Kulicke and Soffa Posts Downbeat Q2 Earnings, Issues Weak Revenue Forecast

Shares of

tumbled over 6 percent in pre-market trading after the company reported weaker-than-expected earnings for the fiscal second quarter and issued a weak revenue forecast for the fiscal third quarter. However, the company's revenue exceeded analysts' estimates. The Singapore-based company posted quarterly net income of $7.9 million, or $0.10 per share, compared to $9.1 million, or $0.12 per share, in the year-ago period. Its revenue climbed 27 percent to $145.2 million. However, analysts were expecting earnings of $0.12 per share on revenue of $140 million. As of March 28, 2015, the company had $528.8 million in cash, cash equivalents and short-term investments. Bruno Guilmart, Kulicke & Soffa's President and Chief Executive Officer, said, "We performed well this quarter, generating revenue slightly above the high-end of our guided range. Our financial results, during a quarter of significant ongoing investments in product development, are supported by our large install base and overall exposure to higher-growth opportunities within end markets such as memory, mobility, connectivity devices and sensors." Kulicke and Soffa projects Q3 net revenue of $160 million to $170 million, versus analysts' estimates of $197.22 million. Kulicke and Soffa shares fell 6.87 percent to $14.51 in pre-market trading.