Kulicke and Soffa Industries, Inc.

Greetings, and welcome to the CULIC and Soffa 2020 Fiscal First Quarter Results Conference Call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. Now, my pleasure to introduce your host, Joseph Elgindy, Senior Director, Investor Relations, and Strategic Initiatives for Kewlick and Soffa. Joe, please go ahead.

Thank you. Welcome, everyone, to Kewlick and Soffa's first quarter fiscal 2020 conference call. Joining us on the call today are Fusen Chen, President and Chief Executive Officer, and Lester Wong, Chief Financial Officer and General Counsel. For those of you who have not received a copy of today's results, the release as well as the latest investor presentation are both available in the investor relations section of our website at investor.kns.com. In addition to historical statements, today's remarks will contain 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. Our actual results and financial condition may differ materially from what is indicated in those forward-looking statements. For a complete discussion of the risks associated with Kewel and Soffa that could affect our future results and financial condition, please refer to our recent NCC filing, specifically the 10-K for the year ended September 28th, 2019. I would now like to turn the call over to Fusen Chen for the business overview. Please go ahead, Fusen.

Thank you, Joe. Throughout the December quarters, we experienced expected seasonal sufferings in a general semiconductor market. which has been more than offset by a resurgence in demand for our advanced packaging, memory, and automotive focus solutions. In addition, during this year's recent CES event in Las Vegas, we were pleased to see the strong alignment and relevance our large Equinox offering has with new and future consumer devices. I will provide more detail to this later but first a review of the December quarter. Over the past several years, our sequential revenue change, December over September, has averaged a 14% sequential reduction. This year was quite different and we were able to generate $144.3 million of revenue, representing a slight 3% sequential improvement. We were also able to deliver a very strong gross margin of 48.8%, net income of $13.5 million, and a GAAP EPS of $0.21. The revenue improvement was driven by both capital equipment and aftermarket products in the service segment. Again, due to improved demand for our advanced packaging, memory, and automotive focus systems. General semiconductor and general LED-focused customers represent 50% of our December quarter sales, which was sequentially down by approximately 15%. The low includes a large proportion of our future-rich reputations of bonders. Our dedicated advanced packaging solution represents 17% of December quarter sales, an increase of 29% sequentially. During the December quarter, our APMR business has strengthened. We had a new Apalma customers' win. We are engaged in multiple qualifications with Catalyst, and we continue to exceed our planned target for PiezoLabs, our mini and micro LED systems. Memory represents just over 10% of December quarter revenue, a material increase of nearly 200% sequentially. Demand within automotive and industrial applications represents approximately 20% of December quarter's revenue, an increase of roughly 24% sequentially. This was driven by traditional automotive OEM customers and the new demand for battery assembly capacity. While key markets such as the memory automotive have improved, We do not believe this market has fully recovered and we anticipate additional improvements through fiscal 2020. Overall, healthy utilization rate and aftermarket sales as well as meaningful improvements within key automotive and memory end markets increase our confidence in an ongoing market recovery which we expect to improve further throughout fiscal 2020. Ongoing market traction within our dedicated advanced packaging systems, including our mini and micro LED tools, adds confidence to our longer-term revenue target. I would now like to turn the call over to Lester Wong, who will cover this quarter's financial overview in greater detail. Lester?