Greetings, and welcome to the Kulicke and Safa 20 21 Third Fiscal Quarter Results Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Joseph Elgindy, Senior Director, Investor Relations for Kulik and Safa.
Joseph, you may begin.
Welcome everyone to Kulik and Safa's Fiscal Third Quarter 2021 Conference Call. Joining us on today's call is Fusen 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 our supplemental earnings presentation are both available in the In addition to historical statements, today's remarks will contain statements relating to future events and or future results. These statements are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our actual results Financial conditions may differ materially from what is indicated in those forward looking statements.
For a complete discussion of the risks associated with Kool Aid and Sulfa that could affect and the 8 ks filed yesterday. 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 continue to be amid a period of dramatic capacity expansion Throughout the semiconductor industry, which is supported by durable and structurally sustainable end market trend. Wire suppression challenge are broad and expected to continue. Our global operational and engineering team have done an outstanding job to mitigate challenge within our control while supporting our customers' aggressive growth plan. Ongoing demand for our capital equipment and the API solution remains very strong and is supported with multiple long term driver, which further enhance our visibility and outlook.
Structurally, we are aligned with 3 prominent and fundamental technology transitions. This includes the increasing capital intensity occurring throughout the semiconductor assembly space. The very significant and the long term transition within the automotive market and our direct involvement in accelerating industry adoption of new display In addition to this fundamental and the structural growth driver, we are also extending market reach through aggressive R and D investment. These opportunities supported with ongoing development investments And the new product introductions target new opportunities within the automotive, electronic assembly and the display market. We will provide further update to these specific opportunities over the coming quarters.
Finally, we are in a very dynamic expansionary phase of semiconductor consumption and production. This expansionary period have occurred in roughly 10 years increments as new use for semiconductor were adopted. In the 90s, the driver was the global adoption of PCs. In 2000s, global Internet access increased demand. Then over the last 10 years, mobility drove a new layer of semiconductor demand.
Today, we have several new and meaningful end applications that are dramatically accelerating semiconductor production capacity. The end application driving significant capacity need today include the worldwide adoption of connected devices, The growth of 5 gs infrastructures and the next generation of computing power driven by big data and artificial intelligence. The combination of this structural technology transition and the broad industry trend are Significantly enhancing the demand for our products, our adjusted market opportunities and our ability to generate value for investors and the communities we serve. During the June quarter, We have begun our annual long term planning process, which provide a more granular view into how these drivers are expected to favorably benefit our business. At a very high level, over the coming years, we anticipate annual semiconductor to continue growing significantly above the long term historic 6.5% growth rate.
Additionally, we are very confident in our ability to support new higher growth technology transitions that further extend our market reach and provide new We currently expect to reach $1,500,000,000 of revenue this fiscal year and are confident underlying business conditions will extend through fiscal 2022, supporting a multiyear industry expansion. Beyond 2022, our ongoing execution with specific new opportunities supporting advanced display, advanced packaging, APS and the new adjacent opportunities will continue to grow and support a new sustainable level of revenue and profitability. Considering this broad macro industry and execution expectations, Demand will remain strong supporting AVEVA's annual revenue of $1,500,000,000 over the coming years. So reminder, this new level of revenue is significantly higher and also more sustainable than what we shared During our 2018 analysis, Lester will provide some additional detail on how this long term outlook We will also provide many more details regarding our business prospect and attraction given our upcoming Analyst Day scheduled for September 23. For today's discussion, I would now like to provide some commentary to the June quarter's performance and the end market review.
During the June quarter, we exceeded the high end of our revenue expectation and delivered $424,300,000 of revenue, 46.1 percent gross margin and the non GAAP EPS of $1.87 Voice was up 48% sequentially. This significant sequential improvement highlights our operational leverage and was driven by strong and ongoing demand across all end markets. Within the general semiconductor space, there are many new sustainable trends Supporting this multiyear expansion, a comprehensive underlying trend is related to broadening adoption of 5 gs. This significant transition is increasing chip content at the smartphone label and also increasing demand for new connected devices. Additionally, this transition is also demanding new high bandwidth assembly solution for next generation optical, networking In the logic applications, our development program, customers engagement and the recent market win have increased access To specific high growth and application, including mobile sensing, mobile application processor, Silicon photonic and the next generation display driver for virtual and augmented reality.
