KLIC - Earnings call transcript Q4 2017 | Kulicke and Soffa Industries, Inc.

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Operator

Greetings and welcome to the Kulicke & Soffa 2017 Fourth Fiscal Quarter and Full-Year Results Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Joseph Elgindy, Director of Investor Relations and Strategic Initiatives for Kulicke & Soffa. begin. may you Joseph,

Joseph Elgindy

Welcome conference Kulicke call. Rob. quarter Soffa's fiscal XXXX everyone you, & to fourth Thank

Jonathan Vice Joining Fusen and and Chen, on our our us the President Chief call Executive Financial and Chief President today is Chou, Officer. Executive Officer;

you available of received not Relations website of in the the have today's latest investor at a as our as Investor well who the of investor.kns.com. presentation results, those For copy release are both section

to of relating events today's forward-looking Act remarks Securities will future In These and Litigation addition to results. statements our historical statements, statements contain within the Reform future statements are XXXX. the of meaning Private

condition indicated actual forward-looking statements. and financial from materially in may Our those is what results differ

Soffa please affect financial Please XX-K to For X, results Fusen. call I and to that refer for future overview. October XXXX. a filings, ahead, now the for discussion Kulicke would could the the complete our specifically condition, of business go recent risks our over Chen like SEC associated ended to the Fusen the year & turn with

Fusen Chen

Thanks, Joe.

by completed earnings $XXX fiscal per year $X.XX million generating income, have We $XXX share. million in of in net our revenue, and

revenue, guidance income, significantly September surpassed the we million of conferences. by length and better million our quarter, $XXX.X delivering of $X.XX During of EPS, $XX.X net range diluted

business accountability Early new year, intended Support better our and Service, Expendable improvements there some I joined, Aftermarket and our and enable after unit, Product to This repositioned our was of Products responsibility, discussing and sales we the organization to our be a broader Part business P&L to And have the technical issue. the Before will we and revenue growth. APS R&D enable organizational responsiveness, quarterly moved there and the enhance accomplishments under of A business an objectives. not organization these Tool, certainly in performance, to creation Aftermarket our standpoint, take combines term segment. Service of further process previously our new and drive longer the ongoing summarize is recurring From organizational also and Spare segment. and I few minutes our our sales like a would and responsibility value and some structures business Expendable the area. segment Support Spares [indiscernible] Tools focus corporate restructured to

years Our increase is enhancing the XX%. is further APS three to from our stream performance. to revenue goal in revenue the over XX% our increase coming important equipment position this Leveraging to through-cycle our and

into and was went the global our to of R&D unit. team quarters to business of the our this which change, during [press] organizational global September respective other decentralize group The shift ownership majority

confidences also closed to us am from our LED. initiatives. and and very closed standpoint, new upcoming assess core initiated complementary as strategic program and business opportunities and maximizing a highly we technically I Liteq, More confident continued and improvement assist execution We out new acquisitions, in a of continue Electrical accountability. fit this organizational R&D responsibility to seeking of a change as certain creates Servo support line organic emerging centralized the more in such centralized This group, the more which maintain the team with and a business-centric clear also common responsive in inorganic examining and and system. and Ultimately, our better business by repurchase share enables a opportunities. this such on a optimize to

and better Ball, was offerings. Turning packaging expected from length quarter, Wafer-Level diversified and [stumped] Wedge, performance our September back to the our the

was and dramatically the to solutions. industrial, and supported also year System-in-Package, and XXXX, same packaging of diversified over packaging revenue year. NAND Our same This advance had the up last period Wedge base from estimate other and increased customers. was was strong including our improved to bonding widespread demand increased unit equipment opportunities, the power across trend our it period Through as growth well by semiconductor our System-in-Package also from sensing memory, it of flash stem equipment advanced our XXX% and portfolio. last for XX% and bonding we dedicated flash exposure XX% fiscal semiconductor CMOS XD automotive, and as including XX% a broad including NAND

in APS LED increased healthy increase our year of utilization for revenue demand. business. This Finally, drive share same by increased business full-year. the is the due XX.X% over to in rate Wire XX.X% and consumable prior our had gain capital period also the

would Jonathan? turn Chou, as who to I overview in base focus prioritize recurring over detail. and this will drive to move greater like share enhance our continue revenue we call progress to cover quarter's the and our We will our now forward. business Jonathan we to financial

