FORT WASHINGTON, Pa. --(BUSINESS WIRE)-- Kulicke & Soffa Industries, Inc. (NASDAQ:KLIC) (“K&S”) today announced results for the quarter ended December 27, 2008 . The Company reported net revenue from continuing operations of $37.4 million , and a loss from continuing operations of $18.2 million , or $0.30 per share. This press release contains both GAAP and non-GAAP information.
On a non-GAAP* basis, the Company reported first quarter net revenue from continuing operations of
During the quarter, the Company completed the divestiture of its Wire business and accordingly all operating results associated with this business are reported as discontinued operations. The Company also completed the acquisition of
| GAAP Results: | ||||||
| Q1 2009 | Change vs. Q1 2008 | Change vs. Q4 2008 | ||||
| Net Revenue | 37,416 | -70% | -39% | |||
| Gross Profit | 13,928 | -72% | -44% | |||
| Gross Margin | 37.2% | -375 basis points | -339 basis points | |||
| Income (Loss) from continuing operations | (18,243) | -359% | -66% | |||
| Net Margin | -48.8% | -5,445 basis points | -3,076 basis points | |||
| EPS - Diluted from Continuing Operations | $ (0.30) | -350% | -43% | |||
| Non-GAAP Measures: | ||||||
| Q1 2009 | Change vs. Q1 2008 | Change vs. Q4 2008 | ||||
| Net Revenue | 37,416 | -70% | -39% | |||
| Gross Profit | 13,899 | -73% | -44% | |||
| Gross Margin | 37.1% | -388 basis points | -357 basis points | |||
| Income (Loss) from continuing operations | (22,164) | -367% | -116% | |||
| Net Margin | -59.2% | -6,595 basis points | -4,246 basis points | |||
|
EPS - Diluted from Continuing Operations |
$ (0.37) | -368% | -91% | |||
*Non-GAAP measures exclude: equity-based compensation, contractual commitments for former Test facilities, amortization of intangibles, severance plan, and related tax effects from expenses; debt extinguishment; and settlement of
Commenting on the results,
“In response to the industry’s present weakness, we have taken aggressive action. In November, we announced a headcount reduction of 240 positions and the cancellation of annual salary increases. In January, we initiated reductions in weekly hours for our direct labor force and significant wage cuts for all other employees. We also announced to our employees that further workforce reductions were forthcoming. The goal of these steps is to preserve the Company’s liquidity position so that we will be able to scale the business when the global economy recovers.”
“We believe the severity of the global economic downturn, and the rapidity with which it emerged, validates the strategic decisions we made over the last several quarters. The divestiture of our Wire business added
“Although the business environment remains extremely difficult, we continue to make important progress in our technology portfolio. IConnPS, our new high-performance ball bonder for high-pin count applications, continues to achieve the technical and price performance we anticipated. First units of ConnXPS, our ball bonder for LED, discrete and low pin-count applications, were sold during the quarter, and the product continues to generate positive feedback from customers. Discovery development is proceeding on schedule. Orthodyne, our recently acquired wedge bonding business unit, concluded an important qualification of its PowerRibbonTM interconnect solution with a major European automotive supplier of high current power modules. Our product portfolio is strong and this strength will become apparent once the industry recovers.”
