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KULICKE & SOFFA REPORTS SECOND QUARTER 2013 RESULTS

Kulicke & Soffa Reports Second Quarter 2013 Results

April 30, 2013 at 6:55 AM EDT

SINGAPORE--(BUSINESS WIRE)-- Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) ("Kulicke & Soffa", "K&S" or the "Company") today announced results for its second fiscal quarter ended March 30, 2013.

 
Quarterly Results
   

Fiscal Q2 2013

 

Change vs.
Fiscal Q2 2012

 

Change vs.
Fiscal Q1 2013

Net Revenue   $106.1 million   (27.5%)   (7.0%)
Gross Profit   $48.8 million   (26.8%)   (5.2%)
Gross Margin   46.0%   40 bps   80 bps
Income from Operations $8.2 million (59.5%) 94.8%
Operating Margin   7.7%   (610) bps   400 bps
Net Income $7.3 million (55.9%) 103.6%
Net Margin   6.9%   (450) bps   370 bps
EPS — Diluted   $0.10   (54.5%)   100%
 

Bruno Guilmart, Kulicke & Soffa's President and Chief Executive Officer, said, "The second fiscal quarter's revenue exceeded the high-end of our guidance range. The broadening of our customer base helped partially offset softer demand from certain key customers. Importantly, despite the recent softness and based on the latest VLSI reports and internal data, we believe that we have at least maintained our market share and we remain confident in the ongoing copper transition."

Second Quarter Fiscal 2013 Key Product Trends

  • Ball bonder equipment net revenue decreased 4.3% over the December quarter.
  • 67.7% of ball bonder equipment was sold as copper capable bonders.
  • Wedge bonder equipment net revenue decreased 56.6% from the December quarter.

Second Quarter Fiscal 2013 Financial Highlights

  • Net revenue of $106.1 million.
  • Gross margin of 46.0%.
  • Net income was $7.3 million or $0.10 per share.
  • Cash and cash equivalents were $498.6 million as at March 30, 2013.

Third Quarter Fiscal 2013 Outlook

The Company expects net revenue in the third fiscal quarter of 2013 ending June 29, 2013 to be approximately $120 million to $130 million.

Looking forward, Bruno Guilmart commented, "Wire bonding remains a very significant manufacturing process step for the overwhelming majority of global semiconductor products. We do not expect this to change over the foreseeable future, as wire bonding is and will likely continue to be the most cost-effective interconnect solution. We remain positive in our core business outlook and continue to invest in new products that maintain our existing market leadership positions, such as our recently released PowerFusionPSTM line of wedge bonding solutions. We also remain focused on new opportunities, such as investments in our advanced packaging program, which will provide new vectors of long-term growth with an attractive return on investment profile."

Earnings Conference Call Details

A conference call to discuss these results will be held today, April 30, 2013, beginning at 8:00 am (EDT). 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 investor.kns.com.

A replay will be available from approximately one hour after the completion of the call through May 7, 2013 by calling toll-free +1-877-660-6853 or internationally +1-201-612-7415 and using the replay ID number of 421379. A webcast replay will also be available at investor.kns.com.

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 wedge bonding 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; a slowdown of transition from gold to copper wire bonding by our customers and the industry, 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. 2012 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 Six months ended
March 30, March 31, March 30, March 31,
2013 2012 2013 2012
 
Net revenue:
Equipment $ 91,083 $ 131,053 $ 190,985 $ 237,202
Expendable Tools   15,027     15,255     29,164     29,130  
Total net revenue 106,110 146,308 220,149 266,332
 
Cost of sales:
Equipment 51,140 72,835 107,572 131,839
Expendable Tools   6,150     6,786     12,232     12,530  
Total cost of sales 57,290 79,621 119,804 144,369
 
Gross profit:
Equipment 39,943 58,218 83,413 105,363
Expendable Tools   8,877     8,469     16,932     16,600  
Total gross profit   48,820     66,687     100,345     121,963  
 
Operating expenses:
Selling, general and administrative 26,204 27,484 52,234 52,724
Research and development 12,207 15,911 30,460 30,059
Amortization of intangible assets 2,294 2,294 4,587 4,589
Restructuring   (75 )   756     669     1,973  
Total operating expenses   40,630     46,445     87,950     89,345  
 
 
Income from operations:
Equipment 4,428 18,016 6,173 27,893
Expendable Tools   3,762     2,226     6,222     4,725  
Total income from operations 8,190 20,242 12,395 32,618
 

