Announcement
New Solutions Available 2017

KULICKE & SOFFA REPORTS FIRST QUARTER FISCAL 2012 RESULTS

Kulicke & Soffa Reports First Quarter Fiscal 2012 Results

January 31, 2012 at 12:00 AM EST
Kulicke & Soffa Reports First Quarter Fiscal 2012 ResultsSINGAPORE--(BUSINESS WIRE)--Jan. 31, 2012-- Kulicke & Soffa Industries, Inc. (NASDAQ: KLIC) (“K&S” or the Company”) today announced results for its first fiscal quarter ended December 31, 2011.
     
Quarterly Results
   

Fiscal Q1 2012

  Change vs.

Fiscal Q1 2011

  Change vs.

Fiscal Q4 2011

Net Revenue   $120.0 million   -19.4%   -33.5%
Gross Profit $55.3 million -23.3% -33.2%
Gross Margin   46.1%   -230 bps   20 bps
Income from Operations $12.4 million -43.9% -45.5%
Operating Margin   10.3%   -450 bps   -230 bps
Net Income $8.5 million -43.7% 344.9%
Net Margin   7.1%   -300 bps   600 bps
EPS – Diluted   $0.11   -47.6%   266.7%
 

Bruno Guilmart, Kulicke & Soffa’s President and Chief Executive Officer, said, “Revenue in the December quarter came in at the high end of our guidance but declined sequentially due to the overall macroeconomic market environment combined with weaker demand from our OSAT customers. Despite the challenging environment, we continued to generate healthy levels of operating cash which allowed us to end the quarter with record cash and investments of $403.8 million dollars. We remain focused on operational excellence, expanding our product offerings and managing our business efficiently throughout the cycle.”

First Quarter Fiscal 2012 Key Product Trends

  • Ball bonder equipment net revenue decreased 37% over the September quarter.
  • 72% of ball bonder equipment was sold as copper capable bonders, compared to 37% in the same period one year ago.
  • Wedge bonder equipment net revenue decreased 18% from the September quarter.

First Quarter Fiscal 2012 Financial Highlights

  • Net revenue of $120.0 million.
  • Gross margin improved sequentially to 46.1%.
  • Net income was $8.5 million or $0.11 per share.
  • Cash, cash equivalents and investments increased to $403.8 million up $19.2 million from the prior quarter.

Second Quarter Fiscal 2012 Outlook

The Company expects net revenue for the second quarter of fiscal 2012 to be approximately $125 million to $135 million, reflecting the continued uncertain economic environment and ongoing conservative capital spending by its customers.

Looking forward, Bruno Guilmart commented, “We believe we are well positioned both competitively and financially and continue to work towards our goals and objectives of strengthening our technology leadership, broadening our product offering, developing our employees and leveraging our technical competencies in an effort to maximize shareholder value. These actions are coming to fruition as we look forward to a series of new product launches throughout 2012.”

Earnings Conference Call Details

A conference call to discuss these results will be held today, January 31, 2012, beginning at 8:00 am (EST). To access the conference call, interested parties may call +1-877-407-8037 or internationally +1-201-689-8037. The call will also be available by live webcast at www.kns.com/investors/events.

A replay will be available from approximately one hour after the completion of the call through February 7, 2012 by calling +1-877-660-6853 or internationally +1-201-612-7415, with account number 5521 and replay ID 386579. A webcast replay will also be available at www.kns.com/investors/events.

About Kulicke & Soffa

Kulicke & Soffa (NASDAQ: KLIC) is a global leader in the design and manufacture of semiconductor and LED assembly equipment. As a pioneer in this industry, K&S has provided customers with market leading packaging solutions for decades. In recent years, K&S has expanded its product offerings through strategic acquisitions, adding die and wedge bonders and a broader range of expendable tools to its core ball bonding products. Combined with its extensive expertise in process technology, K&S is well positioned to help customers meet the challenges of assembling the next-generation semiconductor and LED devices. (www.kns.com)

Caution Concerning Results and Forward Looking Statements

In addition to historical statements, this press release contains statements relating to future events and our future results. These statements are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, and include, but are not limited to, statements that relate to our future revenue, sustained, increasing, continuing or strengthening demand for our products, the continuing transition from gold to copper wire bonding, replacement demand, our research and development efforts, our ability to identify and realize new growth opportunities and our ability to control costs. While these forward-looking statements represent our judgments and future expectations concerning our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to: the risk that customer orders already received may be postponed or canceled, generally without charges; the risk that anticipated customer orders may not materialize; the risk that our suppliers may not be able to meet our demands on a timely basis; the volatility in the demand for semiconductors and our products and services; volatile global economic conditions, which could result in, among other things, sharply lower demand for products containing semiconductors and for the Company’s products, and disruption of capital and credit markets; the risk of failure to successfully manage our operations; acts of terrorism and violence; risks, such as changes in trade regulations, currency fluctuations, political instability and war, which may be associated with a substantial non-U.S. customer and supplier base and substantial non-U.S. manufacturing operations; and the factors listed or discussed in Kulicke and Soffa Industries, Inc. 2011 Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission. Kulicke & Soffa Industries, Inc is under no obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

