Greetings, and welcome to the Culkin Sulfa 20 21 First Fiscal Quarter Results Conference Call. At this time, all participants are in a listen only mode. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Joe Ogindy. Please go ahead.
Thank you.
Welcome everyone to Culkin's Alpha's fiscal Q1 2021 conference call. Joining us on the call today are Susan Chen, President and Chief Executive Officer and Lester Wong, Chief Financial Officer. For those of you who have not received a copy of today's results, The release as well as the supplemental earnings presentation are both available in the Investor Relations section of our website at investor. Kns.com. Beginning this period, we have changed our non GAAP disclosures and adjusted the end market categorization of capital equipment sales.
These changes better align non GAAP reporting with our peer group and provide better insight to the underlying demand drivers expected to affect our business. 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 and the Securities Litigation Reform Act of 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 fuel cans of that could affect our future results and financial condition, please With that said, I would now like to turn the call over to Fusen Chen for the business overview.
Please go ahead, Fusen.
Thank you, Joe. We are pleased to report strong financial performance, progress in our Advanced Displays business and the improvement to our outlook on Tevesco. First, we have recently acquired U. S.-based Unikasa Inc. In an all case transaction, which enhance our competency and the ultimate potential in the fast growing advanced display market.
Even prior to this acquisition, we worked closely with Unikata to accelerate and adoption of advanced mini LED backlighting. By combining Unikata's domain knowledge and unique intellectual property, with our operational and development competency, We have improved our position in this exciting advanced display marketplace. We expect our next generation advanced display We will accelerate broader adoption of advanced display by utilizing locally controllable backlighting and also direct initiative micro LED for our next generation advanced display system. We anticipate strong demand for this solution throughout fiscal year 2022 as the broader LCD market begins to adopt new forms of daylighting. Next, the ongoing strength of the general semiconductor and the LED end market and the ongoing recovery in automotive demand has improved our fiscal year outlook.
Broad trends such as 5 gs and advanced display, as well as the fundamental transition in the automotive market has only recently become meaningful to our business. We expect this new secure trend to provide significant growth and the market expansion opportunities over the coming years. The current demand for our product and solution is strong and stands for several areas. First, The underinvestment in the back end capacity spending over the past 2 years was historically unique and is now behind us. And then a return to more typical semiconductor unit growth, which benefit our capital equipment market has just begun.
Over the coming years, we expect semiconductor unit growth to exceed the historical average of 6 to 6.5%. Next, we also see strong demand in our new advanced display business and expect multiple design wins with our Apama and the Catalyst system, which will generate more significant revenue starting in fiscal 2022. We will provide more updates over the coming few quarters. Finally, we are also seeing increased capital intensity due to more complex back end assembly approaches. Increasing complexity is a more secure driver expected to accelerate further into the future.
I will explain in more detail shortly. Given our cost alignment to this trend and ongoing interest from customers, Our outlook has improved significantly since our prior earnings call held on November 20. Currently, due to improved visibility into our second half, we are now anticipating revenue for the year to be approximately $1,100,000,000 representing a significant improvement over 75% from fiscal year 2020. We have progressively ramped our production capacity and are operationally prepared to support this higher level of demand. The ability to scale production quickly and efficiently is an inherent and long established operational competency at KNS.
With that said, we are closely monitoring broader supply chain and the logistical constraints. At this moment, we are comfortable we can achieve this steep year on year growth target. Turning to our December quarter's results, we generated $267,900,000 of revenue, representing a 51% increase from the September quarters. The APS segment increased by 5% sequentially, driven by higher production level. We continue to make progress to expand our shares within the APS market.
Capite equipment represent 83% of overall revenue and increased by 65% sequentially, largely due to improvement within the general semiconductor, LED and auto industrial end markets. During the December quarters, we disaggregated our dedicated advanced packaging end market category. While we previously deemed advanced packaging revenue is now primarily allocated to the general semiconductor end market. As we mentioned last quarter and I discussed earlier, advanced package, our more complex assembly technique have become material component within our other end markets. This increasing complexity is largely related to the growth of multi die package, which provide a cost effective solution to extend phone sector benefit.