Significant Events
A number of significant events occurred during the quarter that impacted our financial statements
- The sale of the Wire business, which resulted in
$22.7 million of income (net of tax) from discontinued operations - The settlement of the Company’s
Israel tax audit, which resulted in a$12.2 million tax benefit to net income - The completion of the acquisition of Orthodyne
- Actions in response to the current economic weakness
- The reduction of 240 positions in November, resulting in
$7.6 million in annualized savings and$2.6 million of severance expense - Deferred annual salary increases, which will result in
$4.7 million of cost avoidance - An equity compensation expense reversal of
$1.6 million due to a decrease of estimated percentage attainment for fiscal 2007 and 2008 performance-based restricted stock awards - An expense of
$2.6 million related to contractual commitments for former Test facilities
- The reduction of 240 positions in November, resulting in
Other Financial Details
- Total cash and investments of
$175 million - Subsequent to quarter end, the Company announced a reduction of hours for its direct labor force, cut wages for all salaried employees between 5% -20%, and took other actions, which are expected to generate annual savings of
$8.1 million - Subsequent to quarter end, the Company announced a tender offer for the outstanding portion of its 1.0% Convertible Subordinated Notes due in 2010
Key Product Highlights
- IConnPS exceeding technical performance parameters
- First sales of ConnXPS ball bonders
- Over 200 customers attended private demonstration of Discovery at SEMICON Korea; Discovery is on schedule for formal launch at SEMI
China ,March 2009 - Orthodyne concluded a 2-year joint development project with a major European automotive supplier for the qualification and implementation of its PowerRibbonTM interconnect solution into high current automotive power modules
Outlook for Second Fiscal Quarter 2009
- Net revenue is expected to be approximately
$30 million , although with a larger than normal range of possible results because of unusually low visibility.
Earnings Conference Call Details
A conference call and simultaneous audio webcast will be held today,
Discussion of Non-GAAP Measures
This press release contains non-GAAP financial measures as a supplement to the consolidated financial results presented in accordance with GAAP.
Exclusions from GAAP Results
The Company excludes the following from its GAAP results in presenting non-GAAP financial measures:
- Equity-based compensation expenses. In accordance with Statement of Financial Accounting Standards (“SFAS”) No. 123R, Share Based Payments, the Company recognizes the fair value of its equity-based compensation in expenses. Equity-based compensation consists of common stock, stock options and restricted stock granted under the Company’s equity compensation plans. Equity-based compensation is a non-cash expense that can vary significantly in amount from period to period.
- Other. The exclusion of certain other non-GAAP amounts allows for improved comparisons of the Company’s results to both prior periods and other companies. The Company excludes the following other items from non-GAAP measures as these items are not reflective of the performance of the Company’s ongoing businesses:
- Settlement of
Israel tax assessment - Contractual commitments for former Test facilities
- Severance plan
- Debt extinguishment
- Amortization of intangibles
- Tax Adjustment. Non-GAAP measures are tax adjusted using the GAAP tax rate associated with each quarterly period. The tax rate is calculated by dividing each quarter’s GAAP tax expense by the GAAP net income for that quarter. Non-GAAP year-to-date measures are calculated by summing the associated quarterly non-GAAP measures, without further tax adjustments.
Non-GAAP Measures
The specific non-GAAP measures included herein are gross profit, gross margin, net income, net margin, and EPS. The Company calculates these measures as follows:
- Gross Profit. K&S non-GAAP gross profit excludes the effects of equity-based compensation expense recorded within cost of sales.
- Gross Margin. K&S non-GAAP gross margin excludes the impact of equity-based compensation expense recorded within cost of sales.
- Net Income (loss) and Earnings per Share. K&S non-GAAP net income (loss) and EPS exclude equity-based compensation, contractual commitments for former Test facilities, amortization of intangibles, severance plan and related tax effects from expenses; debt extinguishment; and settlement of
- Net Margin. Non-GAAP net margin reflects the Company’s net margin equity-based compensation, contractual commitments for former Test facilities, amortization of intangibles, severance plan and related tax effects from expenses; debt extinguishment, and settlement of
About
Caution Concerning 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 global economic conditions, future demand for our products, visibility regarding future demand for our products, future costs and savings associated with headcount and other reductions, our future revenue, liquidity position, sales, profitability, financial results, and product development. 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: deteriorating global economic conditions, resulting in, among other things, sharply lower consumer 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; the risk of failure to successfully integrate Orthodyne; the risk that anticipated customer orders may not materialize or that orders received may be postponed or canceled, generally without charges; the volatility in the demand for semiconductors and our products and services; the risk that we may not be able to develop and manufacture new products and product enhancements on a timely and cost effective basis; acts of terrorism and violence; risks, such as changes in trade regulations, currency fluctuations, political instability and war, associated with a substantial foreign customer and supplier base and substantial foreign manufacturing operations; and the factors listed or discussed in
| KULICKE & SOFFA INDUSTRIES, INC. | ||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (In thousands, except per share and employee data) | ||||||||
| (Unaudited) | ||||||||
| Three months ended | ||||||||
| December 29, | December 27, | |||||||
| 2007 | 2008 | |||||||
| Net revenue | $ | 123,532 | $ | 37,416 | ||||
| Cost of sales | 72,914 | 23,488 | ||||||
| Gross profit | 50,618 | 13,928 | ||||||
| Selling, general and administrative | 25,151 | 29,852 | ||||||
| Research and development | 14,532 | 15,400 | ||||||
| Total operating expenses | 39,683 | 45,252 | ||||||
| Income (loss) from operations | 10,935 | (31,324 | ) | |||||
| Interest income | 1,569 | 754 | ||||||
| Interest expense | (872 | ) | (734 | ) | ||||
| Gain on extinguishment of debt | 170 | 1,179 | ||||||
| Income (loss) from continuing operations, before tax | 11,802 | (30,125 | ) | |||||
| Provision (benefit) for income taxes | 4,769 | (11,882 | ) | |||||
| Income (loss) from continuing operations | 7,033 | (18,243 | ) | |||||
| Income from discontinued operations, net of tax | 9,329 | 22,727 | ||||||
| Net income | $ | 16,362 | $ | 4,484 | ||||
| Income (loss) per share from continuing operations: | ||||||||
| Basic | $ | 0.13 | $ | (0.30 | ) | |||
| Diluted | $ | 0.12 | $ | (0.30 | ) | |||
| Income from share of discontinued operations: | ||||||||
| Basic | $ | 0.18 | $ | 0.37 | ||||
| Diluted | $ | 0.15 | $ | 0.37 | ||||
| Net income per share: | ||||||||
| Basic | $ | 0.31 | $ | 0.07 | ||||
| Diluted | $ | 0.27 | $ | 0.07 | ||||
| Weighted average shares outstanding: | ||||||||
| Basic | 53,264 | 60,451 | ||||||
| Diluted | 62,425 | 60,451 | ||||||
