| Quarterly Results | ||||||
|
Fiscal Q3 2016 |
Change vs.
Fiscal Q3 2015 |
Change vs.
Fiscal Q2 2016 |
||||
| Net Revenue | up 31.5% | up 38.4% | ||||
| Gross Profit | up 29.0% | up 43.6% | ||||
| Gross Margin | 46.2% | down 90 bps | up 170 bps | |||
| Income from Operations | up 140.1% | up 229.8% | ||||
| Operating Margin | 17.8% | up 800 bps | up 1,030 bps | |||
| Net Income | up 26.9% | up 524.6% | ||||
| 14.7% | down 50 bps | up 1,140 bps | ||||
| EPS - Diluted | up 36.4% | up 542.9% | ||||
The Company also continues to gain traction with its new APAMA offerings, which support the next generation of advanced packaging technology. To date K&S has received three purchase orders for its APAMA advanced packaging solutions; during its third fiscal quarter the Company has recognized revenue for its second order.
Third Quarter Fiscal 2016 Key Product Trends
- Ball bonder equipment net revenue increased 64.2% over the March quarter.
- Wedge bonder equipment net revenue increased by 22.3% over the March quarter.
- Advanced Packaging Mass Reflow equipment net revenue increased by 0.7% over the March quarter.
Third Quarter Fiscal 2016 Financial Highlights
- Net revenue of
$216.4 million . - Gross margin of 46.2%.
- Net income of
$31.8 million or$0.45 per share. - Cash and cash equivalents were
$516.1 million as ofJuly 2, 2016 . - 7.9 million shares had been repurchased since the stock repurchase program's
August 2014 initiation, equivalent to 10.1% of weighted average shares outstanding at the program's inception.
Fourth Quarter Fiscal 2016 Outlook
The Company currently expects net revenue in the fourth fiscal quarter of 2016 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, replacement demand, our research and development efforts, our ability to control costs, and our ability to identify and realize new growth opportunities within segments, such as automotive and industrial as well as surrounding technology adoption such as system in package and advanced packaging techniques. 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; the risk that identified market opportunities may not grow or developed as we anticipated; 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-
|
KULICKE & SOFFA INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share and employee data) (Unaudited) |
||||||||||||||||
| Three months ended | Nine months ended | |||||||||||||||
| July 2, 2016 | June 27, 2015 | July 2, 2016 | June 27, 2015 | |||||||||||||
| Net revenue | $ | 216,414 | $ | 164,634 | $ | 481,348 | $ | 417,299 | ||||||||
| Cost of sales | 116,374 | 87,063 | 261,240 | 216,424 | ||||||||||||
| Gross profit: | 100,040 | 77,571 | 220,108 | 200,875 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 36,776 | 33,151 | 94,928 | 90,140 | ||||||||||||
| Research and development | 22,960 | 25,380 | 69,593 | 68,133 | ||||||||||||
| Amortization of intangible assets | 1,665 | 2,946 | 4,996 | 7,032 | ||||||||||||
| Restructuring | 17 | 8 | 1,965 | (33 | ) | |||||||||||
| Total operating expenses | 61,418 | 61,485 | 171,482 | 165,272 | ||||||||||||
| Income from operations: | 38,622 | 16,086 | 48,626 | 35,603 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 972 | 469 | 2,295 | 1,184 | ||||||||||||
| Interest expense | (290 | ) | (291 | ) | (839 | ) | (910 | ) | ||||||||
| Income from operations before income taxes | 39,304 | 16,264 | 50,082 | 35,877 | ||||||||||||
| Income tax expense / (benefit) | 7,519 | (8,775 | ) | 13,299 | (4,935 | ) | ||||||||||
| Net income | $ | 31,785 | $ | 25,039 | $ | 36,783 | $ | 40,812 | ||||||||
| Net income per share: | ||||||||||||||||
| Basic | 0.45 | 0.33 | 0.52 | 0.53 | ||||||||||||
| Diluted | 0.45 | 0.33 | 0.52 | 0.53 | ||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 70,379 | 75,420 | 70,502 | 76,376 | ||||||||||||
| Diluted | 70,843 | 75,891 | 70,802 | 76,778 | ||||||||||||
| Three months ended | Nine months ended | |||||||||||||||
| Supplemental financial data: | July 2, 2016 | June 27, 2015 | July 2, 2016 | June 27, 2015 | ||||||||||||
| Depreciation and amortization | $ | 4,019 | $ | 5,415 | $ | 12,221 | $ | 13,978 | ||||||||
| Capital expenditures | 1,480 | 2,265 | 4,396 | 5,709 | ||||||||||||
| Equity-based compensation expense: | ||||||||||||||||
| Cost of sales | 98 | 88 | 323 | 304 | ||||||||||||
| Selling, general and administrative | 1,331 | 1,914 | 2,021 | 6,389 | ||||||||||||
| Research and development | 472 | 518 | 1,592 | 1,843 | ||||||||||||
| Total equity-based compensation expense | $ | 1,901 | $ | 2,520 | $ | 3,936 | $ | 8,536 | ||||||||
| As of | ||||||||||||||||
| July 2, 2016 | June 27, 2015 | |||||||||||||||
| Backlog of orders 1 | $ | 82,976 | $ | 75,101 | ||||||||||||
| Number of employees | 2,743 | 2,827 | ||||||||||||||
- Represents customer purchase commitments. While the Company believes these orders are firm, they are generally cancellable by customers without penalty.