Jonathan Chou

Fusen. you, Thank

the quarter and Strong due largely These quarter gross gross was results, $XXX.X revenue $XXX.X For of of September million. unique margin XX.X% million strong were gross drove September net product to margins profit. the mix. to

quarterly our leverage. slightly ahead targets positions and market gain Looking we to LED. targeting exposure XXXX, aggressive revenue for XX% to gross opportunities in This new better into operating below also us and share revenue margin adjusting maximize are

million the and EPS. million operating During $XX.X $XX.X of generated of income, $X.XX we quarter, income, of net

pleased higher very levels of profitability are execution. operational deliver supported a strong to these We by

effective our long-term basis planning a expect XX%. around tax can during X.X% rate effective our came the our of XXX earlier be in from from process. Our rate reduction quarter tax at guidance to is XX%. long-term point This benefiting We

to Turning the balance sheet.

quarter share our positioned with on sequentially value basis, strengthen by at million outstanding From our sales $XX.X position we plus quarter. increased a a a DSO investments basis, perspective, September cash to end $XX XX receivable million from days. to payable, of the up day's financial accounts or $XX.XX. a million days of September to inventory as accounts and continued We book less ended $X.XX million. $XXX.X increased $XXX.X XX defined per Working capital with share the the per On total

from payable XX days XX accounts increased and Our days sales to of decreased from XX inventory days. days to XX of days days

success. in to necessary developments are to with organizational drive are R&D and new Investments the execution change While and opportunities. our enablers sales

As to The expense X% and platform X% $XX we expenses year and come XXXX fixed initiatives to prototyping other quarterly cost overwhelmingly lithography related variable a revenue. expense are in to related is increase our our growth new million several to also of result, plus development anticipating fiscal fixed additional to at tied initiatives.

also Before subsequently would $XXX completed and program. on million concluding, a I like million Board share XXXX some initial XX, repurchase share of provide our repurchase repurchase we share $XXX new color to August program On Director program. approved our our

quarter, of we purchased September value shares a million. at the $XX During XXX,XXX approximately outstanding

whenever our intrinsic valuation. in Fusen market significant quarter's concludes a the to I we of continue to will open back the turn the to for call. discount outlook. at business repurchase now We shares the trade over review This will discussion December portion available financial with resources our

Fusen Chen

Thanks, Jonathan.

very Looking perspective, into From a quarter, this the million. XX% previous is last $XXX represents increase our and we our outlook average December quarter a targeting million $XXX of quarters. three year revenue are historic same over over XX% increase and and come to in strong a between the December

fundamental core business initiatives, creations. strength value focus recurring ongoing overall of enhancing While renewed driver strength and are more our solutions revenue industry new is business such all in as the of the to ongoing execution expected the support positive,

shortage the new we the opportunity have Liteq of Looking no with in progress, ahead, recent continues.

the to begin in Eindhoven of in currently first selecting customers process the qualifications. team Our is

and partnership improvements our in organizational recent our potential and for our opportunities increased willingness the addition, to strategic engage success. In

increase of growth all for outside further core recent value in various new industry continued meaningful prospects, delivering expectation business. Additionally, confidence expansion our our within

positive a through year calendar current XXXX from unit very semiconductor for rate support XXXX, ahead, X.X% expectations annual growth Looking compound productions.

the over modest completed same As four X.X% rate. rate the a reference, was the at years period prior growth growth very

continued a have maximize exceed concludes entire completive will We and to the for prepared growth are to this ask LED Operator, and our better the to our remarks. these forecast. take strong market happy strategy thank opportunities. shareholders. to delivery also that your our will to further extremely recent and anticipated committed questions. This In memory organizational addition, applications now you where such enable you as we remains ability I'm confident products sensor, improvements our value our we highly NAND organization be support year

Operator

conducting session. Thank you. a We'll you. now be Thank question-and-answer Instructions] [Operator

D.A. from question. of with is proceed question Please with the line your first Tom Diffely Our Davidson.

Thomas Diffely

morning afternoon. good or good Yes,

said above was million So, on cost did mentioned you some structure, Jonathan, $X the you for fixed plus million X% about these I $XX the guess previously new first that Is of X%? to programs?

