Q2 2020 Earnings Call
Greetings and welcome to the Kulicke and Soffa second quarter fiscal 2020 earnings conference call. At this time is concerned you listen only mode.
Sure that's recession will follow formal presentation.
If he wants to acquire operator assistance during the conference. Please press Star Zero Wonder telephone keypad as a reminder, this conference is being recorded.
Well my pleasure to introduce your host choking. The please go ahead John.
Thank you welcome everyone to Kulicke and Soffa second quarter fiscal 2020 conference call.
Joining us on the call today are Susan Chairman, President and Chief Executive Officer in Luster, Walsh Chief Financial Officer.
For those of you 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 web site at Investor Day Cana stock.
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 or 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 Jochen software that could affect our future results and financial condition. Please refer to our recent SEC filings specifically the 10-K for the year ended September 28, 2019, and the 8-K filed yesterday.
Before moving onto our prepared comments I like to make additional announcement beginning on todays call. We will provide additional details and updates to our end market categorization. These end market categories will now refer only to our capital equipment segment animal isolate the general and advanced lead the market from the general semiconductor end markets and advance.
Packaging I see market I.
Additional information regarding these end market categories are available within the latest investor presentation and will be reported in the management discussion and analysis section of our quarterly and year end FCC filings.
With that said I'd like to turn the call or refuse and chat for the business overview. Please go ahead Susan.
Thank you Joel.
This is a clarity and extended period for all industry and the reward.
First I hope, you'll family friends and the Cadiz the men silver and a healthy sold these unique pure.
Before reviewing the old corrugated business update I would like to briefly discuss our response in the state does relate into the global Kobin 19 situation.
Over the past six yes.
Oh go what do you have element and the manufacturing side have keysight and the carry out eat your business continuity planning and the testing exercise.
This ever have stream light and the prioritized critical communication floor and allow all individual side management can you you have you area to operate site you.
The best interest all employees customers and the business partner.
What will always be especially response to local and the regional Guy nice and the orders.
More recently.
Over the past few months, we have also taken many pre culturally step.
It would insignificant troubled reductions.
Inquiries <unk> company.
<unk> social dispensing practices.
We just don't even occasions.
And the increasing use of a boat you'll put aberration tool and the sale will.
Well it is in the best interest to employees.
And then the local community, where we opened it.
We have also reduced all physical presence in the office and the facilities to provide a safe working environment <unk> essential step.
Oh I get infrastructure has put Bart educated then we used to support the need over at least temporarily the more working environment.
Despite these are working from home transition.
We continue to make a progress on all the people that you need with you and do not anticipate significant disruption to critical customer commitments.
From a manufacturing standpoint.
Oh pretty seamless site in Singapore, Euro and that Sean I'll be men 40 operational.
Oh parish in China, we tend to 100% capacity within the much with us.
Regarding supply Chad.
There continues to be disruption in many poll of war low we believe the situation with human manageable.
We experienced temporary disruption Oh supplier, we didn't China low production what did you already recover in much.
Therefore, U.S. and the European vendor are long yet at the reduced capacity.
Cut into the let's do as you militia may create additional disruption in the June quarter.
Again, we beat it just couldn't do anything he is a manageable and the we are mitigating these identify supply chain of risk through close partnership with customers and also with a new and existing suppliers.
Overall, I'm very proud of all conditions regions dedication and April you never get <unk> unique situation.
Turning to abusing it dynamic.
He meant challenge and the uncertainty will trigger by men based customer shutdowns.
In a border.
Human has a couple of liquidity in so that everyone like a chilling and that has softened in other regions cut into the improvement in social dispensing practices, such as usual southeast Asia and the U.S.
You know much quota revenue can you at the $150.7 million.
Oh sequentially increased from the December quarters, we generally right 11 point I'm getting down to open the income and the onion pushing off of 19 cents.
Well, let you said look what though the capital equipment segment revenue increased by 11%.
With stronger demand for all high bought in bought into which buckets just though.
The if you as a segment decreased by lofty, 11% sequentially just change wasn't logically you would too little consummate utilization rate in the week following Chinese new year.
'cause your ideal higher poaching of kept Equinix, yes, gross margin of 46% can even better than expected generally do $69 million of gross profit.
We didn't kept the equipment.
General Assembly on that the increase the most dramatically by nearly $17 million over 60% from the December quarters.
Automotive and industrial also improve Y <unk> advanced packaging and the membership declined sequentially.
You mean, the June quarter, we continue to anticipate you met you implement who spent probably money from generalists and conoco.
