FORT WASHINGTON, Pa.--(BUSINESS WIRE)--Apr. 28, 2009-- Kulicke & Soffa Industries, Inc. (NASDAQ:KLIC) (“K&S”) today announced results for the quarter ended March 28, 2009. The Company reported net revenue from continuing operations of $25.2 million and a loss from continuing operations of $33.1 million, or $0.54 per share. This press release contains both GAAP and non-GAAP information.

On a non-GAAP? basis, the Company reported second quarter net revenue from continuing operations of $25.2 million and a loss from continuing operations of $25.9 million, or $0.42 per share.

GAAP Results:
(Dollar amounts in thousands except EPS)		Q2 2009				Change vs. Q2 2008			Change vs. Q1 2009
Net Revenue		$	25,232			-64	%		-33	%
Gross Profit		$	8,045			-72	%		-42	%
Gross Margin			31.9	%		-853 basis points			-534 basis points
Income (Loss) from continuing operations			(33,143	)		-440	%		-82	%
Net Margin			-131.4	%		-12,269 basis points			-8,260 basis points
EPS – Basic and Diluted from Continuing Operations		$	(0.54	)		-170	%		-80	%

Non-GAAP Measures:
(Dollar amounts in thousands except EPS)		Q2 2009				Change vs. Q2 2008			Change vs. Q1 2009
Net Revenue		$	25,232			-64	%		-33	%
Gross Profit		$	8,073			-72	%		-42	%
Gross Margin			32.0	%		-851 basis points			-515 basis points
Income (Loss) from continuing operations			(25,878	)		-612	%		-17	%
Net Margin			-102.6	%		-9,743 basis points			-4,333 basis points
EPS – Basic and Diluted from Continuing Operations		$	(0.42	)		-523	%		-16	%

?Non-GAAP measures exclude: equity-based compensation, contractual commitments for former Test facilities, amortization of intangibles, cost of severance, goodwill impairment, and related tax effects from expenses; debt extinguishment; and settlement of Israel tax assessment from income tax expense (see reconciliations of GAAP results to Non-GAAP measures in the following financial schedules).

Commenting on the results, Scott Kulicke, Chairman and Chief Executive Officer, said, “The second quarter was one of the most difficult ever for both K&S and our industry. Weakness in the global economy continued to depress demand throughout the semiconductor industry. During the quarter, we took the actions required to reduce our cost structure. These actions included an additional headcount reduction of 250 positions, which followed wage cuts enacted in January and the headcount reductions previously announced in November.”

“In the second quarter we also launched three important new products at recent SEMICON events. These products demonstrate our continued commitment to technology leadership, as well as our ability to balance our expense reductions with the investments that will drive our future growth.”

“While March quarter revenue was disappointing, toward the end of the quarter we began to see improvement in our customers’ capacity utilization, followed by increases in order activity for expendable tools and ball bonders. These positive signs have continued into the current quarter. On that basis, we are forecasting a sequential upturn in sales for the June quarter. We expect revenue for our third fiscal quarter to be in the range of $32 million to $37 million.”

Other Financial Details

• In February, the Company completed its tender offer for the outstanding portion of its 1.0% Notes due in 2010, retiring $13.0 million face value and recognizing a net gain of $2.8 million. The Company has retired 25% of these Notes since November 2008 and now has $49.0 million of these Notes outstanding.
• The Company ended the quarter with total cash and investments of $130.2 million. The $44.8 million decrease in cash during the quarter included $13.6 million in settlement of Israeli taxes and $10.2 million for the Company’s tender offer for the outstanding portion of the Company’s 1.0% Notes.
• The cost reduction actions taken by the Company during the second quarter are expected to result in $4.0 million of severance cost and approximately $21.7 million in annualized savings.
• Subsequent to the quarter end, the Company also announced a plan to transfer manufacturing operations currently based in Israel to its plant in China. This plan is expected to cost $5.7 million over the next three years, and to result in $4.6 million in annual savings when fully implemented in 2011.

Key Product Highlights

• The Company launched three products that target applications not previously served by K&S products:
   
  • iStackPSTM — the next generation die attach platform for advanced stacked die and high performance BGA applications. iStackPS will be evaluated and qualified by customers over the next few months, with initial sales expected later this year.
  • ConnX-VLEDPSTM — an automatic ball bonder designed specifically for vertical LED applications.
  • 7600 wedge bonder — a new product that will extend the Company’s wedge bonding portfolio into reel-to-reel applications.