Looking into next year alone, we anticipate an incremental $40,000,000 of revenue stemming from this end market. We continue to be very early into global 5 gs adoption and anticipate this transition will continue providing A tailwind and new equipment needs for the coming years. In addition to our alignment With this very positive and a long term market trend, we are also supporting and benefiting from the growing need for more complex packaging. As mentioned over the past few calls, there is a strong market demand for advanced K and S solution that support greater transistor density At the packaging level, rising front end design cost and the yield challenges have slowed the cadence of no shrink and are directly contributing to the higher level of assembly complexity, which is in turn Increasing the capital intensity across our broad surf market. This underlying market need Create an additional long term technology driven demand for our high volume businesses such as ball and wedge bonding.
This transition is also accelerating adoption of higher growth, more specialized packaging techniques That further extends our significant market presence across semiconductor applications. Approximately 40% of our capital equipment revenue stems from advanced packages, including system in package, multi chip module, high accuracy free chip and thermal compression based devices. This mix has changed materially over the past year and we anticipate this will continue growing long term along with our value proposition. Finally, within General Semiconductor, we are focusing R and D investment to expand market reach and also to expand profitability level across our large and established surf market. We have several exciting product to share over the coming quarters.
Equipment sales in the LED market suffered slightly in While we are actively supporting the long term mini and the micro LED transition, Optisolx system continues to be in high demand and we anticipate strong demand through fiscal 2022 and beyond. We also intend to further capitalize on this new high growth market by expanding our portfolio of advanced display solution. There is a strong market demand for more efficient and more capable assembly solution, which provide an opportunity to significantly broaden our customer base. Existing and the new customer interest has been very strong for our next generation system. We expect to ramp qualifications with multiple customers over the coming 2 to 3 quarters.
Additionally, this next generation system also allow us to address multiple process steps required in mini ADAM Micro UHD. While the current Psilox tool is very competitive, we did the critical final placement step. There are several additional touch points necessary for mini LED backlight assembly, including mixing, sorting and the pan or pitch adjust module assembly. This additional process step will all be supported by our new mini and the micro LED system, including our potential within this fast growing new market. Progress on the next generation LED system remain on track.
And I look forward to providing additional update on this exciting product release over the coming quarters. The automotive and industrial market also remains strong through the June quarter With revenue nearly elevated March quarters, underlying demand is being driven by the growing need for semiconductor in both traditional And emerging automotive applications such as electric vehicle and autonomous driving features. We continue to extend the market reach of our automotive solution, which support high growth power storage, All distribution and the sensing application necessary to support the autonomous and the electric vehicle transitions. We are well positioned to support this long term transitions across our broad customer base. Finally, demand within memory has improved sharply with June quarter sales above our long term average.
Like our other served end market, memory utilization level have sequentially improved driving the need for additional capacity. We anticipate memory strength to continue into September quarters. Over the past several weeks, our business outlook Has improved. We have continued to mitigate a broad range of dynamic supply chain challenges as we have significantly ramped our production capacity. Our internal operational and engineering effort, combined with the key market trends I covered earlier, Have enabled us to increase our September quarter outlook dramatically.
After market closed yesterday, We provide a revenue outlook for September of $465,000,000 which would mark our 3rd Sequential quarter of record revenue and profitability. I would like to also note that we continue to operate In a very dynamic global supply chain environment, and I'm very pleased that our organization's collective response, which allow us To mitigate challenges, continue aggressive development effort and enhance supply chain flexibility during this period of rapid industry expansion. In summary, the past several years of our R and D investment and the market expansion effort Have extended our competency and solution to better support several significant long term and structural market opportunities. These opportunities are accelerating demand within our broad portfolio of solutions and provide access to new high growth opportunity in The semiconductor, automotive and the display market. As we execute on this long term strategy, We are enhancing our ability to create long term value for customers and ultimately for shareholders.
I I would now like to turn the call over to Lester Wang, who will cover this quarter's financial overview in greater detail. Lester?
Thank you, Fusen. My remarks today will refer to GAAP results unless noted. As Fusen indicated, we continue to be in a period of dramatic industry expansion, which is supported by our alignment with several structural transitions. This combination of industry expansion and market alignment are providing the opportunity to maintain a similar revenue run rate and a new sustainable level of operational cash generation over the coming years. During the June quarter, we delivered revenue of $424,300,000 up nearly 25% sequentially.
