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KULICKE & SOFFA REPORTS RESULTS FOR ITS FOURTH QUARTER AND FISCAL YEAR 2009

Kulicke & Soffa Reports Results for its Fourth Quarter and Fiscal Year 2009

November 19, 2009 at 12:00 AM EST
Kulicke & Soffa Reports Results for its Fourth Quarter and Fiscal Year 2009FORT WASHINGTON, Pa.--(BUSINESS WIRE)--Nov. 19, 2009-- Kulicke & Soffa Industries, Inc. (NASDAQ: KLIC) (“K&S”) today announced results for its fourth fiscal quarter and year ended October 3, 2009. For the fourth quarter, the Company reported net revenue from continuing operations of $110.5 million and net income of $6.5 million or $0.09 per diluted share. This press release contains both GAAP results and non-GAAP measures.

On a non-GAAP basis* for the fourth quarter of 2009, the Company reported net revenue from continuing operations of $110.5 million with net income of $9.8 million or $0.14 per diluted share.

 
Quarterly GAAP Results

From Continuing
Operations

 

Q4 2009
(14 weeks)

  Change vs. Q4 2008   Change vs. Q3 2009
Net Revenue   $110.5 million   80%   112%
Gross Profit   $47.2 million   90%   140%
Gross Margin   42.7%   210 bps   494 bps
Net Income $6.5 million 159% 147%
Net Margin   5.9%   2,385 bps   3,246 bps
EPS – Diluted   $0.09   143%   139%
 
 
Quarterly Non-GAAP Measures

From Continuing
Operations

 

Q4 2009
(14 weeks)

  Change vs. Q4 2008   Change vs. Q3 2009
Net Revenue   $110.5 million   80%   112%
Gross Profit $47.2 million 89% 140%
Gross Margin   42.7%   202 bps   489 bps
Net Income $9.8 million 195% 180%
Net Margin   8.8%   2,561 bps   3,234 bps
EPS – Diluted   $0.14   174%   170%

*Non-GAAP measures from continuing operations exclude: equity-based compensation; amortization of intangibles; severance; Switzerland pension plan curtailment; tax settlement; other tax adjustments and related tax effects on non-GAAP adjustments (see reconciliations of GAAP results to Non-GAAP measures in the following financial schedules).

Commenting on the results, Scott Kulicke, Chairman and Chief Executive Officer, said, “Considering the year we’ve all been through, results for the September quarter were quite good. Revenue grew to $110 million, more than doubling since the June quarter. This revenue growth, coupled with our previous expense reductions, returned K&S to profitability in the September quarter. For the December quarter, we currently expect revenue for this period to improve to approximately $115 to $120 million.”

Financial Highlights

  • Returned to profitability in the September quarter
  • Successfully completed an equity offering of 8.0 million shares in August 2009 for net proceeds of $38.7 million
  • Total debt at 2009 fiscal year end was $159.0 million, down $88.4 million from $247.4 million at 2008 fiscal year end
  • Total cash and cash equivalents of $144.8 million as of October 3, 2009

Key Product Trends

  • Ball bonder unit volumes up approximately 173% over June quarter levels

    • Conversion to copper wire bonding is accelerating; over 600 copper conversion kits were sold during the quarter
    • Successful launch and initial sales of ConnX-LEDPSTM automatic ball bonder
  • Highest heavy wire wedge bonder unit volumes since acquisition of Orthodyne; unit volumes increased approximately 169% over June quarter levels
  • Multiple customer qualifications of iStackPSTM automatic die bonder on-going through first quarter of fiscal 2010

    • Initial sales expected in the March 2010 quarter

Outlook for First Fiscal Quarter 2010

  • Net revenue is expected to be $115 to $120 million

Earnings Conference Call Details

A conference call to discuss these results will be held today, November 19, 2009 beginning at 9:00 AM EST. Interested parties may call (877) 407-8037 or (201) 689-8037, or log on to www.kns.com/investors/events for listen-only mode. A replay will be available approximately one hour after the completion of the call by calling toll-free (877) 660-6853 or internationally (201) 612-7415 and using the following replay access codes: 5521 (account number) and 335875 (replay ID number). A replay will also be available on the K&S website at www.kns.com/investors/events. The replay will be available via phone and website for a limited time.

