Kulicke & Soffa(US:KLIC)2021-05-08 16:25Financial Data and Key Metrics Changes - The company generated revenue of $340.2 million in the March quarter, representing a 27% increase sequentially and over 125% increase year-over-year [21] - Non-GAAP operating margins improved to 26.4%, a 410 basis point increase from the December quarter [30] - Full fiscal year revenue guidance was raised to between $1.3 billion to $1.4 billion, significantly up from the previous guidance of $1.1 billion [26] Business Line Data and Key Metrics Changes - The APS segment increased by over 15% sequentially, driven by higher utilization of the installed base [21] - Capital equipment sales, which represent 85% of overall revenue, increased by 29% sequentially, with strong performance across all end markets [21] - Memory segment sales increased by over 60% sequentially, while LED sales increased nearly 60% [22][24] Market Data and Key Metrics Changes - China accounted for 61% of total sales, followed by Taiwan at 21% [48] - The automotive and industrial end markets saw the largest sequential growth, increasing 83% [22] - Lead times for wire bonders are currently about 10 months, primarily due to supply chain bottlenecks [38] Company Strategy and Development Direction - The company is focusing on expanding its core market reach and addressing increasing capital intensity needs within its served markets [12] - There is a strong emphasis on multi-chip applications, with expectations for significant growth in this area [14] - The company is actively engaged in the mini LED market, with expectations for continued adoption and growth [20] Management's Comments on Operating Environment and Future Outlook - Management highlighted strong demand drivers including 5G, IoT, and automotive transitions, which are expected to support long-term growth [27] - There is cautious optimism regarding supply chain constraints, with efforts to mitigate these challenges [25] - Management anticipates some volatility in transitional drivers but remains confident in the overall growth trajectory [64] Other Important Information - The company issued its fifth annual sustainability report, highlighting its commitment to ESG initiatives [7] - The company has recently won several qualifications at top OSATs, IDMs, and foundries, enhancing its competitive position [16] Q&A Session Summary Question: Health of end markets and lead times - Management indicated that utilization rates are currently very high, and they are monitoring for potential double bookings, which are not significant at this time [37] Question: Revenue guidance and supply chain visibility - Management explained the increase in revenue guidance is due to improved visibility, despite potential seasonality in Q4 [46] Question: Contribution of China to sales - China represented 61% of total sales for the quarter, indicating a strong market presence [48] Question: Advanced packaging products revenue targets - Management expects advanced packaging products to contribute an additional $40 million to $50 million in revenue in fiscal year 2022 [68]