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KULICKE & SOFFA REPORTS SECOND QUARTER FISCAL 2012 RESULTS

Kulicke & Soffa Reports Second Quarter Fiscal 2012 Results

May 1, 2012 at 12:00 AM EDT
Kulicke & Soffa Reports Second Quarter Fiscal 2012 ResultsSINGAPORE--(BUSINESS WIRE)--May. 1, 2012-- Kulicke & Soffa Industries, Inc. (NASDAQ: KLIC) (“K&S” or the Company”) today announced results for its second fiscal quarter ended March 31, 2012.
Quarterly Results

 

 

Fiscal Q2 2012

 

Change vs.
Fiscal Q2 2011

 

Change vs.
Fiscal Q1 2012

Net Revenue   $146.3 million   -29.2%   21.9%
Gross Profit   $66.7 million   -32.6%   20.6%
Gross Margin   45.6%   -230 bps   -50 bps
Income from Operations $20.2 million -53.6% 63.6%
Operating Margin   13.8%   -730 bps   350 bps
Net Income $16.6 million -58.3% 95.3%
Net Margin   11.4%   -790 bps   430 bps
EPS – Diluted   $0.22   -59.3%   100.0%
 

Bruno Guilmart, Kulicke & Soffa’s President and Chief Executive Officer, said, “Our quarterly results were above the high end of our guidance, driven by revenue and gross margin strength. Our continued success further validates our leadership position, business strategy and long-term roadmap. We are working to capture all potential opportunities relating to the ongoing transition from gold to copper, as we leverage our broadening line of copper-capable solutions. Importantly, customer and market feedback indicate we are early in the transition based on market demand levels and capacity needs.”

Second Quarter Fiscal 2012 Key Product Trends

  • Ball bonder equipment net revenue increased 34% over the December quarter.
  • 70.4% of ball bonder equipment was sold as copper capable bonders.
  • Wedge bonder equipment net revenue decreased 45% from the December quarter.

Second Quarter Fiscal 2012 Financial Highlights

  • Net revenue of $146.3 million.
  • Gross margin of 45.6%.
  • Net income was $16.6 million or $0.22 per share.
  • Cash, cash equivalents and investments increased to $426.1 million up $22.4 million from the prior quarter.

Third Quarter Fiscal 2012 Outlook

The Company expects net revenue for the third quarter of fiscal 2012 to be approximately $220 million to $240 million, reflecting the ongoing transition from gold to copper, strength across all our product lines, combined with an improvement in the broader semiconductor industry led by positive equipment inventory trends, capacity levels and end market growth drivers.

Looking forward, Bruno Guilmart commented, “We are pleased with our financial performance over the past 3 years, our business momentum and improving market trends give us a distinct business advantage and improved level of stability and visibility as we move forward. Our efforts to strengthen the Company’s long-term fundamentals remain focused on new product initiatives, ongoing gross margin improvements, operational efficiency gains and overall cash generation.”

Earnings Conference Call Details

A conference call to discuss these results will be held today, May 1, 2012, 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 www.kns.com/investors/events.

A replay will be available from approximately one hour after the completion of the call through May 8, 2012 by calling +1-877-660-6853 or internationally +1-201-612-7415, with account number 5521 and replay ID 392356. 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 wirebonding, 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 wirebonding 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. 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   Six months ended
March 31,   April 2, March 31,   April 2,
  2012     2011     2012     2011  
 
Net revenue:
Equipment $ 131,053 $ 190,010 $ 237,202 $ 322,708
Expendable Tools   15,255       16,719     29,130     32,884  
Total net revenue 146,308 206,729 266,332 355,592
 
Cost of sales:
Equipment 72,835 100,833 131,839 171,071
Expendable Tools   6,786     6,939     12,530     13,452  
Total cost of sales 79,621 107,772 144,369 184,523
 
Gross profit:
Equipment 58,218 89,177 105,363 151,637
Expendable Tools   8,469     9,780     16,600     19,432  
Total gross profit   66,687     98,957     121,963     171,069  
 
Operating expenses:
Selling, general and administrative 27,484 35,415 52,724 66,087
Research and development 15,911 16,524 30,059 31,719
Amortization of intangible assets 2,294 2,386 4,589 4,772
Restructuring   756     983     1,973     2,775  
Total operating expenses   46,445     55,308     89,345     105,353  
 
 
Income from operations:
Equipment 18,016 41,346 27,893 60,530
Expendable Tools   2,226     2,303     4,725     5,186  
Total income from operations 20,242 43,649 32,618 65,716
 
