FORT WASHINGTON, Pa. --(BUSINESS WIRE)--Nov. 19, 2009--  Kulicke & Soffa Industries, Inc.  (NASDAQ: KLIC) (“K&S”) today announced results for its fourth fiscal quarter and year ended  October 3, 2009 . For the fourth quarter, the Company reported net revenue from continuing operations of  $110.5 million  and net income of  $6.5 million  or  $0.09  per diluted share. This press release contains both GAAP results and non-GAAP measures.

On a non-GAAP basis* for the fourth quarter of 2009, the Company reported net revenue from continuing operations of $110.5 million with net income of $9.8 million or $0.14 per diluted share.

Quarterly GAAP Results
From Continuing Operations		Q4 2009 (14 weeks)		Change vs. Q4 2008		Change vs. Q3 2009
Net Revenue		$110.5 million		80%		112%
Gross Profit		$47.2 million		90%		140%
Gross Margin		42.7%		210 bps		494 bps
Net Income		$6.5 million		159%		147%
Net Margin		5.9%		2,385 bps		3,246 bps
EPS – Diluted		$0.09		143%		139%
Quarterly Non-GAAP Measures
From Continuing Operations		Q4 2009 (14 weeks)		Change vs. Q4 2008		Change vs. Q3 2009
Net Revenue		$110.5 million		80%		112%
Gross Profit		$47.2 million		89%		140%
Gross Margin		42.7%		202 bps		489 bps
Net Income		$9.8 million		195%		180%
Net Margin		8.8%		2,561 bps		3,234 bps
EPS – Diluted		$0.14		174%		170%

*Non-GAAP measures from continuing operations exclude: equity-based compensation; amortization of intangibles; severance; Switzerland pension plan curtailment; tax settlement; other tax adjustments and related tax effects on non-GAAP adjustments (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, “Considering the year we’ve all been through, results for the September quarter were quite good. Revenue grew to $110 million, more than doubling since the June quarter. This revenue growth, coupled with our previous expense reductions, returned K&S to profitability in the September quarter. For the December quarter, we currently expect revenue for this period to improve to approximately $115 to $120 million.”

Financial Highlights

• Returned to profitability in the September quarter
• Successfully completed an equity offering of 8.0 million shares in August 2009 for net proceeds of $38.7 million
• Total debt at 2009 fiscal year end was $159.0 million, down $88.4 million from $247.4 million at 2008 fiscal year end
• Total cash and cash equivalents of $144.8 million as of October 3, 2009

Key Product Trends

• Ball bonder unit volumes up approximately 173% over June quarter levels
   
  • Conversion to copper wire bonding is accelerating; over 600 copper conversion kits were sold during the quarter
  • Successful launch and initial sales of ConnX-LEDPSTM automatic ball bonder
• Highest heavy wire wedge bonder unit volumes since acquisition of Orthodyne; unit volumes increased approximately 169% over June quarter levels
• Multiple customer qualifications of iStackPSTM automatic die bonder on-going through first quarter of fiscal 2010
   
  • Initial sales expected in the March 2010 quarter

Outlook for First Fiscal Quarter 2010

• Net revenue is expected to be $115 to $120 million

Earnings Conference Call Details

A conference call to discuss these results will be held today, November 19, 2009 beginning at 9:00 AM EST. Interested parties may call (877) 407-8037 or (201) 689-8037, or log on to 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 335875 (replay ID number). A replay will also be available on the K&S website at www.kns.com/investors/events. The replay will be available via phone and website for a limited time.

Fiscal 2009 Results

From continuing operations in fiscal 2009, K&S net revenue was $225.2 million with a net loss of $58.8 million or $0.95 per diluted share. On a non-GAAP basis*, fiscal 2009 net revenue was $225.2 million with a net loss of $50.5 million or $0.81 per diluted share.

