New Solutions Available 2017

News Releases

Kulicke & Soffa Reports First Quarter Fiscal 2012 Results

(BUSINESS WIRE)--Jan. 31, 2012--  Kulicke & Soffa Industries, Inc.  (NASDAQ: KLIC) (“K&S” or the Company”) today announced results for its first fiscal quarter ended  December 31, 2011 .

Quarterly Results

Fiscal Q1 2012

  Change vs.

Fiscal Q1 2011

  Change vs.

Fiscal Q4 2011

Net Revenue   $120.0 million   -19.4%   -33.5%
Gross Profit   $55.3 million   -23.3%   -33.2%
Gross Margin   46.1%   -230 bps   20 bps
Income from Operations   $12.4 million   -43.9%   -45.5%
Operating Margin   10.3%   -450 bps   -230 bps
Net Income   $8.5 million   -43.7%   344.9%
Net Margin   7.1%   -300 bps   600 bps
EPS – Diluted   $0.11   -47.6%   266.7%

Bruno Guilmart, Kulicke & Soffa’s President and Chief Executive Officer, said, “Revenue in the December quarter came in at the high end of our guidance but declined sequentially due to the overall macroeconomic market environment combined with weaker demand from our OSAT customers. Despite the challenging environment, we continued to generate healthy levels of operating cash which allowed us to end the quarter with record cash and investments of $403.8 million dollars. We remain focused on operational excellence, expanding our product offerings and managing our business efficiently throughout the cycle.”

First Quarter Fiscal 2012 Key Product Trends

  • Ball bonder equipment net revenue decreased 37% over the September quarter.
  • 72% of ball bonder equipment was sold as copper capable bonders, compared to 37% in the same period one year ago.
  • Wedge bonder equipment net revenue decreased 18% from the September quarter.

First Quarter Fiscal 2012 Financial Highlights

  • Net revenue of $120.0 million.
  • Gross margin improved sequentially to 46.1%.
  • Net income was $8.5 million or $0.11 per share.
  • Cash, cash equivalents and investments increased to $403.8 million up $19.2 million from the prior quarter.

Second Quarter Fiscal 2012 Outlook

The Company expects net revenue for the second quarter of fiscal 2012 to be approximately $125 million to $135 million, reflecting the continued uncertain economic environment and ongoing conservative capital spending by its customers.

Looking forward, Bruno Guilmart commented, “We believe we are well positioned both competitively and financially and continue to work towards our goals and objectives of strengthening our technology leadership, broadening our product offering, developing our employees and leveraging our technical competencies in an effort to maximize shareholder value. These actions are coming to fruition as we look forward to a series of new product launches throughout 2012.”

Earnings Conference Call Details

A conference call to discuss these results will be held today, January 31, 2012, beginning at 8:00 am (EST). To access the conference call, interested parties may call +1-877-407-8037 or internationally +1-201-689-8037. The call will also be available by live webcast at

A replay will be available from approximately one hour after the completion of the call through February 7, 2012 by calling +1-877-660-6853 or internationally +1-201-612-7415, with account number 5521 and replay ID 386579. A webcast replay will also be available at

About Kulicke & Soffa

Kulicke & Soffa (NASDAQ: KLIC) is a global leader in the design and manufacture of semiconductor and LED assembly equipment. As a pioneer in this 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 and wedge bonders 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 and LED devices. (

Caution Concerning Results and 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 our future revenue, sustained, increasing, continuing or strengthening demand for our products, the continuing transition from gold to copper wire bonding, replacement demand, our research and development efforts, our ability to identify and realize new growth opportunities and our ability to control costs. 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: the risk that customer orders already received may be postponed or canceled, generally without charges; the risk that anticipated customer orders may not materialize; the risk that our suppliers may not be able to meet our demands on a timely basis; the volatility in the demand for semiconductors and our products and services; volatile 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; acts of terrorism and violence; risks, such as changes in trade regulations, currency fluctuations, political instability and war, which may be associated with a substantial non-U.S. customer and supplier base and substantial non-U.S. manufacturing operations; and the factors listed or discussed in Kulicke and Soffa Industries, Inc. 2011 Annual Report on Form 10-K and our other filings with the Securities and Exchange CommissionKulicke & Soffa Industries, Inc 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.

