| Quarterly Results | ||||||
| Change vs. | Change vs. | |||||
| Fiscal Q4 2012 | Fiscal Q4 2011 | Fiscal Q3 2012 | ||||
| Net Revenue | 49.2% | 5.3% | ||||
| Gross Profit | 48.6% | 0.4% | ||||
| Gross Margin | 45.7% | (20) bps | (220) bps | |||
| Income from Operations | 210.0% | (7.8%) | ||||
| Operating Margin | 26.1% | 1,350 bps | (380) bps | |||
| Net Income | 3,418.9% | (1.3%) | ||||
| Net Margin | 25.0% | 2,390 bps | (170) bps | |||
| EPS — Diluted | 2,866.7% | (1.1%) | ||||
Fourth Quarter Fiscal 2012 Key Product Trends
- Ball bonder equipment net revenue increased 7.0% over the June quarter.
- 84.5% of ball bonder equipment was sold as copper capable bonders.
- Wedge bonder equipment net revenue increased 20.8% from the June quarter.
Fiscal Year 2012 Financial Highlights
- Net revenue of
$791.0 million . - Gross margin of 46.4%.
- Net income of
$160.6 million or$2.13 per share. - Total cash and short-term investments were
$440.2 million onSeptember 29, 2012 , a$59.5 million increase from the prior quarter endedJune 30, 2012 .
First Quarter Fiscal Year 2013 Outlook
The Company expects net revenue in the typically seasonally slower fiscal first quarter of 2013 ending
Looking forward,
Earnings Conference Call Details
A conference call to discuss these results will be held today,
A replay will be available from approximately one hour after the completion of the call through
About Kulicke & Soffa
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, our improving balance sheet, 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; a slowdown of transition from gold to copper wire bonding by our customers and the industry, 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 & SOFFA INDUSTRIES, INC. | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (In thousands, except per share and employee data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three months ended | Twelve months ended | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Net revenue: | ||||||||||||||||
| Equipment | $ | 252,785 | $ | 161,225 | $ | 727,082 | $ | 759,331 | ||||||||
| Expendable Tools | 16,381 | 19,146 | 63,941 | 71,070 | ||||||||||||
| Total net revenue | 269,166 | 180,371 | 791,023 | 830,401 | ||||||||||||
| Cost of sales: | ||||||||||||||||
| Equipment | 139,479 | 89,350 | 397,210 | 412,914 | ||||||||||||
| Expendable Tools | 6,703 | 8,275 | 26,423 | 29,578 | ||||||||||||
| Total cost of sales | 146,182 | 97,625 | 423,633 | 442,492 | ||||||||||||
| Gross profit: | ||||||||||||||||
| Equipment | 113,306 | 71,875 | 329,872 | 346,417 | ||||||||||||
| Expendable Tools | 9,678 | 10,871 | 37,518 | 41,492 | ||||||||||||
| Total gross profit | 122,984 | 82,746 | 367,390 | 387,909 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 31,029 | 40,471 | 110,966 | 138,273 | ||||||||||||
| Research and development | 17,369 | 16,821 | 63,446 | 65,135 | ||||||||||||
| Amortization of intangible assets | 2,295 | 2,386 | 9,178 | 9,549 | ||||||||||||
| Restructuring | 1,959 | 377 | 4,574 | 4,892 | ||||||||||||
| Total operating expenses | 52,652 | 60,055 | 188,164 | 217,849 | ||||||||||||
| Income from operations: | ||||||||||||||||
| Equipment | 67,046 | 18,908 | 165,791 | 156,786 | ||||||||||||
| Expendable Tools | 3,286 | 3,783 | 13,435 | 13,274 | ||||||||||||
| Total income from operations | 70,332 | 22,691 | 179,226 | 170,060 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 182 | 202 | 833 | 648 | ||||||||||||
| Interest expense | - | (241 | ) | (633 | ) | (965 | ) | |||||||||
| Interest expense: non-cash | (1 | ) | (1,886 | ) | (5,175 | ) | (7,315 | ) | ||||||||
| Income from operations before income taxes | 70,513 | 20,766 | 174,251 | 162,428 | ||||||||||||
| Provision (benefit) for income taxes | 3,231 | 18,854 | 13,671 | 34,818 | ||||||||||||
| Net income | $ | 67,282 | $ | 1,912 | $ | 160,580 | $ | 127,610 | ||||||||
| Net income per share: | ||||||||||||||||
| Basic | $ | 0.91 | $ | 0.03 | $ | 2.17 | $ | 1.77 | ||||||||
| Diluted | $ | 0.89 | $ | 0.03 | $ | 2.13 | $ | 1.73 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 74,116 | 72,688 | 73,887 | 71,820 | ||||||||||||
| Diluted | 75,942 | 74,184 | 75,502 | 73,341 | ||||||||||||
