FORT WASHINGTON, Pa., Feb 04, 2010 (BUSINESS WIRE) -- Kulicke & Soffa Industries, Inc. (NASDAQ:KLIC) ("K&S")today announced results for its first fiscal quarter ended January 2, 2010. For its first quarter, the Company reported net revenue of $128.4 million and net income of $15.8 million, or $0.21 per diluted share. This press release contains both GAAP results and non-GAAP measures.
On a non-GAAP basis* for the first quarter of fiscal 2010, the Company reported net revenue of $128.4 million and net income of $21.2 million, or $0.29 per diluted share.
| Quarterly GAAP Results | ||||||
|
From Continuing Operations |
Q1 2010 |
**
Change vs. Q1 2009 |
**
Change vs. Q4 2009 |
|||
| Net Revenue | $128.4 million | 243% | 16% | |||
| Gross Profit | $56.4 million | 305% | 19% | |||
| Gross Margin | 43.9% | 667 basis points | 119 basis points | |||
| Net Income | $15.8 million | 181% | 174% | |||
| Net Margin | 12.3% | 6,469 basis points | 711 basis points | |||
| EPS - Diluted | $0.21 | 166% | 163% | |||
| Quarterly Non-GAAP Measures* | ||||||
|
From Continuing Operations |
Q1 2010 |
**
Change vs. Q1 2009 |
**
Change vs. Q4 2009 |
|||
| Net Revenue | $128.4 million | 243% | 16% | |||
| Gross Profit | $56.4 million | 306% | 19% | |||
| Gross Margin | 43.9% | 679 basis points | 120 basis points | |||
| Net Income | $21.2 million | 197% | 96% | |||
| Net Margin | 16.5% | 7,498 basis points | 673 basis points | |||
| EPS - Diluted | $0.29 | 179% | 84% | |||
| *Non-GAAP measures exclude: equity-based compensation; severance; facilities contractual commitments; tax settlement expense; amortization of intangibles; gain on extinguishment of debt; non-cash interest expense; tax settlement benefit; and related tax effects on non-GAAP adjustments (see reconciliations of GAAP results to Non-GAAP measures in the following financial schedules). |
|
** As adjusted for ASC No. 470.20, Debt, Debt With Conversion Options. |
Commenting on the results, Scott Kulicke, Chairman and Chief Executive Officer, said, "Results for our December quarter reflect the continuing strong semiconductor industry recovery, as well as our own efforts to expand our revenue base. Besides ball bonder demand driven by semiconductor unit volume growth, our revenue includes demand from the LED market and from the industry's transition to copper wire bonding. In addition, we are seeing accelerating demand for our heavy wire wedge bonders. We expect these trends to continue through the March quarter, resulting in March quarter revenue in the range of $140 to $150 million."
Key Product Trends
- Ball bonder unit volumes increased approximately 23% over the September quarter levels
- Conversion to copper wire bonding continues to accelerate; total copper kit volumes increased 146% over the September quarter to approximately 1,550
- Continued strong demand for ball bonders from the LED market
- Heavy wire wedge bonder demand accelerated late in the quarter and is expected to be strong at least through the March quarter
- First purchase order received for iStackPSTM die bonder in January 2010
Financial Highlights
- Gross Margin improved 119 basis points to 43.9%
- Return on Invested Capital+ of 35.4%
- Total cash and cash equivalents of $175.2 million as of January 2, 2010
- Net revenue for the March quarter of fiscal 2010 is expected to be $140 to $150 million
+See Reconciliation of Return on Invested Capital table.