We have worked very closely with our supply chain partners, operational teams and engineering groups to better enable customers' capacity needs while also exceeding the high side of our revenue guidance. Gross margin during the June quarter also came in better than expected at 46 0.1%, product mix, expediting fees and surcharges. Looking ahead, we anticipate near term gross margin improvement as incremental supply chain costs ease and ultimately long term gross margin expansion as we execute on our development program and new product introductions. Overall, non GAAP net income came in at $118,800,000 or $1.87 of non GAAP EPS During the June quarter, we highlight the leverage in our model. Considering this operating leverage, new product traction and outlook.
We expect to continue generating strong operating cash flow over the coming years. Operating expense in the June quarter came in line with our despite our better than expected revenue performance. On a non GAAP basis, we are maintaining our quarterly operating expense model, which represents roughly $48,000,000 of fixed expenses, plus 5% to 7% of variable expense tied to revenue. Tax expense for the quarter came in at $7,200,000 which is better than previous expectations. This favorable benefit was driven by a partial release of a valuation allowance previously recorded against a net deferred tax asset.
This favorable benefit is directly related to the strong market success of the Pyxlux solution. Considering the one time nature of this benefit, we continue to target an 18% long term effective tax rate. Through fiscal 2021, we continue to anticipate the effective tax rate will come in at around 16%. Turning to the balance sheet. Working capital efficiency has improved overall.
Days of accounts receivable decreased from 81 to 78 days. Days of inventory decreased from 66 to 60 days and days of accounts payable decreased slightly from 58 to 57 days. This ongoing efficiency combined with the underlying market drivers we are associated with Allow us to end the June quarter with a total net cash and investment position of $635,000,000 up 12.5 percent of $70,700,000 sequentially, representing $10 per diluted share. This sequential increase Highlight the long term cash generation potential of our new multiyear outlook. As touched on earlier, we are operating at a new level of heightened demand, which is flowing through very positively to operating margin.
Non GAAP operating margin for the June quarter came in at 29.7%, representing over an 1800 basis point improvement from the same period last year. As Houston mentioned, over the coming years, We now anticipate annual revenue to average $1,500,000,000 This outlook provides many more opportunities to demonstrate our leverage And cash generation potential. For the September quarter, we expected revenues to be approximately $465,000,000 plus or minus $20,000,000 A nearly 10% increase over our most recent record revenue in the June quarter. Gross margins are expected to improve to Approximately 47% in the September quarter, plus or minus 50 basis points, due largely to product mix, pricing improvements and easing of incremental supply chain costs. Non GAAP operating expense is expected to be approximately $73,000,000 plus or minus 2 percent and non GAAP EPS to be $2 plus or minus 10%.
Over the long term, we remain very aligned with several high growth prospects in the semiconductor, display and automotive markets, which are generating opportunities for above average growth. Additionally, we continue to be We are extremely focused on multiple paths that extend reach into our existing served markets and also provide access to meaningful new market opportunities. We see tremendous potential to build from our current baseline revenue in FY 2021 as we continue to execute on our multifaceted growth strategy. We look forward to sharing additional information regarding these new opportunities over the coming quarters. This concludes our prepared comments.
Operator, please open the call
for questions.
Thank you. We will now be conducting a question and answer from the queue. Your first question comes from the line of Craig Ellis with B. Riley, please proceed with your question.
Yes. Thanks for taking the question and guys congratulations on the very Strong results and the robust outlook. Fusen, I wanted to start at a high level and just look at some of the parameters That you're providing as we look ahead. So very helpful to get the company's view that spending can reset to a $1,500,000,000 So the question is this, from current levels of spending at the current quarter's guide $465,000,000 It's $1,860,000,000 annualized from that level to what would be the $1,500,000,000 or 375,000,000 How long do you see current spending intensity sustaining? And when does the business Really modulate down to that RMB1.5 billion, would that be in the first half of next year or more so the second half of next year?
