SECURITIES AND EXCHANGE COMMISSION

                      Washington, D.C. 20549

                            FORM 10-Q



[X]   QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
      SECURITIES EXCHANGE ACT OF 1934

      For the quarterly period ended June 30, 1994.                     
     
                                 OR

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
     THE SECURITIES EXCHANGE ACT OF 1934      

     For the transition period from _________ to _________.


Commission File No.  0-121


                 KULICKE AND SOFFA INDUSTRIES, INC.
      (Exact name of registrant as specified in its charter)


      Pennsylvania                                 23-1498399   
(State or other jurisdiction                      (IRS employer
    of incorporation)                      identification number)


   2101 Blair Mill Road                               19090
Willow Grove, Pennsylvania                          (Zip code)
  (Address of principal                                      
    executive offices)

                           (215) 784-6000                              
       (Registrant's telephone number, including area code)


Indicate by check mark whether registrant (1) has filed all reports
required to be filed by section 13 or 15 (d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.  
Yes  [ X ]    No  [   ]

As of August 5, 1994, there were 8,246,848 shares of the Registrant's
Common Stock, Without Par Value, outstanding.






              KULICKE AND SOFFA INDUSTRIES, INC.

                          FORM 10 - Q

                         JUNE 30, 1994         
  
                             INDEX                                 

                                                           Page No. 

                                                           

PART I.  FINANCIAL INFORMATION  


Item 1.  Financial Statements    

         Consolidated Balance Sheet - June 30, 1994 
          and September 30, 1993                                 3

         Consolidated Statement of Operations - Three 
          and Nine Months Ended June 30, 1994 
          and 1993                                               4

         Consolidated Condensed Statement of Cash 
          Flows - Nine Months Ended June 30, 1994 
          and 1993                                               5

         Notes to Consolidated Financial Statements              6


Item 2.  Management's Discussion and Analysis of 
          Financial Condition and Results of 
          Operations                                        7 - 10
                           

PART II.  OTHER INFORMATION
                           

Item 6.  Exhibits and Reports on Form 8 - K                     11

Signatures                                                      12



















                               - 2 -
          KULICKE AND SOFFA INDUSTRIES, INC. and Subsidiaries
                    CONSOLIDATED BALANCE SHEET
                           (in thousands)
                            (unaudited)

                                                 June 30, September 30,
                                                   1994        1993
                               Assets            --------     -------

Cash and cash equivalents                        $ 10,801    $  7,413
Short-term investments at cost plus accrued
 interest which approximates market                20,994      15,355
Accounts and notes receivable, net                 29,699      29,346
Inventories, net                                   23,261      29,108
Prepaid expenses and other current assets           2,901       3,061
                                                  -------     -------
   Total current assets                            87,656      84,283

Property, plant and equipment, at cost, less 
 accumulated depreciation and amortization         20,427      18,181
Other assets                                        2,878       2,814
                                                  -------     -------
   Total assets                                  $110,961    $105,278
                                                  =======     =======

               Liabilities and Shareholders' Equity   

Debt due within one year                         $     60    $     60 
Accounts payable                                   14,135      15,371
Accrued expenses                                    8,101       9,889
Estimated income taxes payable                      1,580         773
                                                  -------     -------
   Total current liabilities                       23,876      26,093
                                                  -------     -------
Long-term debt                                     26,489      26,708
Deferred income taxes                                 190         408
Other liabilities                                     693         588
                                                  -------     -------
   Total liabilities                               51,248      53,797
                                                  -------     ------- 
Commitments and contingencies

Common stock, without par value                    17,571      16,336
Retained earnings                                  42,646      35,998
Cumulative translation adjustment                    (504)       (853)  
                                                  -------     -------
   Total shareholders' equity                      59,713      51,481
                                                  -------     ------- 
   Total liabilities and shareholders' equity    $110,961    $105,278
                                                  =======     =======



      See accompanying notes to consolidated financial statements.


