Greetings, welcome to the Kulicke and Soffa 2021 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. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Joseph Elgindy, Senior Director, Investor Relations for Kulicke and Soffa. Joseph, you may begin.
Welcome, everyone, to Kulicke & Soffa's fiscal Q3 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 investor relations section of our website at investor.kns.com.
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 with the meaning of the Private 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 Kulicke and Soffa that could affect our future results and financial condition, please refer to our recent SEC filings, specifically the 10-K for the year ended October 3rd, 2020, and the 8-K 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, Joseph. 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. While supply chain 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 APS solution remain very strong and is supported with multiple long-term driver, which further enhance our visibility and outlook. Structurally, we are aligned with three prominent and fundamental technology transitions.
This include 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 technologies.
In addition to this fundamental and structural growth driver, we are also extending market reach through aggressive R&D investment. These opportunities, supported with ongoing development investments and new product introductions, target new opportunity 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 expansion period have occurred in roughly 10 years increments as new use for semiconductor were adopted. In the 1990s, the driver was the global adoption of PCs. In the 2000s, global internet access increased demand.
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 5G 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 adjacent 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 unit growth 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 vector of growth. We currently expect to reach $1.5 billion 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 average annual revenue of $1.5 billion over the coming years.
Reminder, this new level of revenue is significantly higher and also more sustainable than what we shared during our 2018 analyst day.
This will provide some additional detail on how this long-term outlook translates into new level of sustainable shareholder value shortly. We will also provide many more details regarding our business prospects and attraction during our upcoming analyst day, scheduled for September 23rd.
For today's discussion, I would now like to provide some commentary to the June quarter's performance and end market review. During the June quarter, we exceeded the high end of our revenue expectation and delivered $424.3 million of revenue, 46.1% gross margin, and a non-GAAP EPS of $1.87, which 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 multi-year expansion. A comprehensive underlying trend is related to broadening adoption of 5G.
This significant transition is increasing chip content at the smartphone level and also increasing demand for new connected devices. Additionally, this transition is also demanding new higher bandwidth assembly solutions for next generation optical networking and logic applications.
Our development program, customers engagement, and the recent market win have increased access to specific high growth end application, including mobile sensing, mobile application processor, silicon photonics, and the next generation display driver for virtual and augmented reality. Looking into next year alone, we anticipate an incremental $40 million of revenue stemming from this end market.
We continue to be very early into global 5G adoption and anticipate this transition will continue providing a tailwind and the new equipment needs for the coming years. In addition to our alignment with this very positive and 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&S solution that support greater transistor density at the package level. Rising front-end design cost and yield challenges have slowed the cadence of node shrink and are directly contributing to the higher level of assembly complexity, which is in turn increasing the capital intensity across our broad served market.
This underlying market need creates 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 extend our significant market presence across semiconductor applications.
Approximately 40% of our capital equipment revenue stem from advanced packages, including System in Package, multi-chip module, high accuracy flip 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 on the investment to expand market reach and also to expand profitability level across our large and established served market.
We have several exciting product announcements to share over the coming quarters. Equipment sales into LED market suffered slightly in June, although remain very strong and are expected to increase further in September. We continue to support ongoing demand for general lighting application while we are actively supporting the long-term Mini LED and Micro LED transition.
Our PIXALUX system continue 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 two to three quarters. Additionally, this next generation system also allow us to address multiple process steps required in Mini LED and Micro LED.
While the current PIXALUX tool is very competitive within the critical final placement step, there are several additional touchpoints 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 LED and Micro LED system, increasing our potential within this fast-growing new market.
Progress on the next generation LED system remains on track, and I look forward to providing additional updates on this exciting product release over the coming quarters. The automotive and the industrial market also remains strong through the June quarter, with revenue near the elevated March quarter.
Underlying demand is being driven by the growing need for semiconductors 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 supports high growth power storage, power distribution, and sensing applications necessary to support the autonomous and electric vehicle transitions.
We are well-positioned to support these 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 market, memory iteration levels 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 trend 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 million, which would mark our third sequential quarter of record revenue and profitability. 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&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 would now like to turn the call over to Lester Wong, 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 $424.3 million, 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 46.1%. Product mix, expediting fees, and surcharges.
Looking ahead, we anticipate near-term gross margin improvements 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 $118.8 million, or $1.87 of non-GAAP EPS during the June quarter, which highlights 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 expectations, despite our better than expected revenue performance.