Craig gave you 8, the Q3 we Just announced at this moment in the Q4 guidance, actually, I think all the number this year we will finish FY, we were already finished at $1,500,000,000 So maybe I just quickly walk through the This is my assumption, how we recharge is $1,500,000,000 So current semiconductor revenue growth In the industry for 2021 2022, our forecast to be very strong and are at 20% and about 10% respectively for 2020 22. So if you add the 4th quarter together including the one which is the guide, We currently expect to reach $1,500,000,000 revenue this fiscal year FY 2021. And for the FY 2022, based on the current market data and our customer feedback, we We also see a very high level of utilization rate in the industry and also very strong demand from the end market. And we actually now expect FY 2022 revenue to be similar to FY 2021. Revenue of about $1,500,000,000 And we also see that if current industry Chip shortage situation continue.
We're into FY 2022. We might see additional upside In the second half of FY twenty twenty two, right? So FY twenty twenty two, now we expect similar revenue level as FY twenty twenty one. And let's also mention this will be a multiyear growth and we believe $1,500,000,000 Can be sustainable. And because we believe our current semiconductor market expansion will continue for market year way into 2023 2024.
So for the 'twenty three and 'twenty four, between 'twenty three and 'twenty four, from all organic growth In the project we are working on, we do expect to add about $200,000,000 to $300,000,000 Our new revenue in 23 to 24. This is from advanced display And advanced packaging also electronic assembly, same as SMT and also APS. So We actually not only very positive about the new revenue we are going to bring in, The project we are working on, advanced packaging, advanced display, SMT and APS, Actually, they are huge at this moment, huge semiconductor capacity under planning And we'll bring to production in the next couple of years from all of our customers. And we expect roughly next 3 years production brings into line, roughly half of that Will be from China. And the majority of this new capacity from China will be 28 nanometer And above.
And a lot will really benefit our core business greatly. So So in short summary, I think this year, 'twenty one, we will finish 1.5. We see similar label For the 'twenty two, from all the study we have and the customer feedback and for the 'twenty three and beyond, We actually do expect a new revenue label will come in around $200,000,000 to $300,000,000 Now we'll continue to fund companies grow and follow new products and also follow the core business. I think a lot of new capacity, Particularly in China, a huge capacity is going to come in online for the next couple of years and they really will benefit a grid ready for our core business. So in terms of spending, Lesothi, anything to add?
No, he meant customer spending.
I see. So, Craig, do I answer your questions?
Yes, I think that helps. I can follow-up on some of the segues from the current Annualized run rate with the September guide, which is 4.65% to the 3.75%. But Lester, let me follow-up with you on just gross margin. So great to see the 47% gross margin in the outlook. The question is this, Do you think that's a sustainable number or are there some product mix dynamics or customer other dynamics that are Providing some kind of one time help and that would mean that gross margins, as we look beyond that into Fiscal 'twenty two would move back closer to a 45% to 46% range?
Or is 47% sustainable?
We think 47 is sustainable. I mean, as you know, product mix and customer mix are very key to our gross margins. But I think there's also other things that come into play, which is nowadays are on the product mix side, We are selling more higher ASP, higher margin products. That's partially due to the capital intensity that Fusen has talked about before, which we believe will continue into 2022 beyond. I think also as the new products that Fusen mentioned Talked about particularly advanced display as well as advanced packaging.
Those products also have higher margins. And then for our core products, We have a very robust program in terms of cost reduction, both on the supply chain side as well as for engineering. So we believe we can also bring cost reduction to our core business, which again will help with the gross margin.
Very helpful. Thanks, guys.
Your next question comes from
the line of Tom Diffely with D. A. Davidson. Please proceed with your question.
Yes. Good morning and good evening and fantastic results here. So I guess first big picture question for Fusen. When you look at this, the big demand level today, and you did a very good job of outlining all the drivers in all the different markets. But are you a little surprised that you're seeing it today versus maybe a year from now when all the front end semi cap equipment that's been ordered today is up Running to those units coming off of the new lines, it seems like this all this demand that you've gotten has come into a situation where we already kind of tied on chips And it just it seems like business would get even better down the road once all this recent capital spending is turned into actual production.
So Tom, we always need to have business forecast to Waggong and their constraint in terms of our priority and the resource. So, yes, we are we feel very positive into our futures. For example, there are things, for example, we probably cannot do right away, Like when we see the industry under invest in 2019 2020 and we see actually order come in repeatedly and we Just actually was not where we prepared it and plus supply chain shortage. So they are bad. Some dynamic, we are not able to handle response right away.