                               - 3 -

          KULICKE AND SOFFA INDUSTRIES, INC. and Subsidiaries
                   CONSOLIDATED STATEMENT OF OPERATIONS
                (in thousands, except share related data)
                             (unaudited)





                                   Three months          Nine months
                                  ended June 30,        ended June 30,
                                -----------------     ------------------
                                 1994       1993        1994       1993
                                ------     ------     -------     ------
Net sales                      $40,838    $38,532    $122,863    $96,914

Costs and expenses:
 Cost of goods sold             24,977     21,968      72,200     54,225

 Selling, general and 
  administrative                 9,002      7,816      26,613     23,637

 Research and development, net   5,176      4,107      15,228     11,167
                                ------     ------     -------     ------
Total costs and expenses        39,155     33,891     114,041     89,029
                                ------     ------     -------     ------
Income from operations           1,683      4,641       8,822      7,885

Interest income                    308        258         920        849
Interest expense                  (539)      (552)     (1,633)    (1,652)
                                ------     ------     -------     ------ 
Income before income taxes       1,452      4,347       8,109      7,082 


Provision for income taxes         305        435       1,461        757
                                ------     ------     -------     ------
Net income                     $ 1,147    $ 3,912    $  6,648    $ 6,325 
                                ======     ======     =======     ======



Net income per share             $0.14      $0.47       $0.80      $0.78
                                  ====       ====        ====       ====  

Weighted average shares 
 outstanding                 8,352,660  8,281,877   8,320,595  8,108,173
                            







      See accompanying notes to consolidated financial statements.

                               - 4 -

          KULICKE AND SOFFA INDUSTRIES, INC. and Subsidiaries
             CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
                            (in thousands)
                              (unaudited)
                                                                       
       

                                            Nine months ended June 30,
                                                 1994          1993*
                                                ------        ------
Operating activities:
 Net income                                    $ 6,648       $ 6,325   
 Adjustments to reconcile net income 
  to net cash provided by operating 
  activities:
   Depreciation and amortization                 2,856         2,327
   Deferred income taxes                          (218)           --
   Changes in other components of 
    working capital excluding short-term 
    investments                                  3,524        (6,459)
   Other changes, net                              304          (314)
                                               -------       -------
Net cash provided by operating activities       13,114         1,879 
                                               -------       -------
Investing activities:
 Purchases of property, plant and equipment, 
  net                                           (5,116)       (3,041)
 Purchases of short-term investments, net       (5,639)       (1,298)
                                               -------       -------
Net cash used by investing activities          (10,755)       (4,339)
                                               --------      ------- 
Financing activities:
 Proceeds from exercise of stock options         1,061         1,133
 Payments on borrowings                            (45)          (66)
                                               -------       -------   
Net cash provided by financing activities        1,016         1,067
                                               -------       -------
Effects of exchange rate changes on cash            13            46
                                               -------       -------
Change in cash and cash equivalents              3,388        (1,347)

Cash and cash equivalents at beginning 
 of year                                         7,413         6,414
                                               -------       -------
Cash and cash equivalents at end of period     $10,801       $ 5,067
                                                ======        ======  


* Reclassified for comparative purposes.


   


   See accompanying notes to consolidated financial statements.

                            - 5 -

       KULICKE AND SOFFA INDUSTRIES, INC. and Subsidiaries

           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                         (in thousands)
                           (Unaudited)


Note 1.  Basis of Presentation 

The consolidated financial statement information included herein
is unaudited, but in the opinion of management, contains all
adjustments, consisting only of normal recurring adjustments,
necessary to present fairly the Company's financial position as
of June 30, 1994 and 1993, the results of its operations for the
three and nine month periods ended June 30, 1994 and 1993, and
its cash flows for the nine month periods ended June 30, 1994 and
1993.  These financial statements should be read in conjunction
with the audited financial statements included in the Company's
Annual Report on Form 10-K for the fiscal year ended September
30, 1993.


Note 2.  Subsequent Event

On July 13, 1994, the Company acquired the business and certain
assets of Assembly Technologies, an operating division of General
Signal Corporation, for a cash purchase price approximating $2.9
million before transaction-related costs.  Assembly Technologies
manufactured and sold semiconductor assembly equipment, including
automatic die attach machines, automatic dicing saws and related
spare parts.  The transaction will be accounted for as a
purchase.  Accordingly, the acquired assets and results of
operations of the Assembly Technologies business will be included
in the Company's consolidated financial statements from the date
of the acquisition.






