And the AG market, a lot and despair I'm going to shut the embrace order to create regional you met disruptions.
Oh, no like to Pinnacle, what to list a woman who will cover this quarter's financial overview in greater detail that's though.
Thank you foods that my remarks today were referred to GAAP results unless noted net revenue for the quarter was $150.7 million gross margins of 46% generated $69.3 million of gross profit and net income up 11.9 million or 19 cents per diluted share.
As Susan mentioned, despite the lower relative Ats contribution gross margins of 46% were stronger than expected. This stronger performance, it's largely due to product mix with any equipment and a higher proportion of feature rich equipment.
Looking into the June quarter, we anticipate gross margins to be lower due to an increase demand of L.E.D. wire bonding system.
Operating expenses again came in more favorably than I expect that target range. This is largely due to a sustained focus on cost control prior restructuring efforts, but also due to lower travel expense.
<unk> expenses were approximately $550000 lower in the March quarter versus the December quarter.
As we continue to prioritize order fulfillment and near term project development, We expect June quarter operating expense to a gainful on the lower side of our target operating expense range.
As a reminder, this GAAP operating expense target range consists of 53 million fixed expense plus 5% to 7% of variable expense tied to revenue.
Turning to tax we booked a net tax expense of $1.2 million, we continue to target a long term average effective tax rate of approximately 18%, although anticipate our fiscal twentytwenty period to come in below that long term target.
Regarding the balance sheet. We ended the March quarter, total net cash and investment position of $524.7 million or $8.17 on a diluted share basis.
Considering our long term perspective on the repurchase program, we view the recent market dynamics as an opportunity during the March quarter, we increased our repurchase activity by over three times and deployed $18.5 million to repurchased 872000 shares.
Over the trailing two years, we deploy roughly $191 million to repurchased 8.5 million shares.
Since initiating the program in 2014, we have repurchased 18.3 million shares which is equivalent to over 28% of our diluted share count in the March quarter.
We continue to take a long term and very structural approach to this repurchase program.
At the end of the March quarter, we had approximately $73.3 million remaining under the existing share repurchase authorization.
On a book value per share basis, we closed the March quarter $11, an 89 cents.
Working capital the finest accounts receivable plus inventory less accounts payable increased slightly to $255.4 million.
From a D. S O perspective, our day sales outstanding decreased from 124 date to 119 days.
Our day sales of inventory increase on 116 days, the 117 days and days of accounts payable increased from 55 days to 56 days.
This concludes the financial review portion of I'll call I will now turn the discussion back over to Fuson, but the June quarters business outlook.
Next lets though.
This is a clearly a unique and that dynamic purely oh history.
Well, we cannot predict the future was almost all four of them into operation.
The expectation of coal business improvements and the Golden Monkey prospect for our new product public confidence and the opinion that as we look ahead.
Well that anybody we continue to have adequate cash on hand to support all pretty similar to that.
Men in the past development, while supporting shareholder return sort of DB, then and all opportunistic we put your activity.
Also also bucket.
What's your <unk> over the years and that we continue to have what does your <unk> expense Ohlemacher Beach.
Next despite a bunch hardinge through all the war and the ongoing uncertainty.
Yeah continued to be puckett over to strong demand for I'll call high volume systems.
After several low one and quotas mini cousins are beginning to be made incremental capacity.
This is a prime money everything in a general semiconductor and the energy market. Although we continue to anticipate wagering improvement in automotive and the memory as well.
Why don't you I'm happy to report adoption and the progress of I'll call. It the catalyst that the bus ticketing system and also piece will Oh, a defense it'll be system continued as planned.
Customer feedback continues to be positive and the we are aggressively working toward increasing production and also additional customer acceptance.
This new product that you're able to new packaging capabilities. It and Additionally, Oh God bless you because you into our business.
I will provide a brief update for each over this new system.
Oh, hi accuracy of Richard tool.
Continue to be in several peril evaluation, which optimal weight <unk> According to plan.
We have attended the frozen catalyst PEO and the acceptance.
And also in April so putting I bought in logic a provision.
Yes, first market acceptance of and then the highlights our ability to rapidly develop a company with your free chip solution and the expense all Mckee reach further into a median age logic market by market well the wire bonding what historically that's dominate.
We couldn't be beauty multiple could those tool.
Who is shipped over coming quarters.
Oh, Oh similar competition system is qualified for production for several high and more bio chipset at a major or set and the we are also actively working towards several additional qualifications. So for the new feature immobile sends a applications.
Oh progress and the expectation when people lost all of the buns meat in the Michael every these system remain consistent and optimistic.
We expect higher bought in production to begin in the June quarter end to the majority overdependent that you'll see us to ship in the September and December quarters.
We anticipate consistent demand for peace deluxe Sue physical your 2021, largely driven by big lighting applications in the discrete bucket.
It's quite a challenger working environment globally.
We have maintained focus on our longer Kim.
<unk> expense didn't give them the if her.
Initiative.
<unk> Oh prospect for next generation display and also leading edge logic integration.
Okay got it couldn't dynamic environment and the ongoing impact of regional stay at home older own semiconductor assembly production and the old customers equipment capacity Pratt.
We are guiding June quarter revenue of $140 million to $160 million.
Why did you see production tonnage across the industry Medgar, we are shown by the regions over to general semiconductor and I know you monkey in areas like a China, which are not less effective by the cooling grow more pandemic.
Okay, and we'd be able to recovery is possibly due to ongoing demand improvement WIDIA subject in bucket.
Also shoe the live to be strong and the improvement you got it isn't where we have seen in the December quarters.
[music].
You traditionally recover quickly in China and that we are hopeful auto region will resume a higher level of productivity once social distancing pledges of begin to ease.
No no ongoing took him as he transitions, we didn't the automotive market display market and that we didn't but the bus because you are driving the need for new equipment couple abilities.
Ongoing progress over this technology transition will will further diversifies our unit driven businesses.
We continue to be the if you improving conversion and the longer term opportunity will be much more meaningful to our business then the near term headwinds.
Yeah somebody that's stress on them and go.
We do against all coal market and the progress open New goes can you should give <unk> post your outlook and the ongoing confidence as we look ahead.
I'm very pro over there because you end up at the beauty of all employees. So do you spend they make bureaus.
I'm confident we will exit these current you've been the a stronger and even bigger producing well conditions.
This conclude our prepared remarks, operator, we will not be happy to pick up questions.
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First question today is coming from Craig Ellis from B. Riley FBR. Your line is that right.
Yeah. Thanks for taking my question gentlemen, congratulations on the execution in the quarter.
Despite the very dynamic environment Houston I, just wanted to start by following up on some of the trends in that quarter I think.
I heard you say that a memory was down quarter on quarter honored with.
We've heard from some other companies that memory utilization rates through the quarter. So can you give us your view of how memory looks as we move into the latter part of April and secondly on other there are a lot of concerns about auto.
Units sequentially in the second quarter.
What's your view of the automotive markets and just as it stands today.
Okay. So a quick let's talk about I think you ask about namely an overnight. So let me talk about mid 30%.
The recent months is we see it can be a price overall, both men and the even something from up so I do believe a recovery is ongoing and well go even stronger or the mix a couple.
A month and acquire this I think a memory is a very important component for the whole off with Gen and the I'm a thin to beauty of Oh, it's going to gold digger compared to a could enable because look like it because in many.
No the beginning on June.
So <unk> I've seen US you are Libby.
Oh slow all quarterly revenue compared to what age you know a they're going to your lower that's why I think we say either Libya suffer.
You did the recovery is I'm going I think in the next couple months and the quarter, what she got stronger contribution going memory.
So that's my question about the memory.
Okay, and then on the automotive market.
So what you're <unk> automotive I think are for US again this year, we're going to goal.
Uh huh.
You know there could be I think the whole war go to hold those are the B. Lowe, but I think oh, the older goals to somewhere Revolution right. That's you know electrical car and the on loved about change implementation or will mention and also a mini nycomed in the old who will get to increase.
So hopefully I came away when it's you know be caliber I think in the next couple of quick Hello.
But really to be to us I think is the only be so it was good upside.
Uh huh.
Great that's helpful and and the next question because really a follow up on a point in the press release and and an artifact of the guidance range. So I think a quarter ago. The guidance range was 30 million.
It's back to 20 million so.
Just that signal just increased confidence with the way that supply chain is working and I noticed from mcaleese backlog ending.
Fiscal second quarter was 136 million, so about 90% of the guidance that coin.
How would you characterize the the strength of the backlog again, yeah, and and would you expect to be building backlog and should go through the fiscal third quarter, given that you for gradual sequential growth through the year.
Okay.
So oh.
Let me pretty swear.
We believe all customers on the in that on the making so currently I think the utilization of the in the industry is quite healthy and that we see a mini pick another driver you know.