Jonathan Chou

XX% $XX give rests about are Well, me actually other on the for $XX Liteq three little that year million and color, million of the basis investment total to is the let about quarters you and initiatives. full-year a related actually to

Thomas Diffely

Okay.

$XX million $X million, call of that for $X the million quarter? per years it So

Jonathan Chou

Yes.

Thomas Diffely

in as year across is about bit down just And aggressive getting Is the based talked margin the coming more then next with aggressive? you getting over you little Okay, a segments all lower get or right. on aggressive board the that bit pricing? margins more a that

Jonathan Chou

Yes, basically there XX% but think share to market little aim we've my we where bring XX%, the we be I average certainly are that down always but and to that will take for the actually aim a we that been going maintain average. to opportunities aiming actually bit,

Thomas Diffely

Okay.

margin on dollars is opposed to percentage? margin as this So,

Fusen Chen

will I you bit give Tom, little Yes. a color. more

is recoverable. choice color, in year think market aggressive segment this last Give we double year little XX% a of we gross LED year shares I are for and gain believe that and and we ball above bit total the this a I to more is LED it. particularly bonder think we this margin our you

recover a we hit, but can we little longer-term. result, that So we margin gross delivery in the a as bit will take

Thomas Diffely

market in an for incremental Okay. other some spaces or Is your of gross higher you? there growth just

Fusen Chen

This us. is incremental for gross

Thomas Diffely

year-over-year or your the we and see And seasonal also the seasonal well? that at quarter a the then guided patterns other as the look business you the a same when shift have quarter? patterns we above just performance have we in As reported higher of strong core for level still really sense Okay.

Fusen Chen

I all think in the see diversify more IoT right. industry. auto products our many industry across in in the also I is and Well, different

a say have this as expand, think we before. pronounced is the see think no is seasonality, would seasonality helps but I industry I and but less but still not we as hopefully and there So, seasonality, will as believe I I probably longer not - paper bit

Thomas Diffely

you look good the when year. and And XD auto for finally, over obviously been last at market, has there NAND very markets or the Okay. the then the you NAND

you growth to we view So do do nice markets large those markets? forward? well? Are just going Are how they that continue those

Fusen Chen

a you assist to As Auto, do continue lot of growth well. driver we is is going and Autonomous program. to function auto. of will the there know impact

I was what storage, power it areas? are many they think the a in allows lot are and storage area auto

Thomas Diffely

XD think NAND, I as specific…?

Fusen Chen

continue confident, will XD think NAND to I XD NAND we grow. are

the spot China at bright a moment memory us. actually very still Okay and actually this for is

Thomas Diffely

time. your Great, for okay. Thanks

Fusen Chen

you. Thank Okay.

Jonathan Chou

you. Thank

Operator

from with is question the Merrill Lynch. your with Please line next Sankar of of Our proceed Krish question. America Bank

Krish Sankar

Hi, question couple for to thanks from around us had tell great my in what results of Jonathan. it's memory? in you expected sales can December? questions. taking Is still on XX% past, is, such was quick a in Fusen just and is it be to the think percentage One that September your of been XX%. I what I've and congratulations and

Jonathan Chou

Yes, memory. it's XX% about in terms exposure to of

specifically ball or XX% to bonder side. the fact, In the for NAND

Krish Sankar

job. Gotcha. out, it for to quarter? than to is same kind the Clearly, a quantify trying just find seasonal time, trend great are better trend December like And looks which biggest you a At there December? is is guys in this way driving what of doing the the

Fusen Chen

think bonder a is actually bonder. wedge see also also think come for automotive has and and contribution for it is device to industrial We quarter the well, also packaging. memory our from and our is industrial for our wafer since power which general strong control AP rate in LED ball our storage helps and is wire And as And automotive I pretty Sip deterioration from strengths one level us of also doing of I bonder - well. bonder, power come and also high of this

helps the actually that this a very CMOS think application very, in I lot. strong, MEMS applications quarter and

Krish Sankar

for the much do Got helpful. quarter questions, it, I looks if a) history that was is and in bonder September is is, other record very company, that from auto? wedge true, then two a on like the congrats high one sales, your based that math on of looks it all-time high, that's And if like so, how the probably an

