for global wafer fab equipment spend to drop 0.5% in 2015 and 2.5% in 2016 before returning to growth.
- Chip equipment gainers include Lam Research (LRCX +3.6%), KLA-Tencor (KLAC +1.6%), Kulicke & Soffa (KLIC +3.3%), and Teradyne (TER +1.9%). Possibly helping: Intel stated on its earnings call its capex will rise in 2016 from 2015's depressed levels.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Oct. 5, 2015, 9:35 AM
- Bruno Guilmart has resigned as Kulicke & Soffa's (KLIC -0.8%) CEO and from the board, effective today. He'll remain an advisor to the board until year's end.
- CFO Jonathan Chou will serve as interim CEO while the board searches for a permanent successor. Guilmart had been Kulicke's CEO since 2010.