Like by GE, and Yeah, I mean, Susan and that we already experienced a few quarter over sequential go right. So out we can see left on the main doping and for our core business I think a it's a pretty stable and cooperating with our new product introduction <unk> in it or we did.
And also new customer engaging I see that we're quite optimistic you know for 2020 and the BRL well. Unfortunately, I think I will just depend been Nicholas situation [noise].
Or just not.
Practical you know for some of our customers.
Just a pure at home to give us oh, and the airports with people that system.
And so because she is thinking about that so artesia embedding. Thank you we can only do over but fundamentally I think oh construction work in pool, and Oh, a growth wall will resume.
So at the beginning in both bodies Ocwen about us I think on style.
Probably in China and overall JV.
Okay, and picking and I know, it's a much much more into a more than we expect it. So that's why I think with you only deal wider Oh.
What do you know a range and unfortunately I think in April we almost he doesn't deployed right. So a lot. If there was a a team putting together we'd be did but we know hopefully will be just phones, you know to another panda Nick much better that's why I think it's Tom.
We actually tightened the range.
So I was your Uh huh.
Hey, good lots, though just to give you a little more specificity around the backlog we are keen backlog growing over the last couple of quarters.
Oh, each last four quarters the backlog has increased.
That's great color.
On both fronts guys and then my last question before I hop back in the queue Fusin. It was really helpful to get your perspective on some of the emerging product growth drivers for the company catalyst Apama index to Lux and and I know, we've had a view that pixelworks could potentially a trend.
Right 50 million to 100 million in revenues. So the two part question is first is that still are reasonable.
Revenue expectation for Pixelworks. This year next year and it should look at that three or new products catalyst at home and takes less that which would be the most significant growth drivers this year and that next year. Thanks, so much for the how kids.
Okay. So I think I took a ball pits and lots or my script. So currently as you know, we expect a football $40 million.
For the calendar, you're ready meals, so nobody $40 million and are somewhat system is gonna be should be in June but the majority of consistent it's going to be a ship I think in September and December so all the diligently or look at Oh.
Love the $40 million people young hip hop over to yet to remedies products. So the lumber actually buttons due to the Chiminski Joe's and but he's not that change you know.
And then and demand we continue to expect up the men off will consume bucks to inquiries for it you know if he is going on even one thing.
So compared to you know another global multi disruption I shouldn't go I get the performance or $40 million.
Very good performance Ah So in short somebody I think about people love is on track and on schedule and you're happy with it.
So lets a piece of loss and the next year will be bigger and the HP I think though we are also play confident you'd be looking at it.
I think are increasing the times, just a steep but importantly, so most of all attribute.
Actually increased attention to pick up and see if it wasn't able to buy label, but <unk> actually increased oh could convince the influences the label, but it's much more affordable and a much more active right. So it's actually a very favorable to our PCB and a flip chip and yeah.
I mean at a high performance and loved you had been I've been with the memory and ultimately generation over imaging sensor. So HP I think a mini player and though we are actually only be delayed but we're quite confident so we are in the process to you're going to market shares.
Leadership transition so put <unk>, if you get in much bigger probably would be 2021.
And we're quite confident 2022 will be much much bigger, but we'll see those I spoke increase I think in 2021.
So, let's piece or Lux, and the EPA and the other ones. The AG as I think a we are much stronger if he has pretty much focus.
So we hopefully we will see a phone out to talking points Joo, we can contribute probably close to 200 million dollar.
In the EPA Cros are the ones LTV and maybe additional $50 million a 40 bps.
That's very helpful. Thank you guys.
Thank you next question is coming from Krish Sankar from Cowen and company. Your line is now right.
Hi, Thanks for taking my question I had a few of them first on frozen you spoke about supply constrains it seems to be a common theme across most companies.
Just curious if you did not have any supply constrained.
For the June quarter guidance have been.
Okay, So actually Krish, Jim quota extra he has a constraint bulls on supply chain and also the.
The shopping period, so [laughter], so I didn't mention but it's also not proud to go do you expect some older customers to push appeal and that the union disappear with and Ah. We did you ever assist them in their fab went the extra though you know so I'd say, we got impeccable bias to purchase disruption and the old so.
It's probably in grades I will say certainly because actually Oh will actually can pick more benson president disruption Oh, putting too much in has done a basically job right. So if you don't want me to quality play I think I'll, probably used to 18 to get up probably have a 15% ocaw.
Overall total revenue outlook, but I think it's within broadly you know this older do not these appeal against going to show up in the next couple of quarters.