| Equity-based compensation expense included in continuing operations: | ||||||||
| Cost of sales | $ | 67 | $ | (29 | ) | |||
| Selling, general and administrative | 1,470 | (667 | ) | |||||
| Research and development | 707 | 24 | ||||||
| Total | $ | 2,244 | $ | (672 | ) | |||
| Three months ended | ||||||||
| December 29, | December 27, | |||||||
| Additional financial data: | 2007 | 2008 | ||||||
| Depreciation and amortization | ||||||||
| Continuing operations | $ | 2,113 | $ | 5,559 | ||||
| Discontinued operations | $ | 231 | $ | - | ||||
| Capital expenditures | ||||||||
| Continuing operations | $ | 2,698 | $ | 2,433 | ||||
| Discontinued operations | $ | 75 | $ | - | ||||
| December 29, | December 27, | |||||||
| 2007 | 2008 | |||||||
| Backlog of orders | ||||||||
|
Continuing operations |
$ | 57,000 | $ | 53,000 | ||||
| Discontinued operations | $ | 19,000 | $ | - | ||||
| Number of employees | ||||||||
|
Continuing operations |
2,516 | 2,434 | ||||||
| Discontinued operations | 254 | - | ||||||
| Note – Statements of operations and additional financial data reflect accounting for the sale of the company's Wire business as a discontinued operation in accordance with the requirements of FAS 144. | ||
| KULICKE & SOFFA INDUSTRIES, INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| September 27, | December 27, | |||||||
| 2008 | 2008 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 144,932 | $ | 173,046 | ||||
| Restricted cash | 35,000 | - | ||||||
| Short-term investments | 6,149 | 1,999 | ||||||
|
Accounts and notes receivable, net of allowance for doubtful accounts of $1,376 and $2,597 respectively |
56,643 | 40,633 | ||||||
| Inventories, net | 27,236 | 52,048 | ||||||
| Prepaid expenses and other current assets | 18,729 | 17,765 | ||||||
| Deferred income taxes | 2,118 | 1,798 | ||||||
| Current assets of discontinued operations | 127,958 | - | ||||||
| TOTAL CURRENT ASSETS | 418,765 | 287,289 | ||||||
| Property, plant and equipment, net | 36,900 | 41,282 | ||||||
| Intangible assets | 386 | 57,187 | ||||||
| Goodwill | 2,709 | 29,109 | ||||||
| Other assets | 5,468 | 5,172 | ||||||
| Non-current assets of discontinued operations | 32,909 | - | ||||||
| TOTAL ASSETS | $ | 497,137 | $ | 420,039 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Current portion of long term debt | $ | 72,412 | $ | - | ||||
| Accounts payable | 25,028 | 11,682 | ||||||
| Accrued expenses and other current liabilities | 27,255 | 38,230 | ||||||
| Income taxes payable | 569 | 17,036 | ||||||
| Current liabilities of discontinued operations | 34,411 | - | ||||||
| TOTAL CURRENT LIABILITIES | 159,675 | 66,948 | ||||||
| Long term debt | 175,000 | 172,000 | ||||||
| Other liabilities | 37,780 | 13,750 | ||||||
| Deferred income taxes | 21,591 | 15,643 | ||||||
| Other liabilities of discontinued operations | 624 | - | ||||||
| TOTAL LIABILITIES | 394,670 | 268,341 | ||||||
| SHAREHOLDERS' EQUITY | ||||||||
| Common stock, no par value | 295,841 | 341,598 | ||||||
| Treasury stock, at cost | (46,118 | ) | (46,118 | ) | ||||
| Accumulated deficit | (149,465 | ) | (144,981 | ) | ||||
| Accumulated other comprehensive income | 2,209 | 1,199 | ||||||
| TOTAL SHAREHOLDERS' EQUITY | 102,467 | 151,698 | ||||||
| TOTAL LIABILITIES AND | ||||||||
| SHAREHOLDERS' EQUITY | $ | 497,137 | $ | 420,039 | ||||
|
KULICKE & SOFFA INDUSTRIES, INC. |
||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| Three months ended | ||||||||
| December 29, 2007 | December 27, 2008 | |||||||
