| Quarterly Results | |||||||||
|
Fiscal Q4 2016 |
Change vs. | Change vs. | |||||||
|
|
Fiscal Q4 2015 | Fiscal Q3 2016 | |||||||
| Net Revenue | up 22.3% | down 32.6% | |||||||
| Gross Profit | up 14.4% | down 33.4% | |||||||
| Gross Margin | 45.7% | down 320 bps | down 50 bps | ||||||
| Income from Operations | up 143.8% | down 89.9% | |||||||
| Operating Margin | 2.7% | up 130 bps | down 1510 bps | ||||||
| Net Income | up 5.1% | down 67.5% | |||||||
| 7.1% | down 110 bps | down 760 bps | |||||||
| EPS - Diluted | up 15.4% | down 66.7% | |||||||
Dr.
The Company's reported fourth quarter net income included a unique operating expense reserve in the amount of
Fourth Quarter Fiscal 2016 Key Product Trends
- Ball bonder equipment net revenue decreased 35.8% over the June quarter.
- Wedge bonder equipment net revenue decreased 21.8% over the June quarter.
- Advanced packaging mass reflow equipment net revenue decreased by 42.0% over the June quarter.
Fiscal Year 2016 Financial Highlights
- Net revenue of
$627.2 million . - Gross margin of 45.7%.
- Net income was
$47.1 million or$0.67 per diluted share. - Cash, cash equivalents and investments were
$547.9 million as atOctober 1, 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.
First Quarter Fiscal 2017 Outlook
The Company currently expects net revenue in the first fiscal quarter of 2017 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, 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 substantial completion of transition from gold to copper wire bonding by 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-
| KULICKE & SOFFA INDUSTRIES, INC. | ||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
| (In thousands, except per share and employee data) | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Three months ended | Twelve months ended | |||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||
| Net revenue | 145,844 | 119,172 | 627,192 | 536,471 | ||||||||||||||
| Cost of sales | 79,223 | 60,955 | 340,463 | 277,379 | ||||||||||||||
| Gross profit | 66,621 | 58,217 | 286,729 | 259,092 | ||||||||||||||
| Operating expenses: | ||||||||||||||||||
| Selling, general and administrative | 29,778 | 29,944 | 124,706 | 120,084 | ||||||||||||||
| Research and development | 22,781 | 21,900 | 92,374 | 90,033 | ||||||||||||||
| Amortization of intangible assets | 1,665 | 2,851 | 6,661 | 9,883 | ||||||||||||||
| Restructuring | 8,484 | 1,874 | 10,449 | 1,841 | ||||||||||||||
| Total operating expenses | 62,708 | 56,569 | 234,190 | 221,841 | ||||||||||||||
| Income from operations | 3,913 | 1,648 | 52,539 | 37,251 | ||||||||||||||
| Other income (expense): | ||||||||||||||||||
| Interest income | 1,023 | 453 | 3,318 | 1,637 | ||||||||||||||
| Interest expense | (268 | ) | (273 | ) | (1,107 | ) | (1,183 | ) | ||||||||||
| Income from operations before income taxes | 4,668 | 1,828 | 54,750 | 37,705 | ||||||||||||||
| Income taxes (benefit)/ expense | (5,661 | ) | (7,999 | ) | 7,638 | (12,934 | ) | |||||||||||
| Net income | $ | 10,329 | $ | 9,827 | $ | 47,112 | $ | 50,639 | ||||||||||
| Net income per share: | ||||||||||||||||||
| Basic | $ | 0.15 | $ | 0.14 | $ | 0.67 | $ | 0.67 | ||||||||||
| Diluted | $ | 0.15 | $ | 0.13 | $ | 0.67 | $ | 0.67 | ||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||
| Basic | 70,404 | 72,731 | 70,477 | 75,414 | ||||||||||||||
| Diluted | 71,017 | 72,883 | 70,841 | 75,659 | ||||||||||||||
| Three months ended | Twelve months ended | ||||||||||||||
| Supplemental financial data: | 2016 | 2015 | 2016 | 2015 | |||||||||||
| Depreciation and amortization | $ | 4,009 | $ | 4,994 | $ | 16,230 | $ | 18,972 | |||||||
| Capital expenditures | 1,905 | 3,810 | 6,301 | 9,519 | |||||||||||
| Equity-based compensation expense: | |||||||||||||||