This approach helped to overcome the well known Nord Stream challenge by increasing transistor density at the legacy level. We anticipate demand and the capacity needed for multi die package will continue accelerating and will continue to improve capital intensity of our soft market. Within General Semiconductor, we estimate Over 14% of December sales support multi die assembly, which require more assembly capacity than a typical single die package. Within memory, over 60% of our exposure supports segment, one of the highest volume and the most Finally, within the LED market, About 50% is associated with advanced display. For the December quarter, we estimate 38% of LED and the memory market.
Turning to a completion of capital equipment sales in the December quarters. Semiconductor, which supports a broad set of applications, such as smartphone and consumer electronics continue to be very strong and has increased by nearly 70% sequentially. As discussed, increasing complexity add an additional layer of demand to this critical end market. The automotive and industrial end market experienced a dramatic improvement over 100% sequentially. At this point, there are still shortage of semiconductors throughout the automotive supply chain, and we have experienced a strong sequential increase in the utilization rate of our automotive installed base over the December period.
Due to this near term dynamic, combined with a broader long term transition to fully electric and fully autonomous vehicle, We are optimistic on our outlook and look forward to further support our broad base of automotive customers over the long term. As expected, LED demand has improved due to the ongoing adoption of our advanced display system and also sequential improvement for general lighting LED capacity. Looking ahead, we are confident in our position, Technology roadmap and the customer engagement with both high volume general lighting and also high growth advanced display applications. As a reminder, despite clear challenge last year due to COVID-nineteen, We were still able to achieve our fiscal year 2020 advanced display revenue target and expect our production ramp to continue through fiscal year 2022. Our acquisition of Uniqlo further enhanced our position within this exciting advanced And we anticipate a meaningful improvement to our outlook.
We will provide additional feedback on our development progress and the longer term advanced display expectations over the coming quarters. After the delayed periods of Minto market expansion, we are very optimistic in the near term outlook and in our ability to participate in long term and more secular opportunities. We continue to focus on served market expansion through our participation within the advanced LED market, After 2 years of software demand, industry momentum is currently very high. Our solutions are increasingly aligned with this major trend, and we anticipate a transition into a multiple year expansion period. Over this period, we expect our served market growth will accelerate and provide additional opportunities to I would now like to turn the call over to Lester Wang, who will cover this quarter's
Thank you, Susan. My remarks today will refer to GAAP results unless noted. As Susan mentioned, demand for our products and services remained strong in the December quarter, revenue at $267,900,000 up 51% We were again able to quickly flex operational capacity to support this dramatic sequential improvement. Gross margins in December came in at 45.4 percent and we generated net income of $48,400,000 and non GAAP EPS of $0.86 At this level of business, our operating leverage becomes significant. During the December quarter, We generated operating margins of 20%, an increase of over 700 basis points from the September quarter.
Considering the operating leverage and our outlook, we expect to generate strong free cash flows over the coming years. We continue to be very focused on cost control despite the more favorable business conditions, which has helped drive December quarter operating expenses to be slightly better than expected. We also expect operating expenses to follow our historical model of approximately $53,000,000 of fixed quarterly expense plus 5% to 7% of variable expense tied to revenue. We do not anticipate a material increase to our operating expense model as a result of the Unicod acquisition. Tax expense for the quarter came in at $6,300,000 and we continue to target an 18% long term effective tax rate.
Although anticipate the effective tax rate coming in closer to 15% in fiscal 2021. Turning to the balance sheet. We ended the December quarter with a total net cash and investment position of $576,700,000 up 46 $500,000 sequentially, which represents $9.19 per diluted share. The unitado acquisition closed in the March quarter and the cash impact will be reflected in our March quarter results. Considering the strong current demand, we improved working capital efficiency during the December quarter.
