Kulicke & Soffa Posts Slight Net Revenue Growth in 1Q FY2016

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Kulicke and Soffa Industries Inc., a global leader in the design and manufacture of semiconductor, LED and electronic assembly equipment, has reported net revenue of $108.5 million for the first quarter of fiscal year 2016, up by 1% from the same period in the previous year. Gross profit, however, fell by 8% to $50.4 million year-on-year, while net income plunged by 101.2%.

"Throughout this period of industry softness, our entire organization continues to be extremely disciplined on managing costs while we maintain our aggressive development efforts within both our core and emerging advanced packaging opportunities," said Jonathan Chou, Kulicke & Soffa's Interim Chief Executive Officer, Chief Financial Officer. "Ongoing feature releases within our existing equipment and expendable tools businesses as well as market acceptance of our recently introduced thermo-compression tools are testaments to our focus on development and also our traction on expanding reach into new served markets."

Due to cost-containment efforts as well as favorable one-time operating and tax benefits, the company was able to come in below its prior break-even expectation. During the fourth quarter 2015 earnings call, break-even revenue for the first quarter was anticipated to be $125 million.

Kulicke & Soffa currently expects net revenue in the second fiscal quarter of 2016 ending April 2, 2016 to be approximately $130 million to $140 million.

Looking forward, Chou commented, "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 in driving long-term, sustainable growth."



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