Earnings Conference Call Details
A conference call to discuss these results will be held today, February 4, 2010 beginning at 9:00 am (ET). To access the conference call, interested parties may call (877) 407-8037 or 201-689-8037, or log on to Investor 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 342765 (replay ID number). A replay will also be available on the K&S website at Investor 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 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 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 measures to be a substitute for, or superior to, financial results presented in accordance with GAAP. All of the non-GAAP 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 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 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 and time-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:
- Severance plan
- Facilities contractual commitments
- Tax settlement expense
- Amortization of intangibles
- Gain on extinguishment of debt
- Non-cash interest expense
- Tax settlement benefit
- 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 (loss), net margin, and earnings per share ("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 EPS. K&S non-GAAP net income (loss) and EPS exclude equity-based compensation; severance; facilities contractual commitments; tax settlement expense; amortization of intangibles; gain on extinguishment of debt; non-cash interest expense; tax settlement benefit; 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; severance; facilities contractual commitments; tax settlement expense; amortization of intangibles; gain on extinguishment of debt; non-cash interest expense; tax settlement benefit; 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. (http://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 increasing demand for ball bonders, the continuing semiconductor industry recovery, increasing demand for ball bonder products from the conversion to copper wire bonding and penetration of the LED market, continuing, accelerating demand for heavy wire wedge bonding products, 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. 2009 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 | ||||||||
| December 27, | January 2, | |||||||
| 2008 * | 2010 | |||||||
| Net revenue | $ | 37,416 | $ | 128,415 | ||||
| Cost of sales | 23,488 | 72,042 | ||||||
| Gross profit | 13,928 | 56,373 | ||||||
| Selling, general and administrative | 29,852 | 25,226 | ||||||
| Research and development | 15,400 | 13,161 | ||||||
| Total operating expenses | 45,252 | 38,387 | ||||||
| Income (loss) from operations | (31,324 | ) | 17,986 | |||||
| Interest income | 754 | 97 | ||||||
| Interest expense | (2,079 | ) | (2,083 | ) | ||||
| Gain on extinguishment of debt | 1,179 | - | ||||||
| Income (loss) from continuing operations, before tax | (31,470 | ) | 16,000 | |||||
| Provision (benefit) for income taxes | (11,882 | ) | 160 | |||||
| Income (loss) from continuing operations | (19,588 | ) | 15,840 | |||||
| Income from discontinued operations, net of tax | 22,727 | - | ||||||
| Net income | $ | 3,139 | $ | 15,840 | ||||
| Income (loss) per share from continuing operations: | ||||||||
| Basic | $ | (0.32 | ) | $ | 0.23 | |||
| Diluted | $ | (0.32 | ) | $ | 0.21 | |||
| Income per share from discontinued operations: | ||||||||
| Basic | $ | 0.37 | $ | - | ||||
| Diluted | $ | 0.37 | $ | - | ||||
| Net income per share: | ||||||||
| Basic | $ | 0.05 | $ | 0.23 | ||||
| Diluted | $ | 0.05 | $ | 0.21 | ||||
| Weighted average shares outstanding: | ||||||||