Annual GAAP Results
From Continuing Operations		FY 2009		FY 2008		Change
Net Revenue		$225.2 million		$328.1 million		-31%
Gross Profit		$88.8 million		$133.8 million		-34%
Gross Margin		39.4%		40.8%		-134 bps
Net Loss		($58.8) million		($19.6) million		-200%
Net Margin		-26.1%		-6.0%		-2,011 bps
EPS - Diluted		($0.95)		($0.37)		-157%
Annual Non-GAAP Measures
From Continuing Operations		FY 2009		FY 2008		Change
Net Revenue		$225.2 million		$328.1 million		-31%
Gross Profit		$88.9 million		$134.0 million		-34%
Gross Margin		39.5%		40.9%		-139 bps
Net Loss		($50.5) million		($9.6) million		-428%
Net Margin		-22.4%		-2.9%		1,951 bps
EPS - Diluted		($0.81)		($0.18)		-354%

*Non-GAAP measures from continuing operations exclude: equity-based compensation; amortization of intangibles; severance; facilities contractual commitments; Switzerland pension plan curtailment; goodwill impairment; U.S. pension plan termination; tax settlements; debt extinguishment; other tax adjustments and related tax effects on non-GAAP adjustments (see reconciliations of GAAP results to Non-GAAP measures in the following financial schedules).

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. The Company recognizes the fair value of its equity-based compensation in expenses. Equity-based compensation consists of common stock, stock options and performance-based 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:

• U.S. pension plan termination
• Debt extinguishment
• Amortization of intangibles
• Severance
• Goodwill impairment
• Facilities contractual commitments
• Switzerland pension plan curtailment
• Tax settlements
• Other tax adjustments

- 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, adjusted for discrete quarterly items, by the GAAP operating 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, amortization of intangibles, severance, facilities contractual commitments, Switzerland pension plan curtailment, goodwill impairment, U.S. pension plan termination, tax settlements, debt extinguishment, other tax adjustments and related tax effects on non-GAAP adjustments.

--Net Margin. K&S non-GAAP net margin reflects the Company’s net margin excluding equity-based compensation, amortization of intangibles, severance, facilities contractual commitments, Switzerland pension plan curtailment, goodwill impairment, U.S. pension plan termination, tax settlements, debt extinguishment, other tax adjustments and related tax effects on non-GAAP adjustments.

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 accelerating conversion to copper wire bonding and future revenue, sales, 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								Twelve months ended
		September 27,				October 3,				September 27,				October 3,
			2008				2009				2008				2009
Net revenue		$	61,230			$	110,516			$	328,050			$	225,240
Cost of sales			36,364				63,315				194,257				136,397
Gross profit			24,866				47,201				133,793				88,843
Selling, general and administrative			22,304				26,600				89,356				106,175
Research and development			14,683				12,561				59,917				53,483
Impairment of goodwill			-				-				-				2,709
U.S. pension plan termination			-				-				9,152				-
Total operating expenses			36,987				39,161				158,425				162,367
Income (loss) from operations			(12,121	)			8,040				(24,632	)			(73,524	)
Interest income			1,004				84				4,732				1,106
Interest expense			(892	)			(620	)			(3,499	)			(2,601	)
Gain on extinguishment of debt			-				-				170				3,965
Income (loss) from continuing operations before income taxes			(12,009	)			7,504				(23,229	)			(71,054	)
Income tax (benefit) expense			(992	)			1,035				(3,610	)			(12,279	)
Income (loss) from continuing operations			(11,017	)			6,469				(19,619	)			(58,775	)
Income (loss) from discontinued operations, net of tax			6,408				(716	)			23,441				22,011
Net income (loss)		$	(4,609	)		$	5,753			$	3,822			$	(36,764	)
Income (loss) per share from continuing operations:
Basic		$	(0.21	)		$	0.10			$	(0.37	)		$	(0.95	)
Diluted		$	(0.21	)		$	0.09			$	(0.37	)		$	(0.95	)
Income per share from discontinued operations:
Basic		$	0.12			$	(0.01	)		$	0.44			$	0.36
Diluted		$	0.12			$	(0.01	)		$	0.44			$	0.36
Net income (loss) per share:
Basic		$	(0.09	)		$	0.09			$	0.07			$	(0.59	)
Diluted		$	(0.09	)		$	0.08			$	0.07			$	(0.59	)
Weighted average shares outstanding:
Basic			53,621				65,754				53,449				62,188
Diluted			53,621				70,082				53,449				62,188
Equity-based compensation expense included in continuing operations:
Cost of sales		$	65			$	25			$	252			$	64
Selling, general and administrative			513				401				3,711				649
Research and development			192				199				1,442				674
Total		$	770			$	625			$	5,405			$	1,387
		Three months ended								Twelve months ended
		September 27,				October 3,				September 27,				October 3,
Additional financial data:			2008				2009				2008				2009
Depreciation and amortization
Continuing operations		$	2,336			$	5,861			$	9,080			$	22,233
Discontinued operations		$	241			$	-			$	968			$	-
Capital expenditures
Continuing operations		$	1,544			$	865			$	7,850			$	5,264
Discontinued operations		$	32			$	-			$	151			$	-
										September 27,				October 3,
											2008				2009
Backlog of orders
Continuing operations										$	50,000			$	42,000
Discontinued operations										$	22,000			$	-
Number of employees
Continuing operations											2,496				2,202
Discontinued operations											293				-

