SINGAPORE, Nov. 17, 2021 /PRNewswire/ -- Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) ("Kulicke & Soffa", "K&S" or the "Company"), today announced financial results of its fourth fiscal quarter ended October 2, 2021. The Company reported fourth quarter net revenue of $485.3 million, net income of $133.7 million and non-GAAP net income of $138.3 million.
Quarterly Results - U.S. GAAP | |||
Fiscal Q4 2021 | Change vs. Fiscal Q4 2020 | Change vs. Fiscal Q3 2021 | |
Net Revenue | $485.3 million | up 173.1% | up 14.4% |
Gross Profit | $231.3 million | up 160.2% | up 18.2% |
Gross Margin | 47.7% | down 230 bps | up 160 bps |
Income from Operations | $154.8 million | up 573% | up 28.5% |
Operating Margin | 31.9% | up 1900 bps | up 350 bps |
Net Income | $133.7 million | up 746.2% | up 17.5% |
Net Margin | 27.6% | up 1870 bps | up 80 bps |
EPS – Diluted | $2.10 | up 740% | up 17.3% |
Quarterly Results - Non-GAAP | |||
Fiscal Q4 2021 | Change vs. Fiscal Q4 2020 | Change vs. Fiscal Q3 2021 | |
Income from Operations | $160.2 million | up 448.7% | up 27.2% |
Operating Margin | 33.0% | up 1660 bps | up 330 bps |
Net Income | $138.3 million | up 535.7% | up 16.4% |
Net Margin | 28.5% | up 1630 bps | up 50 bps |
EPS - Diluted | $2.17 | up 520% | up 16% |
A reconciliation of the GAAP and non-GAAP adjusted results is provided in the financial tables included in this release. See also "Use of non-GAAP Financial Results" section. |
During the fiscal fourth quarter the Company was able to exceed revenue expectations by temporarily extending production capacity and also by delivering additional advanced display systems and services.
Fusen Chen, Kulicke & Soffa's President and Chief Executive Officer, stated, "Throughout fiscal 2021 we continued to support an ongoing period of industry expansion, while carefully navigating global supply-chain challenges. Additionally, we continued our aggressive development efforts, released several new market-ready solutions and also received customer acceptance with several others. These efforts expand our access to favorable long-term trends within the automotive, electronics assembly and advanced display end-markets."
Fiscal Year 2021 Financial Highlights
- Net revenue of $1,517.7 million.
- Gross margin of 45.9%.
- Net income of $367.2 million or $5.78 per share; non-GAAP net income of $390.2 million or $6.14 per share.
- The Company repurchased a total of approximately 215.0 thousand shares of common stock at a cost of approximately $10.2 million.
Fourth Quarter Fiscal 2021 Financial Highlights
- Net revenue of $485.3 million.
- Gross margin of 47.7%.
- Net income of $133.7 million or $2.10 per share; non-GAAP net income of $138.3 million or $2.17 per share.
- Cash, cash equivalents, and short-term investments were $739.8 million as of October 2, 2021.
First Quarter Fiscal 2022 Outlook
The Company currently expects net revenue in the first fiscal quarter of 2022, ending January 1, 2022, to be approximately $460 million, +/- $20 million, and expects non-GAAP EPS to be approximately $1.88, +/- 10%.
This revenue outlook is very similar to the fourth fiscal quarter expectations provided on August 4, 2021.
Looking forward, Fusen Chen commented, "We continue to efficiently support strong, ongoing and broad demand across our served end-markets. Throughout fiscal 2022, we anticipate ongoing industry expansion and also rapid growth of our emerging portfolio of solutions which directly addresses semiconductor, electric vehicle, and advanced LED assembly challenges."
Earnings Conference Call Details
A conference call to discuss these results will be held tomorrow, November 18, 2021, beginning at 8:00am EST. To access the conference call, interested parties may call +1-877-407-8037 or internationally +1-201-689-8037. A live webcast will also be available at investor.kns.com.
A replay will be available from approximately one hour after the completion of the call through November 25th by calling toll-free +1-877-660-6853 or internationally +1-201-612-7415 and using the replay ID number of 13723617. A webcast replay will also be available at investor.kns.com.
Use of Non-GAAP Financial Results
In addition to U.S. GAAP results, this press release also contains non-GAAP financial results. The Company's non-GAAP results exclude amortization related to intangible assets acquired through business combinations, costs associated with restructuring, equity-based compensation, acquisition and integration cost, impairment relating to assets acquired through business combinations, income tax expense arising from discrete tax items triggered by significant changes in tax laws, gain/loss on disposal of business, as well as tax benefits or expense associated with the foregoing non-GAAP items. The non-GAAP adjustments may or may not be infrequent or nonrecurring in nature, but are a result of periodic or non-core operating activities. These non-GAAP measures are consistent with the way management analyzes and assesses the Company's operating results. The Company believes these non-GAAP measures enhance investors' understanding of the Company's underlying operational performance, as well as their ability to compare the Company's period-to-period financial results and the Company's overall performance to that of its competitors.