| Basic | 60,451 | 69,684 | ||||||
| Diluted | 60,451 | 73,687 | ||||||
| Equity-based compensation expense included in continuing operations: | ||||||||
| Cost of sales | $ | (29 | ) | $ | 46 | |||
| Selling, general and administrative | (667 | ) | 714 | |||||
| Research and development | 24 | 344 | ||||||
| Total | $ | (672 | ) | $ | 1,104 | |||
| Three months ended | ||||||||
| December 27, | January 2, | |||||||
| Additional financial data: | 2008 * | 2010 | ||||||
| Depreciation and amortization | ||||||||
| Continuing operations | $ | 5,559 | $ | 4,513 | ||||
| Capital expenditures | ||||||||
| Continuing operations | $ | 2,433 | $ | 1,096 | ||||
| December 27, | January 2, | |||||||
| 2008 * | 2010 | |||||||
| Backlog of orders | ||||||||
| Continuing operations | $ | 53,000 | $ | 36,000 | ||||
| Number of employees | ||||||||
| Continuing operations | 2,434 | 2,574 | ||||||
| * As adjusted for ASC No. 470.20, Debt, Debt With Conversion Options. | ||||||||
| KULICKE & SOFFA INDUSTRIES, INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands) | ||||||||
|
(Unaudited) |
||||||||
| October 3, | January 2, | |||||||
| 2009 * | 2010 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 144,560 | $ | 175,207 | ||||
| Restricted cash | 281 | 216 | ||||||
|
Accounts and notes receivable, net of allowance for doubtful accounts of $1,378 and $1,009 respectively |
95,779 | 84,370 | ||||||
| Inventories, net | 41,489 | 49,784 | ||||||
| Prepaid expenses and other current assets | 11,566 | 13,475 | ||||||
| Deferred income taxes | 1,786 | 1,789 | ||||||
| TOTAL CURRENT ASSETS | 295,461 | 324,841 | ||||||
| Property, plant and equipment, net | 36,046 | 35,054 | ||||||
| Goodwill | 26,698 | 26,698 | ||||||
| Intangible assets | 48,656 | 46,270 | ||||||
| Other assets | 5,774 | 7,369 | ||||||
| TOTAL ASSETS | $ | 412,635 | $ | 440,232 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Current portion of long term debt | $ | 48,964 | $ | 48,964 | ||||
| Accounts payable | 39,908 | 53,245 | ||||||
| Accrued expenses and other current liabilities | 32,576 | 29,480 | ||||||
| Income taxes payable | 1,612 | 1,341 | ||||||
| TOTAL CURRENT LIABILITIES | 123,060 | 133,030 | ||||||
| Long term debt | 92,217 | 93,733 | ||||||
| Deferred income taxes | 16,282 | 16,329 | ||||||
| Other liabilities | 10,273 | 9,742 | ||||||
| TOTAL LIABILITIES | 241,832 | 252,834 | ||||||
| SHAREHOLDERS' EQUITY | ||||||||
| Common stock, no par value | 413,092 | 414,462 | ||||||
| Treasury stock, at cost | (46,356 | ) | (46,356 | ) | ||||
| Accumulated deficit | (197,812 | ) | (181,972 | ) | ||||
| Accumulated other comprehensive income | 1,879 | 1,264 | ||||||
| TOTAL SHAREHOLDERS' EQUITY | 170,803 | 187,398 | ||||||
| TOTAL LIABILITIES AND | ||||||||
| SHAREHOLDERS' EQUITY | $ | 412,635 | $ | 440,232 | ||||
| * As adjusted for ASC No. 470.20, Debt, Debt With Conversion Options. | ||||||||
| KULICKE & SOFFA INDUSTRIES, INC. | |||||||||||
| OPERATING RESULTS BY BUSINESS SEGMENT | |||||||||||
| (In thousands) | |||||||||||
| (Unaudited) | |||||||||||
| Fiscal 2010: | |||||||||||
| Expendable | |||||||||||
| Equipment | Tools | ||||||||||
| Three months ended January 2, 2010 | Segment | Segment | Consolidated | ||||||||
| Net revenue | $ | 111,597 | $ | 16,818 | $ | 128,415 | |||||
| Cost of sales | 65,145 | 6,897 | 72,042 | ||||||||
| Gross profit | 46,452 | 9,921 | 56,373 | ||||||||
| Operating expenses | 31,605 | 6,782 | 38,387 | ||||||||
| Income from continuing operations | $ | 14,847 | $ | 3,139 | $ | 17,986 | |||||
| Fiscal 2009: | |||||||||||
| Expendable | |||||||||||
