Tuesday, October 12, 2010

KLIC Goes Clunk

The semiconductor space is famous for swinging between euphoria and depression with a cyclical irregularity, and semiconductor equipment is arguably even worse. While analysts have been nervous about chip stocks ranging from Intel (Nasdaq:INTC) to Linear Technology (Nasdaq:LLTC) to Silicon Labs (Nasdaq:SLAB), the warning from small equipment company Kulicke & Soffa (Nasdaq:KLIC) is not going to help matters. 

A Mid-Cycle Pause?
Kulicke & Soffa gave investors a classic good news-bad news press release. The good news was that the September quarter was quite strong and revenue is going to be on the high end of guidance. In the "what have you done for me lately?" world of Wall Street, though, the bad news about the December quarter is far more significant. KLIC management said that the December quarter would be "significantly" below the September quarter, and on the basis of past KLIC-speak, that could mean a 20% sequential drop or more.


For the full piece:
http://stocks.investopedia.com/stock-analysis/2010/KLIC-Goes-Clunk-KLIC-AMAT-KLAC-SPIL-ASX1012.aspx

No comments: