FORT WASHINGTON, Pa., Jul 29, 2009 (BUSINESS WIRE) -- Kulicke & Soffa Industries, Inc. (NASDAQ:KLIC) ("K&S") today announced results for the quarter ended June 27, 2009. The Company reported net revenue from continuing operations of $52.1 million and a loss from continuing operations of $13.9 million, or $0.23 per share. This press release contains both GAAP and non-GAAP information.

On a non-GAAP* basis, the Company reported third quarter net revenue from continuing operations of $52.1 million and a loss from continuing operations of $12.2 million, or $0.20 per share.

GAAP Results:
(Dollar amounts in thousands except EPS)		Q3 2009		Change vs. Q2 2009		Change vs. Q3 2008
Net Revenue		$52,076		106%		-28%
Gross Profit		$19,669		144%		-34%
Gross Margin		37.8%		589 bps		(319) bps
Net Income (Loss) from continuing operations		$(13,858)		58%		-192%
Net Margin		-26.6%		10,474 bps		(2,007) bps
EPS - Basic and Diluted from Continuing Operations		$ (0.23)		57%		-156%

Non-GAAP Measures:
(Dollar amounts in thousands except EPS)		Q3 2009		Change vs. Q2 2009		Change vs. Q3 2008
Net Revenue		$52,076		106%		-28%
Gross Profit		$19,709		144%		-34%
Gross Margin		37.8%		585 bps		(320) bps
Net Income (Loss) from continuing operations		$(12,244)		53%		-209%
Net Margin		-23.5%		7,905 bps		(1,805) bps
EPS - Basic and Diluted from Continuing Operations		$ (0.20)		53%		-170%

*Non-GAAP measures exclude equity-based compensation, amortization of intangibles, cost of severance, goodwill impairment, Swiss pension curtailment, valuation allowance adjustments and related tax effects from expenses, and debt extinguishment (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 industry is experiencing a faster and more broad-based recovery than any of us would have predicted even a few months ago. Increases in IC unit output have driven improvements in our customers' capacity utilization and in increased demand across nearly all our business units. This momentum has carried into our September quarter, resulting in our revenue forecast of $85 to $90 million."

Other Financial Details

 

• On a non-GAAP basis, operating expenses were $31.5 million, down $2.2 million from the March quarter.
• The Company ended the quarter with total cash, cash equivalents and short term investments of $117.3 million.

 

Highlights

 

• Ball bonder revenue increased 332% over March quarter levels. Approximately 20% of ball bonder units shipped in the June quarter were to the LED market. We continue to optimize our product portfolio for this important and growing segment.
• Expendable tools sales increased 76% over the March quarter, consistent with the recovery in customer factory utilization.
• Our wedge bonder business saw an increase in customer activity during the June quarter, with sales of wedge bonding tools up significantly and customer interest in wedge bonder equipment increasing.
• Transition of final finishing for our capillaries production to our plant in China is proceeding, and we expect will be complete by the end of our September quarter.

 

Outlook for Fourth Fiscal Quarter 2009

Net revenue is expected to be in the range of $85 to $90 million.

Earnings Conference Call Details

A conference call and simultaneous audio webcast will be held today, July 29, 2009 beginning at 9:00 am (ET). Interested parties may call (877) 407-8037 or (201) 689-8037, 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 327979 (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
• Swiss pension curtailment and U.S. pension plan termination
• Valuation allowance adjustments
• 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, cost of severance, goodwill impairment, Swiss pension curtailment and U.S. pension plan termination and related tax effects from expenses, debt extinguishment, and settlement of Israel tax assessment from income tax expense.

- Net Margin. K&S Non-GAAP net margin excludes equity-based compensation, contractual commitments for former Test facilities, amortization of intangibles, cost of severance, goodwill impairment, Swiss pension plan curtailment and U.S. pension plan termination, 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 continuing recovery in the semiconductor equipment industry, increased customer activity, capacity utilization in customer factories, growth of the LED ball bonder market and future revenue, demand for our products 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, 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; 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								Nine months ended
		June 28,				June 27,				June 28,				June 27,
		2008				2009				2008				2009
Net revenue		$	72,507			$	52,076			$	266,820			$	114,724
Cost of sales			42,805				32,407				157,893				73,082
Gross profit			29,702				19,669				108,927				41,642
Selling, general and administrative			22,180				21,887				67,052				79,575
Research and development			15,012				12,264				45,234				40,922
Impairment of goodwill			-				-				-				2,709
U.S. pension plan termination			-				-				9,152				-
Total operating expenses			37,192				34,151				121,438				123,206
Loss from operations			(7,490	)			(14,482	)			(12,511	)			(81,564	)
Interest income			968				75				3,728				1,022
Interest expense			(850	)			(607	)			(2,607	)			(1,981	)
Gain on extinguishment of debt			-				-				170				3,965
Loss from continuing operations			(7,372	)			(15,014	)			(11,220	)			(78,558	)
before income taxes
Benefit for income taxes			(2,629	)			(1,156	)			(2,618	)			(13,314	)
Loss from continuing operations			(4,743	)			(13,858	)			(8,602	)			(65,244	)
Income from discontinued operations, net of tax			2,946				-				17,033				22,727
Net income (loss)		$	(1,797	)		$	(13,858	)		$	8,431			$	(42,517	)
Loss per share from continuing operations:
Basic		$	(0.09	)		$	(0.23	)		$	(0.16	)		$	(1.07	)
Diluted		$	(0.09	)		$	(0.23	)		$	(0.16	)		$	(1.07	)
Income from share of discontinued operations:
Basic		$	0.06			$	-			$	0.32			$	0.37
Diluted		$	0.06			$	-			$	0.32			$	0.37
Net income (loss) per share:
Basic		$	(0.03	)		$	(0.23	)		$	0.16			$	(0.70	)
Diluted		$	(0.03	)		$	(0.23	)		$	0.16			$	(0.70	)
Weighted average shares outstanding:
Basic			53,528				61,220				53,392				60,908
Diluted			53,528				61,220				53,392				60,908
Equity-based compensation expense included in continuing operations:
Cost of sales		$	58			$	40			$	187			$	39
Selling, general and administrative			884				499				3,198				248
Research and development			234				237				1,250				475
Total		$	1,176			$	776			$	4,635			$	762
		Three months ended								Nine months ended
		June 28,				June 27,				June 28,				June 27,
Additional financial data:		2008				2009				2008				2009
Depreciation and amortization
Continuing operations		$	2,155			$	5,137			$	6,744			$	16,372
Discontinued operations		$	255			$	-			$	727			$	-
Capital expenditures
Continuing operations		$	1,620			$	1,053			$	6,306			$	4,399
Discontinued operations		$	-			$	-			$	119			$	-
										June 28,				June 27,
										2008				2009
Backlog of orders
Continuing operations										$	62,000			$	38,000
Discontinued operations										$	22,000			$	-
Number of employees
Continuing operations											2,490				2,144
Discontinued operations											253				-

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,				June 27,
		2008				2009
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	144,932			$	114,687
Restricted cash			35,000				281
Short-term investments			6,149				2,317
Accounts and notes receivable, net of allowance for doubtful accounts of $1,376 and $1,784 respectively			56,643				50,542
Inventories, net			27,236				42,103
Prepaid expenses and other current assets			18,729				10,508
Deferred income taxes			2,118				1,162
Current assets of discontinued operations			127,958				-
TOTAL CURRENT ASSETS			418,765				221,600
Property, plant and equipment, net			36,900				38,250
Intangible assets			386				51,647
Goodwill			2,709				26,698
Other assets			5,468				5,767
Non-current assets of discontinued operations			32,909				-
TOTAL ASSETS		$	497,137			$	343,962
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long term debt		$	72,412			$	-
Accounts payable			25,028				20,682
Accrued expenses and other current liabilities			27,255				30,689
Income taxes payable			569				586
Current liabilities of discontinued operations			34,411				-
TOTAL CURRENT LIABILITIES			159,675				51,957
Long term debt			175,000				158,964
Other liabilities			37,780				10,666
Deferred income taxes			21,591				15,319
Other liabilities of discontinued operations			624				-
TOTAL LIABILITIES			394,670				236,906
SHAREHOLDERS' EQUITY
Common stock, no par value			295,841				343,534
Treasury stock, at cost			(46,118	)			(46,118	)
Accumulated deficit			(149,465	)			(191,982	)
Accumulated other comprehensive income			2,209				1,622
TOTAL SHAREHOLDERS' EQUITY			102,467				107,056
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	497,137			$	343,962

KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
		Three months ended								Nine months ended
		June 28, 2008				June 27, 2009				June 28, 2008				June 27, 2009
Net cash provided by (used in) continuing operations		$	6,961			$	(11,412	)		$	24,936			$	(41,245	)
Net cash provided by (used in) discontinued operations			5,964				(481	)			(1,893	)			(1,699	)
Net cash provided by (used in) operating activities		$	12,925			$	(11,893	)		$	23,043			$	(42,944	)
Net cash used in investing activities			(737	)			(1,005	)			(5,444	)			(52,894	)
Net cash provided by (used in) investing activities, discontinued operations			(53	)			-				(156	)			149,857
Net cash provided by (used in) investing activities		$	(790	)		$	(1,005	)		$	(5,600	)		$	96,963
Net cash provided by (used in) financing activities			225				51				(3,287	)			(84,304	)
Effect of exchange rate changes on cash and cash equivalents			89				(73	)			(531	)			40
Changes in cash and cash equivalents		$	12,449			$	(12,920	)		$	13,625			$	(30,245	)
Cash and cash equivalents, beginning of period			151,747				127,607				150,571				144,932
Cash and cash equivalents, end of period		$	164,196			$	114,687			$	164,196			$	114,687
Short-term investments			8,560				2,317				8,560				2,317
Restricted cash			10,000				281				10,000				281
Total Cash, cash equivalents, restricted cash and short-term investments		$	182,756			$	117,285			$	182,756			$	117,285

KULICKE & SOFFA INDUSTRIES, INC.
OPERATING RESULTS BY BUSINESS SEGMENT
(In thousands)
(Unaudited)
Fiscal 2009:
						Expendable
		Equipment				Tools
Three months ended June 27, 2009		Segment				Segment				Consolidated
Net revenue		$	37,544			$	14,532			$	52,076
Cost of sales			25,612				6,795				32,407
Gross profit			11,932				7,737				19,669
Operating expenses			28,793				5,358				34,151
Income (loss) from continuing operations		$	(16,861	)		$	2,379			$	(14,482	)
Nine months ended June 27, 2009
Net revenue		$	78,180			$	36,544			$	114,724
Cost of sales			54,833				18,249				73,082
Gross profit			23,347				18,295				41,642
Operating expenses			102,507				17,990				120,497
Impairment of goodwill			2,709				-				2,709
Income (loss) from continuing operations		$	(81,869	)		$	305			$	(81,564	)
Fiscal 2008:
						Expendable
		Equipment				Tools
Three months ended June 28, 2008		Segment				Segment				Consolidated
Net revenue		$	59,043			$	13,464			$	72,507
Cost of sales			35,954				6,851				42,805
Gross profit			23,089				6,613				29,702
Operating expenses			30,308				6,884				37,192
Loss from continuing operations		$	(7,219	)		$	(271	)		$	(7,490	)
Nine months ended June 28, 2008
Net revenue		$	224,061			$	42,759			$	266,820
Cost of sales			136,550				21,343				157,893
Gross profit			87,511				21,416				108,927
Operating expenses			91,068				21,218				112,286
U.S. pension plan termination			9,152				-				9,152
Income (loss) from continuing operations		$	(12,709	)		$	198			$	(12,511	)

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				Nine months ended				Nine months ended
		June 28,				June 27,				June 28,				June 27,
		2008				2009				2008				2009
		(GAAP results)
Net revenue		$	72,507			$	52,076			$	266,820			$	114,724
Gross profit			29,702				19,669				108,927				41,642
Loss from operations			(7,490	)			(14,482	)			(12,511	)			(81,564	)
Net loss from continuing operations			(4,743	)			(13,858	)			(8,602	)			(65,244	)
Weighted average shares outstanding, continuing operations
Basic			53,528				61,220				53,392				60,908
Diluted			53,528				61,220				53,392				60,908
Net loss per share from continuing operations
Basic		$	(0.09	)		$	(0.23	)			(0.16	)		$	(1.07	)
Diluted		$	(0.09	)		$	(0.23	)			(0.16	)		$	(1.07	)
		(Non-GAAP measures)
Net revenue		$	72,507			$	52,076			$	266,820			$	114,724
Gross profit			29,760				19,709				109,114				41,681
Income (loss) from operations			(6,275	)			(11,802	)			1,421				(59,286	)
Net income (loss) from continuing operations			(3,961	)			(12,244	)			700				(60,287	)
Weighted average shares outstanding, continuing operations
Basic			53,528				61,220				53,392				60,908
Diluted			53,528				61,220				62,297				60,908
Net income (loss) per share from continuing operations
Basic		$	(0.07	)		$	(0.20	)		$	0.01			$	(0.99	)
Diluted		$	(0.07	)		$	(0.20	)		$	0.02			$	(0.99	)

