Boston, MA 05/05/2014 (wallstreetpr) – Kulicke and Soffa Industries Inc.(NASDAQ:KLIC) is a company that makes and sell tools that are used in semiconductor and LED industries. Over the years company has built a cash pile around $556 million for their organic and inorganic growth. The amount held in cash on their books represents nearly 60 percent of the company’s market cap. The shareholders may get some money in the form of share buyback.
Fund manager’s view:
There are many Investment companies and hedge fund manager, which are on buying spree of Kulicke and Soffa Industries Inc shares. There are two reasons for buying KLIC shares. Firstly, many hedge fund managers and big investor feel that the shares of Kulicke and Soffa Industries Inc are undervalued. Secondly, sometime in the future the company might start a buyback program of their own shares. If the company does start the buyback program, it will be rewarding its shareholder and also creating value for the remaining shares.
Kulicke and Soffa Industries Inc. (NASDAQ:KLIC) plans to grow in other markets, the company has identified a way to grow either organic or by acquiring new companies.
Exceeding Expectations:
The expansion plan in other markets is still in a nascent stage, but it is essential for higher revenues and profits. However, when the company reported their quarterly number and those numbers beat the Wall Street expectations. The revenue generated by the company this quarter was $114.2 million, which is 7.6 percent higher than the revenue earned in the same quarter last year.
In this quarter companies per share earning is 12 cents. The company also gave a very robust guidance for the current quarter; in accordance with the guidance given by the company the revenue for the current quarter should be between $165 and $175 million. The markets, which are serviced by Kulicke and Soffa Industries Inc. (NASDAQ:KLIC) is seeing a good demand for their products. The company expects the upward trend of the demand for their products in the coming quarters, as well.