Days of accounts receivable were down from 101 days to 76 days. Days of inventory improved from 113 to 77 days and days of accounts payable decreased slightly from 58 days to 55 days. For the March quarter, we continue to expect further demand improvement for our products and services. We expect revenues to be approximately $300,000,000 plus or minus $20,000,000 Gross margins are expected to be approximately 45.5 percent plus or minus 50 basis points due largely to product mix. GAAP operating expense is expected to be approximately $76,000,000 plus or minus 2 percent and non GAAP EPS to be $0.88 plus or minus 10%.
This concludes our prepared comments. Operator, please open the call for questions.
Thank you. We will now
be conducting a question and answer session. Our first question today is coming from Tom Diffely from D. A. Davidson. Your line is now live.
Yes. Good morning and good afternoon. So I just wanted to confirm The new outlook for 2021 fiscal 2021 is $1,100,000,000 up 75% year over year?
That is correct.
Wow. So when you look at the obviously the very strong growth this year, do you know we can split it between how much of it is driven by
So Tom, I think due to few reasons, number 1, Of course, in the past 2 years, 'nineteen 'twenty because of semi downturn And on the investment from customer, and right now go another way, right? So we expect This year will be slightly higher than 6% to 6.5%. So number 1 is really the unit growth coming back. The number 2, I think, is very significant. I think we are seeing the different phenomena.
For example, the transition from 4 gs to 5 gs. We are seeing the demand for the multi die package. Give you an example is RF module. So this module actually typically have 4 dies to 40 dies. Actually, demand increased significantly due to our transition to 5 gs.
And not only the amount or the multi die package increase, The DAI is much more complicated. So the time to process this package also increased dramatically. So therefore, capital intensity increased. So originally, I think we give guidance. In normal year, our base Should be around $750,000,000 We take 3 years average.
I think 2017 is normal year. 2018 based strong year and 2019 is a better day year. So you take average is about 750. So this should be a representable number of And we estimate this complex additional multi die package Actually increased our capital intensity, we estimate another $100,000,000 to baseline. So I don't know if I'll answer your question on that.
And of course, auto also coming back and everything add up. I think our business is much Close to $1,000,000,000 than before. That's why I think I've been in this uptime. Almost every of our product have a strong momentum. And therefore, we feel comfortable that this year we should be able to touch $1,000,000,000
Okay. No, That's great. That's good color. So I guess I want to switch gears here and look at the acquisition of UniCarta. So I guess a couple of things.
First, is that a competitor to Rohini? Do they have any revenue associated with them? And is there any way to give us A rough idea of what the cost was?
Okay. So I will have Lester answer the cost. So I think that lohemi is our first partner and the product is called Pixellux. This is our 1st generation of mini and microLED system. And in 2020 last year, We guide the Street and also we accomplished revenue around $40,000,000 And last earnings call, I think we guide the revenue for 'twenty one will be $60,000,000 to $80,000,000 I think we are more close to a high end.
All the system we are going to ship is a piece of Luxe. So this is our 1st generation of the products. And in my script, I also mentioned by the close Of fiscal 'twenty one, we expect to announce our next generation of advanced display system, and this will use 100% of Kenneth's IP after acquisition of Uniquota. And the 2nd generation system is expected to contribute Our fiscal 2022 revenue, right? So your question is the difference of these two systems, How do we position it?
I think around mid-twenty 22, we will have overlap over these two systems. And we believe our 2nd generation of a system, which we are utilizing 100% of our own IP, We'll have a much higher productivity and should take off, I think, at that time, probably around middle of 2022. So I hope I answered your question, Tom.
Yes. No, that's great. Thanks.
Our acquisition price is around $26,000,000
Okay. And was there any revenue associated with that or was this purely IT technology?
It's a purely technology acquisition.
Great. Okay. Thank you for your time.
Yes. Thanks Tom.
Thank you Tom.
Thank you. Our next question today is coming from Krish Sankar from Cowen and Company. Your line is now live.
Hi. Thanks for taking my question. I had a couple of them. Susan, you mentioned about how there has been underinvestment in backend spend, especially wirebonding. And ASC this morning also spoke about wirebonding demand being tied through all of 2021.