| Equipment | Tools | ||||||||||
| Three months ended December 27, 2008 * | Segment | Segment | Consolidated | ||||||||
| Net revenue | $ | 23,659 | $ | 13,757 | $ | 37,416 | |||||
| Cost of sales | 16,657 | 6,831 | 23,488 | ||||||||
| Gross profit | 7,002 | 6,926 | 13,928 | ||||||||
| Operating expenses | 38,733 | 6,519 | 45,252 | ||||||||
| Income (loss) from continuing operations | $ | (31,731 | ) | $ | 407 | $ | (31,324 | ) | |||
| * As adjusted for ASC No. 470.20, Debt, Debt With Conversion Options. | |||||||||||
|
KULICKE & SOFFA INDUSTRIES, INC. |
||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| Three months ended | ||||||||
|
December 27, 2008 |
January 2, 2010 |
|||||||
| Net cash provided by continuing operations | $ | 2,012 | $ | 34,125 | ||||
| Net cash used in discontinued operations | (779 | ) | (496 | ) | ||||
| Net cash provided by operating activities | $ | 1,233 | $ | 33,629 | ||||
| Net cash used in investing activities, continuing operations | (48,880 | ) | (1,031 | ) | ||||
| Net cash provided by (used in) investing activities, discontinued operations | 149,857 | (1,838 | ) | |||||
| Net cash provided by (used in) investing activities | $ | 100,977 | $ | (2,869 | ) | |||
| Net cash used in financing activities, continuing operations | (74,187 | ) | (23 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 91 | (90 | ) | |||||
| Changes in cash and cash equivalents | $ | 28,114 | $ | 30,647 | ||||
| Cash and cash equivalents, beginning of period | 144,932 | 144,560 | ||||||
| Cash and cash equivalents, end of period | $ | 173,046 | $ | 175,207 | ||||
| KULICKE & SOFFA INDUSTRIES, INC. | |||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS - SUMMARY | |||||||
| COMPARISON OF GAAP RESULTS TO NON-GAAP MEASURES | |||||||
| (In thousands, except share amounts) | |||||||
| (Unaudited) | |||||||
| Three months ended | Three months ended | ||||||
| December 27, | January 2, | ||||||
| 2008 * | 2010 | ||||||
|
(GAAP results) |
|||||||
| Net revenue | $ | 37,416 | $ | 128,415 | |||
| Gross profit | 13,928 | 56,373 | |||||
| Income (loss) from operations | (31,324 | ) | 17,986 | ||||
| Income (loss) from continuing operations | (19,588 | ) | 15,840 | ||||
| Weighted average shares outstanding | |||||||
| Basic | 60,451 | 69,684 | |||||
| Diluted | 60,451 | 73,687 | |||||
| Income (loss) per share from continuing operations | |||||||
| Basic | $ | (0.32 | ) | $ | 0.23 | ||
| Diluted | $ | (0.32 | ) | $ | 0.21 | ||
|
(Non-GAAP measures) |
|||||||
| Net revenue | $ | 37,416 | $ | 128,415 | |||
| Gross profit | 13,899 | 56,419 | |||||
| Income (loss) from operations | (21,837 | ) | 21,677 | ||||
| Income (loss) from continuing operations | (21,878 | ) | 21,197 | ||||
| Weighted average shares outstanding | |||||||
| Basic | 60,451 | 69,684 | |||||
| Diluted | 60,451 | 73,687 | |||||
| Income (loss) per share from continuing operations | |||||||
| Basic | $ | (0.36 | ) | $ | 0.30 | ||
| Diluted | $ | (0.36 | ) | $ | 0.29 | ||
| * As adjusted for ASC No. 470.20, Debt, Debt With Conversion Options. | |||||||
| 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 2010: | |||||||||||
| Three months ended January 2, 2010 | |||||||||||
|
(GAAP results) |
|||||||||||
| Net revenue | $ | 111,597 | $ | 16,818 | $ | 128,415 | |||||
| Gross profit | 46,452 | 9,921 | 56,373 | ||||||||
| Income from operations | 14,847 | 3,139 | 17,986 | ||||||||
|
(Non-GAAP measures) |
|||||||||||
| Net revenue | $ | 111,597 | $ | 16,818 | $ | 128,415 | |||||
| Gross profit | 46,489 | 9,930 | 56,419 | ||||||||
| Income from operations | 17,513 | 4,164 | 21,677 | ||||||||