On a non-GAAP basis, we are maintaining our quarterly operating expense model, which represents roughly $48 million of fixed expenses, + 5%-7% of variable expense tied to revenue. Tax expense for the quarter came in at $7.2 million, 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 PIXALUX 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- 78 days of inventory decreased from 66- 60 days, and days of accounts payable decreased slightly from 58- 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 investing position of $635 million, up 12.5% or $70.7 million sequentially, representing $10 per diluted share. This sequential increase to cash investment highlight the long-term cash generation potential of our new multi-year outlook.
As touched on earlier, we are operating at a new level of heightened demand, which is flowing through very positively to operating margins. non-GAAP operating margin for the June quarter came in at 29.7%, representing over an 1,800 basis point improvement from the same period last year.
As Fusen mentioned, over the coming years, we now anticipate annual revenue to average $1.5 billion. This outlook provides many more opportunities to demonstrate our leverage and cash generation potential.
For the September quarter, we expect the revenues to be approximately $465 million ±$20 million, a nearly 10% increase over our most recent record revenue in the June quarter. Growth margins are expected to improve to approximately 47% in the September quarter, ±50 basis points, due largely to product mix, pricing improvements, and easing of incremental supply chain costs.
Non-GAAP operating expenses are expected to be approximately $73 million ±2%, and non-GAAP EPS to be $2 ±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 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 session. Your first question comes from the line of Craig Ellis with B. Riley. Please proceed with your question.
Yeah, thanks for taking the question. 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. Very helpful to get the company's view that spending can reset to a $1.5 billion level.
The question is this: from current levels of spending at the current quarter's guide, $465 million is $1.86 billion annualized. From that level to what would be the $1.5 billion or $375 million a quarter, how long do you see current spending intensity sustaining, and when does the business really modulate down to that $1.5 billion? Would that be in the first half of next year or more so the second half of next year?
Craig, if you add the Q3 we just announced at this moment and the Q4 guidance, actually, I think all the numbers this year, we will finish FY, we will already finish at $1.5 billion. Maybe I just quickly walk through the baseline assumption, how we reach this $1.5 billion. Current semiconductor revenue growth in the industry for 2021 and 2022 are forecast to be very strong and are at about 10% respectively for 2021 and 2022.
If you add the four quarters together, including the one which is a guide, we currently expect to reach $1.5 billion revenue this fiscal year, FY 2021. For FY 2022, based on our current market data and our customer feedback, and we also see a very high level of utilization rate in the industry and also very strong demand from the end market.
We actually now expect FY 2022 revenue to be similar to FY 2021, revenue of about $1.5 billion. We also see that if current industry chip shortage situation continue well into FY 2022, we might see additional upside in the second half of FY 2022.
FY 2022, now we expect similar revenue level as FY 2021. Lester also mentioned this will be a multi-year growth, and we believe $1.5 billion can be sustainable. Because we believe our current semiconductor market expansion will continue for multi-year, way into our 2023 and 2024.
For the 2023 and 2024, between 2023 and 2024, from all the organic growth project we are working on, we do expect to add about $200 million to a $300 million of new revenue in 2023 to 2024. This is from advanced display and advanced packaging, also electronic assembly, same as SMT, and also APS.
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. They are huge at this moment, huge semiconductor capacity under planning and will bring to production in the next couple of year, from all of our customers.
We expect roughly, next three years, production bring into line, probably half of that will be from China. The majority of this new capacity from China will be 28 nanometer and above. That will really very benefit our core business greatly. In short summary, I think this year, 2021, we will finish $1.5. We see similar level for 2022, from all the study we have and the customer feedback.
For 2023 and beyond, we actually do expect a new revenue level will come in around $200 million-$300 million. That will continue to fund company's growth and for the new products. Also for the core business, I think a lot of new capacity, particularly in China, huge capacity is going to come in online for next couple of years. They really will benefit greatly for our core business. In terms of spending, Lester, do you have anything to add?
No, he meant customer spending.
I see. Craig, do I answer your questions?
Yeah, 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 $465 to the $375. Lester, let me follow up with you on just gross margin. 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 2022, would move back closer to a 45%-46% range, or is this 47% sustainable?
We think 47 is sustainable. As you know, product mix and customer mix are very key to our gross margins. I think there's also other things that come into play, which is, nowadays, 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 and 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. 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. We believe we can also bring cost reduction to our core business, which again, will help with the gross margin.
Very helpful. Thanks, guys.
Yeah, Craig.
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 boy, fantastic results here. I guess first big picture question for Fusen. When you look at the big demand level today, and you did a very good job of outlining all the drivers and 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 being ordered today is up and running and those units coming off of the new lines?
It seems like all this demand that you've gotten has come into a situation where we're already kind of tight on chips, and it seems like business would get even better down the road once all this recent capital spending is turned into actual production.