| Net cash provided by (used in) continuing operations | $ | (7,825 | ) | $ | 2,012 | |||
| Net cash used in discontinued operations | (17,039 | ) | (779 | ) | ||||
| Net cash provided by (used in) operating activities | $ | (24,864 | ) | $ | 1,233 | |||
| Net cash used in investing activities, continuing operations | (1,197 | ) | (48,880 | ) | ||||
| Net cash provided by (used in) investing activities, discontinued operations | (120 | ) | 149,857 | |||||
| Net cash provided by (used in) investing activities | $ | (1,317 | ) | $ | 100,977 | |||
| Net cash used in financing activities, continuing operations | (3,607 | ) | (74,187 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 212 | 91 | ||||||
| Changes in cash and cash equivalents | $ | (29,576 | ) | $ | 28,114 | |||
| Cash and cash equivalents, beginning of period | 150,571 | 144,932 | ||||||
| Cash and cash equivalents, end of period | $ | 120,995 | $ | 173,046 | ||||
| Short-term investments | 17,832 | 1,999 | ||||||
| Total cash and investments | $ | 138,827 | $ | 175,045 | ||||
| KULICKE & SOFFA INDUSTRIES, INC. | |||||||||||
| OPERATING RESULTS BY BUSINESS SEGMENT | |||||||||||
| (In thousands) | |||||||||||
| (Unaudited) | |||||||||||
| Fiscal 2009: | |||||||||||
| Expendable | |||||||||||
| Equipment | Tools | ||||||||||
| Three months ended December 27, 2008 | Segment | Segment (1) | Consolidated | ||||||||
| Net revenue | $ | 23,659 | $ | 13,757 | $ | 37,416 | |||||
| Cost of sales | 16,657 | 6,831 | 23,488 | ||||||||
| Gross profit | 7,002 | 6,926 | 13,928 | ||||||||
| Operating expenses | 38,733 | 6,519 | 45,252 | ||||||||
| Income (loss) from continuing operations | $ | (31,731 | ) | $ | 407 | $ | (31,324 | ) | |||
| Fiscal 2008: | |||||||||||
| Expendable | |||||||||||
| Equipment | Tools | ||||||||||
| Three months ended December 29, 2007 | Segment | Segment | Consolidated | ||||||||
| Net revenue | $ | 107,458 | $ | 16,074 | $ | 123,532 | |||||
| Cost of sales | 65,793 | 7,121 | 72,914 | ||||||||
| Gross profit | 41,665 | 8,953 | 50,618 | ||||||||
| Operating expenses | 33,274 | 6,409 | 39,683 | ||||||||
| Income from continuing operations | $ | 8,391 | $ | 2,544 | $ | 10,935 | |||||
| Note (1) - Beginning in fiscal 2009, the Company’s Packaging Materials segment was renamed Expendable Tools. |
| KULICKE & SOFFA INDUSTRIES, INC. | |||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS - SUMMARY | |||||||
| COMPARISON OF GAAP RESULTS TO NON-GAAP MEASURES | |||||||
| (In thousands, except share amounts) | |||||||
| (Unaudited) | |||||||
| Three months ended | Three months ended | ||||||
| December 29, | December 27, | ||||||
| 2007 | 2008 | ||||||
|
(GAAP results) |
|||||||
| Net revenue | $ | 123,532 | $ | 37,416 | |||
| Gross profit | 50,618 | 13,928 | |||||
| Income (loss) from operations | 10,935 | (31,324 | ) | ||||
| Income (loss) from continuing operations | 7,033 | (18,243 | ) | ||||
| Weighted average shares outstanding | |||||||
| Basic | 53,264 | 60,451 | |||||
| Diluted | 62,425 | 60,451 | |||||
| Income (loss) per share from continuing operations | |||||||
| Basic | $ | 0.13 | $ | (0.30 | ) | ||
| Diluted | $ | 0.12 | $ | (0.30 | ) | ||
|
(Non-GAAP measures) |
|||||||
| Net revenue | $ | 123,532 | $ | 37,416 | |||
| Gross profit | 50,685 | 13,899 | |||||
| Income (loss) from operations | 13,223 | (21,837 | ) | ||||
| Income (loss) from continuing operations | 8,295 | (22,164 | ) | ||||
| Weighted average shares outstanding | |||||||
