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Technology Stocks : Kulicke and Soffa -- Ignore unavailable to you. Want to Upgrade?

To: privatesmith who wrote (2327)	12/12/1997 11:47:00 AM
From: Darin	Read Replies (1) \| Respond to of 5482

To All, Taiwan, Korean IC assemblers tangle TAIPEI, Taiwan -- A bizarre war of words has broken out between the world's two largest IC packaging companies--Taiwan's Advanced Semiconductor Engineering Inc. (ASE) and South Korea's Amkor/Anam. Reports surfaced in Taiwan newspapers that Amkor/Anam, the world's largest IC packaging company, had laid off 20% of its workforce and cut back its future investments. But in a bizzare move, Amkor/Anam's branch in Taiwan denied those rumors by running a series of advertisements in one local paper called the Economic Daily News. In the ads, Amkor/Anam accused ASE--Taiwan's largest IC assembly house--of spreading false rumors. The ad stated: "Richard Chang, president of Taiwan's Advanced Semiconductor Engineering Inc., and the company's high-level personnel, continually spread false rumors in Taiwan newspapers to defame Korea's Amkor/Anam. Advanced Semiconductor has seriously affected Anam's worldwide business reputation.'' It's unclear what further action Amkor/Anam will take. ASE's Chang nor Amkor/Anan's Taiwan branch could not be reached for comment today.

To: privatesmith who wrote (2327)	12/12/1997 11:47:00 AM
From: Darin	Read Replies (2) \| Respond to of 5482

To All, * Kulicke & Soffa held a conference call today. We are lowering our 1Q estimate to $0.22, and our FY 98 estimate to $2.00 from $2.40. We are lowering our one-year price target to $35 from $55. * One of Kulicke & Soffa's customers, Hyundai, pushed out an order for 80 wire bonders. Another South Korean customer failed to procure a letter of credit, and this delayed the placement of a 30-unit order. * These events highlight a general problem in South Korea -- a lack capital, and a related need to conserve cash. Our estimate reduction is intended to factor in the potential for additional weakness in South Korea. * The other issue that the company highlighted was a delay in the rampup of its Model 8060 wire bonder, a product designed for the leading global microprocessor manufacturer. The company views this as a temporary delay. * This is a disappointing development, and we think there may be more to it than the short term timing issue that management describes it to be. However, with the stock down 69% from its high point, we think the shares offer value.