                            - 6 -

       KULICKE AND SOFFA INDUSTRIES, INC. and Subsidiaries
 
            MANAGEMENT'S DISCUSSION AND ANALYSIS OF
          FINANCIAL CONDITION AND RESULTS OF OPERATIONS     


INTRODUCTION

The Company's sales largely depend on the capital expenditures of
semiconductor manufacturers, which in turn depend on the current
and anticipated market demand for semiconductors and products
using semiconductors.  Historically, there have been substantial
fluctuations in the amounts which semiconductor manufacturers
have invested in capital equipment.  The Company  believes that
such fluctuations will continue to characterize the industry in
the future.  In view of the historical fluctuations in the
semiconductor and semiconductor assembly equipment markets, it is
inherently difficult to predict demand for semiconductor assembly
equipment.  


RESULTS OF OPERATIONS

The Company achieved record quarterly bookings of customer orders
totaling $51.6 million during the three months ended June 30,
1994 compared to $40.6 million for the second quarter of fiscal
1994, and $43.0 million for the third quarter of fiscal 1993. 
The current bookings level reflects a continuing buoyant market
and the capturing of market share at some key accounts in Asia. 
As a result, the backlog increased to $42.0 million at June 30,
1994 from $31.0 million at March 31, 1994.  The Company's backlog
as of any date may not be representative of sales for any
succeeding period.

During the three months ended June 30, 1994, revenues totaled
$40.8 million compared to revenues of $38.5 million for the same
period last year.  For the nine month period ended June 30, 1994,
revenues increased to $122.9 million versus the $96.9 million
reported for the fiscal 1993 year to date period.  The fiscal
1994 revenue increases reflect a continuation of the higher level
of activity in the semiconductor assembly equipment industry
which commenced in the latter half of fiscal 1993.  

Increased revenues during the third fiscal quarter of 1994
primarily resulted from increased sales of consumable tools
compared to fiscal 1993.  A modest increase in unit sales of
machines during the 1994 third quarter was offset by lower
average selling prices compared to fiscal 1993.

For the nine month period ended June 30, 1994, increased unit
sales of the Company's wire bonders and higher sales of 
consumable tools accounted for the majority of the growth in
revenues compared to fiscal 1993.  These increases were mitigated 
in part by lower average selling prices for certain of the 
Company's machines and lower unit sales of dicing saws in 1994
compared to the same period last year.  

                            - 7 -

The cost of goods sold increased to $25.0 million and $72.2
million for the three and nine month periods ended June 30, 1994,
respectively, compared to $22.0 million and $54.2 million for the
same periods in fiscal 1993.  These increases were largely due to
the higher unit volume noted above.

Gross profit margin declined to 38.8% and 41.2% for the three and
nine month periods ended June 30, 1994, respectively, compared to
43.0% and 44.0% during the same periods last year.  These changes
primarily reflect the lower average selling prices for certain of
the Company's machines due to large volume orders from certain
Asian customers and a shift in product sales mix during fiscal
1994 compared to fiscal 1993.  Sales of machines comprised 77% of
total revenues during the nine month period ended June 30, 1994. 
In the first nine months of fiscal 1993, machine sales comprised
74% of total revenues.  Sales of higher margin spare parts and
consumable tools comprised 19% of total revenues during the nine
month period ended June 30, 1994, versus 22% for the comparable
period in fiscal 1993.  The favorable effect of higher volume on
average unit costs of machines in fiscal 1994 was offset by lower
average selling prices on certain machines in the Asian market,
as compared to fiscal 1993.  Introduction of an enhanced version
of the Company's gold ball wire bonders in late 1994 should have
a favorable effect on average selling prices.  

Selling, general and administrative ("SG&A") expenses increased
to $9.0 million and $26.6 million for the three and nine month
periods ended June 30, 1994, respectively, compared to $7.8
million and $23.6 million for the comparable periods last year. 
Higher SG&A costs during fiscal 1994 include increased costs to
support the worldwide installed base of machines, increased
marketing and applications support costs for scheduled product
introductions, and increased costs necessary to enhance and
support worldwide computerized information systems.  These
increases were offset in part by cost savings in Europe and Japan
as a consequence of the Company's 1992 restructuring program. 

