Financial Data and Key Metrics Changes - For the December quarter, the company reported revenue of 166.1million,agrossmarginof52.40.37, while GAAP EPS was 1.51,supportedbycustomerreimbursementsrelatedtoapriorimpairmentcharge[18][32][34]−ThecompanyanticipatesrevenuefortheMarchquartertobeapproximately165 million, with gross margins of 47% and non-GAAP operating expenses expected to be around 70.5million[35]BusinessLineDataandKeyMetricsChanges−TheballbonderrevenuewassequentiallylowerfromSeptember,indicatingalaterecoverystageinthegeneralsemiconductormarket,whileautomotiveandindustrialsectorsshowedimproveddemandcomparedtothesamequarterlastyear[20][21]−Thecompanyshippedseveralbatteryassemblysystemstocustomers,includingaleadingEVcompany,andanticipatesfurtherrecoveryinthepowersemiconductormarket[22][23]MarketDataandKeyMetricsChanges−Thegeneralsemiconductormarketisinastateofcapacitydigestion,butthecompanyexpectsbroaderindustrygrowthanddemandforitscoresolutionsinfiscal2025[20]−TheTCPmarketisprojectedtoexceed300 million in revenue for calendar year 2024, with a compound annual growth rate of 20% to 25% anticipated for the overall TCP market [13][15] Company Strategy and Development Direction - The company is focused on technology leadership in thermal compression and advanced dispense visibility, with ongoing development and customer qualification of new systems [8][9] - The transition to advanced packaging solutions is seen as a long-term opportunity, driven by AI, cloud computing, and edge-device requirements [16][17] Management's Comments on Operating Environment and Future Outlook - Management believes the company is in the late stage of a market downturn, with expectations for a gradual improvement in fiscal 2025 [7][40] - The company remains focused on maintaining an aggressive cadence of development across all core markets while driving customer acceptance for new products and services [28] Other Important Information - The company completed a 300millionsharerepurchaseprogram,with36.9 million repurchased in the first quarter, reducing shares outstanding by nearly 800,000 [34] - The company is working with leading memory customers in Korea, the U.S., and China on vertical wire-connected memory applications, with expectations for higher volume production in the coming years [26][70] Q&A Session Summary Question: Will ball bonder revenue grow sequentially into June and September? - Management anticipates that even with a revised semiconductor forecast, a 13% growth in CY 2025 should benefit all businesses, and they believe they are in the late stage of the downturn [39][40] Question: What is the normalized core demand for fiscal 2025? - Management expects the normalized level to reach around 500to600 million, with the second half of fiscal 2025 potentially being 20% to 30% higher than the first half [41][44] Question: Can you quantify the value of AI-related opportunities? - The company forecasts advanced packaging revenue to grow from 220millionin2024to275 to 300millionin2025,withpotentialforfurtherincreasesbasedoncustomerforecasts[59]Question:Howmanycustomersareusingthermalcompressionbondingtools?−Approximately8to10customersareengagedinvolumeproductionorqualifyingforTCPbonders[65]Question:Whatistheexpectedrevenuefromverticalwiresolutionsin2025?−Initialproductionrevenuefromverticalwirebondingisexpectedtobebelow20 million in 2025, with significant growth anticipated in 2026 [70] Question: What is the market share in VFO for DRAM customers? - The company holds close to 75% to 80% market share in the overall market, with expectations to maintain a strong position among leading DRAM customers [82] Question: What is the expected margin structure as core markets recover? - Management aims for gross margins to remain around 50%, with improvements expected due to new product introductions and better factory utilization [93]
Kulicke & Soffa(KLIC)2025-02-05 16:26