10. Kulicke and Soffa Industries designs, manufactures and sells capital equipment and expendable tools used to assemble semiconductor devices, including integrated circuits (IC), high and low powered discrete devices, light-emitting diodes (LEDs), and power modules. Approximately, 97% of its revenue for first quarter of 2011 was generated from outside the U.S., primarily the Asia-Pacific region.
For first quarter of 2011, net revenue was reported at $148.9 million compared to $128.4 million for the same quarter in 2010, attributable to an 18.9% increase in equipment revenue. Higher equipment revenue was due to a 202% unit volume increase for its wedge bonders, partially offset by a 17.4% decline in ball bonder volume. Gross profit expanded 450 basis points to 48.4%, while operating margin increased 82 basis points to 14.8%.
However, net income declined marginally to $15.1 million from $15.8 million in the year-ago quarter, while net income per share remained flat at 21 cents. Analysts estimated earnings of 19 cents per share. Cash and cash equivalents stood at $197.6 million compared to $178.1 million, a sequential increase of 10.9%.Going forward, the company expects revenue of $175-$195 million during the second quarter, or 14%-27% year-over-year increase. The wedge bonder business and improving outsourced semiconductor assembly and test providers (OSAT) volumes are expected to drive growth. Of the five analysts covering the stock, 60% recommend a buy, while 20% recommend a sell. On average, analysts estimate 7.1% upside to $9.59 in value from current levels. The stock has already gained 21.6% during the past one year and is currently trading at a P/E as low as 4.6