So I'm just kind of curious, What is your visibility today on wire bonders given what your big customers are seeing? And Should we assume that if wire bonding is going to remain tight through all of 2021, are they going to add excess
I don't know if I understand fully your questions. Your can you repeat again quickly?
Sure. So you spoke about underinvestment in wirebonding by the Orkatz for the last couple of years. So now that they're doing a catch up investment, how long do you
think it's going to last? Okay. So please let me please wait. I think the estimate from the market This year is about 1,000,000,000,000,000 die, semiconductor die will be produced, roughly 1,000,000,000,000 die. Processed by Bovanger between 65 to 70.
So Bovanger is here to stay. And the Bovanger also went through a lot of our technical improvement, although we did not provide very detailed Information actually more than a lot of technology associated with that, For example, currently, all the segment majority Actually, it is used, the bond and many, many, they are order taking. And also, multi Dai In the pages, I mentioned, including SiP and also including multi line module, Actually, it's a very complicated Bovanda process, right? So to answer your question, I think this year, The revenue for Bovanda is very strong, maybe is a little bit strong than needed because of 2 year underinvestment. But we are quite optimistic that Bobo is here to stay.
And The label, actually the industry needed to support overall industry growth, I think, Bovanda will continue to grow.
Got it. Got it. That makes sense. And then 2 other quick questions. One is on Pixelix, did you guys update your FY 'twenty one revenue targets for Pixelix, is it still $60,000,000 to $80,000,000
Yes, that's correct. That's what we guide last quarter. But I think we are rolling maybe like this quarter is about $22,000,000 right? So hopefully, we will reach higher end Over a little bit this year for the FY 'twenty one.
Got it. Got it. And then a final question, Fusen, On the UniCartra acquisition, is it fair to assume that your Pixelix, The pick and place technology that works well for mini LED might not scale up for micro LED, that's why you need a laser transfer approach for micro LED. Is that the way to think about The acquisition or are you going to still work in parallel to improve Pixelux placement speed?
Okay. I think the we do believe I know if you see the script, Our PR press release, this is a laser basis technology. We believe the potential productivity is Much, much faster. So I'll give you an example. The large TV, very, very large TV, if you need mini or micro LED, You probably need to place about $25,000,000 So I think we are just at the interim stage of this industry's growth, right?
We are talking about maybe less than 100 hertz at this moment. That means They can process less than 100 dine. I think in the future, the speed need to be much, much faster to support this industry's growth. That's why I think, Unikata, we choose it to be a next generation of technology. And I mentioned, We have Pizza Lux and we are next generation.
We believe maybe around middle of 2022 will be close over. And the industry will decide Wing Chun will be a faster technology, and we feel like We will have a faster productivity, probably
Got it. Got it. Thanks, Susan, and really congrats on the strong Thank you.
Thank you. Thank you.
Our next question is coming from Craig Ellis from B. Riley. Your line is now live.
Yes. Thanks for taking the question and congrats as well on the strong execution in the quarter and meeting the tremendous Dusan, I wanted to just start by going back to some of your comments on It's a market for fiscal 'twenty one and thanks for all the color so far. The question is this, as we look at the new fiscal 'twenty one demand outlook for Revenues of $1,100,000,000 Can you help us understand as you look into the back half of the fiscal year, Where do you have relatively higher or lower demand visibility across your different end market opportunities?
Okay. So, Craig, the Q1, I think we delivered 2 67.9 percent, right? So the Q2, I think we got 300. So if you add this together, it's a little bit more than 550, I think, 567. So We are looking at if you have a mirror image, so Q2, the second half can be the mirror image of the first half.
That means we expect Q4 probably will have a seasonality as usual, but it's not going to be very significant, right? So if we model Q1 is comparable to Q4 and Q2 and Q3 comparable, actually we got about RMB 1,100,000. So is that help?