Outlook for Third Fiscal Quarter 2009

Net revenue is expected to be in the range of $32.0 million to $37.0 million.

Earnings Conference Call Details

A conference call and simultaneous audio webcast will be held today, April 28, 2009 beginning at 9:00 am (ET). Interested parties may call (877) 407-8037 or (201) 689-8037, or they may log on to http://www.kns.com/investors/events for listen-only mode. A replay will be available approximately one hour after the completion of the call by calling toll-free (877) 660-6853 or internationally (201) 612-7415 and using the following replay access codes: 5521 (account number) and 319263 (replay ID number). A replay will also be available on the K&S website at http://www.kns.com/investors/events. The replay will be available via phone and website for a limited time.

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. The Company believes certain non-GAAP measures provide investors with an additional, useful perspective on the Company’s performance as seen through the eyes of management. Management uses non-GAAP financial measures along with GAAP financial results for: analyzing the performance of the Company’s businesses; strategic and tactical decision making; and determining compensation. The Company does not consider non-GAAP financial measures to be a substitute for, or superior to, financial results presented in accordance with GAAP. All of the non-GAAP financial measures included herein are reconciled to the most directly comparable GAAP results in the following financial statements. These non-GAAP measures may be calculated differently from non-GAAP measures used by other companies. In addition, these non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles and some of the adjustments reflect the exclusion of items that are recurring and will be reflected in the Company’s GAAP financial results for the foreseeable future.

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
• Cost of severance
• Goodwill impairment
• 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 (loss), 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, goodwill impairment and related tax effects from expenses; debt extinguishment; and settlement of Israel tax assessment from income tax expense.

- 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, goodwill impairment and related tax effects from expenses; debt extinguishment, and settlement of Israel tax assessment from income tax expense.

About Kulicke & Soffa

Kulicke & Soffa (NASDAQ:KLIC) is a global leader in the design and manufacture of semiconductor assembly equipment. As one of the pioneers of the 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 bonding, 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 devices. (www.kns.com)

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 future revenue, growth, demand for our products, visibility regarding future demand for our products, future costs and savings associated with headcount reductions and other actions, our future 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: difficult global economic conditions, resulting 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; 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 and Soffa Industries, Inc. 2008 Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission. Kulicke & Soffa Industries 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 29,				March 28,				March 29,				March 28,
		2008				2009				2008				2009
Net revenue		$	70,781			$	25,232			$	194,313			$	62,648
Cost of sales			42,174				17,187				115,088				40,675
Gross profit			28,607				8,045				79,225				21,973
Selling, general and administrative			19,721				27,836				44,872				57,688
Research and development			15,690				13,258				30,222				28,658
Impairment of goodwill			-				2,709				-				2,709
U.S. pension plan termination			9,152				-				9,152				-
Total operating expenses			44,563				43,803				84,246				89,055
Loss from operations			(15,956	)			(35,758	)			(5,021	)			(67,082	)
Interest income			1,191				193				2,760				947
Interest expense			(885	)			(640	)			(1,757	)			(1,374	)
Gain on extinguishment of debt			-				2,786				170				3,965
Loss from continuing operations before income taxes			(15,650	)			(33,419	)			(3,848	)			(63,544	)
Provision (benefit) for income taxes			(4,758	)			(276	)			11				(12,158	)
Loss from continuing operations			(10,892	)			(33,143	)			(3,859	)			(51,386	)
Income from discontinued operations, net of tax			4,758				-				14,087				22,727
Net income (loss)		$	(6,134	)		$	(33,143	)		$	10,228			$	(28,659	)
Loss per share from continuing operations:
Basic		$	(0.20	)		$	(0.54	)		$	(0.07	)		$	(0.85	)
Diluted		$	(0.20	)		$	(0.54	)		$	(0.07	)		$	(0.85	)
Income from share of discontinued operations:
Basic		$	0.09			$	-			$	0.26			$	0.38
Diluted		$	0.09			$	-			$	0.26			$	0.38
Net income (loss) per share:
Basic		$	(0.11	)		$	(0.54	)		$	0.19			$	(0.47	)
Diluted		$	(0.11	)		$	(0.54	)		$	0.19			$	(0.47	)
Weighted average shares outstanding:
Basic			53,384				61,054				53,324				60,752
Diluted			53,384				61,054				53,324				60,752
Equity-based compensation expense included in continuing operations:
Cost of sales		$	62			$	28			$	129			$	(1	)
Selling, general and administrative			844				416				2,314				(251	)
Research and development			309				214				1,016				238
Total		$	1,215			$	658			$	3,459			$	(14	)
		Three months ended								Six months ended
		March 29,				March 28,				March 29,				March 28,
Additional financial data:		2008				2009				2008				2009
Depreciation and amortization
Continuing operations		$	2,476			$	5,676			$	4,589			$	11,235
Discontinued operations		$	241			$	-			$	472			$	-
Capital expenditures
Continuing operations		$	1,988			$	913			$	4,686			$	3,346
Discontinued operations		$	44			$	-			$	119			$	-
										March 29,				March 28,
										2008				2009
Backlog of orders
Continuing operations										$	49,000			$	15,000
Discontinued operations										$	24,000			$	-
Number of employees
Continuing operations											2,462				2,047
Discontinued operations											252				-