Tom, we always need to have a business forecast to work on. There are constraints in terms of our priority and the resource. Yeah, we feel very positive into the futures. For example, there are things, for example, we probably cannot do right away.
When we see the industry under-invest in the 2019 and 2020, and we see actually order come in rapidly, Actually was not well prepared, and plus supply chain shortage. There are some dynamics we are not able to handle response right away. When we see our things clearly, we put all the effort. For the next few years, we do feel positive.
Okay. It seems to me that a lot of the strength you're seeing today is being 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, I think the last time we discussed this, probably we feel like probably capital intensity. If I remember the number, we roughly calculate.
Sorry, Tom. I think roughly, and it's very hard to triangulate specifically, but we think it adds maybe at least another $100 million+ to our baseline.
Okay. Wow, that's helpful. Thank you. 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 go-forward basis on a quarterly basis? Is that what you were saying?
No, I'm saying for this year, we're probably coming close to 15%. For long term, if you're modeling for 2022 and 2023 and beyond, based on a lot of things happening in the tax world, 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.
Yeah. Thanks for taking my question, and congrats on the really strong results and guidance. The first question I had is, Kuljin, it's really impressive to see this $1.5 billion run rate for next year. I'm just trying to reconcile what you're seeing with what some of your customers have said.
ASE publicly has said the current quarter might be their peak wire bonding 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 FY 2023 and beyond. I'm just curious to see what is really driving the strength in FY 2022.
FY 2022, basically, at this moment, the industry really still have a shortage of back-end capacity and still need a lot of equipment from us. Actually, we do see the strength well into current our Q3s . Actually, as time go on, we do believe the FY 2022 can be as good as 2021.
Actually, the end market is quite strong, with a lot of driver, and we can see 5G drive a lot of multi-die chip, and IoT, and there's a lot of driver. We also have advanced display. Actually, that's what we are seeing, I think. Chip shortage actually is continuing. With all this, we feel like 2022, not only for us, I think for industry, will still be a good year.
Got it. Just as a follow-up, I'm curious what your lead times are today, or your visibility is. I remember last time it was almost 9 months. It seems like that has 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 and March?
Okay. Krish, I think there are a few driver balance each other. Also, I think our customer, even demand is strong, they have a preferred delivery schedule. Currently, I think we target the next market capacity is 450 per quarters. Although K&S is quite efficient, we can always stretch additional 10% by adding some variable.
I mentioned already, the industry still have a strong shortage for the equipment we providing. Next few quarters, we do see there will be few quarter revenue will be above 450. Although will not be every quarter like that. This is to relieve the shortage of our equipment in the industry, and also depend on our customer's need.
Got it. Thank you. Thanks a lot, Fusen Chen. 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. Then just remind us, how big do you think the wire bonder market is in this current calendar year?
David, on the gross margin, we obviously have internal targets, and we're not going to disclose that. We believe that based on some of the things I was talking about in terms of cost reduction, alternate sources, re-engineering, we could continue to keep the gross margin at the high 40s instead of that drifting back towards the mid- 40s.
Okay. The size of the wire bonder market?
Actually, I think this year, easily more than double, of previous years. I think every quarter right now at the peak, we ship several thousand systems.
Okay. 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 give us an update on some of the other assembly equipment that's percolating, the SMT stuff, the Katalyst, the APAMA. Just help us understand what the progress points are on all those new products. Thank you.
Sure. David, you know, this year is very strong for our core business, as I just mentioned. For the APAMA and the high accuracy flip chip, let's talk about overall AP. We categorize AP as SIP. Also multi-die, flip chip TCB. Particularly flip chip and the TCB, we call dedicated advanced packaging. Next year alone, these two products, actually, we are going to see next year will be the fast-growing year for our dedicated advanced packaging.
I mentioned in the AR, VR part, next generation logic, optical, all these advanced program with our customers. Next year alone, our dedicated advanced packaging will hit about $40 million. Next year will be very fast-growing year for our advanced packaging dedicated tool. That's for 2022. We do believe 2023 will continue to grow.
Our dedicated advanced packaging, we expect probably will reach about $80 million-$100 million, by 2023. That's AP. For the display, we have PIXALUX, and it has been a very successful product launch. We've received very good feedback. We target our yearly revenue this year is $60 million-$80 million. We easily will meet the commitment. We even have a PO into next year. Next year, PIXALUX alone will still target $60 million-$80 million.
I also mentioned in my script, we have a next generation of Mini LED and Micro LED tool. Actually, right now we call LUMINEX. Next two, three quarters, we are going to ship couple of them to our customer for qualification. Upon successful qualification, which that's our expectation, we expect the revenue will come in second half of 2023.