| Fiscal 2009: | |||||||||||
| Three months ended December 27, 2008 * | |||||||||||
|
(GAAP results) |
|||||||||||
| Net revenue | $ | 23,659 | $ | 13,757 | $ | 37,416 | |||||
| Gross profit | 7,002 | 6,926 | 13,928 | ||||||||
| Income (loss) from operations | (31,731 | ) | 407 | (31,324 | ) | ||||||
|
(Non-GAAP measures) |
|||||||||||
| Net revenue | $ | 23,659 | $ | 13,757 | $ | 37,416 | |||||
| Gross profit | 7,017 | 6,882 | 13,899 | ||||||||
| Income (loss) from operations | (26,237 | ) | 4,400 | (21,837 | ) | ||||||
| KULICKE & SOFFA INDUSTRIES, INC. | ||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
| RECONCILIATION OF GAAP RESULTS TO NON-GAAP MEASURES | ||||||||||||
| (In thousands, except share amounts) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three months ended | Three months ended | |||||||||||
| December 27, | % of | January 2, | % of | |||||||||
| 2008 * | Revenue | 2010 | Revenue | |||||||||
| Net revenue (GAAP results) | $ | 37,416 | $ | 128,415 | ||||||||
| Net revenue (Non-GAAP measures) | 37,416 | 128,415 | ||||||||||
| Gross profit (GAAP results) | 13,928 | 37.2% | 56,373 | 43.9% | ||||||||
| - Equity-based compensation expense | (29 | ) | 46 | |||||||||
| Gross profit (Non-GAAP measures) | 13,899 | 37.1% | 56,419 | 43.9% | ||||||||
| Income (loss) from operations (GAAP results) | (31,324 | ) | -83.7% | 17,986 | 14.0% | |||||||
| - Equity-based compensation expense | (672 | ) | 1,104 | |||||||||
| - Severance plan | 2,586 | 199 | ||||||||||
| - Facilities contractual commitments | 2,608 | - | ||||||||||
| - Tax settlement expense | 2,212 | - | ||||||||||
| - Amortization of intangibles | 2,753 | 2,388 | ||||||||||
| Income (loss) from operations (Non-GAAP measures) | (21,837 | ) | -58.4% | 21,677 | 16.9% | |||||||
| Income (loss) from continuing operations (GAAP results) | (19,588 | ) | -52.4% | 15,840 | 12.3% | |||||||
| - Equity-based compensation expense | (672 | ) | 1,104 | |||||||||
| - Severance plan | 2,586 | 199 | ||||||||||
| - Facilities contractual commitments | 2,608 | - | ||||||||||
| - Tax settlement expense | 2,212 | - | ||||||||||
| - Amortization of intangibles | 2,753 | 2,388 | ||||||||||
| - Gain on extinguishment of debt | (1,179 | ) | - | |||||||||
| - Non cash interest expense | 1,642 | 1,720 | ||||||||||
| - Tax settlement benefit | (12,154 | ) | - | |||||||||
| - Tax effect of non-GAAP adjustments | (86 | ) | (54 | ) | ||||||||
| Income (loss) from continuing operations (Non-GAAP measures) | (21,878 | ) | -58.5% | 21,197 | 16.5% | |||||||
| Weighted average shares outstanding (GAAP & Non-GAAP) | ||||||||||||
| Basic | 60,451 | 69,684 | ||||||||||
| Diluted | 60,451 | 73,687 | ||||||||||
| Income (loss) per share from continuing operations (GAAP results) | ||||||||||||
| Basic | $ | (0.32 | ) | $ | 0.23 | |||||||
| Diluted | $ | (0.32 | ) | $ | 0.21 | |||||||
| Adjustments to net income (loss) per share | ||||||||||||
| Basic | $ | (0.04 | ) | $ | 0.07 | |||||||
| Diluted | $ | (0.04 | ) | $ | 0.08 | |||||||
| Income (loss) per share from continuing operations (Non-GAAP measures) | ||||||||||||
| Basic | $ | (0.36 | ) | $ | 0.30 | |||||||
| Diluted | $ | (0.36 | ) | $ | 0.29 | |||||||
| * As adjusted for ASC No. 470.20, Debt, Debt With Conversion Options. | ||||||||||||
| 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 2010: | ||||||||||||||||||
| Three months ended January 2, 2010 | ||||||||||||||||||
| Net revenue (GAAP results) | $ | 111,597 | $ | 16,818 | $ | 128,415 | ||||||||||||
| Net revenue (Non-GAAP measures) | 111,597 | 16,818 | 128,415 | |||||||||||||||