Note –		Statements of operations and additional financial data reflect the sale of the company's Wire business as a discontinued operation.

KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
		September 27,				October 3,
			2008				2009
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	144,932			$	144,560
Restricted cash			35,000				281
Short-term investments			6,149				-
Accounts and notes receivable, net of allowance for doubtful accounts of $1,376 and $1,378 respectively			56,643				95,779
Inventories, net			27,236				41,489
Prepaid expenses and other current assets			18,729				11,566
Deferred income taxes			2,118				1,786
Current assets of discontinued operations			127,958				-
TOTAL CURRENT ASSETS			418,765				295,461
Property, plant and equipment, net			36,900				36,046
Intangible assets			386				48,656
Goodwill			2,709				26,698
Other assets			5,468				5,465
Non-current assets of discontinued operations			32,909				-
TOTAL ASSETS		$	497,137			$	412,326
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long term debt		$	72,412			$	48,964
Accounts payable			25,028				39,908
Accrued expenses and other current liabilities			27,255				32,576
Income taxes payable			569				1,612
Current liabilities of discontinued operations			34,411				-
TOTAL CURRENT LIABILITIES			159,675				123,060
Long term debt			175,000				110,000
Other liabilities			37,780				10,273
Deferred income taxes			21,591				16,282
Other liabilities of discontinued operations			624				-
TOTAL LIABILITIES			394,670				259,615
SHAREHOLDERS' EQUITY
Common stock, no par value			295,841				383,417
Treasury stock, at cost			(46,118	)			(46,356	)
Accumulated deficit			(149,465	)			(186,229	)
Accumulated other comprehensive income			2,209				1,879
TOTAL SHAREHOLDERS' EQUITY			102,467				152,711
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	497,137			$	412,326

KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
		Three months ended								Twelve months ended
		September 27, 2008				October 3, 2009				September 27, 2008				October 3, 2009
Net cash provided by (used in) operating activities, continuing operations		$	1,999			$	(10,161	)		$	26,936			$	(51,407	)
Net cash provided by (used in) operating activities, discontinued operations			3,020				(417	)			1,126				(2,116	)
Net cash provided by (used in) operating activities		$	5,019			$	(10,578	)		$	28,062			$	(53,523	)
Net cash provided by (used in) investing activities, continuing operations			(24,155	)			1,441				(29,599	)			(51,453	)
Net cash provided by (used in) investing activities, discontinued operations			(37	)			-				(193	)			149,857
Net cash provided by (used in) investing activities		$	(24,192	)		$	1,441			$	(29,792	)		$	98,404
Net cash provided by (used in) financing activities			5				38,865				(3,282	)			(45,439	)
Effect of exchange rate changes on cash and cash equivalents			(96	)			145				(627	)			185
Changes in cash and cash equivalents		$	(19,264	)		$	29,873			$	(5,639	)		$	(373	)
Cash and cash equivalents, beginning of period			164,196				114,687				150,571				144,933
Cash and cash equivalents, end of period		$	144,932			$	144,560			$	144,932			$	144,560
Short-term investments			6,149				-				6,149				-
Restricted cash			35,000				281				35,000				281
Total Cash, cash equivalents, restricted cash and short-term investments		$	186,081			$	144,841			$	186,081			$	144,841