Other income (expense):

Interest income 188 191 362 451
Interest expense (1 ) (242 ) (1 ) (484 )
Interest expense: non-cash   -     (1,958 )   -     (3,868 )
 
Income from operations before income taxes 8,377 18,233 12,756 28,717
 
Provision for income taxes 1,041 1,616 1,816 3,593
       
Net income $ 7,336   $ 16,617   $ 10,940   $ 25,124  
 
Net income per share:
Basic $ 0.10   $ 0.23   $ 0.15   $ 0.34  
Diluted $ 0.10   $ 0.22   $ 0.14   $ 0.33  
 
Weighted average shares outstanding:
Basic 75,166 73,825 75,009 73,683
Diluted 76,553 75,553 76,332 75,160
 
Three months ended Six months ended
March 30, March 31, March 30, March 31,
Supplemental financial data: 2013 2012 2013 2012
 
Depreciation and amortization $ 4,702 $ 4,221 $ 9,504 $ 8,479
 
Capital expenditures $ 1,787 $ 1,383 $ 3,403 $ 2,881
 
Equity-based compensation expense:
Cost of sales $ 74 $ 97 $ 222 $ 182
Selling, general and administrative 1,925 1,833 4,251 3,444
Research and development   293     463     1,020     866  
Total equity-based compensation expense $ 2,292     $ 2,393     $ 5,493     $ 4,492  
 
As of
March 30, March 31,
2013 2012
 
Backlog of orders $ 56,000 $ 164,000
 
Number of employees 2,328 2,802
 
 
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
  March 30,   September 29,
2013 2012
ASSETS
 
CURRENT ASSETS
Cash and cash equivalents $ 498,619 $ 440,244
Short-term investments - -

Accounts and notes receivable, net of allowance for doubtful accounts of $852 and $937, respectively

117,232 188,986
Inventories, net 45,594 58,994
Prepaid expenses and other current assets 18,467 21,577
Deferred income taxes   3,511     3,515  
 
TOTAL CURRENT ASSETS 683,423 713,316
 
Property, plant and equipment, net 26,592 28,441
Goodwill 41,546 41,546
Intangible assets 15,798 20,387
Other assets   11,039     11,919  
 
TOTAL ASSETS $ 778,398   $ 815,609  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
CURRENT LIABILITIES
Accounts payable

$

26,385 $ 57,231
Accrued expenses and other current liabilities 38,139 57,946
Income taxes payable   5,558     8,192  
 
TOTAL CURRENT LIABILITIES 70,082 123,369
 
Deferred income taxes 38,085 37,875
Other liabilities   9,031     10,698  
 
TOTAL LIABILITIES   117,198     171,942  
 
SHAREHOLDERS' EQUITY
Common stock, no par value 461,154 455,122
Treasury stock, at cost (46,356 ) (46,356 )
Accumulated income 243,460 232,520
Accumulated other comprehensive income   2,942     2,381  
 
TOTAL SHAREHOLDERS' EQUITY   661,200     643,667  
 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$ 778,398   $ 815,609  
 
 
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
         
Three months ended Six months ended

March 30, 2013

March 31, 2012

March 30, 2013

March 31, 2012

 
Net cash provided by (used in) operations $ (1,662 ) $ 23,623 $ 56,832 $ 57,947
Net cash used in discontinued operations   -     (559 )   -     (1,045 )
Net cash provided by (used in) operating activities (1,662 ) 23,064 56,832 56,902
 
Net cash provided by (used in) investing activities, continuing operations 6,423 (1,383 ) 1,907 (11,365 )
 
Net cash provided by financing activities, continuing operations 381 967 540 2,543
Effect of exchange rate changes on cash and cash equivalents   (693 )   (270 )   (904 )   (129 )
Changes in cash and cash equivalents 4,449 22,378

 

58,375 47,951

Cash and cash equivalents, beginning of period

  494,170     403,761     440,244     378,188  
Cash and cash equivalents, end of period $ 498,619   $ 426,139  

 

$ 498,619   $ 426,139  
 
Short-term investments & restricted cash   -     -     -     -  
Total cash, cash equivalents, restricted cash and short-term investments $ 498,619   $ 426,139   $ 498,619   $ 426,139  
 

Kulicke & Soffa Industries, Inc.
Joseph Elgindy
Investor Relations & Strategic Planning
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

Source: Kulicke and Soffa Industries, Inc.

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