Do you think these cancellations from KLIC will have much impact on ESI?
KULICKE & SOFFA ANNOUCES MAJOR ORDER CANCELLATION
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After the close of market today (4/2), Kulicke & Soffa Industries Inc.
(KLIC) announced that a major customer canceled an order for over 100
model 8060 automatic wedge bonders scheduled to ship in the June
quarter. Bonders have typical ASPs of around $100,000 but these are more
sophisticated and hence more expensive than regular ball bonders.
Therefore, we anticipate that this will hit KLIC by well over $10
million in lost revenue next quarter.
The customer was not named, but we understand that it is Intel who is
cutting back their planned capital spending for microprocessor assembly
equipment. At one point, they were accelerating capacity build for
anticipated volume of sub- $1000 PC chips, but end demand is obviously
down and so is the need for assembly capacity.
K&S CEO, Scott Kulicke was quoted as saying, "We have a backlog of other
orders, but not enough to make up the shortfall in planned shipments
caused by this cancellation. As a result, revenues for the June quarter
are likely to be significantly below street expectations and
consequently we anticipate a net loss for that quarter. We are assessing
the impact on operations and plan appropriate measures to bring
production capacity into line with anticipated demand."
The company will hold a 6AM PST conference call tomorrow (Friday), so if
we learn any more there, we will publish another update. |