   
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share and employee data)
(Unaudited)
Three months ended

 

December 31, January 1,
2011 2011
 
Net revenue:
Equipment $ 106,149 $ 132,698
Expendable Tools   13,875     16,165  
Total net revenue 120,024 148,863
 
Cost of sales:
Equipment 59,004 70,238
Expendable Tools   5,744     6,513  
Total cost of sales 64,748 76,751
 
Gross profit:
Equipment 47,145 62,460
Expendable Tools   8,131     9,652  
Total gross profit   55,276     72,112  
 
Operating expenses:
Selling, general and administrative 25,240 30,672
Research and development 14,148 15,195
Amortization of intangible assets 2,295 2,386
Restructuring   1,217     1,792  
Total operating expenses   42,900     50,045  
 
 
Income from operations:
Equipment 9,877 19,184
Expendable Tools   2,499     2,883  
Total income from operations 12,376 22,067
 
Other income (expense):
Interest income 260 105
Interest expense (242 ) (242 )
Interest expense: non-cash   (1,910 )   (1,772 )
 
Income from operations before income taxes 10,484 20,158
 
Provision for income taxes 1,977 5,059
   
Net income $ 8,507   $ 15,099  
 
Net income per share:
Basic $ 0.12   $ 0.21  
Diluted $ 0.11   $ 0.21  
 
Weighted average shares outstanding:
Basic 73,540 70,881
Diluted 74,628 71,706
 
Three months ended
December 31, January 1,
Supplemental financial data: 2011 2011
 
Depreciation and amortization $ 4,258 $ 4,407
 
Capital expenditures $ 1,498 $ 2,705
 
Equity-based compensation expense:
Cost of sales $ 85 $ 48
Selling, general and administrative 1,611 963
Research and development   403     276  
Total equity-based compensation expense $ 2,099   $ 1,287  
 
As of
December 31, January 1,
2011 2011
 
Backlog of orders $ 88,000 $ 193,000
 
Number of employees 2,735 2,628
 
   
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

 

December 31, October 1,
2011 2011
ASSETS
 
CURRENT ASSETS
Cash and cash equivalents $ 403,761 $ 378,188
Short-term investments - 6,364

Accounts and notes receivable, net of allowance for doubtful accounts of $2,338 and $2,194, respectively

110,030 138,649
Inventories, net 59,706 73,092
Prepaid expenses and other current assets 20,112 21,897
Deferred income taxes   1,657     1,651  
 
TOTAL CURRENT ASSETS 595,266 619,841
 
Property, plant and equipment, net 26,059 26,501
Goodwill 41,546 41,546
Intangible assets 27,270 29,565
Other assets   11,371     10,938  
 
TOTAL ASSETS $ 701,512   $ 728,391  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
CURRENT LIABILITIES
Current portion of long term debt $ 106,987 $ 105,224
Accounts payable 19,261 36,321
Accrued expenses and other current liabilities 35,397 43,528
Earnout agreement payable - 14,848
Income taxes payable   15,040     14,261  
 
TOTAL CURRENT LIABILITIES 176,685 214,182
 
Deferred income taxes 31,998 32,065
Other liabilities   10,386     12,267  
 
TOTAL LIABILITIES   219,069     258,514  
 
SHAREHOLDERS' EQUITY
Common stock, no par value 445,626 441,749
Treasury stock, at cost (46,356 ) (46,356 )
Accumulated income 80,447 71,940
Accumulated other comprehensive income   2,726     2,544  
 
TOTAL SHAREHOLDERS' EQUITY   482,443     469,877  
 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$ 701,512   $ 728,391  
 
   
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
Three months ended
December 31, 2011 January 1, 2011
 
Net cash provided by operations $ 34,324 $ 25,310
Net cash used in discontinued operations   (486 )     (524 )
Net cash provided by operating activities $ 33,838 $ 24,786
 
Net cash used in investing activities (9,982 ) (5,648 )
 
Net cash provided by financing activities 1,576 125
Effect of exchange rate changes on cash and cash equivalents   141       176  
Changes in cash and cash equivalents $ 25,573 $ 19,439
Cash and cash equivalents, beginning of period   378,188       178,112  
Cash and cash equivalents, end of period $ 403,761   $ 197,551  
 
Short-term investments   -     6,074  
Total Cash, cash equivalents and short-term investments $ 403,761   $ 203,625  
 

Source: Kulicke & Soffa Industries, Inc.

Kulicke & Soffa Industries, Inc.
Joseph Elgindy
Investor Relations
P: +1-215-784-7518
F: +1-215-784-6180
jelgindy@kns.com
or
Global IR Partners
David Pasquale
P: +1-914-337-8801
klic@globalirpartners.com