Next year, I think at PIXALUX, we still target 60-80, and hopefully we will see this new tool have about $10 million-$20 million revenue. Next year, I think we are targeting probably $70 million-$100 million just for our advanced display. In my script, I also mentioned current tool, PIXALUX, in Mini LED and Micro LED fabrication only serve one step as a final placement.
The new tool actually will serve multiple step, including sorting, mixing, also re-pitching. This is much, much bigger market, much, much multiple purpose and serve many more customers. We do believe upon successful qualification of LUMINEX, in 2024, we can reach about $150 million and will grow even faster beyond 2024. Okay. For the SMT system, actually, we are quite excited.
We actually have a very innovative idea to improve accuracy and to put actually modification of the old system to become a new system. It's under development. From all the comparison, we are very upbeat about this opportunity. This is a huge market, several billion dollar attempt. We believe SMT, we call electronic assembly, will also bring us very good growth for next couple years.
Thank you.
As a reminder, if you'd like to ask a question, please press star one on your telephone keypad. One moment, please, while we pull for more questions. Your next question comes from the line of Charles Shi with Needham & 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 clarification on the gross margin. Forgive me if you have given answers earlier. When I look at your gross margin for the quarter, 46%, when I look at your historical gross margin for APS and capital equipment, APS in the mid to high 50s%, capital equipment in low to 40s%,
there seems to be no way for me to really get to 46.2% unless I assume APS 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.
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 custom mix. That is 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. Thank you. Maybe my second question is around Mini LED. Fusen, thank you so much. You actually gave a little bit longer-term outlook for the advanced display going into next year and the year after. I understand that the PIXALUX versus LUMINEX and all the dynamics that you're talking about.
I just want to ask, how many PIXALUX 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.
You asking how many system PIXALUX shipped so far?
Yeah
I think, 134, roughly in high volume, we ship for about four quarter, right? Roughly is four quarter. Every quarter, I think, we got $60- $80 million. Roughly every quarter is about $15 million. Every quarter, the ballpark probably is about maybe $30- $42. Roughly that's the average.
Okay. Got it. My last question, I think this probably is one of the most important question I believe. A quarter ago, you did give a number for FY 2022, $1.1 billion-$1.2 billion next year. I heard 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.
I just wonder, over the last quarter, now you are possibly seeing an average run rate over the next few years as $1.5 billion, and 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 customer also did a little bit longer term planning for 2022.
I understand that the visibility may be improving, but I really would appreciate, give us some color. What really changed your view here?
Right. Charles, I think, we really have a serious problem about supply chain challenge, right? Part of the reason I think, we handle a little bit conservative because of supply chain dynamic. We work on it almost every day. Right? The difference compare this quarter to our last quarter, if you remember, what I mentioned, the difference is about 10%, right?
If we mention, like $1.4 billion or $1.3 billion, 10% is roughly about $150 million, right? That's a ballpark. We believe a very high growth year possibility to pull back is possible. At that time, I think we talk about maybe $1.35 billion, I remember. From last quarter to now, I think, the intention really did not change that much. 10% really is not very much, right?
We just put like a risk factor over there in case I think, the industry really not able to achieve continued strong growth for two years. Right now, as we see the chip shortage continue. We still have some system customer have an urgent need to get it. From last one or two quarter continue to carry back.
That actually give us the confidence. I think our next year can be as good as this year. At that time, I think we say, 22% will be lower. Actually is like a 10% lower. That's our intention to guide. This 10% actually, compared to current industry uptick, I think we will be able to manage that. That's our view.
Thank you. Thank you, Fusen. That's all my questions. Thank you so much. Congrats again.
Thanks, Charles.
Charles, I think we are going to have our analyst day. There will be a lot of more detail. If you have more question, I think I will be happy to provide you all more details.
Thank you so much.
Your next question comes from line of Eric Gregg with Four Tree Island Advisory. Please proceed with your question.
Fusen, 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, a valuation that's less than 50% of your peers on a price to sales basis, and you made a greater 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.
Well, we constantly look at our capital allocation program. I think with the new outlook, we will again look at it again. We did increase share repurchase in the last quarter, quite significantly more than Q2. I think with the new outlook as well as our confidence in sustainable $1.5 billion and over 25% 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 million a quarter. We will continue to discuss this with the board and to figure out the best way to use our resources. We generally look at it in terms of the dividend and the 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 advanced packaging. 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 Elgindy for closing comments.
Thank you, Hector, and 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 for 8:30 A.M. 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.