KULICKE & SOFFA INDUSTRIES, INC.
OPERATING RESULTS BY BUSINESS SEGMENT
(In thousands)
(Unaudited)
Fiscal 2009:
						Expendable
		Equipment				Tools
Three months ended October 3, 2009		Segment				Segment			Consolidated
Net revenue		$	92,356			$	18,160		$	110,516
Cost of sales			56,270				7,045			63,315
Gross profit			36,086				11,115			47,201
Operating expenses			32,958				6,203			39,161
Income from continuing operations		$	3,128			$	4,912		$	8,040
Fiscal year ended October 3, 2009
Net revenue		$	170,536			$	54,704		$	225,240
Cost of sales			111,103				25,294			136,397
Gross profit			59,433				29,410			88,843
Operating expenses			135,465				24,193			159,658
Impairment of goodwill			2,709				-			2,709
Income (loss) from continuing operations		$	(78,741	)		$	5,217		$	(73,524	)
Fiscal 2008:
						Expendable
		Equipment				Tools
Three months ended September 27, 2008		Segment				Segment			Consolidated
Net revenue		$	46,958			$	14,272		$	61,230
Cost of sales			28,949				7,415			36,364
Gross profit			18,009				6,857			24,866
Operating expenses			31,234				5,753			36,987
Income (loss) from continuing operations		$	(13,225	)		$	1,104		$	(12,121	)
Fiscal year ended September 27, 2008
Net revenue		$	271,019			$	57,031		$	328,050
Cost of sales			165,499				28,758			194,257
Gross profit			105,520				28,273			133,793
Operating expenses			122,302				26,971			149,273
U.S. pension plan termination			9,152				-			9,152
Income (loss) from continuing operations		$	(25,934	)		$	1,302		$	(24,632	)

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			Twelve months ended				Twelve months ended
		September 27,				October 3,			September 27,				October 3,
		2008				2009			2008				2009
		(GAAP results)
Net revenue		$	61,230			$	110,516		$	328,050			$	225,240
Gross profit			24,866				47,201			133,793				88,843
Income (loss) from operations			(12,121	)			8,040			(24,632	)			(73,524	)
Net income (loss) from continuing operations			(11,017	)			6,469			(19,619	)			(58,775	)
Weighted average shares outstanding, continuing operations
Basic			53,621				65,754			53,449				62,188
Diluted			53,621				70,082			53,449				62,188
Net income (loss) per share from continuing operations
Basic		$	(0.21	)		$	0.10			(0.37	)		$	(0.95	)
Diluted		$	(0.21	)		$	0.09			(0.37	)		$	(0.95	)
		(Non-GAAP measures)
Net revenue		$	61,230			$	110,516		$	328,050			$	225,240
Gross profit			24,931				47,226			134,045				88,907
Income (loss) from operations			(11,310	)			12,275			(9,889	)			(47,011	)
Net income (loss) from continuing operations			(10,273	)			9,760			(9,573	)			(50,527	)
Weighted average shares outstanding, continuing operations
Basic			53,621				65,754			53,449				62,188
Diluted			53,621				70,082			53,449				62,188
Net income (loss) per share from continuing operations
Basic		$	(0.19	)		$	0.15		$	(0.18	)		$	(0.81	)
Diluted		$	(0.19	)		$	0.14		$	(0.18	)		$	(0.81	)