Management uses both U.S. GAAP metrics as well as non-GAAP metrics to evaluate the Company's operating and financial results. Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies in the industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on the Company's reported financial results. The presentation of non-GAAP items is meant to supplement, but not substitute for, GAAP financial measures or information. The Company believes the presentation of non-GAAP results in combination with GAAP results provides better transparency to the investment community when analyzing business trends, providing meaningful comparisons with prior period performance and enhancing investors' ability to view the Company's results from management's perspective. A reconciliation of each available GAAP to non-GAAP financial measure discussed in this press release is contained in the financial tables at the end of this press release.
Management has not reconciled its outlook for non-GAAP Diluted EPS to Diluted EPS for Q1F22 as it does not provide guidance on the reconciling items between Diluted EPS and non-GAAP Diluted EPS, as a result of the uncertainty regarding, and the potential variability of, these items. The actual amount of such reconciling items could have a significant impact on our non-GAAP Diluted EPS and, accordingly, a reconciliation of Diluted EPS to non-GAAP Diluted EPS for Q1F22 is not available without unreasonable effort.
About Kulicke & Soffa
Kulicke & Soffa (NASDAQ: KLIC) is a leading provider of semiconductor, LED and electronic assembly solutions serving the global automotive, consumer, communications, computing and industrial markets. Founded in 1951, K&S prides itself on establishing foundations for technological advancement - creating pioneering interconnect solutions that enable performance improvements, power efficiency, form-factor reductions and assembly excellence of current and next-generation semiconductor devices.
Leveraging decades of development proficiency and extensive process technology expertise, Kulicke & Soffa's expanding portfolio provides equipment solutions, aftermarket products and services supporting a comprehensive set of interconnect technologies including wire bonding, advanced packaging, lithography, and electronics assembly. Dedicated to empowering technological discovery, always, K&S collaborates with customers and technology partners to push the boundaries of possibility, enabling a smarter future (kns.com).
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. 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 effects of the COVID-19 pandemic on our business, the effects of supply chain constraints on our business, and the other factors listed or discussed in our Annual Report on Form 10-K for the fiscal year ended October 3, 2020, filed on November 20, 2020, and our other filings with the Securities and Exchange Commission. Kulicke 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.
Contacts:
Kulicke & Soffa Industries, Inc.
Joseph Elgindy
Investor Relations & Strategic Initiatives
P: +1-215-784-7518
F: +1-215-784-6180
KULICKE & SOFFA INDUSTRIES, INC. | |||||||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | |||||||||||||||
(In thousands, except per share and employee data) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended | Twelve months ended | ||||||||||||||
October 2, 2021 | October 3, 2020 | October 2, 2021 | October 3, 2020 | ||||||||||||
Net revenue | $ | 485,326 | $ | 177,688 | $ | 1,517,664 | $ | 623,176 | |||||||
Cost of sales | 254,011 | 88,803 | 820,678 | 325,201 | |||||||||||
Gross profit | 231,315 | 88,885 | 696,986 | 297,975 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative | 40,186 | 28,101 | 139,224 | 107,947 | |||||||||||
Research and development | 34,929 | 35,553 | 137,478 | 123,459 | |||||||||||
Acquisition-related cost | — | — | 1,730 | — | |||||||||||
Amortization of intangible assets | 1,322 | 1,920 | 5,974 | 7,371 | |||||||||||
Restructuring | 42 | 263 | 133 | 689 | |||||||||||
Total operating expenses | 76,479 | 65,837 | 284,539 | 239,466 | |||||||||||
Income from operations | 154,836 | 23,048 | 412,447 | 58,509 | |||||||||||
Other income / (expense): | |||||||||||||||
Interest income | 520 | 653 | 2,321 | 7,541 | |||||||||||