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 June 27, 2009
		(GAAP results)
Net revenue		$	37,544			$	14,532			$	52,076
Gross profit			11,932				7,737				19,669
Income (loss) from operations			(16,861	)			2,379				(14,482	)
		(Non-GAAP measures)
Net revenue		$	37,544			$	14,532			$	52,076
Gross profit			11,962				7,747				19,709
Income (loss) from operations			(15,686	)			3,884				(11,802	)
Nine months ended June 27, 2009
		(GAAP results)
Net revenue		$	78,180			$	36,544			$	114,724
Gross profit			23,347				18,295				41,642
Income (loss) from operations			(81,869	)			305				(81,564	)
		(Non-GAAP measures)
Net revenue		$	78,180			$	36,544			$	114,724
Gross profit			23,412				18,269				41,681
Income (loss) from operations			(66,378	)			7,092				(59,286	)
Fiscal 2008:
Three months ended June 28, 2008
		(GAAP results)
Net revenue		$	59,043			$	13,464			$	72,507
Gross profit			23,089				6,613				29,702
Loss from operations			(7,219	)			(271	)			(7,490	)
		(Non-GAAP measures)
Net revenue		$	59,043			$	13,464			$	72,507
Gross profit			23,121				6,639				29,760
Income (loss) from operations			(6,307	)			32				(6,275	)
Nine months ended June 28, 2008
		(GAAP results)
Net revenue		$	224,061			$	42,759			$	266,820
Gross profit			87,511				21,416				108,927
Income (loss) from operations			(12,709	)			198				(12,511	)
		(Non-GAAP measures)
Net revenue		$	224,061			$	42,759			$	266,820
Gross profit			87,614				21,500				109,114
Income from operations			157				1,264				1,421

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							Nine months ended							Nine months ended
		June 28,				% of			June 27,				% of			June 28,				% of			June 27,				% of
		2008				Revenue			2009				Revenue			2008				Revenue			2009				Revenue
Net revenue (GAAP results)		$	72,507						$	52,076						$	266,820						$	114,724
Net revenue (Non-GAAP measures)			72,507							52,076							266,820							114,724
Gross profit (GAAP results)			29,702			41.0	%			19,669			37.8	%			108,927			40.8	%			41,642			36.3	%
- Equity-based compensation expense			58							40							187							39
Gross profit (Non-GAAP measures)			29,760			41.0	%			19,709			37.8	%			109,114			40.9	%			41,681			36.3	%
Loss from operations (GAAP results)			(7,490	)		-10.3	%			(14,482	)		-27.8	%			(12,511	)		-4.7	%			(81,564	)		-71.1	%
- Equity-based compensation expense			1,176							776							4,635							762
- Severance plan			-							567							-							7,122
- Impairment of goodwill			-							-							-							2,709
- Facilities contractual commitments			-							-							-							2,608
- Pension plan curtailment			-							(1,446	)						-							(1,446	)
- Tax settlement expense			-							-							-							2,212
- U.S. pension plan termination			-							-							9,152							-
- Amortization of intangibles			39							2,783							145							8,311
Income (loss) from operations (Non-GAAP measures)			(6,275	)		-8.7	%			(11,802	)		-22.7	%			1,421			0.5	%			(59,286	)		-51.7	%
Net loss (GAAP results)			(4,743	)		-6.5	%			(13,858	)		-26.6	%			(8,602	)		-3.2	%			(65,244	)		-56.9	%
- Equity-based compensation expense			1,176							776							4,635							762
- Severance plan			-							567							-							7,122
- Impairment of goodwill			-							-							-							2,709
- Facilities contractual commitments			-							-							-							2,608
- Pension plan curtailment			-							(1,446	)						-							(1,446	)
- Tax settlement expense			-							-							-							2,212
- U.S. pension plan termination			-							-							9,152							-
- Amortization of intangibles			39							2,783							145							8,311
- Gain on extinguishment of debt			-							-							(170	)						(3,965	)
- Tax settlement benefit			-							-							-							(12,154	)
- Other tax adjustments			-							(1,047	)						-							(1,047	)
- Tax effect of non-GAAP adjustments			(433	)						(19	)						(4,460	)						(155	)
Net income (loss) (Non-GAAP measures)			(3,961	)		-5.5	%			(12,244	)		-23.5	%			700			0.3	%			(60,287	)		-52.5	%
Weighted average shares outstanding, continuing operations (GAAP & Non-GAAP)
Basic			53,528							61,220							53,392							60,908
Diluted			53,528							61,220							62,297							60,908
Net loss per share from continuing operations (GAAP results)
Basic		$	(0.09	)					$	(0.23	)					$	(0.16	)					$	(1.07	)
Diluted		$	(0.09	)					$	(0.23	)					$	(0.16	)					$	(1.07	)
Adjustments to net income per share
Basic		$	0.02						$	0.03						$	0.17						$	0.08
Diluted		$	0.02						$	0.03						$	0.18						$	0.08
Net income (loss) per share from continuing operations (Non-GAAP measures)
Basic		$	(0.07	)					$	(0.20	)					$	0.01						$	(0.99	)
Diluted		$	(0.07	)					$	(0.20	)					$	0.02						$	(0.99	)