Fiscal 2009 Results

From continuing operations in fiscal 2009, K&S net revenue was $225.2 million with a net loss of $58.8 million or $0.95 per diluted share. On a non-GAAP basis*, fiscal 2009 net revenue was $225.2 million with a net loss of $50.5 million or $0.81 per diluted share.

 
Annual GAAP Results

From Continuing
Operations

  FY 2009   FY 2008   Change
Net Revenue   $225.2 million   $328.1 million   -31%
Gross Profit   $88.8 million   $133.8 million   -34%
Gross Margin   39.4%   40.8%   -134 bps
Net Loss ($58.8) million ($19.6) million -200%
Net Margin   -26.1%   -6.0%   -2,011 bps
EPS - Diluted   ($0.95)   ($0.37)   -157%
 
 
Annual Non-GAAP Measures

From Continuing
Operations

  FY 2009   FY 2008   Change
Net Revenue   $225.2 million   $328.1 million   -31%
Gross Profit $88.9 million $134.0 million -34%
Gross Margin   39.5%   40.9%   -139 bps
Net Loss ($50.5) million ($9.6) million -428%
Net Margin   -22.4%   -2.9%   1,951 bps
EPS - Diluted   ($0.81)   ($0.18)   -354%

*Non-GAAP measures from continuing operations exclude: equity-based compensation; amortization of intangibles; severance; facilities contractual commitments; Switzerland pension plan curtailment; goodwill impairment; U.S. pension plan termination; tax settlements; debt extinguishment; other tax adjustments and related tax effects on non-GAAP adjustments (see reconciliations of GAAP results to Non-GAAP measures in the following financial schedules).

Discussion of Non-GAAP Measures

This press release contains non-GAAP financial measures as a supplement to the consolidated financial results presented in accordance with GAAP. The Company believes certain non-GAAP measures provide investors with an additional, useful perspective on the Company’s performance as seen through the eyes of management. Management uses non-GAAP financial measures along with GAAP financial results for: analyzing the performance of the Company’s businesses; strategic and tactical decision making; and determining compensation. The Company does not consider non-GAAP financial measures to be a substitute for, or superior to, financial results presented in accordance with GAAP. All of the non-GAAP financial measures included herein are reconciled to the most directly comparable GAAP results in the following financial statements. These non-GAAP measures may be calculated differently from non-GAAP measures used by other companies. In addition, these non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles and some of the adjustments reflect the exclusion of items that are recurring and will be reflected in the Company’s GAAP financial results for the foreseeable future.

Exclusions from GAAP Results

The Company excludes the following from its GAAP results in presenting non-GAAP financial measures:

- Equity-based compensation expenses. The Company recognizes the fair value of its equity-based compensation in expenses. Equity-based compensation consists of common stock, stock options and performance-based restricted stock granted under the Company’s equity compensation plans. Equity-based compensation is a non-cash expense that can vary significantly in amount from period to period.

- Other. The exclusion of certain other non-GAAP amounts allows for improved comparisons of the Company’s results to both prior periods and other companies. The Company excludes the following other items from non-GAAP measures as these items are not reflective of the performance of the Company’s ongoing businesses:

  • U.S. pension plan termination
  • Debt extinguishment
  • Amortization of intangibles
  • Severance
  • Goodwill impairment
  • Facilities contractual commitments
  • Switzerland pension plan curtailment
  • Tax settlements
  • Other tax adjustments

- Tax Adjustment. Non-GAAP measures are tax adjusted using the GAAP tax rate associated with each quarterly period. The tax rate is calculated by dividing each quarter’s GAAP tax expense, adjusted for discrete quarterly items, by the GAAP operating income for that quarter. Non-GAAP year-to-date measures are calculated by summing the associated quarterly non-GAAP measures, without further tax adjustments.

Non-GAAP Measures

The specific non-GAAP measures included herein are gross profit, gross margin, net income, net margin, and EPS. The Company calculates these measures as follows:

--Gross Profit. K&S non-GAAP gross profit excludes the effects of equity-based compensation expense recorded within cost of sales.

--Gross Margin. K&S non-GAAP gross margin excludes the impact of equity-based compensation expense recorded within cost of sales.

--Net Income (Loss) and Earnings per Share. K&S non-GAAP net income (loss) and EPS exclude equity-based compensation, amortization of intangibles, severance, facilities contractual commitments, Switzerland pension plan curtailment, goodwill impairment, U.S. pension plan termination, tax settlements, debt extinguishment, other tax adjustments and related tax effects on non-GAAP adjustments.