[noise] Olivia.
Got it that's helpful Foods in and then I think you mentioned about auto coming back just curious is that a function of what your customers are telling you. What is it just the fact that although there's been weak flu was it's expected to have a cyclical rebound.
Well, so Christian I mean, let me let me let me rephrase it.
And then where do you will come back much positive in <unk> like you know a week or the cooler Lynn Afendoulis Jewish and I think.
Oh actually will be worked with before while so this will be I'll, even longer term opportunity, but I actually I'm quite confident they will be allow them innovation and you'd actually will call, we'll get much much bigger and like in the baby I realize there are many Siemens implementation.
The spreads the silicon to the content. So total will come back, but they need not be multi probably little bit again. These what they go like a comeback. So this will be old Anglican.
Got it got it and it is just a final housekeeping question for left.
I'm going to Miss in the prepared comments, what did you say in March quarter the.
Let me the semiconductor revenues, although revenues China exposure was.
So I I don't match the thing that that are you asking what a regional sales in China is that your question Chris Yes.
China and also out of the total sales how much was sent me an auto in March.
The other the total sales in China for the quarter, it's about 63%.
And ER for capital equipment sale auto was a we do auto and industrial together still with about 80% of total capital equipment sale and out what was your other one lapping sorry, Denny galindo, they get agendas semi exposure the general Sunny it's about 60%.
Hi, Thank you very much appreciate it thanks, a lot to books.
Okay. Thank you Chris.
Thanks next question is coming from David Duley from Steelhead Securities. Your line is now alive.
Good morning, Thanks for taking my question I'm, just repeat what you said, what's kind of 63% of revenue in the quarter is that what you said roster.
Yes, [laughter] suite.
Okay and general somebody was 60% so that for advanced packaging would be the other 40%.
No no no.
We break out a general Tony L.E.D. advanced packaging memory as well as auto industrial right. So okay.
And could you just reviewed those percentages.
Sure.
General sentiment 60, or L.E.D. was about nine to 10.
Apds six to eight as though memory without eight to 10 and auto industry about 18 20.
Thank you.
What do you think the overall utilization rates are now and I'm, assuming utilization rates in China are higher than in other regions. If you could help us understand what the differences that would be great.
Sure I'll take that says and I'll tell you like this you might actually is it quite healthy I would say again globally, it's close to 80%.
China, we'd be at above 90%, obviously, it's much softer in Europe, as well as being the U.S. and Oh Korea, and Japan. So in general I think Taiwanese actually also pretty strong as well, so I would think Taiwan and China. The two leading one right now in now on utilization.
[noise] excuse me, Okay and did you mention what the.
Specific supply disruptions are that you're seeing I guess in Malaysia, you could just help us understand what it is that's in short supply for you.
I I think flock to install a as Suzanne indicated well, we're working on <unk> partners all suppliers throughout the world for through China, now, Malaysia, as well as in the U.S. demand and supply chain Constrictions also looking for new partners are like importance on but I think from Malaysia, Yes, It's obviously does.
Yeah, losing control all the in place even though some of the semiconductor companies have gotten exception thats all supplier, but it always and being renewed every two weeks until the empty out, though I think for US right now it's still a definitely manageable. It did not have a huge effect on the March quarter, but I think you know it well have some effect in June.
Oh, he's done Thats, what that both Charleston place on them with the goal.
Okay final question for me is as far as the only be product goes going forward. How many can you talk about doing 40 million in the back half of this calendar year.
It's that could you help us understand how many customers that is and what are some of the end market products that you would expect to be behind this ramp.
Okay. So because that's what I mentioned this Ah you my screen Luster huh.
Actually we have a pause in the local actually together, we identify our customers. So they also have a may walk in a full Campbell.
Some of which one it.
Oh the industry.
No and that this but no industry. So actually we have a you must cosmos.
For flexible cousin look I can come probably would have up to.
Q2, or three textbook customers.
And there is more than.
Yeah, we are quite libbey concentrate all a few other cousins Oh, we do have a money because.
Thank you.
Oh.
Thank you as a reminder, ladies and gentlemen that star one to be placing the question Q. Our next question is coming from Tom Diffely from D.A. Davidson. Your line is not life.
Yes, good morning, and good evening following up on Daves.
Question are you know we've been talking about a 30 to 70 million dollar market. It's quite a 50 now you're saying it's 40 isn't just the timing of yeah. When these shipments after the second half that Scott you have changed the bid pointed that guide.