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,				March 28,
		2008				2009
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	144,932			$	127,607
Restricted cash			35,000				281
Short-term investments			6,149				2,354
Accounts and notes receivable, net of allowance for doubtful accounts of $1,376 and $2,247 respectively			56,643				32,020
Inventories, net			27,236				48,303
Prepaid expenses and other current assets			18,729				12,646
Deferred income taxes			2,118				1,834
Current assets of discontinued operations			127,958				-
TOTAL CURRENT ASSETS			418,765				225,045
Property, plant and equipment, net			36,900				39,641
Intangible assets			386				54,412
Goodwill			2,709				26,698
Other assets			5,468				4,648
Non-current assets of discontinued operations			32,909				-
TOTAL ASSETS		$	497,137			$	350,444
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long term debt		$	72,412			$	-
Accounts payable			25,028				9,632
Accrued expenses and other current liabilities			27,255				29,801
Income taxes payable			569				6,496
Current liabilities of discontinued operations			34,411				-
TOTAL CURRENT LIABILITIES			159,675				45,929
Long term debt			175,000				158,964
Other liabilities			37,780				10,581
Deferred income taxes			21,591				15,729
Other liabilities of discontinued operations			624				-
TOTAL LIABILITIES			394,670				231,203
SHAREHOLDERS' EQUITY
Common stock, no par value			295,841				342,543
Treasury stock, at cost			(46,118	)			(46,118	)
Accumulated deficit			(149,465	)			(178,124	)
Accumulated other comprehensive income			2,209				940
TOTAL SHAREHOLDERS' EQUITY			102,467				119,241
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY		$	497,137			$	350,444

KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
		Three months ended								Six months ended
		March 29, 2008				March 28, 2009				March 29, 2008				March 28, 2009
Net cash provided by (used in) continuing operations		$	25,800			$	(31,845	)		$	17,975			$	(29,833	)
Net cash provided by (used in) discontinued operations			9,182				(439	)			(7,857	)			(1,218	)
Net cash provided by (used in) operating activities		$	34,982			$	(32,284	)		$	10,118			$	(31,051	)
Net cash used in investing activities			(3,510	)			(3,009	)			(4,707	)			(51,889	)
Net cash provided by (used in) investing activities, discontinued operations			17				-				(103	)			149,857
Net cash used in investing activities		$	(3,493	)		$	(3,009	)		$	(4,810	)		$	97,968
Net cash provided by (used in) financing activities			95				(10,168	)			(3,512	)			(84,355	)
Effect of exchange rate changes on cash and cash equivalents			(832	)			22				(620	)			113
Changes in cash and cash equivalents		$	30,752			$	(45,439	)		$	1,176			$	(17,325	)
Cash and cash equivalents, beginning of period			120,995				173,046				150,571				144,932
Cash and cash equivalents, end of period		$	151,747			$	127,607			$	151,747			$	127,607
Short-term investments			9,379				2,354				9,379				2,354
Restricted cash			10,000				281				10,000				281
Total Cash, cash equivalents, restricted cash and short-term investments		$	171,126			$	130,242			$	171,126			$	130,242