| Basic | 53,264 | 60,451 | |||||
| Diluted | 62,425 | 60,451 | |||||
| Income (loss) per share from continuing operations | |||||||
| Basic | $ | 0.16 | $ | (0.37 | ) | ||
| Diluted | $ | 0.14 | $ | (0.37 | ) | ||
| KULICKE & SOFFA INDUSTRIES, INC. | |||||||||||
| OPERATING RESULTS BY BUSINESS SEGMENT - SUMMARY | |||||||||||
| COMPARISON OF GAAP RESULTS TO NON-GAAP MEASURES | |||||||||||
| (In thousands) | |||||||||||
| (Unaudited) | |||||||||||
| Expendable | |||||||||||
| Equipment | Tools | ||||||||||
| Segment | Segment (1) | Consolidated | |||||||||
| Fiscal 2009: | |||||||||||
| Three months ended December 27, 2008 | |||||||||||
|
(GAAP results) |
|||||||||||
| Net revenue | $ | 23,659 | $ | 13,757 | $ | 37,416 | |||||
| Gross profit | 7,002 | 6,926 | 13,928 | ||||||||
| Income (loss) from operations | (31,731 | ) | 407 | (31,324 | ) | ||||||
|
(Non-GAAP measures) |
|||||||||||
| Net revenue | $ | 23,659 | $ | 13,757 | $ | 37,416 | |||||
| Gross profit | 7,017 | 6,882 | 13,899 | ||||||||
| Income (loss) from operations | (26,237 | ) | 4,400 | (21,837 | ) | ||||||
| Fiscal 2008: | |||||||||||
| Three months ended December 29, 2007 | |||||||||||
|
(GAAP results) |
|||||||||||
| Net revenue | $ | 107,458 | $ | 16,074 | $ | 123,532 | |||||
| Gross profit | 41,665 | 8,953 | 50,618 | ||||||||
| Income from operations | 8,391 | 2,544 | 10,935 | ||||||||
|
(Non-GAAP measures) |
|||||||||||
| Net revenue | $ | 107,458 | $ | 16,074 | $ | 123,532 | |||||
| Gross profit | 41,701 | 8,984 | 50,685 | ||||||||
| Income from operations | 10,223 | 3,000 | 13,223 | ||||||||
| Note (1) - Beginning in fiscal 2009, the Company’s Packaging Materials segment was renamed Expendable Tools. |
| KULICKE & SOFFA INDUSTRIES, INC. | ||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||
| RECONCILIATION OF GAAP RESULTS TO NON-GAAP MEASURES | ||||||||||||||
| (In thousands, except share amounts) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three months ended | Three months ended | |||||||||||||
| December 29, |
% of |
December 27, |
% of |
|||||||||||
| 2007 | 2008 | |||||||||||||
| Net revenue (GAAP results) | $ | 123,532 | $ | 37,416 | ||||||||||
| Net revenue (Non-GAAP measures) | 123,532 | 37,416 | ||||||||||||
| Gross profit (GAAP results) | 50,618 | 41.0 | % | 13,928 | 37.2 | % | ||||||||
| - Equity-based compensation expense | 67 | (29 | ) | |||||||||||
| Gross profit (Non-GAAP measures) | 50,685 | 41.0 | % | 13,899 | 37.1 | % | ||||||||
| Income (loss) from operations (GAAP results) | 10,935 | 8.9 | % | (31,324 | ) | -83.7 | % | |||||||
| - Equity-based compensation expense | 2,244 | (672 | ) | |||||||||||
| - Severance plan | - | 2,586 | ||||||||||||
| - Facilities contractual commitments | - | 2,608 | ||||||||||||
| - Tax settlement expense | - | 2,212 | ||||||||||||
| - Amortization of intangibles | 44 | 2,753 | ||||||||||||
| Income (loss) from operations (Non-GAAP measures) | 13,223 | 10.7 | % | (21,837 | ) | -58.4 | % | |||||||
| Income (loss) from continuing operations (GAAP results) | 7,033 | 5.7 | % | (18,243 | ) | -48.8 | % | |||||||
| - Equity-based compensation expense | 2,244 | (672 | ) | |||||||||||
| - Severance plan | - | 2,586 | ||||||||||||
| - Facilities contractual commitments | - | 2,608 | ||||||||||||
| - Tax settlement expense | - | 2,212 | ||||||||||||
| - Amortization of intangibles | 44 | 2,753 | ||||||||||||
| - Gain on extinguishment of debt | (170 | ) | (1,179 | ) | ||||||||||
| - Tax settlement benefit | - | (12,154 | ) | |||||||||||