Okay, So I think or because I think it took about is probably long time ago a year ago. So.
So hopefully you actually I am quite happy we so there's a program you know.
We took a ball maybe picking hopefully she'll study right. So actually the demand. If you are always expect it on the beginning greedy.
On the shipments scheduled right, it's VB when the customer need to the system right, so and into a reason customers because I think that we see the ball a $40 million.
We'll now and there yet and we see on next year. You know you know we will be a stronger you know are gonna Columbia, though.
So it's really lucky many issue.
It's really a shipment schedule right and I wouldn't make it system and the accordion they'll cousins pretty quick.
Well the system due to Cook Matthias when she both won't be isn't going to weaken as everything.
Okay. So the shipping schedules dictated by the customer not your supply capabilities.
Ah that's correct I don't think he's Oh mini computing.
Okay and not the men comes down I think you may still be happy.
Okay, Great and then Lester I was hoping to get a little color of the utilization rates and how they changed over the last quarter I remember going into the air China was really strong end of last year, maybe dipped a bit in the beginning this year, but curious as this quarter is gone on how of the different utilization rates changed.
Oh, I think the utilization rate frankly palm hasn't changed that much I think it Paul the change more maybe a little bit in the June quarter.
Particularly as more shelter plate, depending on what that lift to try to was pretty strong even in in Q1, I think it's stronger even in Q2 I think Taiwan also has remained pretty robust I think southeast Asia has fluctuate a little bit, but most I think Europe and the U.S. have.
Oh, yeah, they must off before and they continue to be fall off now.
Okay, that's helpful and finally.
When you look at the operating expenses, obviously, some very good cost controls going on right. Now are those just temporary measures or has anything changed structurally or that would change the operating expense question going forward.
[noise] well told me it only because costs until it is not subject near and Dear to keep inside the we always look at it well I think oh as I indicated some of the reduction is due to for example reduction in travel because of obviously pulled at 19, obviously our rate of high.
Turning off the slow down a little bit given the difficulty of hiring so I would say at this point I would not say its structural in them, although I think 63.5 to seven to sell what we're saying, but we are coming in.
On the loan part of that both what last quarter did quota as I guided probably next quarter as well.
Okay, great. Thank you.
Thank you go next question is coming from Christian Schwab from Craig Hallum. Your line is now live.
Great. Thanks, [laughter] first and I just want to make sure I understand the supply chain would <unk> disruptions that that's really like movement controls and and and shelter in place that's causing supply chain disruptions correct. There is not [laughter] components that you're waiting for.
Debtor in short supply someplace in the supply chain is that correct.
Ah Yes is the men. It seems like you know a sometimes you know they cannot go through the older used to make a powerful as well. He is really a lot of announcing stay forget it like so somehow we are still don't pod. We've got the will fight the or the second you know a supplier so a actually.
Because of quite a quite compelling for me to manage all or disruption.
Okay, Okay, and then in and when would you say that given the the economic <unk> you know.
Dislocation due to the Covidien 18 environment that the business you know a couple of quarters here, we're kind of stable at 150 should we get to reopen successfully globally can you give us a you know any idea about you know how big a recovery or snow.
Back in your revenue could be you know two to three quarters out.
So you know we don't guide more than one called there, but you asked me my feeling I can hear my feeling right. So I already mentioned I believe all our customers they are hoping that implementing Nike.
And at this moment actually if you look at the utilization bodies are quite lumpy.
We already have a few a quarterly sequential girl. Unfortunately, I think I wouldn't read here one of the Guy, Ohio, but when you really need to within weeks you know for them and then Nick so fundamentally I cannot be manger there.
So hope.
Well for you I think this will not cool off will more than two corridor.
And.
Hopefully we can see a beta Q4, you know if you look at it all comes in to actually concentrate in China and in your shelf life. You wrote. So you will only be impact you have already been pack and opening up and I think a this quarter attributes.
<unk>, Israel, South East Asia in pick up a lot, but I really don't think guy this will be more to another quarter right. So all the semiconductor company looks like a used or to eat well. Most of them are you pick already you Didnt know second wave with all the infection.
40, weakens she'd be into Q4 coming back.
You know, so hopefully up but usually we can see the big Libya.
Okay. That's very helpful. Thank you I don't have any other questions.
Thank you we reach of our question answer session I like to turn the floor back over pretty for her closing comments.
Thanks, Kevin. Thank you all for the time today as always please feel free to follow up directly with any additional questions have a great day every one operator this concludes our call.
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