KULICKE & SOFFA INDUSTRIES, INC.
OPERATING RESULTS BY BUSINESS SEGMENT
(In thousands)
(Unaudited)
Fiscal 2009:
						Expendable
		Equipment				Tools
Three months ended March 28, 2009		Segment				Segment				Consolidated
Net revenue		$	16,977			$	8,255			$	25,232
Cost of sales			12,564				4,623				17,187
Gross profit			4,413				3,632				8,045
Operating expenses			34,981				6,113				41,094
Impairment of goodwill			2,709				-				2,709
Loss from continuing operations		$	(33,277	)		$	(2,481	)		$	(35,758	)
Six months ended March 28, 2009
Net revenue		$	40,636			$	22,012			$	62,648
Cost of sales			29,221				11,454				40,675
Gross profit			11,415				10,558				21,973
Operating expenses			73,714				12,632				86,346
Impairment of goodwill			2,709				-				2,709
Loss from continuing operations		$	(65,008	)		$	(2,074	)		$	(67,082	)
Fiscal 2008:
						Expendable
		Equipment				Tools
Three months ended March 29, 2008		Segment				Segment				Consolidated
Net revenue		$	57,560			$	13,221			$	70,781
Cost of sales			34,803				7,371				42,174
Gross profit			22,757				5,850				28,607
Operating expenses			27,486				7,925				35,411
U.S. pension plan termination			9,152				-				9,152
Loss from continuing operations		$	(13,881	)		$	(2,075	)		$	(15,956	)
Six months ended March 29, 2008
Net revenue		$	165,018			$	29,295			$	194,313
Cost of sales			100,596				14,492				115,088
Gross profit			64,422				14,803				79,225
Operating expenses			60,760				14,334				75,094
U.S. pension plan termination			9,152				-				9,152
Income (loss) from continuing operations		$	(5,490	)		$	469			$	(5,021	)

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					Six months ended				Six months ended
		March 29,					March 28,					March 29,				March 28,
		2008					2009					2008				2009
		(GAAP results)
Net revenue		$	70,781				$	25,232				$	194,313			$	62,648
Gross profit			28,607					8,045					79,225				21,973
Income (loss) from operations			(15,956	)				(35,758	)				(5,021	)			(67,082	)
Net income (loss) from continuing operations			(10,892	)				(33,143	)				(3,859	)			(51,386	)
Weighted average shares outstanding, continuing operations
Basic			53,384					61,054					53,324				60,752
Diluted			53,384					61,054					53,324				60,752
Net income (loss) per share from continuing operations
Basic		$	(0.20	)			$	(0.54	)				(0.07	)		$	(0.85	)
Diluted		$	(0.20	)			$	(0.54	)				(0.07	)		$	(0.85	)
		(Non-GAAP measures)
Net revenue		$	70,781				$	25,232				$	194,313			$	62,648
Gross profit			28,669					8,073					79,354				21,972
Income (loss) from operations			(5,527	)				(25,647	)				7,696				(47,484	)
Net income (loss) from continuing operations			(3,634	)				(25,878	)				4,661				(48,043	)
Weighted average shares outstanding, continuing operations
Basic			53,384					61,054					53,324				60,752
Diluted			53,384					61,054					62,225				60,752
Net income (loss) per share from continuing operations
Basic		$	(0.07	)			$	(0.42	)			$	0.09			$	(0.79	)
Diluted		$	(0.07	)			$	(0.42	)			$	0.08			$	(0.79	)