Fusen Chen

auto, from think lot from a the I EV… actually particularly

Jonathan Chou

year-on-year have if don't like wedge it I is the have increase to and that XXX% transformers trend industry. - - actually and look the pushing at Yes, market clearly basically you like new EV, industrial bonder

five-year in that point we the think so continued period. the I basically, highest So, high, out are terms just to of to

Fusen Chen

Yes, from battery our wedge at strong and a right and strengths very of China market moment. this originally, also Krish, we U.S. see come our is now - the in bonder of

Krish Sankar

see that's one was LED Got much helpful. revenue? ball percentage very And did two questions, last guys it, is, a how you bonder then of as

Fusen Chen

about I to took we increase. think about Unit year unit year last and this Well, XXXX XX% finish we in count. intend count, we'll XXXX

Jonathan Chou

For less is this slightly past quarters, X%. than it

Fusen Chen

Yes.

Krish Sankar

Gotcha.

Fusen Chen

intended market in terms of shares we LED. achieve In overall in XXXX, recent to

Krish Sankar

last so or Got another it, Liteq is in the and timeframe redistribution how very are year it then I probably the and you in acquisition, for probably was Is said layer shipped the And terms had take question still you're many I qualification guys we the that far? last helpful. think tool there that in the a data systems so. of might

Fusen Chen

euro. customers and a discussion the we ready first in to not Actually, just actually the in select are

So, in XXXX. and ship we discussion we a first January have intend probably just system the

Krish Sankar

All you Thank very much. right, it. congratulations folks. Got

Fusen Chen

Okay, thank you.

Operator

the next with is from your Steelhead Duley Securities. proceed The David line question with of questions. Please

David Duley

for Thanks questions. Yes. my taking

clarification that an a to us business Just on for bonder what up year business basis the you annual wire up start, fiscal XX% I in could XXXX? that year-over-year you quarter, tell the September core think was mentioned

Fusen Chen

We will number. the find

David Duley

I And volumes wire IC to your growing to as much was reasons main we expect kind should core then bonder than unit so is what that. faster that a the continue? business curious think you of why that and - follow-up just

Fusen Chen

an maybe can So you I give example.

is we about form is note. industry this technology growth fast. driven so not XX% big very in growth is for is It's factor, devices, very see and in not is [healthcare], many, and of advanced And small high require that's annual like fast, rate XX%, bonder, annual compound connectivity this For rate is retail, our many mainly number, example, IoT compound industry the so IoT very technology. a the ball does actually a this

to seven just $XXX our only dollars, couple IoT we years, hundred contribute will So, bonder calculate roughly million million. $XXX next in of say ball million,

not still be our let, has coming growth So our been XD bonder many, XX%. necessarily very device need NAND, advanced very to want participate just there advance technology and very like SiP, bonder in many product don't ball from many, in out course, require phenomenon product rate but like many, are advance, like China, of they to the many

Jonathan Chou

is growth this bonder Yes. The for is ball Jonathan. David, year-on-year the XX%.

David Duley

at last Okay. kind higher you growth is kind rate? we And us rate X.X% than the five unit grow volume bonder I wire to business of volume the guess rate curious the rapidly going should what IC just volume gave growth years. I'm what than getting is of you And forward a which is as core of more much growth unit your over I'm pointed unit out expect

Fusen Chen

for industry, you, we expect David, answer have faster don't but LED really grow goal. we only actually to our that's

David Duley

There's got have going lots a lot updates any particular. in in people advanced increase about die-to-die your folks wafers investments the wondering business you business outlook and - I forward you Fan-Out died more connecting Okay. this of making other on the business and you're talk just some in more about and seeing am XXXX? Could is and talking that and thermo-compression in and whatnot packaging an bonder what can you you've

Fusen Chen

- APAMA, of - revenue and of CXS right. die million including this packaging CXW revenue way, a two advanced in - attachment have at $XXX this and in is million Well, are also as so in cost and our is $XXX XX% to this XX% $XXX, packaging our so about have so putting we I to attribute one calculation with of of including to dedicated think we advanced it least we XX% XX% our TCB,

is And so, SiP. label to Two above hybrid [Liteq] and one AT and also million. call then Premier we one TCB, wafer XX% $XXX have packaging what we