(In thousands, except per share and employee data)
    Three months ended


  December 31,   January 1,
    2011   2011
Net revenue:        
Equipment   $ 106,149     $ 132,698  
Expendable Tools     13,875       16,165  
Total net revenue     120,024       148,863  
Cost of sales:        
Equipment     59,004       70,238  
Expendable Tools     5,744       6,513  
Total cost of sales     64,748       76,751  
Gross profit:        
Equipment     47,145       62,460  
Expendable Tools     8,131       9,652  
Total gross profit     55,276       72,112  
Operating expenses:        
Selling, general and administrative     25,240       30,672  
Research and development     14,148       15,195  
Amortization of intangible assets     2,295       2,386  
Restructuring     1,217       1,792  
Total operating expenses     42,900       50,045  
Income from operations:        
Equipment     9,877       19,184  
Expendable Tools     2,499       2,883  
Total income from operations     12,376       22,067  
Other income (expense):        
Interest income     260       105  
Interest expense     (242 )     (242 )
Interest expense: non-cash     (1,910 )     (1,772 )
Income from operations before income taxes     10,484       20,158  
Provision for income taxes     1,977       5,059  
Net income   $ 8,507     $ 15,099  
Net income per share:        
Basic   $ 0.12     $ 0.21  
Diluted   $ 0.11     $ 0.21  
Weighted average shares outstanding:        
Basic     73,540       70,881  
Diluted     74,628       71,706  
    Three months ended
    December 31,   January 1,
Supplemental financial data:   2011   2011
Depreciation and amortization   $ 4,258     $ 4,407  
Capital expenditures   $ 1,498     $ 2,705  
Equity-based compensation expense:        
Cost of sales   $ 85     $ 48  
Selling, general and administrative     1,611       963  
Research and development     403       276  
Total equity-based compensation expense   $ 2,099     $ 1,287  
    As of
    December 31,   January 1,
    2011   2011
Backlog of orders   $ 88,000     $ 193,000  
Number of employees     2,735       2,628  
(In thousands)


  December 31,   October 1,
    2011   2011
Cash and cash equivalents   $ 403,761     $ 378,188  
Short-term investments     -       6,364  

Accounts and notes receivable, net of allowance for doubtful accounts of $2,338 and $2,194, respectively

    110,030       138,649  
Inventories, net     59,706       73,092  
Prepaid expenses and other current assets     20,112       21,897  
Deferred income taxes     1,657       1,651  
TOTAL CURRENT ASSETS     595,266       619,841  
Property, plant and equipment, net     26,059       26,501  
Goodwill     41,546       41,546  
Intangible assets     27,270       29,565  
Other assets     11,371       10,938  
TOTAL ASSETS   $ 701,512     $ 728,391  
Current portion of long term debt   $ 106,987     $ 105,224  
Accounts payable     19,261       36,321  
Accrued expenses and other current liabilities     35,397       43,528  
Earnout agreement payable     -       14,848  
Income taxes payable     15,040       14,261  
TOTAL CURRENT LIABILITIES     176,685       214,182  
Deferred income taxes     31,998       32,065  
Other liabilities     10,386       12,267  
TOTAL LIABILITIES     219,069       258,514  
Common stock, no par value     445,626       441,749  
Treasury stock, at cost     (46,356 )     (46,356 )
Accumulated income     80,447       71,940  
Accumulated other comprehensive income     2,726       2,544  
TOTAL SHAREHOLDERS' EQUITY     482,443       469,877  


  $ 701,512     $ 728,391  
(In thousands)
    Three months ended
    December 31, 2011   January 1, 2011
Net cash provided by operations   $ 34,324     $ 25,310  
Net cash used in discontinued operations     (486 )     (524 )
Net cash provided by operating activities   $ 33,838     $ 24,786  
Net cash used in investing activities     (9,982 )     (5,648 )
Net cash provided by financing activities     1,576       125  
Effect of exchange rate changes on cash and cash equivalents     141       176  
Changes in cash and cash equivalents   $ 25,573     $ 19,439  
Cash and cash equivalents, beginning of period     378,188       178,112  
Cash and cash equivalents, end of period   $ 403,761     $ 197,551  
Short-term investments     -       6,074  
Total Cash, cash equivalents and short-term investments   $ 403,761     $ 203,625  


Source: Kulicke & Soffa Industries, Inc.

Kulicke & Soffa Industries, Inc.
Joseph Elgindy
Investor Relations
P: +1-215-784-7518
F: +1-215-784-6180
Global IR Partners
David Pasquale
P: +1-914-337-8801

Email Alerts