It does. But my question was actually a little bit different. And it was really related to The visibility that you have into the demand that makes up that profile. So underneath that profile, Is your visibility similar across auto, things other end markets that you mentioned Like 5 gs smartphones and gaming cards and consoles that are in consumer. I noticed at least from the investor deck That memory revenues are very low in the quarter.
Do you see memory coming back? And if so, to what extent through the back half of the year?
Okay. So I think Gino Semi is strong from Q1 to Q4 continuously. I think auto start to be stronger this quarter. I think our conventional auto is also coming back And EV is helpful. So we do believe from Q1, we start to see auto will be quite strong And that really helped our responder a lot.
In the full memory, at this moment, we don't see full recovery yet, But actually, we see actually start to see recovery coming. So we do believe our next few quarters, memory will start to pick up. So memory probably is a larger segment other than memory. ABA segment, I think we see very strong demand, But we already see initial investment of memory coming in. Also from the past 3 years, actually the industry utilization rate started going up And also the big growth per year as in compound annual growth rate CAGR is consistently close to 30% every year.
So we could deliver memory is on the way to come back.
That's very helpful. My next question goes back to some of the comments in prepared remarks from you and Lester, and it relates to supply. So clearly, a phenomenal operations Quarter and the December quarter meeting demand and then implied in the outlook for March with the $300,000,000 in revenue. The question is this, If demand this year were to be meaningfully above the current $1,100,000,000 forecast, Would the company have the ability to flex up supply further to meet that demand or at the current forecast you see Either constraints or other bottlenecks that would preclude revenues from being higher than that if any of the end markets that you just discussed proved to be stronger than we can now see.
Okay. So I think the demand is really strong right now. But as you also know, the industry I have a minor maybe a little bit more than minor problem for the supply chain constraint, right? Fiscal constraints, for example, in the flat also have a difficulty. So we are comfortable With a $1,100,000,000 goal, although we still have upside, but upside maybe will be constrained at this moment The global supply chain constraint, but we are not going to give up whatever we can do.
We will try the best. So to answer your question, I think this demand is also very dynamic, right? So if you ask us, We can give you at this moment, it looks like they are asking upside, but they are also significant headwind for the supply chain And 1.1 is the number we feel comfortable and there are upside, but there's also a risk. That's why I think we need to monitor and pull our effort if we want to realize additional upside.
That's very helpful. And my last question is a longer term question and it goes back to the target model that the company set a few years ago. And the question is that it's clear that there appears to be across virtually all end markets demand strength that has When the company set its target model, the midpoint The low end was $1,150,000,000 So you're almost getting to that low end this year with current guidance. The question is this, Given the multiyear nature of demand, what are the gives and takes to potentially seeing The midterm model revenues in fiscal 'twenty two, I believe that one underlying assumption there was a significant Can those revenues ramp quickly enough really to get us towards that 1.18 $7,000,000,000 or might there be other areas of strength that are just greater, for example, the degree of advanced packaging uptake that could more than offset that if that didn't come to deliver us towards that target financial model midpoint in fiscal 'twenty 2? Thank you.
Okay. So I think also this significant ramp Of course, it's a little bit difficult to predict next year. But I think I mentioned today in the Q and A, Originally, our guidance for the normal year baseline is about 750. When with capital intensity, I think we are seeing $850,000,000 right, because of capital intensity increase. So this is very close to $1,000,000,000 much closer than before.
And on top of that, I think we have upside on free chip and TCV. These are new products for us, right? So for long term, I think they are very important. Our fleet is a very, very good accuracy and very high productivity. And TCB, I think we actually are quite comfortable with a few design wins.
Hopefully, it will ramp up also for the next couple of years. So we have a free chip TCV This rate market, I think, is can also be upside for us and also APS, right? APS, I think, I'll give you an example. 2017, our revenue maybe $140,000,000 and then this 2020 It's about $170,000,000 We do believe in 3 years, 3, 4 years, we have another upside for another $40,000,000 $50,000,000 So all you're aging together. So hopefully, I think what I'll answer is this.