|
KULICKE & SOFFA INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) |
||||||||
| As of | ||||||||
| July 2, 2016 | October 3, 2015 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 516,128 | $ | 498,614 | ||||
| Accounts and other receivable, net of allowance for doubtful accounts of |
171,809 | 108,596 | ||||||
| Inventories, net | 89,556 | 79,096 | ||||||
| Prepaid expenses and other current assets | 17,830 | 16,937 | ||||||
| Deferred income taxes | — | 4,126 | ||||||
| TOTAL CURRENT ASSETS | 795,323 | 707,369 | ||||||
| Property, plant and equipment, net | 50,195 | 53,234 | ||||||
| 81,272 | 81,272 | |||||||
| Intangible assets | 52,475 | 57,471 | ||||||
| Other assets | 7,442 | 5,120 | ||||||
| TOTAL ASSETS | $ | 986,707 | $ | 904,466 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable | $ | 71,116 | $ | 25,521 | ||||
| Accrued expenses and other current liabilities | 53,809 | 45,971 | ||||||
| Income taxes payable | 6,945 | 2,442 | ||||||
| TOTAL CURRENT LIABILITIES | 131,870 | 73,934 | ||||||
| Financing obligation | 17,084 | 16,483 | ||||||
| Deferred income taxes | 30,908 | 33,958 | ||||||
| Other liabilities | 11,173 | 10,842 | ||||||
| TOTAL LIABILITIES | 191,035 | 135,217 | ||||||
| SHAREHOLDERS' EQUITY | ||||||||
| Common stock, no par value | 495,961 | 492,339 | ||||||
| (139,407 | ) | (124,856 | ) | |||||
| Retained earnings | 439,646 | 402,863 | ||||||
| Accumulated other comprehensive loss | (528 | ) | (1,097 | ) | ||||
| TOTAL SHAREHOLDERS' EQUITY | 795,672 | 769,249 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 986,707 | $ | 904,466 | ||||
|
KULICKE & SOFFA INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
||||||||||||||||
| Three months ended | Nine months ended | |||||||||||||||
| July 2, 2016 | June 27, 2015 | July 2, 2016 | June 27, 2015 | |||||||||||||
| Net cash provided by / (used in) operating activities | $ | 35,437 | $ | (214 | ) | $ | 34,458 | $ | 48,346 | |||||||
| Net cash used in investing activities, continuing operations | (1,847 | ) | (362 | ) | (3,639 | ) | (90,919 | ) | ||||||||
| Net cash used in financing activities, continuing operations | (102 | ) | (51,245 | ) | (14,195 | ) | (69,837 | ) | ||||||||
| Effect of exchange rate changes on cash and cash equivalents | 647 | 600 | 890 | 354 | ||||||||||||
| Changes in cash and cash equivalents | 34,135 | (51,221 | ) | 17,514 | (112,056 | ) | ||||||||||
| Cash and cash equivalents, beginning of period | 481,993 | 527,146 | 498,614 | 587,981 | ||||||||||||
| Cash and cash equivalents, end of period | $ | 516,128 | $ | 475,925 | $ | 516,128 | $ | 475,925 | ||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160803005501/en/
Kulicke & Soffa Industries, Inc.
Investor Relations & Strategic Initiatives
P: +1-215-784-7500
P: +31-40-272-3016
F: +1-215-784-6180
