FORT WASHINGTON, Pa., Dec 16, 2009 (BUSINESS WIRE) -- On November 19, 2009, Kulicke & Soffa Industries, Inc. (NASDAQ: KLIC) ("K&S") (the "Company") issued a press release announcing its financial results for its fourth fiscal quarter and for its fiscal year ended October 3, 2009. Subsequent to the issuance of its press release, the Company identified an error in calculating income tax expense included in net income for the Company's fourth fiscal quarter. The correction of the error reduced income tax expense by $750,000, which resulted in an increase to net income after tax of $750,000, and increased other assets by $750,000.

For the fourth fiscal quarter 2009, the Company's corrected income from continuing operations of $7.2 million, or $0.10 per diluted share, resulted in an increase of $0.01 per share from the per share amount previously announced on November 19, 2009. On a non-GAAP basis* for the fourth fiscal quarter of 2009, the Company's corrected income from continuing operations of $10.9 million, or $0.16 per diluted share, resulted in an increase of $0.02 per share. Net revenue from continuing operations of $110.5 million is unchanged.

For fiscal 2009, the Company's corrected loss from continuing operations of $58.0 million, or $0.93 per diluted share, resulted in an increase of $0.02 per share from the previously announced per share amount. On a non-GAAP basis*, the Company's corrected loss from continuing operations of $49.4 million, or $0.79 per diluted share, resulted in an increase of $0.02 per share. Net revenue from continuing operations of $225.2 million is unchanged.

*Non-GAAP measures from continuing operations exclude: equity-based compensation; amortization of intangibles; severance; Switzerland pension plan curtailment; tax settlement; U.S. pension plan termination; impairment of goodwill; facilities contractual commitments; gain on extinguishment of debt; 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)

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

SOURCE: Kulicke & Soffa Industries, Inc.

Kulicke & Soffa
Tom Johnson, 215-784-6411
F: 215-784-6167
Director - Investor Relations & Corporate Communications
tjohnson@kns.com