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 October 3, 2009
		(GAAP results)
Net revenue		$	92,356			$	18,160		$	110,516
Gross profit			36,086				11,115			47,201
Income from operations			3,128				4,912			8,040
		(Non-GAAP measures)
Net revenue		$	92,356			$	18,160		$	110,516
Gross profit			36,107				11,119			47,226
Income from operations			6,605				5,670			12,275
Fiscal year ended October 3, 2009
		(GAAP results)
Net revenue		$	170,536			$	54,704		$	225,240
Gross profit			59,433				29,410			88,843
Income (loss) from operations			(78,741	)			5,217			(73,524	)
		(Non-GAAP measures)
Net revenue		$	170,536			$	54,704		$	225,240
Gross profit			59,519				29,388			88,907
Income (loss) from operations			(59,773	)			12,762			(47,011	)
Fiscal 2008:
Three months ended September 27, 2008
		(GAAP results)
Net revenue		$	46,958			$	14,272		$	61,230
Gross profit			18,009				6,857			24,866
Income (loss) from operations			(13,225	)			1,104			(12,121	)
		(Non-GAAP measures)
Net revenue		$	46,958			$	14,272		$	61,230
Gross profit			18,043				6,888			24,931
Income (loss) from operations			(12,631	)			1,321			(11,310	)
Fiscal year ended September 27, 2008
		(GAAP results)
Net revenue		$	271,019			$	57,031		$	328,050
Gross profit			105,520				28,273			133,793
Income (loss) from operations			(25,934	)			1,302			(24,632	)
		(Non-GAAP measures)
Net revenue		$	271,019			$	57,031		$	328,050
Gross profit			105,657				28,388			134,045
Income (loss) from operations			(12,474	)			2,585			(9,889	)

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							Twelve months ended							Twelve months ended
		September 27,				% of			October 3,				% of			September 27,				% of			October 3,				% of
			2008			Revenue				2009			Revenue				2008			Revenue				2009			Revenue
Net revenue (GAAP results)		$	61,230						$	110,516						$	328,050						$	225,240
Net revenue (Non-GAAP measures)			61,230							110,516							328,050							225,240
Gross profit (GAAP results)			24,866			40.6	%			47,201			42.7	%			133,793			40.8	%			88,843			39.4	%
- Equity-based compensation expense			65							25							252							64
Gross profit (Non-GAAP measures)			24,931			40.7	%			47,226			42.7	%			134,045			40.9	%			88,907			39.5	%
Loss from operations (GAAP results)			(12,121	)		-19.8	%			8,040			7.3	%			(24,632	)		-7.5	%			(73,524	)		-32.6	%
- Equity-based compensation expense			770							625							5,405							1,387
- Severance plan			-							1,229							-							8,351
- Impairment of goodwill			-							-							-							2,709
- Facilities contractual commitments			-							-							-							2,608
- Switzerland pension plan curtailment			-							-							-							(1,446	)
- Tax settlement expense			-							(400	)						-							1,812
- U.S. pension plan termination			-							-							9,152							-
- Amortization of intangibles			41							2,781							186							11,092
Income (loss) from operations (Non-GAAP measures)			(11,310	)		-18.5	%			12,275			11.1	%			(9,889	)		-3.0	%			(47,011	)		-20.9	%
Net loss (GAAP results)			(11,017	)		-18.0	%			6,469			5.9	%			(19,619	)		-6.0	%			(58,775	)		-26.1	%
- Equity-based compensation expense			770							625							5,405							1,387
- Severance plan			-							1,229							-							8,351
- Impairment of goodwill			-							-							-							2,709
- Facilities contractual commitments			-							-							-							2,608
- Switzerland pension plan curtailment			-							-							-							(1,446	)
- Tax settlement expense			-							(400	)						-							1,812
- U.S. pension plan termination			-							-							9,152							-
- Amortization of intangibles			41							2,781							186							11,092
- Gain on extinguishment of debt			-							-							(170	)						(3,965	)
- Tax settlement benefit			-							-							-							(12,154	)
- Other tax adjustments			-							-							-							(1,047	)
- Tax effect of non-GAAP adjustments			(67	)						(944	)						(4,527	)						(1,099	)
Net income (loss) (Non-GAAP measures)			(10,273	)		-16.8	%			9,760			8.8	%			(9,573	)		-2.9	%			(50,527	)		-22.4	%
Weighted average shares outstanding, continuing operations (GAAP & Non-GAAP)
Basic			53,621							65,754							53,449							62,188
Diluted			53,621							70,082							53,449							62,188
Net income (loss) per share from continuing operations (GAAP results)
Basic		$	(0.21	)					$	0.10						$	(0.37	)					$	(0.95	)
Diluted		$	(0.21	)					$	0.09						$	(0.37	)					$	(0.95	)
Adjustments to net income per share
Basic		$	0.02						$	0.05						$	0.19						$	0.14
Diluted		$	0.02						$	0.05						$	0.19						$	0.14
Net income (loss) per share from continuing operations (Non-GAAP measures)
Basic		$	(0.19	)					$	0.15						$	(0.18	)					$	(0.81	)
Diluted		$	(0.19	)					$	0.14						$	(0.18	)					$	(0.81	)