| - Tax effect of non-GAAP adjustments | (856 | ) | (75 | ) | ||||||||||
| Income (loss) from continuing operations (Non-GAAP measures) | 8,295 | 6.7 | % | (22,164 | ) | -59.2 | % | |||||||
| Weighted average shares outstanding (GAAP & Non-GAAP) | ||||||||||||||
| Basic | 53,264 | 60,451 | ||||||||||||
| Diluted | 62,425 | 60,451 | ||||||||||||
| Income (loss) per share from continuing operations (GAAP results) | ||||||||||||||
| Basic | $ | 0.13 | $ | (0.30 | ) | |||||||||
| Diluted | $ | 0.12 | $ | (0.30 | ) | |||||||||
| Adjustments to net income (loss) per share | ||||||||||||||
| Basic | $ | 0.03 | $ | (0.07 | ) | |||||||||
| Diluted | $ | 0.02 | $ | (0.07 | ) | |||||||||
| Income (loss) per share from continuing operations (Non-GAAP measures) | ||||||||||||||
| Basic | $ | 0.16 | $ | (0.37 | ) | |||||||||
| Diluted | $ | 0.14 | $ | (0.37 | ) | |||||||||
| KULICKE & SOFFA INDUSTRIES, INC. | |||||||||||||||
| OPERATING RESULTS BY BUSINESS SEGMENT | |||||||||||||||
| RECONCILIATION OF GAAP RESULTS TO NON-GAAP MEASURES | |||||||||||||||
| (In thousands) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Expendable | |||||||||||||||
| Equipment | % of | Tools | % of | ||||||||||||
| Segment | Revenue | Segment (1) | Revenue | Consolidated | |||||||||||
| Fiscal 2009: | |||||||||||||||
| Three months ended December 27, 2008 | |||||||||||||||
| Net revenue (GAAP results) | 23,659 | 13,757 | 37,416 | ||||||||||||
| Net revenue (Non-GAAP measures) | 23,659 | 13,757 | 37,416 | ||||||||||||
| Gross profit (GAAP results) | 7,002 | 29.6 | % | 6,926 | 50.3 | % | 13,928 | ||||||||
| - Equity-based compensation expense | 15 | (44 | ) | (29 | ) | ||||||||||
| Gross profit (Non-GAAP measures) | 7,017 | 29.7 | % | 6,882 | 50.0 | % | 13,899 | ||||||||
| Income (loss) from operations (GAAP results) | (31,731 | ) | -134.1 | % | 407 | 3.0 | % | (31,324 | ) | ||||||
| - Equity-based compensation expense | (367 | ) | (305 | ) | (672 | ) | |||||||||
| - Severance plan | 1,600 | 986 | 2,586 | ||||||||||||
| - Facilities contractual commitments | 2,165 | 443 | 2,608 | ||||||||||||
| - Tax settlement expense | - | 2,212 | 2,212 | ||||||||||||
| - Amortization of intangibles | 2,096 | 657 | 2,753 | ||||||||||||
| Income (loss) from operations (Non-GAAP measures) | (26,237 | ) | -110.9 | % | 4,400 | 32.0 | % | (21,837 | ) | ||||||
| Fiscal 2008: | |||||||||||||||
| Three months ended December 29, 2007 | |||||||||||||||
| Net revenue (GAAP results) | 107,458 | 16,074 | 123,532 | ||||||||||||
| Net revenue (Non-GAAP measures) | 107,458 | 16,074 | 123,532 | ||||||||||||
| Gross profit (GAAP results) | 41,665 | 38.8 | % | 8,953 | 55.7 | % | 50,618 | ||||||||
| - Equity-based compensation expense | 36 | 31 | 67 | ||||||||||||
| Gross profit (Non-GAAP measures) | 41,701 | 38.8 | % | 8,984 | 55.9 | % | 50,685 | ||||||||
| Income from operations (GAAP results) | 8,391 | 7.8 | % | 2,544 | 15.8 | % | 10,935 | ||||||||
| - Equity-based compensation expense | 1,788 | 456 | 2,244 | ||||||||||||
| - Amortization of intangibles | 44 | - | 44 | ||||||||||||
| Income from operations (Non-GAAP measures) | 10,223 | 9.5 | % | 3,000 | 18.7 | % | 13,223 | ||||||||
| Note (1) - Beginning in fiscal 2009, the Company’s Packaging Materials segment was renamed Expendable Tools. |
Source:
Geoff Grande, CFA
FD
P: 617-747-1721
F: 617-897-1511
geoff.grande@fd.com
or
Tom Johnson
Director – Investor Relations & Corporate Communications
Kulicke & Soffa
P: 215-784-6411
F: 215-784-6167
tjohnson@kns.com
