Kulicke and Soffa Message Board

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Technology Stocks : Kulicke and Soffa

KLIC 35.57

-0.2%

Nov 18 3:59 PM EST

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To: marquis103 who wrote (3554)	11/9/1999 11:14:00 AM
From: Darin	Read Replies (3) of 5482

(continued...) quarter. We believe the company can reduce manufacturing costs in Singapore by approximately $5000 per bonder - driving gross margins higher in FY00. Raising our FY00 estimates to reflect better demand environment and margin improvements. Due to better than expected demand and better visibility into the Company's ability to execute on its planned manufacturing transition to Singapore, we are raising our estimates for FY00 to $1.95 from $1.45. For Calendar 2000 we are raising our estimates to $2.25 from $1.66. The following table shows are changes to estimates. F2000E Old F2000E New C2000E Old C2000E New Revenue $640.5 $670.5 $662.5 $700.0 Gross Margin 31.9% 34.1% 32.8% 35.1% Op'g Margin 7.6% 9.9% 8.5% 11.0% EPS $1.45 $1.95 $1.66 $2.25 Source: Company reports and Prudential Securities estimates. Raising price target, upside to EPS still exists. We are raising our 12 month price target on shares of KLIC from $32 to $45 and moving to a Strong Buy. Our 12-month target price is based on a modest multiple of 20 times our CY00 estimate of $2.25. Our new target price represents approximately 30% appreciation from current levels on what we believe is both conservative estimates and multiple. We believe the current price levels and appreciation potential warrant an upgrade in our rating from Accumulate to Strong Buy. We believe investors will want to own KLIC prior to their 4Q99 earnings report.

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