Other income (expense):
Interest income 191 156 451 261
Interest expense (242 ) (241 ) (484 ) (483 )
Interest expense: non-cash   (1,958 )   (1,780 )   (3,868 )   (3,552 )
 
Income from operations before income taxes 18,233 41,784 28,717 61,942
 
Provision for income taxes 1,616 1,899 3,593 6,958
       
Net income $ 16,617   $ 39,885   $ 25,124   $ 54,984  
 
Net income per share:
Basic $ 0.23   $ 0.55   $ 0.34   $ 0.77  
Diluted $ 0.22   $ 0.54   $ 0.33   $ 0.75  
 
Weighted average shares outstanding:
Basic 73,825 71,512 73,683 71,196
Diluted 75,553 73,120 75,160 72,410
 
Three months ended Six months ended
March 31, April 2, March 31, April 2,
Supplemental financial data:   2012     2011     2012     2011  
 
Depreciation and amortization $ 4,221 $ 4,397 $ 8,479 $ 8,804
 
Capital expenditures $ 1,383 $ 1,884 $ 2,881 $ 4,589
 
Equity-based compensation expense:
Cost of sales $ 97 $ 56 $ 182 $ 104
Selling, general and administrative 1,833 2,148 3,444 3,111
Research and development   463     354     866     630  
Total equity-based compensation expense $ 2,393   $ 2,558   $ 4,492   $ 3,845  
 
As of
March 31, April 2,
  2012     2011  
 
Backlog of orders $ 164,000 $ 217,000
 
Number of employees 2,802 2,884
 
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
  March 31,   October 1,
  2012     2011  
ASSETS
 
CURRENT ASSETS
Cash and cash equivalents $ 426,139 $ 378,188
Short-term investments - 6,364

Accounts and notes receivable, net of allowance for doubtful accounts of $2,805 and $2,194, respectively

134,426 138,649
Inventories, net 63,303 73,092
Prepaid expenses and other current assets 22,675 21,897
Deferred income taxes   1,658     1,651  
 
TOTAL CURRENT ASSETS 648,201 619,841
 
Property, plant and equipment, net 25,233 26,501
Goodwill 41,546 41,546
Intangible assets 24,976 29,565
Other assets   10,909     10,938  
 
TOTAL ASSETS $ 750,865   $ 728,391  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
CURRENT LIABILITIES
Current portion of long term debt $ 108,795 $ 105,224
Accounts payable 46,913 36,321
Accrued expenses and other current liabilities 36,767 43,528
Earnout agreement payable - 14,848
Income taxes payable   13,717     14,261  
 
TOTAL CURRENT LIABILITIES 206,192 214,182
 
Deferred income taxes 32,028 32,065
Other liabilities   10,147     12,267  
 
TOTAL LIABILITIES   248,367     258,514  
 
SHAREHOLDERS' EQUITY
Common stock, no par value 448,866 441,749
Treasury stock, at cost (46,356 ) (46,356 )
Accumulated income 97,064 71,940
Accumulated other comprehensive income   2,924     2,544  
 
TOTAL SHAREHOLDERS' EQUITY   502,498     469,877  
 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$ 750,865   $ 728,391  
 
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
       
Three months ended Six months ended

March 31, 2012

April 2, 2011

March 31, 2012

April 2, 2011

 
Net cash provided by operations $ 23,623 $ 76,477 $ 57,947 $ 101,787
Net cash used in discontinued operations   (559 )     (444 )   (1,045 )     (968 )
Net cash provided by operating activities $ 23,064 $ 76,033 $ 56,902 $ 100,819
 
Net cash used in investing activities, continuing operations (1,383 ) (1,989 ) (11,365 ) (7,637 )
 
Net cash provided by financing activities, continuing operations 967 3,906 2,543 4,031
Effect of exchange rate changes on cash and cash equivalents   (270 )     175     (129 )     351  
Changes in cash and cash equivalents $ 22,378 $ 78,125 $ 47,951 $ 97,564
Cash and cash equivalents, beginning of period   403,761       197,551     378,188       178,112  
Cash and cash equivalents, end of period $ 426,139   $ 275,676   $ 426,139   $ 275,676  
 
Short-term investments & restricted cash   -       6,139     -       6,139  
Total cash, cash equivalents, restricted cash and short-term investments $ 426,139     $ 281,815   $ 426,139     $ 281,815  

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