Kulicke & Soffa Industries Cuts Q4 Revenue Outlook

(RTTNews) - Kulicke & Soffa Industries Inc. (KLIC) announced its fourth fiscal quarter revenue is expected to be below the company's previously reported outlook due to broad-based industry softness.

The company now expects fourth quarter revenue to be in the $100 million to $110 million range, compared to the previously expected $135 million to $145 million range. Analysts polled by Thomson Reuters expect the company to report revenues of $140.03 million for the fourth-quarter. Analysts' estimates typically exclude special items.

The industry has continued to experience high inventory levels and low equipment utilization rates. The Company believes this softer industry environment is largely driven by reduced demand within consumer and communication segments such as PCs, tablets and smartphones. This lower end market demand is anticipated to limit near-term semiconductor unit growth and decrease the industry's immediate need for incremental production equipment.

The company noted that it will continue to be vigilant in reviewing its cost structure and has initiated measures to address the current market situation, including execution of near-term operational improvements. The Company expects to continue to return capital to shareholders through its existing repurchase program. Additional details on the progress of these initiatives will be provided during the Company's fourth fiscal quarter results conference call scheduled on Nov 17, 2015.

Despite this revised outlook, K&S continues to anticipate a favorable tax benefit of approximately $20 million to be recognized in its fourth fiscal quarter.