| Cost of sales | 98 | 89 | 421 | 393 | |||||||||||
| Selling, general and administrative | 1,223 | 2,738 | 3,244 | 9,127 | |||||||||||
| Research and development | 473 | 626 | 2,065 | 2,469 | |||||||||||
| Total equity-based compensation expense | $ | 1,794 | $ | 3,453 | $ | 5,730 | $ | 11,989 | |||||||
| As of | |||||||||||
| 2016 | 2015 | ||||||||||
| Backlog of orders1 | 87,200 | 52,500 | |||||||||
| Number of employees | 2,389 | 2,373 | |||||||||
| 1. | Represents customer purchase commitments. While the Company believes these orders will proceed, they are generally cancellable by customers without penalty. | |
| KULICKE & SOFFA INDUSTRIES, INC. | ||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||
| (In thousands) | ||||||||||
| (Unaudited) | ||||||||||
| As of | ||||||||||
| October 1, 2016 | October 3, 2015 | |||||||||
| ASSETS | ||||||||||
| CURRENT ASSETS | ||||||||||
| Cash and cash equivalents | $ | 547,907 | $ | 498,614 | ||||||
|
Accounts and notes receivable, net of allowance for doubtful accounts of |
||||||||||
|
|
130,455 | 108,596 | ||||||||
| Inventories, net | 87,295 | 79,096 | ||||||||
| Prepaid expenses and other current assets | 15,285 | 16,937 | ||||||||
| Deferred income taxes | — | 4,126 | ||||||||
| TOTAL CURRENT ASSETS | 780,942 | 707,369 | ||||||||
| Property, plant and equipment, net | 50,342 | 53,234 | ||||||||
| 81,272 | 81,272 | |||||||||
| Intangible assets | 50,810 | 57,471 | ||||||||
| Other assets | 19,078 | 5,120 | ||||||||
| TOTAL ASSETS | $ | 982,444 | $ | 904,466 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
| CURRENT LIABILITIES | ||||||||||
| Accounts payable | $ | 41,813 | $ | 25,521 | ||||||
| Accrued expenses and other current liabilities | 63,954 | 45,971 | ||||||||
| Income taxes payable | 12,830 | 2,442 | ||||||||
| TOTAL CURRENT LIABILITIES | 118,597 | 73,934 | ||||||||
| Financing obligation | 16,701 | 16,483 | ||||||||
| Deferred income taxes | 27,697 | 33,958 | ||||||||
| Other liabilities | 12,931 | 10,842 | ||||||||
| TOTAL LIABILITIES | 175,926 | 135,217 | ||||||||
| SHAREHOLDERS' EQUITY | ||||||||||
| Common stock, no par value | 498,676 | 492,339 | ||||||||
| (139,407 | ) | (124,856 | ) | |||||||
| Retained earnings | 449,975 | 402,863 | ||||||||
| Accumulated other comprehensive loss | (2,726 | ) | (1,097 | ) | ||||||
| TOTAL SHAREHOLDERS' EQUITY | $ | 806,518 | $ | 769,249 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 982,444 | $ | 904,466 | ||||||
| KULICKE & SOFFA INDUSTRIES, INC. | ||||||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||
| (In thousands) | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Three months ended | Twelve months ended | |||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||
| Net cash provided by operating activities | 33,949 | 39,529 | 68,407 | 87,875 | ||||||||||||||
|
Net cash used in investing activities, continuing |
||||||||||||||||||
|
operations |
(1,526 | ) | (3,190 | ) | (5,165 | ) | (94,109 | ) | ||||||||||
|
Net cash used in financing activities, continuing |
||||||||||||||||||
|
operations |
(291 | ) | (14,622 | ) | (14,486 | ) | (84,459 | ) | ||||||||||
| Effect of exchange rate changes on cash and cash equivalents | (353 | ) | 972 | 537 | 1,326 | |||||||||||||
| Changes in cash and cash equivalents | 31,779 | 22,689 | 49,293 | (89,367 | ) | |||||||||||||
| Cash and cash equivalents, beginning of period | 516,128 | 475,925 | 498,614 | 587,981 | ||||||||||||||
| Cash and cash equivalents, end of period | $ | 547,907 | $ | 498,614 | $ | 547,907 | $ | 498,614 | ||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20161115005757/en/
Kulicke & Soffa Industries, Inc.
Investor Relations & Strategic Initiatives
P: +1-215-784-7500
P: +31-40-272-3016
F: +1-215-784-6180
investor@kns.com