When we see things clearly, we put all the effort. So for the next few years, We do feel positive.
Okay. And it seems to me that a lot of the strength you're seeing today has been enhanced by just the increased capital intensity of wire bonding and ball bonding, is there some way you can quantify what you think the impact of increasing capital intensity has been over the last few years?
Well, actually, yes, I think the last time we discussed this probably we feel like about a total capital intensity. If I remember the number We'd love to
calculate. I think sorry, Tom. I think Roughly and it's very hard to kind of triangulate specifically, but we think it adds maybe at least another $100,000,000 plus to our baseline.
Okay. Well, that's helpful. Thank you. And then Lester, finally, you mentioned the tax rate of 18%, but then you mentioned it might be 15% Through this year, is it 18% on a kind of go forward basis on a quarterly basis? Is that what you're saying?
No. I'm saying for this year, we'll probably come in close to 15%. But for long term, if you're modeling for 2022 and 2023 and beyond based On a lot of things happening in the tax law, as you know, the effective tax rate should be 18%.
Great. Thank you and congratulations on a great quarter and outlook.
Thanks, Tom.
Your next question comes from the line of Krish Sankar with Cowen and Company. Please proceed with your question.
Thanks for taking my question and congrats on the really strong results and guidance. The first question I had is, Susan, it's really impressive to see the $1,500,000,000 run rate for next year. I'm just trying to reconcile what you're seeing with what some of your Customers have said, you know, ASC publicly has said, you know, the current quarter might be the peak wirebonding purchasing quarter. I'm trying to reconcile that with the numbers that you're seeing because you said that some of the new products will drive upside to revenues in FY2023 and beyond. So I'm just kind of curious to see what is really driving the strength in FY 2022?
So FY 'twenty two, basically, at this moment, the industry really Still have a shortage of back end capacity and still need a lot of equipment From us, so actually we do see the strength. We are into current or third quarters, right? So as Tom goes on, we do believe The FY 2022 can be as good as 2021. And actually, the end market is quite Strong, right? With a lot of driver and we can see 5 gs, a lot of multi die chip and IoT and there's a lot of driver.
We also have advanced display. So actually that's what we are seeing. I think and chip shortage actually is continuing. So with all this, we feel like 2022 not only for us, I think for industry will still be a good year.
Got it. Got it. And then just as a follow-up, I'm kind of curious what your lead times are Your visibility is, I remember last time it was almost 9 months. It seems like that is stretched to 9 months to 12 months now. If that is the case, do you think the December or March quarter, we will not see any typical seasonality?
In other words, Revenue should be strong or do you think you'll still see seasonality in December March?
So, Krishna, I think, there are a
few driver
to balance each other. Number 1, I think we still have a shortage issue. And also, I think our customer even demand strong, they have a little preferred delivery schedule. So currently, I think we target The Nexmart capacity is 450 per quarter. Although, our KNS is quite efficient, we can always stretch additional 10% by 18% some variable.
So I mentioned already the industry still have a strong shortage for the equipment we're providing. So next few quarters, we do see there will be few quarter revenue will be above $450,000,000 below will not be any quarter like that, And this is to relieve the shortage of our equipment in the industry and also depend on our customers' need.
Got it. Thank you. Thank you, Aracuz. I appreciate it and congrats.
Your next question comes from the
line of David Duley with Steelhead Securities. Please proceed with your question.
Thanks for taking my question and congratulations on excellent results, especially on the gross margin and operating margin improvements. Along those lines, you mentioned on gross margins that you have longer term plans to improve the gross margins in the core business. I was just wondering if you could elaborate on that a little bit more if there's some expectation of how much you can improve gross margins there? And then just remind us, How big do you think the wirebonder market is in this current calendar year?
So Dave, on the gross margin, I mean, we obviously have internal targets and we're not going to disclose that. But we believe that Based on some of the things I was talking about in terms of cost reduction, alternate sources, Reengineering, we could continue to keep the gross margin at the high 40s instead of drifting back towards the mid-40s.
Okay. And the size of the wire bonder market?