So, above do $XXX this million. close I year, XX% to we think or

significantly will in next in of probably expect increase We couple we label very and our still TCB see don't year really the years. next this

think probably is XXXX for to I our compared bonder I But overall, to bigger products in low grow think like expect will very us. bonder volume our little volume bit ball still a is small. base we high wedge the

David Duley

to in you're are you. going final Okay. in on? on Thank you explain customers focusing tool of on Where applications position of little do for question or me to the going foundries, what you're looking what And sort just your put of type just lithography. are systems? just food chain, valuation then help plan OSATs you And focus after maybe you who that on in ITMs to or a bit and

Fusen Chen

right. layer, we're call this moment, with layer, critical OSAT we customers. working I think redistribution at And

unique. that need need a to mercury-vapor and use compared resolution be closer critical the based the much they to competitor industry very I three better think design as the we have So microns, laser and a define are dimension, source, our as much will use common focus. We use And INI. [ownership] to productivity actually lens we believe When throughput. below a well better on they better

David Duley

you. Thank Okay.

Fusen Chen

I Hopefully, I yes, but us. grow so in are think we I differentiator think - geometrically for months, think a believe is quite few this in we very long-term, positive. don't will We

Operator

B. line next Please your Riley. questions. proceed Our Ellis of from comes Craig the with question with

Craig Ellis

the the question on fiscal about wanted I good and start your that Fusen, about and Yes, modeling congratulations level question execution XXXX. guys. of with to for was thanks a view taking more less higher

one-year a very of that. it's first year, the your call on been on congratulations anniversary successful So, with so Kulicke,

Fusen Chen

you. Thank

Craig Ellis

would accomplish year? you you next priorities, the of be a to top look list would thing like to the that three same do ahead or you strategic to XXXX, now, year-ago over the on what fiscal As four things were business you listed if

Fusen Chen

Okay.

very I actually ball bonder mentioned is for us. I firstly, I important So remember think

think LED end, to margin. we with be get slightly a low low I'm market LED bit a high end a share remember market. we the did market Since I share, a and good but well, have margin have We and gross get big in this is share, year, market little get last good not do actually right. we at big a can will confident, once it And we very

being plan not XX to year much successful. to year. LED compared This bonder think previous sell I of we actually So, as as very

and would I a also bonder, in development. process was focus competency and of we it's looking that right So ball move lot core our in development say like

So, I feel that today. and than bonder good ever is think makes stronger very me all ball

trying an in put very market well. we effort grow I to also share We bonder, think the wedge did

moment, this number will at start So, is spares, bonder success. we see we and segment program, number And so three to a last focus consumable, way. year And I a our service, in and that year. some the I one but grow believe bonder million is this we focus in think uplift, years, put refurbish and ball we can in systematic we million, already not one. be wedge And formally this $XXX this $XX think year

technology, also growth our have believe can a will this in so ongoing, be next to programs industry, few we in contribute look at future emerging which We we one-year.

So, opportunity the looking than become we that DNA. up give heavier growth the has key and is, not continue will all for

Craig Ellis

question Jonathan. Thank is That's The have you. very helpful. for I next

are mix starting later fiscal the XQ? margin My you that does guidance years low-end regarding question the mix, first which what's gross point that when margin. think understandable, Jonathan, the happen driving is LED So, that quarter with your actually to we about gross in the through or parameters would expect is XQ might in you with LED timing you with really and for fiscal as significantly particular increase there talked I time XX% potential fiscal in strategically that ahead the to look regard it's or especially see

Jonathan Chou

power sensitive is I margin Well, in higher space talking it that still have price our it good we for product have. - product we're about pricing think mix. gross actually offerings on the We margin, the that actually depends very

sensitive And are past, the that markets effort targets actually an kind aggressive sensitive and that will throughout more we when introduce planning down to a year. of the structured actually continues down the cost have compete more to continue - have we initially we price price alluded in the in or space. Fusen as So, in rolling cost cost fairly has

look to going to higher are continue that that. even actually at we We have with products margin

have continued of platforms we we confidence a I terms that in fairly different down have. So, think to good level cost across

that So slip to but target still well are XX%. the had doing, as in it past average down might number We fact that years, we of said process to LED below are to achieved space, it that we are of the certainly keep above. everything earlier, in we can compete I in we XX% costing continuing the actually given the