I think the industry next couple of years should be very, very healthy. So as long as the industry is healthy, I think our core business is very, Very healthy for us. And we also have upside a few areas I mentioned, our dedicated I think we are quite optimistic for KNS and the whole industry for the 'twenty one and beyond.
So Craig, to add on what Susan said, right, on top of the revenue he built for you, given our tremendous operating leverage, We believe that at above $1,000,000,000 which again, Susan just indicated that there's a clear path to it on a sustainable basis Now the operating leverage would allow us to have an EPS of between close to $3 on a sustainable basis.
That's very helpful, gentlemen. Thank you very
much. Thank you. Our next question is coming from David Duley from Steelhead Securities. Your line is now live.
Thanks for taking my question and congratulations on great results. I guess my question is, when I look at your backlog, It certainly suggests that your order rates were substantially above the revenue that you just reported, probably like $140,000,000 above. Have your overall I guess, I'm assuming that your overall visibility has extended. Could you just help us kind of understand How much more visibility you have now? And then maybe help us understand, have your lead times extended?
What are your current lead times for wirebonders?
So, Dave, our visibility has extended, as you put in the backlog. Customers are putting PO at a tremendous rate, not just for the next quarter, but for the remaining rest of the fiscal year, given the very tight demand For our products as well as for all products as well as lead time. Lead time now has gone up significantly. I would say it's almost up to about 40 weeks or so, 30, 40 weeks. So, I think we do have much better visibility, which is why I think, we were comfortable in terms of giving guidance of $1,100,000,000 for
the year.
Okay, great. As far as contribution, I think on the last conference call, roughly your guidance for the year was like $780,000,000 and now you've bumped it up to 1,100,000,000 Could you just talk about the difference between what the delta is in your segments of business between the $780,000,000 $1,100,000,000 roughly where, you've kind of gone through this, but this is asking the question different way. Where did the upside come from in your annual model from the $780,000,000 to the $1,100,000,000
So Dave, I think it's across all sectors to be honest. I mean, I think General Semi is still you know, It's really driving the business. I mean, General Assembly was close to about 74% of our revenues for this quarter. And general assembly basically went up by about, I guess, it went up about 70%, right? Automotive more than doubled, went up about 100% from the December quarter, and LED went up about 80%, right?
So we see strength across all the segments. I think automotive is definitely coming back, and You can see that in terms of the headlines every day in terms of the automotive companies having lined down. So there's a real push right now. So again, I think the difference is
Excellent. And with this 1,100,000,000 Got a target for revenue for the year. As far as the operating margin performance going forward, I mean, I think you just A number we haven't seen for some time. Should we expect this 19% or 20% run rate, whatever, I guess it was 20%. Is that kind of the expectation throughout this calendar year for an operating margin goal?
Well, Dave, I don't guide below for the year below revenue. But I mean, I think if you Do the math in terms of we believe the gross margin would be consistent around the level we have this quarter between 45% to 46%. We believe that our we always said the expense OpEx is about $53,000,000 to 5% to 7% variable. And then there is I just guided to Effective tax rate of 15%. So if you back at it, I think you come very close to the number you just said.
Yes. I think it does generate, by the way, a little bit more than $3 in earnings. Congratulations. I look forward to the business continuing to improve throughout the year.
Yes. Thank you, Dave. Thanks, Dave. Thank you.
Our next question is coming from Christian Schwab from Craig Hallum Capital Group. Your line is now live.
Hey, excuse me. Congratulations guys on just This quarter and outlook and the ability to ramp that. Fusen, as we listen to this and we look at some of your other on the back end, I'm curious your thoughts on this, but it seems to me that we're seeing a tremendous industry shift in value that is actually just starting in the back end of the semiconductor equipment process, where capital intensity is beginning to meaningfully increase, something we saw when the NAND industry had to switch to 3 d and when foundry logic had to shrink you know, sub-twenty 8, right? So we're seeing general semi conductors, you're seeing increased volume in complex chips, chips that used to be one package that are now 4 or 6 or 8. And on top of that, we're seeing drivers like 5 gs and automotive, medical, WiFi upgrade caused disproportionate volume even greater than the general industry is doing.