So actually, I think this year, ECG more than double of Previous years? So I think every quarter right now at the peak, we ship several Toll and
systems. Okay. And then You talked about an opportunity in the automotive space, I think, and transition that's happening there. I'm guessing that might be An opportunity for your surface mount technology equipment. I guess I was
just wondering if you could
kind of give us an update on some of the other assembly equipment That's kind of percolating, the SMT stuff, the Catalyst, the Apama. Just kind of help us understand what the progress points are on all those new products. Thank you.
Sure. Sure. So, Dave, this year is very strong for our core business, As I just mentioned. And for the Apama and the high accuracy feature, let's talk about Overall, AP, we categorize AP as SiP. So and also multi die, free chip TCB.
So particularly in future and the TCV, we call dedicated advanced packaging. So next year alone, These 2 products actually we are going to see next year will be the 1st growing year for our dedicated advanced packaging. I mentioned in the ARVR part, next generation logic, optical, All these advanced programs with our customers, next year alone, our dedicated advanced packaging It's about $40,000,000 So next year will be very fast growing year for our advanced packaging dedicated So
let's follow-up
to 'twenty two. We do believe 'twenty three will continue to grow. So our dedicated advanced packaging, we expect probably will reach about $80,000,000 to $100,000,000 by 2023, right? So that's AP. For the display, we have a piece of Lux and it has been a very successful product launch.
We've issued very good feedback. We target our yearly revenue. This year is $60,000,000 to $80,000,000 We easily we will meet the commitment. So we even have a PO into next year. So next year, PIZALUX alone We'll still target $60,000,000 to $80,000,000 But I also mentioned in my script, we have a next generation of Mini and MicroLED tool, actually right now we call Luminex.
Next 2, 3 quarters, We are going to ship couple of them to our customer for qualification. Upon successful qualification, which is our expectation, We expect the revenue will come in second half of twenty twenty three. So next year, I think at Pizza Lux, we still target 60 to 80. And hopefully, we will see this new tour have about $10,000,000 to $20,000,000 revenue. So next year, I think we are targeting Probably $700,000,000 to $100,000,000 just for our advanced display.
And in my script, I also mentioned Current tool, Pixellux, in mini and microLED fabrication only serve one step is a final placement, But the new tool actually will serve multiple steps, right, including sorting, mixing, also This is a much, much bigger market, much, much multiple purpose and serve many more customers. So we do believe upon successful qualification of Luminex, in 2024, We can reach about $150,000,000 and we'll go even faster beyond the 24. So do I okay. For the SMT system, actually we are quite Saiid, we actually have a very innovative idea to improve accuracy And to put actually modification of the old system to become a new system and it's under development. And for all the comparison, we are very upbeat about this opportunity.
And this is a huge market, several $1,000,000,000 attend. So we believe SMT, we call electronic assembly will also bring us very good growth for next couple of years.
Thank
Your next question comes from
the line of Charles Shi with Needham and Company. Please proceed with your question.
Thank you for taking my question. Congratulations, Fusen and Lester, on the nice results. I want to start with a little bit of clarification on the gross margin. Forgive me if you have given the answers earlier. When I look at your gross margin for the quarter, 46%, but when I look at your historical Gross margin for APS and the capital equipment, APS in mid to high 50s, capital equipment There seems to be not a no way for me to really get to 46 0.2%, unless I assume ATS has a huge uptick here, unless there is some favorable product mix or custom mix Going on the equipment side, I wonder if you can give us a little bit more color, what is really the moving parts in your gross margin performance for the last quarter.
Thank you.
So the main drivers for the better gross margin is product mix within the capital equipment. Both ball bonder and wedge bonder in the quarter actually had much higher gross margins than the previous quarter, mainly due to product mix as well as Customer mix. So that's the main driver. APS effect on the gross margin obviously is much less this quarter as they only accounted for less than 13% of our overall revenue.
Got it. Got it. Thank you. So maybe my second question is around mini LED. Fusen, thank you so much.
You actually gave a little bit longer I understand that the Pixellux versus Luminex and all the dynamics that you're talking about. I just want to ask How many pixel ups have you shipped so far? Last quarter, you said it was about more than 130 systems. That's the first part of my question. I'll follow-up quickly after this.