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				Consolidated
Fiscal 2009:
Three months ended March 28, 2009
		(GAAP results)
Net revenue		$	16,977			$	8,255			$	25,232
Gross profit			4,413				3,632				8,045
Income (loss) from operations			(33,277	)			(2,481	)			(35,758	)
		(Non-GAAP measures)
Net revenue		$	16,977			$	8,255			$	25,232
Gross profit			4,433				3,640				8,073
Income (loss) from operations			(24,455	)			(1,192	)			(25,647	)
Six months ended March 28, 2009
		(GAAP results)
Net revenue		$	40,636			$	22,012			$	62,648
Gross profit			11,415				10,558				21,973
Income (loss) from operations			(65,008	)			(2,074	)			(67,082	)
		(Non-GAAP measures)
Net revenue		$	40,636			$	22,012			$	62,648
Gross profit			11,450				10,522				21,972
Income (loss) from operations			(50,692	)			3,208				(47,484	)
Fiscal 2008:
Three months ended March 29, 2008
		(GAAP results)
Net revenue		$	57,560			$	13,221			$	70,781
Gross profit			22,757				5,850				28,607
Income from operations			(13,881	)			(2,075	)			(15,956	)
		(Non-GAAP measures)
Net revenue		$	57,560			$	13,221			$	70,781
Gross profit			22,792				5,877				28,669
Income from operations			(3,760	)			(1,767	)			(5,527	)
Six months ended March 29, 2008
		(GAAP results)
Net revenue		$	165,018			$	29,295			$	194,313
Gross profit			64,422				14,803				79,225
Income from operations			(5,490	)			469				(5,021	)
		(Non-GAAP measures)
Net revenue		$	165,018			$	29,295			$	194,313
Gross profit			64,493				14,861				79,354
Income from operations			6,464				1,232				7,696

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							Six months ended							Six months ended
		March 29,				% of			March 28,				% of			March 29,				% of			March 28,				% of
		2008				Revenue			2009				Revenue			2008				Revenue			2009				Revenue
Net revenue (GAAP results)		$	70,781						$	25,232						$	194,313						$	62,648
Net revenue (Non-GAAP measures)			70,781							25,232							194,313							62,648
Gross profit (GAAP results)			28,607			40.4	%			8,045			31.9	%			79,225			40.8	%			21,973			35.1	%
- Equity-based compensation expense			62							28							129							(1	)
Gross profit (Non-GAAP measures)			28,669			40.5	%			8,073			32.0	%			79,354			40.8	%			21,972			35.1	%
Income (loss) from operations (GAAP results)			(15,956	)		-22.5	%			(35,758	)		-141.7	%			(5,021	)		-2.6	%			(67,082	)		-107.1	%
- Equity-based compensation expense			1,215							658							3,459							(14	)
- Severance plan			-							3,969							-							6,555
- Impairment of goodwill			-							2,709							-							2,709
- Facilities contractual commitments			-							-							-							2,608
- Tax settlement expense			-							-							-							2,212
- U.S. pension plan termination			9,152							-							9,152							-
- Amortization of intangibles			62							2,775							106							5,528
Income (loss) from operations (Non-GAAP measures)			(5,527	)		-7.8	%			(25,647	)		-101.6	%			7,696			4.0	%			(47,484	)		-75.8	%
Net income (loss) (GAAP results)			(10,892	)		-15.4	%			(33,143	)		-131.4	%			(3,859	)		-2.0	%			(51,386	)		-82.0	%
- Equity-based compensation expense			1,215							658							3,459							(14	)
- Severance plan			-							3,969							-							6,555
- Impairment of goodwill			-							2,709							-							2,709
- Facilities contractual commitments			-							-							-							2,608
- Tax settlement expense			-							-							-							2,212
- U.S. pension plan termination			9,152							-							9,152							-
- Amortization of intangibles			62							2,775							106							5,528
- Gain on extinguishment of debt			-							(2,786	)						(170	)						(3,965	)
- Tax settlement benefit			-							-							-							(12,154	)
- Tax effect of non-GAAP adjustments			(3,171	)						(60	)						(4,027	)						(136	)
Net income (loss) (Non-GAAP measures)			(3,634	)		-5.1	%			(25,878	)		-102.6	%			4,661			2.4	%			(48,043	)		-76.7	%
Weighted average shares outstanding, continuing operations (GAAP & Non-GAAP)
Basic			53,384							61,054							53,324							60,752
Diluted			53,384							61,054							62,225							60,752
Net income (loss) per share from continuing operations (GAAP results)
Basic		$	(0.20	)					$	(0.54	)					$	(0.07	)					$	(0.85	)
Diluted		$	(0.20	)					$	(0.54	)					$	(0.05	)					$	(0.85	)
Adjustments to net income per share
Basic		$	0.13						$	0.12						$	0.16						$	0.06
Diluted		$	0.13						$	0.12						$	0.13						$	0.06
Net income (loss) per share from continuing operations (Non-GAAP measures)
Basic		$	(0.07	)					$	(0.42	)					$	0.09						$	(0.79	)
Diluted		$	(0.07	)					$	(0.42	)					$	0.08						$	(0.79	)