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 June 27, 2009
Net revenue (GAAP results)		37,544						14,532						52,076
Net revenue (Non-GAAP measures)		37,544						14,532						52,076
Gross profit (GAAP results)		11,932			31.8	%		7,737			53.2	%		19,669
- Equity-based compensation expense		30						10						40
Gross profit (Non-GAAP measures)		11,962			31.9	%		7,747			53.3	%		19,709
Income (loss) from operations (GAAP results)		(16,861	)		-44.9	%		2,379			16.4	%		(14,482	)
- Equity-based compensation expense		588						188						776
- Severance plan		(93	)					660						567
- Pension plan curtailment		(1,446	)					-						(1,446	)
- Amortization of intangibles		2,126						657						2,783
Income (loss) from operations (Non-GAAP measures)		(15,686	)		-41.8	%		3,884			26.7	%		(11,802	)
Nine months ended June 27, 2009
Net revenue (GAAP results)		78,180						36,544						114,724
Net revenue (Non-GAAP measures)		78,180						36,544						114,724
Gross profit (GAAP results)		23,347			29.9	%		18,295			50.1	%		41,642
- Equity-based compensation expense		65						(26	)					39
Gross profit (Non-GAAP measures)		23,412			29.9	%		18,269			50.0	%		41,681
Income (loss) from operations (GAAP results)		(81,869	)		-104.7	%		305			0.8	%		(81,564	)
- Equity-based compensation expense		682						80						762
- Severance plan		5,041						2,081						7,122
- Impairment of goodwill		2,709						-						2,709
- Facilities contractual commitments		2,165						443						2,608
- Pension plan curtailment		(1,446	)					-						(1,446	)
- Tax settlement expense		-						2,212						2,212
- Amortization of intangibles		6,340						1,971						8,311
Income (loss) from operations (Non-GAAP measures)		(66,378	)		-84.9	%		7,092			19.4	%		(59,286	)
Fiscal 2008:
Three months ended June 28, 2008
Net revenue (GAAP results)		59,043						13,464						72,507
Net revenue (Non-GAAP measures)		59,043						13,464						72,507
Gross profit (GAAP results)		23,089			39.1	%		6,613			49.1	%		29,702
- Equity-based compensation expense		32						26						58
Gross profit (Non-GAAP measures)		23,121			39.2	%		6,639			49.3	%		29,760
Loss from operations (GAAP results)		(7,219	)		-12.2	%		(271	)		-2.0	%		(7,490	)
- Equity-based compensation expense		873						303						1,176
- Amortization of intangibles		39						-						39
Income (loss) from operations (Non-GAAP measures)		(6,307	)		-10.7	%		32			0.2	%		(6,275	)
Nine months ended June 28, 2008
Net revenue (GAAP results)		224,061						42,759						266,820
Net revenue (Non-GAAP measures)		224,061						42,759						266,820
Gross profit (GAAP results)		87,511			39.1	%		21,416			50.1	%		108,927
- Equity-based compensation expense		103						84						187
Gross profit (Non-GAAP measures)		87,614			39.1	%		21,500			50.3	%		109,114
Income (loss) from operations (GAAP results)		(12,709	)		-5.7	%		198			0.5	%		(12,511	)
- Equity-based compensation expense		3,569						1,066						4,635
- U.S. pension plan termination		9,152						-						9,152
- Amortization of intangibles		145						-						145
Income from operations (Non-GAAP measures)		157			0.1	%		1,264			3.0	%		1,421

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