--Net Margin. K&S non-GAAP net margin reflects the Company’s net margin excluding equity-based compensation, amortization of intangibles, severance, facilities contractual commitments, Switzerland pension plan curtailment, goodwill impairment, U.S. pension plan termination, tax settlements, debt extinguishment, other tax adjustments and related tax effects on non-GAAP adjustments.

About Kulicke & Soffa

Kulicke & Soffa (NASDAQ: KLIC) is a global leader in the design and manufacture of semiconductor assembly equipment. As one of the pioneers of the industry, 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, adding die bonding, wedge bonding and a broader range of expendable tools to its core ball bonding products. Combined with its extensive expertise in process technology, K&S is well positioned to help customers meet the challenges of assembling the next-generation semiconductor devices. (www.kns.com)

Caution Concerning 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 accelerating conversion to copper wire bonding and future revenue, sales, demand for our products and product development. 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: difficult 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; the risk of failure to successfully integrate Orthodyne; the risk that anticipated customer orders may not materialize or that orders received may be postponed or canceled, generally without charges; the volatility in the demand for semiconductors and our products and services; the risk that we may not be able to develop and manufacture new products and product enhancements on a timely and cost effective basis; acts of terrorism and violence; risks, such as changes in trade regulations, currency fluctuations, political instability and war, associated with a substantial foreign customer and supplier base and substantial foreign manufacturing operations; and the factors listed or discussed in Kulicke and Soffa Industries, Inc. 2008 Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission. Kulicke & Soffa Industries 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.

       
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share and employee data)
(Unaudited)
 
Three months ended Twelve months ended
September 27,   October 3, September 27,   October 3,
  2008     2009     2008     2009  
 
Net revenue $ 61,230 $ 110,516 $ 328,050 $ 225,240
 
Cost of sales   36,364     63,315     194,257     136,397  
 
Gross profit   24,866     47,201     133,793     88,843  
 
Selling, general and administrative 22,304 26,600 89,356 106,175
Research and development 14,683 12,561 59,917 53,483
Impairment of goodwill - - - 2,709
U.S. pension plan termination   -     -     9,152     -  
 
Total operating expenses   36,987     39,161     158,425     162,367  
 
Income (loss) from operations (12,121 ) 8,040 (24,632 ) (73,524 )
 
Interest income 1,004 84 4,732 1,106
Interest expense (892 ) (620 ) (3,499 ) (2,601 )
Gain on extinguishment of debt   -     -     170     3,965  
 

Income (loss) from continuing operations before income taxes

(12,009 ) 7,504 (23,229 ) (71,054 )
 
Income tax (benefit) expense   (992 )   1,035     (3,610 )   (12,279 )
 
Income (loss) from continuing operations   (11,017 )   6,469     (19,619 )   (58,775 )
 
Income (loss) from discontinued operations, net of tax 6,408 (716 ) 23,441 22,011
       
Net income (loss) $ (4,609 ) $ 5,753   $ 3,822   $ (36,764 )
 
Income (loss) per share from continuing operations:
Basic $ (0.21 ) $ 0.10   $ (0.37 ) $ (0.95 )
Diluted $ (0.21 ) $ 0.09   $ (0.37 ) $ (0.95 )
 
Income per share from discontinued operations:
Basic $ 0.12   $ (0.01 ) $ 0.44   $ 0.36  
Diluted $ 0.12   $ (0.01 ) $ 0.44   $ 0.36  
 
Net income (loss) per share:
Basic $ (0.09 ) $ 0.09   $ 0.07   $ (0.59 )
Diluted $ (0.09 ) $ 0.08   $ 0.07   $ (0.59 )
 
Weighted average shares outstanding:
Basic 53,621 65,754 53,449 62,188
Diluted 53,621 70,082 53,449 62,188
 
Equity-based compensation expense included in continuing operations:
Cost of sales $ 65 $ 25 $ 252 $ 64
Selling, general and administrative 513 401 3,711 649
Research and development   192     199     1,442     674  
Total $ 770   $ 625   $ 5,405   $ 1,387  
 
Three months ended Twelve months ended
September 27,   October 3, September 27,   October 3,
Additional financial data:   2008     2009     2008     2009  
 
Depreciation and amortization
Continuing operations $ 2,336 $ 5,861 $ 9,080 $ 22,233
Discontinued operations $ 241 $ - $ 968 $ -
 
Capital expenditures
Continuing operations $ 1,544 $ 865 $ 7,850 $ 5,264
Discontinued operations $ 32 $ - $ 151 $ -
 
September 27,   October 3,
  2008     2009  
 
Backlog of orders
Continuing operations $ 50,000 $ 42,000
Discontinued operations $ 22,000 $ -
 
Number of employees
Continuing operations 2,496 2,202
Discontinued operations 293 -
 

Note –

Statements of operations and additional financial data reflect the sale of the company's Wire business as a discontinued operation.