And with that, multi die packaging is creating increased complexity, which is causing where we started increased capital intensity and it doesn't seem like there's other technologies that could disrupt this trend. It just seems where the industry is going in a post Moore's Law world, if you will, that We're just going to see more and more multiple chip packages for an extended period of time and we've under invested for years. So unless there is some type of Economic dislocation that has caused globally again, probably more than likely, If we can't get COVID under control, I mean, this could be very similar to the shift that we saw in the front end. This Could be the 3 to 5 year trend that just keeps on going and then stays extremely capitally intense, especially if we're going to go from 200,000,000 5 gs smartphones to 3,000,000,000 X or plus or minus over the next 4 to 5 years. Am I thinking about that right?
Is that what you guys are trying to say?
Yes, I think, yes, actually, we agree we are quite optimistic overall industry. And Christian, On top of what you said, I think we also tried to get into very exciting new business like display. And I think this will also provide additional engine for us. And we do believe at this moment, we have a best tool for industry. And we are going to keep our differentiation against our any potential competitor.
So with the strength in the industry and also more and more slow industrial trend And plus a new opportunity we are getting in, I think we are quite optimistic at this moment.
Right. And then I guess my last question It has to do with cash. What are your thoughts? We are over the course of the next substantial amount of cash on the balance sheet in a couple of years. Can you give us and you already have a substantial amount.
Can you give us an idea of if you think about you've Historically, a very shareholder friendly repurchaser of your Sears in the open market. But can you kind of tell us what you're thinking as far as cash?
Sure. I will add something and then have a list also contribute A few sentences. So at this moment, could I give you an example of Pizza Lux? From the 1st day of development to generate revenue, I think we take a little bit just more than 2 years and we are seeing the sizable Revenue. So we also believe we have a few other products maybe in the same way.
And we will continue also in the new display industry. So make the story short, In the short term, I think we have many growth engines, right? And, Unikata is additional one. We believe additional technology can help us grow. This is one path.
I think we probably like a lot. And we're doing dividend. We're doing stock buyback. We are not going to give up. This will continue.
So if M and A, I think, will be the last choice, I think we will be very, very careful. I think that in the short term, There's a ramp we need to deal with. And there's a lot of new technology that can add For our future growth, and they are in a start up stage, and we are also looking at the menu of this, right? So make a story short, I think the organic growth, we are quite confident we can do very, very good just internal growth by ourselves by acquiring some of our special technology. That's one way.
And for the shareholder return, dividend and also buyback, we will continue. And if M and A license come up, we will not give up. But so far, I think we are not paying huge attention in the bigger M and A at this moment.
Yes. So Christian, I think we've always consistently deployed the cash as quickly as it's available like in the different geographies because obviously we mentioned before, we do have some restrictions in bringing certain cash onshore. And I think as Tusa said, we have deployed a significant portion of our free cash flow in terms of both the share repurchase as well as the dividend. I mean, on the share repurchase, we've returned close to 80% of free cash flow to our shareholders in 2015. And if you look back last year, that fiscal 2020, we returned close to 110%, year before over Close 250%.
So I think that's significant. I think the other uses of cash as we said allocated is that we do believe that there will Continue to be interesting technology bolt on that will help accelerate our development like Unacata has for our advanced display as well as for some adjacency technologies that would help us build. And then also, again, we do look at prudent acquisition. A reminder is the acquisition of AssemblyOn is what allowed us basically to have Pixellux and the next generation because that's based on the AssemblyOn platform. So I think between all those, we will continue to kind of closely monitor the cash situation and we talk about Capital allocation every quarter, both of Fusen does with the Board.
So we'll do what's most prudent, both in terms of Organic initiatives like Pixelot, like our advanced packaging, plus technology
Yes, that's fantastic. No other questions. Again, congratulations on great results and outlook. Thanks.
Thank you. We've reached the end of our question and answer session. I'd like to turn the floor back over to Joe for any further or closing comments.
Thanks, Kevin,