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			Revenue			Consolidated
Fiscal 2009:
Three months ended March 28, 2009
Net revenue (GAAP results)		16,977						8,255						25,232
Net revenue (Non-GAAP measures)		16,977						8,255						25,232
Gross profit (GAAP results)		4,413			26.0	%		3,632			44.0	%		8,045
- Equity-based compensation expense		20						8						28
Gross profit (Non-GAAP measures)		4,433			26.1	%		3,640			44.1	%		8,073
Income (loss) from operations (GAAP results)		(33,277	)		-196.0	%		(2,481	)		-30.1	%		(35,758	)
- Equity-based compensation expense		461						197						658
- Severance plan		3,534						435						3,969
- Impairment of goodwill		2,709						-						2,709
- Amortization of intangibles		2,118						657						2,775
Income (loss) from operations (Non-GAAP measures)		(24,455	)		-144.0	%		(1,192	)		-14.4	%		(25,647	)
Six months ended March 28, 2009
Net revenue (GAAP results)		40,636						22,012						62,648
Net revenue (Non-GAAP measures)		40,636						22,012						62,648
Gross profit (GAAP results)		11,415			28.1	%		10,558			48.0	%		21,973
- Equity-based compensation expense		35						(36	)					(1	)
Gross profit (Non-GAAP measures)		11,450			28.2	%		10,522			47.8	%		21,972
Income (loss) from operations (GAAP results)		(65,008	)		-160.0	%		(2,074	)		-9.4	%		(67,082	)
- Equity-based compensation expense		94						(108	)					(14	)
- Severance plan		5,134						1,421						6,555
- Impairment of goodwill		2,709						-						2,709
- Facilities contractual commitments		2,165						443						2,608
- Tax settlement expense		-						2,212						2,212
- Amortization of intangibles		4,214						1,314						5,528
Income (loss) from operations (Non-GAAP measures)		(50,692	)		-124.7	%		3,208			14.6	%		(47,484	)
Fiscal 2008:
Three months ended March 29, 2008
Net revenue (GAAP results)		57,560						13,221						70,781
Net revenue (Non-GAAP measures)		57,560						13,221						70,781
Gross profit (GAAP results)		22,757			39.5	%		5,850			44.2	%		28,607
- Equity-based compensation expense		35						27						62
Gross profit (Non-GAAP measures)		22,792			39.6	%		5,877			44.4	%		28,669
Income from operations (GAAP results)		(13,881	)		-24.1	%		(2,075	)		-15.7	%		(15,956	)
- Equity-based compensation expense		907						308						1,215
- U.S. pension plan termination		9,152						-						9,152
- Amortization of intangibles		62						-						62
Income from operations (Non-GAAP measures)		(3,760	)		-6.5	%		(1,767	)		-13.4	%		(5,527	)
Six months ended March 29, 2008
Net revenue (GAAP results)		165,018						29,295						194,313
Net revenue (Non-GAAP measures)		165,018						29,295						194,313
Gross profit (GAAP results)		64,422			39.0	%		14,803			50.5	%		79,225
- Equity-based compensation expense		71						58						129
Gross profit (Non-GAAP measures)		64,493			39.1	%		14,861			50.7	%		79,354
Income from operations (GAAP results)		(5,490	)		-3.3	%		469			1.6	%		(5,021	)
- Equity-based compensation expense		2,695						764						3,459
- U.S. pension plan termination		9,152						-						9,152
- Amortization of intangibles		106						-						106
Income from operations (Non-GAAP measures)		6,464			3.9	%		1,232			4.2	%		7,696

 

 

Source: Kulicke & Soffa Industries, Inc.

FD
Geoff Grande, CFA
P: 617-747-1721
F: 617-897-1511
geoff.grande@fd.com
or
Kulicke & Soffa
Tom Johnson
Director – Investor Relations & Corporate Communications
P: 215-784-6411
F: 215-784-6167
tjohnson@kns.com