- Third quarter revenue is expected to come in at the high-end of the previously provided revenue guidance, between
$235and $245 million
- The Company expects one-time, non-recurring charges and credits in the third fiscal quarter, consisting of a favorable foreign tax credit, goodwill impairment and restructuring charges collectively resulting in a non-cash expense of
$35.2 millionand a cash gain of $18.9 million
- Full fiscal year revenue outlook of
$790 million, plus or minus $25 million, representing approximately 26% year-on-year growth
Third Quarter Fiscal 2017 Update
As part of its annual strategic planning process, the Company proceeded with tactical and strategic initiatives to better execute on its collective long-term core, advanced packaging and electronics assembly related opportunities. Largely triggered by this annual process, the Company anticipates several unique charges and credits during the June quarter relating to a favorable foreign tax credit, non-cash goodwill impairment expenses and restructuring related charges.
These collective items are anticipated to result in a non-cash expense of
In alignment with its tax planning process, K&S has elected to adopt a foreign tax credit for its
Separately, K&S has determined a portion of the goodwill associated with the
During fiscal year 2016, the Company experienced a large multi-quarter Hybrid order, concentrated with one main customer towards a premium smartphone application. Capacity digestion related to this order has limited the Hybrid's current and near-term levels of demand. In the long-term, the Company believes Hybrid's one-pass advanced-packaging solution is well positioned for high-volume system-in-package (SIP) and fan-out wafer level packaging (FOWLP) applications of the future. In the near-term, however, adoption has been slow due to line-balancing requirements of these relatively lower-volume production lines.
As K&S executes to drive long-term success of its broader advanced packaging program, Hybrid continues to be a strategically relevant component. The Company plans to maintain all Hybrid Series platforms and will continue to invest in next generation Hybrid equipment and features as well as in its other advanced packaging offerings including the APAMA C2S, APAMA C2W and AT Premier Plus. K&S remains committed to ongoing research and development supporting the growing Advanced Packaging business in addition to its 4 other business lines to enhance competitiveness, expand served market opportunities and create meaningful and ongoing shareholder value. The Company continues to make progress within its Advanced Packaging offerings and will provide additional commentary during its upcoming earnings call.
Considering Hybrid's specific near-term business outlook, K&S has driven a restructuring program to reallocate resources to enhance product line success and long-term corporate level profitability. During the
Fiscal Year 2017 Outlook
Kulicke & Soffa anticipates revenue for its full fiscal year 2017 to be approximately
Full financial results and additional details will be discussed during the Company's Third Fiscal Quarter Earnings call scheduled for
About Kulicke & Soffa
Caution Concerning Results and Forward Looking Statements
In addition to historical statements, this press release contains statements relating to future events and our future results. These statements are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, and include, but are not limited to, statements that relate to our future revenue, sustained, increasing, continuing or strengthening demand for our products, replacement demand, our research and development efforts, the carrying value of goodwill from our prior acquisitions, the impact of restructuring initiatives, our ability to control costs, and our ability to identify and realize new growth opportunities within segments, such as Hybrid, automotive and industrial as well as surrounding technology adoption such as system in package and advanced packaging techniques. While these forward-looking statements represent our judgments and future expectations concerning our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to: the risk that customer orders already received may be postponed or canceled, generally without charges; the risk that anticipated customer orders may not materialize; the risk that our suppliers may not be able to meet our demands on a timely basis; the volatility in the demand for semiconductors and our products and services; the risk that identified market opportunities may not grow or developed as we anticipated; volatile global economic conditions, which could result in, among other things, sharply lower demand for products containing semiconductors and for the Company's products, and disruption of capital and credit markets; the risk of failure to successfully manage our operations; the possibility that we may need to further impair the carrying value of goodwill and/or intangibles established in connection with one or more of our prior acquisitions; acts of terrorism and violence; risks, such as changes in trade regulations, currency fluctuations, political instability and war, which may be associated with a substantial non-U.S. customer and supplier base and substantial non-U.S.manufacturing operations; and the factors listed or discussed in Kulicke and Soffa Industries, Inc. 2016 Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission. Kulicke and Soffa Industries, Inc. is under no obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
Kulicke & Soffa Industries, Inc.
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