| Gross profit (GAAP results) | 46,452 | 41.6 | % | 9,921 | 59.0 | % | 56,373 | |||||||||||
| - Equity-based compensation expense | 37 | 9 | 46 | |||||||||||||||
| Gross profit (Non-GAAP measures) | 46,489 | 41.7 | % | 9,930 | 59.0 | % | 56,419 | |||||||||||
| Income from operations (GAAP results) | 14,847 | 13.3 | % | 3,139 | 18.7 | % | 17,986 | |||||||||||
| - Equity-based compensation expense | 877 | 227 | 1,104 | |||||||||||||||
| - Severance plan | (26 | ) | 225 | 199 | ||||||||||||||
| - Amortization of intangibles | 1,815 | 573 | 2,388 | |||||||||||||||
| Income from operations (Non-GAAP measures) | 17,513 | 15.7 | % | 4,164 | 24.8 | % | 21,677 | |||||||||||
| Fiscal 2009: | ||||||||||||||||||
| Three months ended December 27, 2008 | ||||||||||||||||||
| Net revenue (GAAP results) | $ | 23,659 | $ | 13,757 | $ | 37,416 | ||||||||||||
| Net revenue (Non-GAAP measures) | 23,659 | 13,757 | 37,416 | |||||||||||||||
| Gross profit (GAAP results) | 7,002 | 29.6 | % | 6,926 | 50.3 | % | 13,928 | |||||||||||
| - Equity-based compensation expense | 15 | (44 | ) | (29 | ) | |||||||||||||
| Gross profit (Non-GAAP measures) | 7,017 | 29.7 | % | 6,882 | 50.0 | % | 13,899 | |||||||||||
| Income (loss) from operations (GAAP results) | (31,731 | ) | -134.1 | % | 407 | 3.0 | % | (31,324 | ) | |||||||||
| - Equity-based compensation expense | (367 | ) | (305 | ) | (672 | ) | ||||||||||||
| - Severance plan | 1,600 | 986 | 2,586 | |||||||||||||||
| - Facilities contractual commitments | 2,165 | 443 | 2,608 | |||||||||||||||
| - Tax settlement expense | - | 2,212 | 2,212 | |||||||||||||||
| - Amortization of intangibles | 2,096 | 657 | 2,753 | |||||||||||||||
| Income (loss) from operations (Non-GAAP measures) | (26,237 | ) | -110.9 | % | 4,400 | 32.0 | % | (21,837 | ) | |||||||||
| Reconciliation of Return on Invested Capital | ||||||||||||||||||
| (For the three months ending January 2, 2010) | ||||||||||||||||||
| (Dollar amounts in thousands) | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
|
As Reported |
Adjustments |
Non-GAAP ROIC |
||||||||||||||||
|
GAAP Results |
||||||||||||||||||
| Depreciation/ | ||||||||||||||||||
| Amortization | ||||||||||||||||||
| Income from Operations | $ | 17,986 | $ | 4,513 | $ | 22,499 | Adjusted Net | |||||||||||
| Operating Income | ||||||||||||||||||
|
|
X 4 |
|||||||||||||||||
| $ | 89,996 | (A) | Annualized | |||||||||||||||
| Company | FIN 48 | |||||||||||||||||
| Cash Limit (1) | Adoption (2) | |||||||||||||||||
| Cash & Cash | ||||||||||||||||||
|
Equivalents & Investments held to Maturity |
$ | 175,423 | $ | (100,423 | ) | $ | 75,000 | |||||||||||
| Non-Cash Assets | $ | 264,809 | $ | 264,809 | ||||||||||||||
| Total Assets | $ | 440,232 | $ | 339,809 | ||||||||||||||
| Total Current Liabilities | $ | 133,030 | $ | 1,699 | $ | 85,765 | ||||||||||||
| Net Invested Capital | $ | 307,202 | $ | 254,044 | (B) | Adjusted Net | ||||||||||||
| Invested Capital | ||||||||||||||||||
| 35.4 | % | (A)/(B) | ROIC | |||||||||||||||
|
(1) |
Only the first $75 million of cash is used for the ROIC calculation which management estimates is the Company's minimum cash requirement. |
|
|
(2) |
Current liabilities includes tax liabilities classified as current liabilities in prior periods, but reclassified to long term liabilities as a result of the Company's adopted FIN 48 in fiscal Q1 of 2008. |
|
SOURCE: Kulicke & Soffa Industries, Inc.
Kulicke & Soffa
Tom Johnson
Director - Investor Relations & Corporate Communications
P: 215-784-6411
F: 215-784-6167
tjohnson@kns.com
or
Headgate Partners LLC
Claire E. McAdams
P: 530-265-9899
F: 530-265-9699
claire@headgatepartners.com