 
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
   
September 27, October 3,
  2008     2009  
ASSETS
 
CURRENT ASSETS
Cash and cash equivalents $ 144,932 $ 144,560
Restricted cash 35,000 281
Short-term investments 6,149 -

Accounts and notes receivable, net of allowance for doubtful accounts of $1,376 and $1,378 respectively

56,643 95,779
Inventories, net 27,236 41,489
Prepaid expenses and other current assets 18,729 11,566
Deferred income taxes 2,118 1,786
Current assets of discontinued operations   127,958     -  
 
TOTAL CURRENT ASSETS 418,765 295,461
 
Property, plant and equipment, net 36,900 36,046
Intangible assets 386 48,656
Goodwill 2,709 26,698
Other assets 5,468 5,465
Non-current assets of discontinued operations   32,909     -  
 
TOTAL ASSETS $ 497,137   $ 412,326  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
CURRENT LIABILITIES
Current portion of long term debt $ 72,412 $ 48,964
Accounts payable 25,028 39,908
Accrued expenses and other current liabilities 27,255 32,576
Income taxes payable 569 1,612
Current liabilities of discontinued operations   34,411     -  
 
TOTAL CURRENT LIABILITIES 159,675 123,060
 
Long term debt 175,000 110,000
Other liabilities 37,780 10,273
Deferred income taxes 21,591 16,282
Other liabilities of discontinued operations   624     -  
 
TOTAL LIABILITIES   394,670     259,615  
 
SHAREHOLDERS' EQUITY
Common stock, no par value 295,841 383,417
Treasury stock, at cost (46,118 ) (46,356 )
Accumulated deficit (149,465 ) (186,229 )
Accumulated other comprehensive income   2,209     1,879  
 
TOTAL SHAREHOLDERS' EQUITY   102,467     152,711  
 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$ 497,137   $ 412,326  
 
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
       
Three months ended Twelve months ended
September 27, 2008 October 3, 2009 September 27, 2008 October 3, 2009
 
Net cash provided by (used in) operating activities, continuing operations $ 1,999 $ (10,161 ) $ 26,936 $ (51,407 )
Net cash provided by (used in) operating activities, discontinued operations   3,020       (417 )   1,126       (2,116 )
Net cash provided by (used in) operating activities $ 5,019 $ (10,578 ) $ 28,062 $ (53,523 )
 
Net cash provided by (used in) investing activities, continuing operations (24,155 ) 1,441 (29,599 ) (51,453 )
Net cash provided by (used in) investing activities, discontinued operations   (37 )     -     (193 )     149,857  
Net cash provided by (used in) investing activities $ (24,192 ) $ 1,441 $ (29,792 ) $ 98,404
 
Net cash provided by (used in) financing activities 5 38,865 (3,282 ) (45,439 )
Effect of exchange rate changes on cash and cash equivalents   (96 )     145     (627 )     185  
Changes in cash and cash equivalents $ (19,264 ) $ 29,873 $ (5,639 ) $ (373 )
Cash and cash equivalents, beginning of period   164,196       114,687     150,571       144,933  
Cash and cash equivalents, end of period $ 144,932     $ 144,560   $ 144,932     $ 144,560  
 
Short-term investments 6,149 - 6,149 -
Restricted cash   35,000       281     35,000       281  
Total Cash, cash equivalents, restricted cash and short-term investments $ 186,081     $ 144,841   $ 186,081     $ 144,841  
     
KULICKE & SOFFA INDUSTRIES, INC.
OPERATING RESULTS BY BUSINESS SEGMENT
(In thousands)
(Unaudited)
 
Fiscal 2009:
Expendable
Equipment Tools
Three months ended October 3, 2009 Segment Segment Consolidated
 
Net revenue $ 92,356 $ 18,160 $ 110,516
Cost of sales   56,270     7,045   63,315  
Gross profit 36,086 11,115 47,201
Operating expenses   32,958     6,203   39,161  
Income from continuing operations $ 3,128   $ 4,912 $ 8,040  
 