Fusen Chen

me Yes, put way. this so let Craig,

at I then market this share we we when moment are needed. can market, think look at the get there LED we more

you power know LED have to much get to as get We decide So, we we decided more. in. want how to choosing a

like But dollars, to This make I not to once very back. think we It's are margin lost. also want sure more. you a can confident. and margin and we share get also as gross get gross we is revenue difficult and market total the balance we

think you the get and can do we gross few market shares in months always is margin right. can I

Craig Ellis

through is first so year, that would $X in an we business million the the color. be basis, on that it investment does Jonathan, think have a the the into operating to that fiscal where being time And maybe I quarter Very to much spending than that guidance then first really the of quarter the clear somewhat should fiscal applicable That's guidance is similar we helpful that expense. fiscal year by the $X may question relates up third grow million question have year to a we smaller the that is real end larger. that that or impact quarter

color that helpful? the Thanks the be of into guys. linearity businesses some on move would Just prop

Jonathan Chou

is $XX OpEx. increase our about of earlier, I in we OpEx think terms said estimated - I as million

we obviously I right. in think it is point topline we what grow percentage time, the this expect at

is to are we the required So, us growth cost this get initiatives. in those terms of to estimating I is think what

Craig Ellis

it All you. guys. Thank right. luck with Good

Jonathan Chou

Thanks.

Operator

Value Principals. next line of with Manas is with ahead from your question Our go Tiwari the questions. Please Investment

Manas Tiwari

congratulations taking set strong is my regarding industry Thanks the and CapEx in on the My cycle wide Hi. very question semiconductor for industry. question of results.

we to some fourth XXXX. quarter for CapEx raise the CapEx it's Electronics that its it commentary from positive for - raised fourth had So, Samsung its going the

view you going So, Samsung CapEx other to forward? on our the Do and expect cycle is what players follow CapEx? digital

Fusen Chen

Actually, very course Samsung this have is CapEx and spread. I a a think successful of moment at they big

CapEx. they We also view our share also increased prior their

CapEx So growth that's year. think view year our this I this on The Gartner is forecast unit for semiconductor than X%. greater

need investment you to support to a growth. have unit semiconductor X% minimum So, certain of

will be will So, this CapEx okay I assume the year.

Manas Tiwari

Okay. the or reduction assembly And forward? goodwill any going business, regarding owned we expect should write-down

Fusen Chen

was No digestion XXXX, impairment decide actually due But I the reason as enough business at we took the is look customer periods is capacity at we expected. Assembléon a and the capacity, above what forecast, to so to took we XXXX track implement. our we moment, this think

Assembléon with at moment. happy very this are We performance

Manas Tiwari

Thank for much. Okay, you that's very me. it

Fusen Chen

Thank you.

Operator

of The you. is line Research. Greg with Please with Eisner Singular questions. from Thank next your the question proceed

Greg Eisner

Thank you thanks my for questions. taking and

fiscal snap above pressure the kind potential after into one-year be FY the or that profit Regarding you margin, the gross to that we carryforward decidedly years this back in should the of XXXX should are percentage starting will expect XXXX? gross downward FY XX% describing same margin on phenomenon a subsequent

Jonathan Chou

is Jonathan. this Greg,

program, to we we question earlier focused if continue a we have constantly cost mentioned part, hitting are actually see down rigid will expand I fairly higher can We and do that on which XX% margin. the that as

more market, percentage. do in high across compete protect to the all we we As that margin our sensitive platform

Fusen Chen

Greg, me it So, put way. let this

think company gross I have the initiative. multiple clearly, a we

is So, them. LED one moment, of at this

share go probably very in more we But increase more high we little So, volume, for gross a decrease will need to jeopardize are not that. do we what more, to LED if then market aggressive necessarily margin.

very let's other we status is a have margin, We this can We think in business recoverable. might we take gross decide impact gross or point, even other LED always certain LED. confident, our it in I production get But the at to than margin back. are short-term so a choice, multiple

Greg Eisner

could discussed the you utilization the subject, we to the pass get? think in quarter? think and for quarters changing it, about Got talk it you described I I rate

Fusen Chen

believe the that's that to healthy of in we is and why for plus we're pretty Yes, going XX% right utilization terms announce our actually now rate equipment.