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 October 3, 2009
Net revenue (GAAP results)		92,356						18,160						110,516
Net revenue (Non-GAAP measures)		92,356						18,160						110,516
Gross profit (GAAP results)		36,086			39.1	%		11,115			61.2	%		47,201
- Equity-based compensation expense		21						4						25
Gross profit (Non-GAAP measures)		36,107			39.1	%		11,119			61.2	%		47,226
Income from operations (GAAP results)		3,128			3.4	%		4,912			27.0	%		8,040
- Equity-based compensation expense		536						89						625
- Severance plan		817						412						1,229
- Tax settlement expense		-						(400	)					(400	)
- Amortization of intangibles		2,124						657						2,781
Income from operations (Non-GAAP measures)		6,605			7.2	%		5,670			31.2	%		12,275
Fiscal year ended October 3, 2009
Net revenue (GAAP results)		170,536						54,704						225,240
Net revenue (Non-GAAP measures)		170,536						54,704						225,240
Gross profit (GAAP results)		59,433			34.9	%		29,410			53.8	%		88,843
- Equity-based compensation expense		86						(22	)					64
Gross profit (Non-GAAP measures)		59,519			34.9	%		29,388			53.7	%		88,907
Income (loss) from operations (GAAP results)		(78,741	)		-46.2	%		5,217			9.5	%		(73,524	)
- Equity-based compensation expense		1,218						169						1,387
- Severance plan		5,858						2,493						8,351
- Impairment of goodwill		2,709						-						2,709
- Facilities contractual commitments		2,165						443						2,608
- Switzerland pension plan curtailment		(1,446	)					-						(1,446	)
- Tax settlement expense		-						1,812						1,812
- Amortization of intangibles		8,464						2,628						11,092
Income (loss) from operations (Non-GAAP measures)		(59,773	)		-35.1	%		12,762			23.3	%		(47,011	)
Fiscal 2008:
Three months ended September 27, 2008
Net revenue (GAAP results)		46,958						14,272						61,230
Net revenue (Non-GAAP measures)		46,958						14,272						61,230
Gross profit (GAAP results)		18,009			38.4	%		6,857			48.0	%		24,866
- Equity-based compensation expense		34						31						65
Gross profit (Non-GAAP measures)		18,043			38.4	%		6,888			48.3	%		24,931
Income (loss) from operations (GAAP results)		(13,225	)		-28.2	%		1,104			7.7	%		(12,121	)
- Equity-based compensation expense		553						217						770
- Amortization of intangibles		41						-						41
Income (loss) from operations (Non-GAAP measures)		(12,631	)		-26.9	%		1,321			9.3	%		(11,310	)
Fiscal year ended September 27, 2008
Net revenue (GAAP results)		271,019						57,031						328,050
Net revenue (Non-GAAP measures)		271,019						57,031						328,050
Gross profit (GAAP results)		105,520			38.9	%		28,273			49.6	%		133,793
- Equity-based compensation expense		137						115						252
Gross profit (Non-GAAP measures)		105,657			39.0	%		28,388			49.8	%		134,045
Income (loss) from operations (GAAP results)		(25,934	)		-9.6	%		1,302			2.3	%		(24,632	)
- Equity-based compensation expense		4,122						1,283						5,405
- U.S. pension plan termination		9,152						-						9,152
- Amortization of intangibles		186						-						186
Income (loss) from operations (Non-GAAP measures)		(12,474	)		-4.6	%		2,585			4.5	%		(9,889	)

 

 

Source: Kulicke & Soffa Industries, Inc.

Kulicke & Soffa
Tom Johnson
Director – Investor Relations & Corporate Communications
215-784-6411
F: 215-784-6167
tjohnson@kns.com
or
Headgate Partners LLC
Claire E. McAdams
530-265-9899
F: 530-265-9699
claire@headgatepartners.com