Fiscal year ended October 3, 2009
 
Net revenue $ 170,536 $ 54,704 $ 225,240
Cost of sales   111,103     25,294   136,397  
Gross profit 59,433 29,410 88,843
Operating expenses 135,465 24,193 159,658
Impairment of goodwill   2,709     -   2,709  
Income (loss) from continuing operations $ (78,741 ) $ 5,217 $ (73,524 )
 
 
 
 
Fiscal 2008:
Expendable
Equipment Tools
Three months ended September 27, 2008 Segment Segment Consolidated
 
Net revenue $ 46,958 $ 14,272 $ 61,230
Cost of sales   28,949     7,415   36,364  
Gross profit 18,009 6,857 24,866
Operating expenses   31,234     5,753   36,987  
Income (loss) from continuing operations $ (13,225 ) $ 1,104 $ (12,121 )
 
Fiscal year ended September 27, 2008
 
Net revenue $ 271,019 $ 57,031 $ 328,050
Cost of sales   165,499     28,758   194,257  
Gross profit 105,520 28,273 133,793
Operating expenses 122,302 26,971 149,273
U.S. pension plan termination   9,152     -   9,152  
Income (loss) from continuing operations $ (25,934 ) $ 1,302 $ (24,632 )
       
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS - SUMMARY
COMPARISON OF GAAP RESULTS TO NON-GAAP MEASURES
(In thousands, except share amounts)
(Unaudited)
Three months ended Three months ended Twelve months ended Twelve months ended
September 27, October 3, September 27, October 3,
2008 2009 2008 2009
 

(GAAP results)

 
Net revenue $ 61,230 $ 110,516 $ 328,050 $ 225,240
Gross profit 24,866 47,201 133,793 88,843
Income (loss) from operations (12,121 ) 8,040 (24,632 ) (73,524 )
Net income (loss) from continuing operations (11,017 ) 6,469 (19,619 ) (58,775 )
 
Weighted average shares outstanding, continuing operations
Basic 53,621 65,754 53,449 62,188
Diluted 53,621 70,082 53,449 62,188
 
Net income (loss) per share from continuing operations
Basic $ (0.21 ) $ 0.10 (0.37 ) $ (0.95 )
Diluted $ (0.21 ) $ 0.09 (0.37 ) $ (0.95 )
 

(Non-GAAP measures)

 
Net revenue $ 61,230 $ 110,516 $ 328,050 $ 225,240
Gross profit 24,931 47,226 134,045 88,907
Income (loss) from operations (11,310 ) 12,275 (9,889 ) (47,011 )
Net income (loss) from continuing operations (10,273 ) 9,760 (9,573 ) (50,527 )
 
Weighted average shares outstanding, continuing operations
Basic 53,621 65,754 53,449 62,188
Diluted 53,621 70,082 53,449 62,188
 
Net income (loss) per share from continuing operations
Basic $ (0.19 ) $ 0.15 $ (0.18 ) $ (0.81 )
Diluted $ (0.19 ) $ 0.14 $ (0.18 ) $ (0.81 )
 
 
KULICKE & SOFFA INDUSTRIES, INC.
OPERATING RESULTS BY BUSINESS SEGMENT - SUMMARY
COMPARISON OF GAAP RESULTS TO NON-GAAP MEASURES
(In thousands)
(Unaudited)
    Expendable  
Equipment Tools
Segment Segment Consolidated
 
Fiscal 2009:
 
Three months ended October 3, 2009

(GAAP results)

 
Net revenue $ 92,356 $ 18,160 $ 110,516
Gross profit 36,086 11,115 47,201
Income from operations 3,128 4,912 8,040
 

(Non-GAAP measures)

 
Net revenue $ 92,356 $ 18,160 $ 110,516
Gross profit 36,107 11,119 47,226
Income from operations 6,605 5,670 12,275
 
Fiscal year ended October 3, 2009

(GAAP results)

 
Net revenue $ 170,536 $ 54,704 $ 225,240
Gross profit 59,433 29,410 88,843
Income (loss) from operations (78,741 ) 5,217 (73,524 )
 

(Non-GAAP measures)

 
Net revenue $ 170,536 $ 54,704 $ 225,240
Gross profit 59,519 29,388 88,907
Income (loss) from operations (59,773 ) 12,762 (47,011 )
 
Fiscal 2008:
 
