Maybe the nay-sayers who have been cautioning about overly optimistic semiconductor revenues this year were right, considering Kulicke & Soffa Industries Inc. lowered the revenue forecast for its September quarter.

The move was made based on customer discussions that indicated a general slowing in semiconductor growth and wire bonder shipments, K&S said.

Previously, the Willow Grove, Pa.-based company forecasted revenue for its fiscal Q4 to be between $175 million and $195 million. Today, that was revised to $135 million to $165 million.

“We have implemented cost improvements over the last several quarters so as to be profitable in off-peak quarters. These cost cutting plans are on track," said Maurice Carson, VP and CFO of K&S, in a statement. "Even at the low end of this new revenue range, we anticipate a profitable quarter, excluding bond redemption costs, with positive operating cash flow. In addition, our R&D plans are still moving forward.

"Our revised guidance is based on our customers’ latest indications regarding wire bonder capacity. Some customers are now more cautious about the timing of future demand," he continued. "This reduction of wire bonder demand does not reflect any loss of market share and we expect our packaging materials and test products will meet their original forecast.”

By: DocMemory
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