Interest expense | (72) | (26) | (218) | (1,716) | |||||||||||
Income before income taxes | 155,284 | 23,675 | 414,550 | 64,334 | |||||||||||
Income tax expense / (benefit) | 21,573 | 8,013 | 47,295 | 11,998 | |||||||||||
Share of results of equity-method investee, net of tax | — | (122) | 94 | 36 | |||||||||||
Net income | $ | 133,711 | $ | 15,784 | $ | 367,161 | $ | 52,300 | |||||||
Net income per share: | |||||||||||||||
Basic | $ | 2.16 | $ | 0.26 | $ | 5.92 | $ | 0.83 | |||||||
Diluted | $ | 2.10 | $ | 0.25 | $ | 5.78 | $ | 0.83 | |||||||
Cash dividends declared per share | $ | 0.14 | $ | 0.12 | $ | 0.56 | $ | 0.48 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 61,966 | 61,791 | 62,009 | 62,828 | |||||||||||
Diluted | 63,611 | 62,411 | 63,515 | 63,359 | |||||||||||
Three months ended | Twelve months ended | ||||||||||||||
Supplemental financial data: | October 2, 2021 | October 3, 2020 | October 2, 2021 | October 3, 2020 | |||||||||||
Depreciation and amortization | $ | 5,258 | $ | 5,142 | $ | 19,810 | $ | 19,739 | |||||||
Capital expenditures | 5,792 | 5,964 | 22,555 | 14,514 | |||||||||||
Equity-based compensation expense: | |||||||||||||||
Cost of sales | 202 | 147 | 828 | 744 | |||||||||||
Selling, general and administrative | 2,887 | 2,965 | 10,998 | 11,071 | |||||||||||
Research and development | 909 | 851 | 3,676 | 3,204 | |||||||||||
Total equity-based compensation expense | $ | 3,998 | $ | 3,963 | $ | 15,502 | $ | 15,019 | |||||||
As of | |||||||||||||||
October 2, 2021 | October 3, 2020 | ||||||||||||||
Backlog of orders 1 | $ | 787,241 | $ | 127,924 | |||||||||||
Number of employees | 3,586 | 2,836 | |||||||||||||
1. | 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 CONDENSED BALANCE SHEETS | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
As of | |||||||
October 2, 2021 | October 3, 2020 | ||||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | $ | 362,788 | $ | 188,127 | |||
Short-term investments | 377,000 | 342,000 | |||||
Accounts and notes receivable, net of allowance for doubtful accounts of $687 and $968 respectively | 421,193 | 198,640 | |||||
Inventories, net | 167,323 | 111,809 | |||||
Prepaid expenses and other current assets | 23,586 | 19,620 | |||||
TOTAL CURRENT ASSETS | 1,351,890 | 860,196 | |||||
Property, plant and equipment, net | 67,982 | 59,147 | |||||
Operating right-of-use assets | 41,592 | 22,688 | |||||
Goodwill | 72,949 | 56,695 | |||||
Intangible assets, net | 42,752 | 37,972 | |||||
Deferred tax assets | 15,715 | 8,147 | |||||
Equity investments | 6,388 | 7,535 | |||||
Other assets | 2,363 | 2,186 | |||||
TOTAL ASSETS | $ | 1,601,631 | $ | 1,054,566 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable | 154,636 | 57,688 | |||||
Operating lease liabilities | 4,903 | 5,903 | |||||
Accrued expenses and other current liabilities | 161,570 | 76,762 | |||||
Income taxes payable | 30,766 | 17,540 | |||||
TOTAL CURRENT LIABILITIES | 351,875 | 157,893 | |||||
Deferred tax liabilities | 32,828 | 33,005 | |||||
Income taxes payable | 69,422 | 74,957 | |||||
Operating lease liabilities | 38,084 | 18,325 | |||||
Other liabilities | 14,185 | 12,392 | |||||
TOTAL LIABILITIES | 506,394 | 296,572 | |||||
SHAREHOLDERS' EQUITY | |||||||
Common stock, no par value | 550,117 | 539,213 | |||||
Treasury stock, at cost | (400,412) | (394,817) | |||||
Retained earnings | 948,554 | 616,119 | |||||
Accumulated other comprehensive loss | (3,022) | (2,521) | |||||
TOTAL SHAREHOLDERS' EQUITY | $ | 1,095,237 | $ | 757,994 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,601,631 | $ | 1,054,566 | |||
KULICKE & SOFFA INDUSTRIES, INC. | |||||||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | |||||||||||||||
(In thousands) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended | Twelve months ended | ||||||||||||||
October 2, 2021 | October 3, 2020 | October 2, 2021 | October 3, 2020 | ||||||||||||
Net cash provided by operating activities | $ | 123,376 | $ | 31,731 | $ | 300,032 | $ | 94,412 | |||||||
Net cash used in investing activities, continuing operations | (135,928) | (151,820) | (81,707) | (125,957) | |||||||||||
Net cash used in financing activities, continuing operations | (12,276) | (15,191) | (44,258) | (145,809) | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | (383) | 1,632 | 594 | 1,297 | |||||||||||