So you're asking how many system piece of rock ships so far? Actually, so if you I think 134, roughly In high volume, we shipped for about 4 quarter, right? Roughly, it's a 4 quarter. So every GD, I think We got $60,000,000 to $80,000,000 So roughly Every quarter is about 15,000,000. So every quarter, the ballpark probably is about Maybe 30, 42, so roughly that's the average.
Okay.
Got it. So my last question, I think that this probably is one of the most Important question, I believe. So a quarter ago, you did gave a number for FY20 to $1,100,000,000 $1,200,000,000 next year. And I heard you, you did say it's not really a forecast. It's one of the scenario you think That could happen that you didn't rule out other possibilities.
So I just wonder, I mean, over the last Now you are possibly seeing an average run rate over the next few years as 1.5 Billions, you believe maybe next year could be flat, could be up. I wonder what has Changed your view over the last quarter. I understand you did say
you did
a little bit of longer term planning Over the last quarter, and maybe your customers also did a little bit longer term planning for 2022. I understand that the visibility may be improving, but I really would appreciate to give us some color. What really changed your view here? Right.
So Charlie, I think we really have a serious problem about supply chain challenge, right? So part of the reason, I think, we tend to a little bit conservative because of surprising dynamic. We work only almost every day. So but the difference compared this quarter to last quarter, Remember, what I mentioned, the difference is about 10%, right? So if we mentioned Like $100,000,000 or $1,800,000,000 10% is roughly about 100 and $15,000,000 right?
So that's a ballpark. We believe a very, very high growth year Possibility to pull back is possible. And last time, I think we talked about maybe 1.35 $1,000,000,000 I remember. So from last quarter to now, I think The intention really did not change it that much. 10% really is not very, very much, Right.
We just put like a risk factor over there in case I think the industry Really, really not able to achieve continue strong growth for 2 years. But right now, as we see, the chip shortage continue, right? And we still have Some system customer have an urgent need to get it. And from last 1 or 2 quarters Continue to carry back. So that actually gives us the confidence I think next year can be as good as this year, Right.
But at that time, I think we say 2022 will be lower. Actually, it's Like a 10% lower, that's our intention to guide. So this 10% actually Compared to current industry uptime, I think we will be able to manage That's our view.
Thank you. Thank you, Fusen. That's all my questions. Thank you so much. Congrats again.
Thanks Charles. So, Charles, I think we are going to have our Analyst Day. There will be a lot more detail. If you have more questions, I think we'll be happy to provide you more details.
Thank you so much.
Your next question comes from
the line of Eric Greg with FTIA. Please proceed with your question.
Houston, Lester, this is a tremendous quarter and great outlook. Really appreciate it. Maybe I missed this, but between $10 per share that you have in cash on the balance sheet, evaluation that's less 50% of your peers on a price of sales basis, you mean rate or discount on a PE basis and a really great outlook that you just outlined. Why isn't The company buying back a lot more stock at these levels? Thank you.
We constantly look at our capital allocation program. And I think with the new outlook, we will again look at it again. I mean, we did increase share repurchase in the last quarter, quite significantly more than Q2. And I think with The new outlook as well as our confidence in sustainable $1,500,000,000 and over 25 percent operating margin, I think we will look at the best use of the capital and to return value to shareholders. We also obviously have the dividend, which pays About $8,000,000 a quarter.
So we will continue to discuss this with the Board and figure out the best way to use our resources. We generally look at it in terms of the The dividend and share repurchase, that's one bucket. The second bucket is our organic growth, which obviously now has fueled us into the future with Advanced display as well as packaging. So this is a continued conversation we have with our Board and we look at this very closely.
Thank you very
much.
Ladies and gentlemen, there are no further questions at this time. I would like to turn the floor back over to Joseph Elginiti for closing comments.
Thank you, Hector, Thank you all for joining today's call. We will be presenting at several upcoming conferences over the coming months, including those with Oppenheimer, Jefferies and Credit Suisse. Additionally, we will be sharing many more details regarding our long term opportunity strategy and financial expectations during our Analyst and Investor Day scheduled or 8:30 am Eastern on September 23rd. As always, please feel free to follow-up directly with any additional questions. Have a great day, everyone.
Hector, this concludes our call. Thanks.
This concludes today's conference. You may disconnect your lines at this time. Thank you all for your participation.