Three months ended September 27, 2008

(GAAP results)

 
Net revenue $ 46,958 $ 14,272 $ 61,230
Gross profit 18,009 6,857 24,866
Income (loss) from operations (13,225 ) 1,104 (12,121 )
 

(Non-GAAP measures)

 
Net revenue $ 46,958 $ 14,272 $ 61,230
Gross profit 18,043 6,888 24,931
Income (loss) from operations (12,631 ) 1,321 (11,310 )
 
Fiscal year ended September 27, 2008

(GAAP results)

 
Net revenue $ 271,019 $ 57,031 $ 328,050
Gross profit 105,520 28,273 133,793
Income (loss) from operations (25,934 ) 1,302 (24,632 )
 

(Non-GAAP measures)

 
Net revenue $ 271,019 $ 57,031 $ 328,050
Gross profit 105,657 28,388 134,045
Income (loss) from operations (12,474 ) 2,585 (9,889 )
 
 
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
RECONCILIATION OF GAAP RESULTS TO NON-GAAP MEASURES
(In thousands, except share amounts)
(Unaudited)
  Three months ended     Three months ended     Twelve months ended     Twelve months ended  
September 27, % of October 3, % of September 27, % of October 3, % of
  2008   Revenue   2009   Revenue   2008   Revenue   2009   Revenue
 
Net revenue (GAAP results) $ 61,230 $ 110,516 $ 328,050 $ 225,240
Net revenue (Non-GAAP measures) 61,230 110,516 328,050 225,240
 
Gross profit (GAAP results) 24,866 40.6 % 47,201 42.7 % 133,793 40.8 % 88,843 39.4 %
- Equity-based compensation expense   65     25     252     64  
Gross profit (Non-GAAP measures) 24,931 40.7 % 47,226 42.7 % 134,045 40.9 % 88,907 39.5 %
 
Loss from operations (GAAP results) (12,121 ) -19.8 % 8,040 7.3 % (24,632 ) -7.5 % (73,524 ) -32.6 %
- Equity-based compensation expense 770 625 5,405 1,387
- Severance plan - 1,229 - 8,351
- Impairment of goodwill - - - 2,709
- Facilities contractual commitments - - - 2,608
- Switzerland pension plan curtailment - - - (1,446 )
- Tax settlement expense - (400 ) - 1,812
- U.S. pension plan termination - - 9,152 -
- Amortization of intangibles   41     2,781     186     11,092  
Income (loss) from operations (Non-GAAP measures) (11,310 ) -18.5 % 12,275 11.1 % (9,889 ) -3.0 % (47,011 ) -20.9 %
 
Net loss (GAAP results) (11,017 ) -18.0 % 6,469 5.9 % (19,619 ) -6.0 % (58,775 ) -26.1 %
- Equity-based compensation expense 770 625 5,405 1,387
- Severance plan - 1,229 - 8,351
- Impairment of goodwill - - - 2,709
- Facilities contractual commitments - - - 2,608

- Switzerland pension plan curtailment

- - - (1,446 )
- Tax settlement expense - (400 ) - 1,812
- U.S. pension plan termination - - 9,152 -
- Amortization of intangibles 41 2,781 186 11,092
- Gain on extinguishment of debt - - (170 ) (3,965 )
- Tax settlement benefit - - - (12,154 )
- Other tax adjustments - - - (1,047 )
- Tax effect of non-GAAP adjustments   (67 )   (944 )   (4,527 )   (1,099 )
Net income (loss) (Non-GAAP measures) (10,273 ) -16.8 % 9,760 8.8 % (9,573 ) -2.9 % (50,527 ) -22.4 %
 
 
Weighted average shares outstanding, continuing operations (GAAP & Non-GAAP)
Basic 53,621 65,754 53,449 62,188
Diluted 53,621 70,082 53,449 62,188
 
Net income (loss) per share from continuing operations (GAAP results)
Basic $ (0.21 ) $ 0.10 $ (0.37 ) $ (0.95 )
Diluted $ (0.21 ) $ 0.09 $ (0.37 ) $ (0.95 )
 
Adjustments to net income per share
Basic $ 0.02 $ 0.05 $ 0.19 $ 0.14
Diluted $ 0.02 $ 0.05 $ 0.19 $ 0.14
 