Changes in cash and cash equivalents | (25,211) | (133,648) | 174,661 | (176,057) | |||||||||||
Cash and cash equivalents, beginning of period | 387,999 | 321,775 | 188,127 | 364,184 | |||||||||||
Cash and cash equivalents, end of period | $ | 362,788 | $ | 188,127 | $ | 362,788 | $ | 188,127 | |||||||
Short-term investments | 377,000 | 342,000 | 377,000 | 342,000 | |||||||||||
Total cash, cash equivalents, and short-term investments | $ | 739,788 | $ | 530,127 | $ | 739,788 | $ | 530,127 | |||||||
Reconciliation of U.S. GAAP Income from Operating | ||||||||||||
to Non-GAAP Income from Operation and Operating Margin | ||||||||||||
(In thousands, except percentages) | ||||||||||||
(unaudited) | ||||||||||||
Three months ended | ||||||||||||
October 2, 2021 | October 3, 2020 | July 3, 2021 | ||||||||||
Net revenue | $ | 485,326 | $ | 177,688 | $ | 424,318 | ||||||
U.S. GAAP income from operations | 154,836 | 23,048 | 120,455 | |||||||||
U.S. GAAP operating margin | 31.9 | % | 13.0 | % | 28.4 | % | ||||||
Pre-tax non-GAAP items: | ||||||||||||
Amortization related to intangible assets acquired through business combination- selling, general and administrative | $ | 1,322 | $ | 1,920 | 1,340 | |||||||
Equity-based compensation (a) | 3,998 | 3,963 | 4,140 | |||||||||
Restructuring | 42 | 263 | — | |||||||||
Non-GAAP income from operations | $ | 160,198 | $ | 29,194 | $ | 125,935 | ||||||
Non-GAAP operating margin | 33.0 | % | 16.4 | % | 29.7 | % | ||||||
(a) | This non-GAAP measure is newly included for the three months ended January 2, 2021. Comparatives have been included. |
Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income and | |||||||||||||||
U.S. GAAP net income per share to Non-GAAP net income per share | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
(unaudited) | |||||||||||||||
Twelve months | Three months | ||||||||||||||
October 2, | October 2, | October 3, | July 3, | ||||||||||||
Net revenue | $ | 1,517,664 | $ | 485,326 | $ | 177,688 | $ | 424,318 | |||||||
U.S. GAAP net income | 367,161 | 133,711 | 15,784 | 113,766 | |||||||||||
U.S. GAAP net margin | 24.2 | % | 27.6 | % | 8.9 | % | 26.8 | % | |||||||
Non-GAAP adjustments: | |||||||||||||||
Amortization related to intangible assets acquired through business combination- selling, general and administrative | $ | 5,974 | $ | 1,322 | $ | 1,920 | 1,340 | ||||||||
Restructuring | 133 | 42 | 263 | — | |||||||||||
Acquisition-related costs | 1,730 | — | — | — | |||||||||||
Equity-based compensation | 15,502 | 3,998 | 3,963 | 4,140 | |||||||||||
Net income tax (benefit)/expense on non-GAAP items | (311) | (807) | (181) | (460) | |||||||||||
Total non-GAAP adjustments | 23,028 | 4,555 | 5,965 | 5,020 | |||||||||||
Non-GAAP net income | 390,189 | 138,266 | 21,749 | 118,786 | |||||||||||
Non-GAAP net margin | 25.7 | % | 28.5 | % | 12.2 | % | 28.0 | % | |||||||
U.S. GAAP net income per share: | |||||||||||||||
Basic | 5.92 | 2.16 | 0.25 | 1.83 | |||||||||||
Diluted(a) | 5.78 | 2.10 | 0.25 | 1.79 | |||||||||||
Non-GAAP adjustments per share:(b) | |||||||||||||||
Basic | 0.37 | 0.07 | 0.10 | 0.08 | |||||||||||
Diluted | 0.36 | 0.07 | 0.10 | 0.08 | |||||||||||
Non-GAAP net income per share: | |||||||||||||||
Basic | $ | 6.29 | $ | 2.23 | $ | 0.35 | $ | 1.91 | |||||||
Diluted(c) | $ | 6.14 | $ | 2.17 | $ | 0.35 | $ | 1.87 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 62,009 | 61,966 | 61,791 | 62,023 | |||||||||||
Diluted(b) | 63,515 | 63,611 | 62,411 | 63,485 | |||||||||||
(a) | GAAP diluted net earnings per share reflects any dilutive effect of outstanding restricted stock units and stock options, but that effect is excluded when calculating GAAP diluted net (loss) per share because it would be anti-dilutive. |
(b) | Non-GAAP adjustments per share includes amortization related to intangible assets acquired through business combinations, costs associated with restructuring, equity-based compensation expenses, and acquisition-related costs as well as tax benefits or expense associated with the foregoing non-GAAP items. |
(c) | Non-GAAP diluted net earnings per share reflects any dilutive effect of outstanding restricted stock units and stock options. |
SOURCE Kulicke & Soffa Industries, Inc.
