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Kulicke & Soffa Reports First Quarter 2017 Results

SINGAPORE--(BUSINESS WIRE)-- Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) ("Kulicke & Soffa", "K&S" or the "Company") today announced results for its first fiscal quarter ended December 31, 2016.

Quarterly Results

Fiscal Q1 2017

    Change vs.

Fiscal Q1 2016

    Change vs.

Fiscal Q4 2016

Net Revenue     $149.6 million     up 37.9%     up 2.6%
Gross Profit     $68.3 million     up 35.5%     up 2.5%
Gross Margin     45.7%     down 80 bps     -
Income from Operations     $17.3 million     up 1113.5%     up 341.6%
Operating Margin     11.5%     up 1310 bps     up 880 bps
Net Income     $15.6 million     up 17224.2%     up 50.9%
Net Margin     10.4%     up 1050 bps     up 330 bps
EPS - Diluted     $0.22     up 100.0%     up 46.7%

Dr. Fusen Chen, Kulicke & Soffa's President and Chief Executive Officer, stated, "These strong results, representing a 38% top-line improvement over the same period one year ago, helped drive the strongest December quarter EPS in 8 years. This improvement is largely related to a strengthening environment within our core wire, wedge and consumables businesses facilitated through significant alignment with memory, automotive and industrial applications."

First Quarter Fiscal 2017 Key Product Trends

  • Ball bonder equipment net revenue increased by 5.1% over the September quarter.
  • Wedge bonder equipment net revenue increased by 35.7% over the September quarter.

First Quarter Fiscal 2017 Financial Highlights

  • Net revenue of $149.6 million.
  • Gross margin of 45.7%.
  • Net income of $15.6 million or $0.22 per share.
  • Cash and cash equivalents were $577.4 million as of December 31, 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.

Second Quarter Fiscal 2017 Outlook

The Company currently expects net revenue in the second fiscal quarter of 2017 ending Apr 1, 2017 to be approximately $185 million to $195 million.

Looking forward, Dr. Fusen Chen commented, "After several lower semiconductor unit growth years, our near term outlook coupled with healthy ball bonding utilization rates provides further support to our business outlook. In addition to advanced packaging, we continue to be well positioned to benefit from many near-term opportunities throughout our core ball and wedge bonding solutions supporting automotive, memory and industrial applications."

Earnings Conference Call Details

A conference call to discuss these results will be held today, February 2, 2017, 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 9, 2017 by calling toll-free +1-877-660-6853 or internationally +1-201-612-7415 and using the replay ID number of 13656293. A webcast replay will also be available at

About Kulicke & Soffa

Kulicke & Soffa (NASDAQ: KLIC) is a leading provider of semiconductor packaging and electronic assembly solutions supporting the global automotive, consumer, communications, computing and industrial segments. As a pioneer in the semiconductor space, 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 and organic development, adding advanced packaging, electronics assembly, wedge bonding and a broader range of expendable tools to its core offerings. Combined with its extensive expertise in process technology and focus on development, K&S is well positioned to help customers meet the challenges of packaging and assembling the next-generation of electronic 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, 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-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. 2016 Annual Report on Form 10-K and our other filings with the Securities and Exchange CommissionKulicke and 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, 2016   January 2, 2016
Net revenue   $ 149,639     $ 108,534  
Cost of sales   81,321     58,113  
Gross profit   68,318     50,421  
Operating expenses:        
Selling, general and administrative   28,009     24,364  
Research and development   21,505     24,194  
Amortization of intangible assets   1,523     1,666  
Restructuring       1,902  
Total operating expenses   51,037     52,126  
Income / (loss) from operations   17,281     (1,705 )
Other income (expense):        
Interest income   1,172     622  
Interest expense   (262 )   (273 )
Income from operations before income taxes   18,191     (1,356 )
Income tax expense / (benefit)   2,608     (1,265 )
Net income / (loss)   $ 15,583     $ (91 )
Net income per share:        
Basic   0.22      
Diluted   0.22      
Weighted average shares outstanding:        
Basic   70,854     70,738  
Diluted   71,763     70,738  
    Three months ended
Supplemental financial data:   December 31, 2016   January 2, 2016
Depreciation and amortization   $ 3,944     $ 4,051  
Capital expenditures   2,229     1,394  
Equity-based compensation expense:        
Cost of sales   141     128  
Selling, general and administrative   2,734     (770 )
Research and development   727     704  
Total equity-based compensation expense   $ 3,602     $ 62  
    As of
    December 31, 2016   January 2, 2016
Backlog of orders 1   $ 86,676     $ 83,203  
Number of employees   2,827     2,486  

1. Represents customer purchase commitments. While the Company believes these orders are firm, they are generally cancellable by customers without penalty.




(In thousands)


    As of
    December 31, 2016   October 1, 2016
Cash and cash equivalents   $ 577,426     $ 547,907  
Accounts and other receivable, net of allowance for doubtful accounts of $206 and $506 respectively   118,095     130,455  
Inventories, net   83,792     87,295  
Prepaid expenses and other current assets   14,348     15,285  
TOTAL CURRENT ASSETS   793,661     780,942  
Property, plant and equipment, net   49,635     50,342  
Goodwill   81,272     81,272  
Intangible assets   49,287     50,810  
Other assets   18,905     19,078  
TOTAL ASSETS   $ 992,760     $ 982,444  
Accounts payable   $ 46,349     $ 41,813  
Accrued expenses and other current liabilities   55,865     63,954  
Income taxes payable   12,996     12,830  
TOTAL CURRENT LIABILITIES   115,210     118,597  
Financing obligation   15,579     16,701  
Deferred income taxes   28,434     27,697  
Other liabilities   13,068     12,931  
TOTAL LIABILITIES   172,291     175,926  
Common stock, no par value   502,561     498,676  
Treasury stock, at cost   (139,407 )   (139,407 )
Retained earnings   465,558     449,975  
Accumulated other comprehensive loss   (8,243 )   (2,726 )
TOTAL SHAREHOLDERS' EQUITY   820,469     806,518  



(In thousands)


    Three months ended
    December 31, 2016   January 2, 2016
Net cash provided by operating activities   $ 30,049     $ 7,694  
Net cash used in investing activities, continuing operations   (2,659 )   (1,612 )
Net cash provided by / (used in) financing activities, continuing operations   142     (12,425 )
Effect of exchange rate changes on cash and cash equivalents   1,987     664  
Changes in cash and cash equivalents   29,519     (5,679 )
Cash and cash equivalents, beginning of period   547,907     498,614  
Cash and cash equivalents, end of period   $ 577,426     $ 492,935  


Kulicke & Soffa Industries, Inc.
Joseph Elgindy
Investor Relations & Strategic Initiatives
P: +1-215-784-7500
P: +31-40-272-3016
F: +1-215-784-6180

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