Net income (loss) per share from continuing operations (Non-GAAP measures)
Basic $ (0.19 ) $ 0.15 $ (0.18 ) $ (0.81 )
Diluted $ (0.19 ) $ 0.14 $ (0.18 ) $ (0.81 )
 
KULICKE & SOFFA INDUSTRIES, INC.
OPERATING RESULTS BY BUSINESS SEGMENT
RECONCILIATION OF GAAP RESULTS TO NON-GAAP MEASURES
(In thousands)
(Unaudited)
      Expendable    
Equipment % of Tools % of
Segment Revenue Segment Revenue Consolidated
 
Fiscal 2009:
 
Three months ended October 3, 2009
 
Net revenue (GAAP results) 92,356 18,160 110,516
Net revenue (Non-GAAP measures) 92,356 18,160 110,516
 
Gross profit (GAAP results) 36,086 39.1 % 11,115 61.2 % 47,201
- Equity-based compensation expense 21   4   25  
Gross profit (Non-GAAP measures) 36,107 39.1 % 11,119 61.2 % 47,226
 
Income from operations (GAAP results) 3,128 3.4 % 4,912 27.0 % 8,040
- Equity-based compensation expense 536 89 625
- Severance plan 817 412 1,229
- Tax settlement expense - (400 ) (400 )
- Amortization of intangibles 2,124   657   2,781  
Income from operations (Non-GAAP measures) 6,605 7.2 % 5,670 31.2 % 12,275
 
Fiscal year ended October 3, 2009
 
Net revenue (GAAP results) 170,536 54,704 225,240
Net revenue (Non-GAAP measures) 170,536 54,704 225,240
 
Gross profit (GAAP results) 59,433 34.9 % 29,410 53.8 % 88,843
- Equity-based compensation expense 86   (22 ) 64  
Gross profit (Non-GAAP measures) 59,519 34.9 % 29,388 53.7 % 88,907
 
Income (loss) from operations (GAAP results) (78,741 ) -46.2 % 5,217 9.5 % (73,524 )
- Equity-based compensation expense 1,218 169 1,387
- Severance plan 5,858 2,493 8,351
- Impairment of goodwill 2,709 - 2,709
- Facilities contractual commitments 2,165 443 2,608
- Switzerland pension plan curtailment (1,446 ) - (1,446 )
- Tax settlement expense - 1,812 1,812
- Amortization of intangibles 8,464   2,628   11,092  
Income (loss) from operations (Non-GAAP measures) (59,773 ) -35.1 % 12,762 23.3 % (47,011 )
 
 
Fiscal 2008:
 
Three months ended September 27, 2008
 
Net revenue (GAAP results) 46,958 14,272 61,230
Net revenue (Non-GAAP measures) 46,958 14,272 61,230
 
Gross profit (GAAP results) 18,009 38.4 % 6,857 48.0 % 24,866
- Equity-based compensation expense 34   31   65  
Gross profit (Non-GAAP measures) 18,043 38.4 % 6,888 48.3 % 24,931
 
Income (loss) from operations (GAAP results) (13,225 ) -28.2 % 1,104 7.7 % (12,121 )
- Equity-based compensation expense 553 217 770
- Amortization of intangibles 41   -   41  
Income (loss) from operations (Non-GAAP measures) (12,631 ) -26.9 % 1,321 9.3 % (11,310 )
 
Fiscal year ended September 27, 2008
 
Net revenue (GAAP results) 271,019 57,031 328,050
Net revenue (Non-GAAP measures) 271,019 57,031 328,050
 
Gross profit (GAAP results) 105,520 38.9 % 28,273 49.6 % 133,793
- Equity-based compensation expense 137   115   252  
Gross profit (Non-GAAP measures) 105,657 39.0 % 28,388 49.8 % 134,045
 
Income (loss) from operations (GAAP results) (25,934 ) -9.6 % 1,302 2.3 % (24,632 )
- Equity-based compensation expense 4,122 1,283 5,405
- U.S. pension plan termination 9,152 - 9,152
- Amortization of intangibles 186   -   186  
Income (loss) from operations (Non-GAAP measures) (12,474 ) -4.6 % 2,585 4.5 % (9,889 )

Source: Kulicke & Soffa Industries, Inc.

Kulicke & Soffa
Tom Johnson
Director – Investor Relations & Corporate Communications
215-784-6411
F: 215-784-6167
tjohnson@kns.com
or
Headgate Partners LLC
Claire E. McAdams
530-265-9899
F: 530-265-9699
claire@headgatepartners.com