Net research and development ("R&D") costs increased to $5.2
million for the three months ended June 30, 1994 and $15.2
million for the fiscal 1994 year to date period, up from the $4.1
million and $11.2 million reported for the three and nine month
periods ended June 30, 1993, respectively.  The increased
expenditures during fiscal 1994 are attributable to the Company's
continued development of the next generation machines, including
the 8000 Series wire bonders and the Model 6900 automatic die
bonder, and enhancements of existing products.  With respect to
the Series 8000 wire bonder and Model 6900 automatic die bonder,
fiscal 1994 R&D costs include increased labor and fringe costs
associated with engineering activities, increased costs for
prototype materials as R&D activities progress from the design to
development phase, and increased use of outside contractors for
portions of the development work.




                            - 8 -
Operating income declined to $1.7 million for the three months
ended June 30, 1994 compared to $4.6 million during the third
quarter of fiscal 1993.  This change resulted from reduced gross
profit margins and higher operating costs as discussed above.

On a year to date basis, operating income in fiscal 1994
increased to $8.8 million compared to $7.9 million reported in
fiscal 1993 due primarily to the higher sales levels realized in
fiscal 1994, offset in part by cost increases noted above.

Interest expense, net of interest income, totaled $231,000 for
the three months ended June 30, 1994 compared to $294,000 for the
same period last year.  On a year to date basis, interest
expense, net of interest income, totaled $713,000 in fiscal 1994
compared to $803,000 in fiscal 1993.  These improvements are
largely due to increased interest income resulting from the
higher average level of invested cash in fiscal 1994.

The provision for income taxes for the nine months ended June 30,
1994 is based on the Company's estimated effective tax rate for
the year.  The increase in the fiscal 1994 estimated effective
tax rate of 18% over the 11% effective tax rate reported for the
nine months ended June 30, 1993 primarily resulted from
exhausting the remaining net operating loss and most tax credit
carryforwards in the United States during fiscal 1993 and 1994
and the estimated amount and geographic distribution of taxable
income during fiscal 1994.

As discussed in Note 2 to the June 30, 1994 financial statements,
the Company acquired the business and certain assets of Assembly
Technologies on July 13, 1994.  As a consequence, sales, cost of
goods sold and operating costs are expected to increase in the
future due to the incremental activities associated with the
Assembly Technologies business.


LIQUIDITY AND CAPITAL RESOURCES

Cash generated by operating activities totaled $13.1 million for
the nine months ended June 30, 1994.  Cash and cash equivalents
increased to $10.8 million at June 30, 1994 from the $7.4 million
reported at September 30, 1993.  Working capital increased to
$63.8 million at June 30, 1994 compared to $ 58.2 million.  The
$5.8 million decline in inventory primarily reflects the
Company's continued efforts to reduce fiscal 1994 inventory
levels.  The declines in trade accounts payable and accrued
expenses are primarily the result of the timing of purchases and
payments to vendors and others as invoices and other liabilities
became due.

During the nine months ended June 30, 1994, the Company invested
approximately $5.1 million in property and equipment, primarily 
to upgrade capital equipment used in the Company's manufacturing
and research and development activities, and to upgrade worldwide
information processing capabilities.  

                            - 9 -

In January 1994, the Company renewed its $10.0 million credit
line with a financial institution.  The credit line expires
January 31, 1995.  Borrowings under this facility are subject to
interest at 1/4% below the lender's prime rate.  The Company's
ability to borrow under this line of credit is subject to the
Company meeting certain financial requirements.  All such
financial requirements have been met by the Company.

The Company believes that, based on its present operating levels,
its working capital, internally generated funds and amounts
available under its line of credit will be sufficient to meet
anticipated cash requirements for operating expenses and capital
expenditures throughout the next year. 










































                            - 10 -


 
                 PART II - OTHER INFORMATION           



Item 6.  Exhibits and Reports on Form 8 - K 

  (a)   Exhibits

        None.

  (b)   Reports on Form 8 - K

        There were no reports on Form 8 - K filed during the      
        three month period ended June 30, 1994.











































                            - 11  -


                         SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.


                             KULICKE AND SOFFA INDUSTRIES, INC.





Date:  August 15, 1994        /s/ Clifford G. Sprague
                              ---------------------------------
                                Clifford G. Sprague
                                Senior Vice President, Chief
                                 Financial Officer and Chief
                                 Accounting Officer


































                            - 12 -