| Three months ended | Twelve months ended | |||||||||||||||
| Supplemental financial data: | 2012 | 2011 | 2012 | 2011 | ||||||||||||
| Depreciation and amortization | $ | 4,615 | $ | 4,487 | $ | 17,265 | $ | 17,761 | ||||||||
| Capital expenditures | $ | 1,757 | $ | 1,873 | $ | 6,902 | $ | 7,688 | ||||||||
| Equity-based compensation expense: | ||||||||||||||||
| Cost of sales | $ | 86 | $ | 54 | $ | 312 | $ | 213 | ||||||||
| Selling, general and administrative | 1,575 | 887 | 6,602 | 5,671 | ||||||||||||
| Research and development | 461 | 358 | 1,777 | 1,328 | ||||||||||||
| Total equity-based compensation expense | $ | 2,122 | $ | 1,299 | $ | 8,691 | $ | 7,212 | ||||||||
| As of | ||||||||||||||||
| 2012 | 2011 | |||||||||||||||
| Backlog of orders | $ | 90,000 | $ | 103,000 | ||||||||||||
| Number of employees | 2,936 | 2,866 | ||||||||||||||
| KULICKE & SOFFA INDUSTRIES, INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| 2012 | 2011 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 440,244 | $ | 378,188 | ||||
| Short-term investments | - | 6,364 | ||||||
|
Accounts and notes receivable, net of allowance for doubtful accounts of |
188,986 | 138,649 | ||||||
| Inventories, net | 58,994 | 73,092 | ||||||
| Prepaid expenses and other current assets | 21,577 | 21,897 | ||||||
| Deferred income taxes | 3,515 | 1,651 | ||||||
| TOTAL CURRENT ASSETS | 713,316 | 619,841 | ||||||
| Property, plant and equipment, net | 28,441 | 26,501 | ||||||
| Goodwill | 41,546 | 41,546 | ||||||
| Intangible assets | 20,387 | 29,565 | ||||||
| Other assets | 11,919 | 10,938 | ||||||
| TOTAL ASSETS | $ | 815,609 | $ | 728,391 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Current portion of long term debt | $ | - | $ | 105,224 | ||||
| Accounts payable | 57,231 | 36,321 | ||||||
| Accrued expenses and other current liabilities | 57,946 | 43,528 | ||||||
| Earnout agreement payable | - | 14,848 | ||||||
| Income taxes payable | 8,192 | 14,261 | ||||||
| TOTAL CURRENT LIABILITIES | 123,369 | 214,182 | ||||||
| Deferred income taxes | 37,875 | 32,065 | ||||||
| Other liabilities | 10,698 | 12,267 | ||||||
| TOTAL LIABILITIES | 171,942 | 258,514 | ||||||
| SHAREHOLDERS' EQUITY | ||||||||
| Common stock, no par value | 455,122 | 441,749 | ||||||
| Treasury stock, at cost | (46,356 | ) | (46,356 | ) | ||||
| Accumulated income | 232,520 | 71,940 | ||||||
| Accumulated other comprehensive income | 2,381 | 2,544 | ||||||
| TOTAL SHAREHOLDERS' EQUITY | 643,667 | 469,877 | ||||||
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ | 815,609 | $ | 728,391 | ||||
| KULICKE & SOFFA INDUSTRIES, INC. | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three months ended | Twelve months ended | |||||||||||||||
|
September 29, 2012 |
October 1, 2011 |
September 29, 2012 |
October 1, 2011 |
|||||||||||||
| Net cash provided by operating activities | $ | 59,321 | $ | 50,169 | $ | 183,969 | $ | 202,257 | ||||||||
| Net cash used in discontinued operations | (29 | ) | (314 | ) | (1,498 | ) | (1,861 | ) | ||||||||
| Net cash provided by operating activities | $ | 59,292 | $ | 49,855 | $ | 182,471 | $ | 200,396 | ||||||||
| Net cash used in investing activities, continuing operations | $ | (1,757 | ) | $ | (2,049 | ) | $ | (15,386 | ) | $ | (11,106 | ) | ||||
| Net cash provided by (used in) financing activities | 1,834 | 460 | (105,138 | ) | 9,296 | |||||||||||
| Effect of exchange rate on cash and cash equivalents | 178 | 640 | 109 | 1,490 | ||||||||||||
| Changes in cash and cash equivalents | $ | 59,547 | $ | 48,906 | $ | 62,056 | $ | 200,076 | ||||||||
| Cash and cash equivalents, beginning of period | 380,697 | 329,282 | 378,188 | 178,112 | ||||||||||||
| Cash and cash equivalents, end of period | $ | 440,244 | $ | 378,188 | $ | 440,244 | $ | 378,188 | ||||||||
| Short-term investments & restricted cash | - | 6,364 | - | 6,364 | ||||||||||||
| Total cash, cash equivalents, restricted cash and short-term investments | $ | 440,244 | $ | 384,552 | $ | 440,244 | $ | 384,552 | ||||||||
Kulicke & Soffa Industries, Inc.
Investor Relations
P: +1-215-784-7518
F: +1-215-784-6180
jelgindy@kns.com
or
Global IR Partners
P: +1-914-337-8801
klic@globalirpartners.com