Greg Eisner

sense. I versus I the this it guess of ties sounds like of the plus growth market to makes And year, the quarter question that that trying and Okay, side replacement market estimate utilization. next a XX% into guess

You're would seeing an replacing side that increasing opposed as to - correct? percentage the old coming of With be demand from that growth really equipment.

Jonathan Chou

said have at start will customers above that our most we XX%, anything of in capacities. the to Yes, past looking have new

So, based that. on what here, we are seeing from it supports

Fusen Chen

So, the all is we replacement did three capacity a The I in all opportunity above yearly rough think system. in calculation, system. is nice wrong

- nice for roughly revenue. market a So a us in for I available probably you think I solvent unit total terms normal The about think of number largely for XX% take us so is ball bonder, kept of solvents is a system, year.

Greg Eisner

you said to this a think of revenue, it. was it as could XX% of the quarter. components I If the I turn say Did XX% packaging to revenue revenue. last your you Got advanced to contribution was quarter XX.X%

Fusen Chen

Okay.

feel to So, be for describe. let more me

packaging think from and I packaging - XX%, portfolio we have right. advanced lies around advanced

SiP. consistent. this our So, including packaging I wafer two TCB, think it's attachment And also die one our including our hybrid and including also and of label of

a XX%. technical, is They very in in and was are in we because advanced reason very the are ball we SiP. strong. memory advanced the And to this our product also the itself bonder to XX% content that very, in XX% So, believe our up

So, we advanced also attribute as packaging. high-end products, also so out call we

our packaging dedicated advanced big also as is portfolio. So that as

advanced XX%. packaging talking I dedicated only we So, are you both think is right. are If above portfolio

Greg Eisner

use Got end product line enough - it's requires that line, probably is What product customers' sort that - end product then you you is the but it. the really are advanced users advanced of… an not describing dedicated

Fusen Chen

it, at to [indiscernible] least with yes, XX% Got is about XX%.

Greg Eisner

Understood.

Okay, I'll let very much. someone Thank you else go.

Operator

Thank you.

of your is Advisors. next question from with questions. Please proceed Albert Prospect Sebastian the Your with line

Albert Sebastian

share financial the with cash ability and results. gentlemen, to on been Jonathan, first the share held has day, the or in your by the on versus States. repurchase. overseas your past A your constrained regards Good congratulations position questions, in United repurchase the couple that

a what's you do purchase the a background United that of is little cash or can and of in be us on going I to give So, just forward outside you that see going your held changing how bit ability guess the to in what terms shares? constraint and and States

Jonathan Chou

U.S. a Well, we're total point also and this we the our as time in of credit I have XX% available in line that that's think of facility at cash results about the U.S. well. in

So, there planning cash tax some to as the repatriation of terms future, we're overseas, of it we of mindful that continue will things and develops. a ahead anticipating are actually and in plan we do we to the so are actually be and but also, could in reforms constraints impact continuing

Albert Sebastian

Okay. to potential the something mix to change stable dividend, the you company has that your more from historically different And Is businesses pay service not and given having revenue of of business? Fusen just earnings the with terms a see dividends. paid in regards your could in

Fusen Chen

the company the dividend, $XX million program but already And buyback really shareholder I most and the is make you we effective stock the think value special right. will level, opinion. we $XXX a So, in point, for have my for next way use create we a the certain buyback profit to quarter, probably million when a use consideration already at a is moment can in to that which million this $XXX we new at see

ways have effective board So, value. this we of the certain But dividend. believe a discussion think a create point, we'll is I at a with our to most shareholder

Albert Sebastian

you. Thank

Jonathan Chou

are You welcome.

Operator

Elgindy over for would to closing Thank back the turn to you. Joseph comments. like floor I

Joseph Elgindy

Thanks, Rob.

Before in New in Midtown X Conference on investors will we closing, and Summit the the City XX CAP wanted to XX. also December that on be we inform participating Needham York and January Growth

Additional details investor.kns.com. you the at Thank on events today. past are for all and future available time

directly day. our As Good questions. with free always, please any to additional Rob, feel call. this concludes follow-up

Operator

you. Thank

time. you You disconnect may now for this your at participation. lines Thank your

Kulicke and Soffa Industries (KLIC) 14 Nov 172017 Q4 Earnings call transcript