Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT - KULICKE & SOFFA INDUSTRIES INC | v320148_8k.htm |
| EX-99.2 - EXHIBIT 99.2 - KULICKE & SOFFA INDUSTRIES INC | v320148_ex99-2.htm |
Exhibit 99.1
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Kulicke & Soffa Pte Ltd 6 Serangoon North Ave 5 #03-16 Singapore 554910
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65.6880.9600 phone
65.6880.9580 fax
www.kns.com
Kulicke & Soffa Reports Third Quarter Fiscal 2012 Results
Singapore – July 31, 2012 – Kulicke & Soffa Industries, Inc. (NASDAQ: KLIC) (“K&S” or the “Company”) today announced results for its third fiscal quarter ended June 30, 2012.
| Quarterly Results | ||||||
| Fiscal Q3 2012 | Change vs. Fiscal Q3 2011 |
Change vs. Fiscal Q2 2012 | ||||
| Net Revenue | $255.5 million | -13.2% | 74.6% | |||
| Gross Profit | $122.4 million | -8.7% | 83.6% | |||
| Gross Margin | 47.9% | 240 bps | 230 bps | |||
| Income from Operations | $76.3 million | -6.6% | 276.8% | |||
| Operating Margin | 29.9% | 220 bps | 1,610 bps | |||
| Net Income | $68.2 million | -3.6% | 310.3% | |||
| Net Margin | 26.7% | 270 bps | 1,530 bps | |||
| EPS – Diluted | $0.90 | -5.3% | 309.1% | |||
Bruno Guilmart, Kulicke & Soffa’s President and Chief Executive Officer, said, “Results for the quarter were above the high end of our prior guidance, driven by our market leading copper position, as well as strong market demand for our AT Premier solution. The key themes to our continued success include our multi-segment leadership, flexible manufacturing strategy, R&D strength and our now debt-free balance sheet. This holistic strategy has enhanced both our margin profile and cash flow generation.”
Third Quarter Fiscal 2012 Key Product Trends
| · | Ball bonder equipment net revenue increased 91.9% over the March quarter. |
| · | 79.7% of ball bonder equipment was sold as copper capable bonders. |
| · | Wedge bonder equipment net revenue increased 12.9% from the March quarter. |
Third Quarter Fiscal 2012 Financial Highlights
| · | Net revenue of $255.5 million. |
| · | Gross margin of 47.9%. |
| · | Net income was $68.2 million or $0.90 per share. |
| · | On June 1, 2012, the Company repaid its $110 million debt obligation and is now debt free, eliminating approximately $8 million of related annual expenses. Cash, cash equivalents and investments stood at $380.7 million at quarter end. |
Fourth Quarter Fiscal 2012 Outlook
The Company expects net revenue for the fourth quarter of fiscal 2012 to be approximately $250 million to $270 million, reflecting the Company’s technology leadership position in the key markets it serves.
Looking forward, Bruno Guilmart commented, “Our focus remains on expanding our technology and market leadership. We continue to capture all opportunities possible related to the ongoing and broadening transition from gold to copper and look ahead at wedge bonder volume improvements, LED expansion and advanced packaging growth opportunities. We are also carefully evaluating synergistic opportunities where we can further broaden our reach by leveraging our technology leadership position.”
Earnings Conference Call Details
A conference call to discuss these results will be held today, July 31, 2012, beginning at 8:00 am (EDT). 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 www.kns.com/investors/events.
A replay will be available from approximately one hour after the completion of the call through August 7, 2012 by calling +1-877-660-6853 or internationally +1-201-612-7415, with account number 5521 and replay ID 397269. A webcast replay will also be available at www.kns.com/investors/events.
About Kulicke & Soffa
Kulicke & Soffa (NASDAQ: KLIC) is a global leader in the design and manufacture of semiconductor and LED assembly equipment. As a pioneer in this 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 and wedge bonders 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 and LED devices. (www.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, 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 wirebonding, 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 slowdown of transition from gold to copper wirebonding by our customers and 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-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. 2011 Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission. Kulicke & 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.
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Contacts:
Kulicke & Soffa Industries,
Inc.
Joseph Elgindy
Investor Relations
P: +1-215-784-7518
F: +1-215-784-6180
jelgindy@kns.com
Global IR Partners
David Pasquale
P: +1-914-337-8801
klic@globalirpartners.com
# # #
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KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share and employee data)
(Unaudited)
| Three months ended | Nine months ended | |||||||||||||||
| June 30, | July 2, | June 30, | July 2, | |||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Net revenue: | ||||||||||||||||
| Equipment | $ | 237,095 | $ | 275,398 | $ | 474,297 | $ | 598,106 | ||||||||
| Expendable Tools | 18,430 | 19,040 | 47,560 | 51,924 | ||||||||||||
| Total net revenue | 255,525 | 294,438 | 521,857 | 650,030 | ||||||||||||
| Cost of sales: | ||||||||||||||||
| Equipment | 125,892 | 152,493 | 257,731 | 323,564 | ||||||||||||
| Expendable Tools | 7,190 | 7,851 | 19,720 | 21,303 | ||||||||||||
| Total cost of sales | 133,082 | 160,344 | 277,451 | 344,867 | ||||||||||||
| Gross profit: | ||||||||||||||||
| Equipment | 111,203 | 122,905 | 216,566 | 274,542 | ||||||||||||
| Expendable Tools | 11,240 | 11,189 | 27,840 | 30,621 | ||||||||||||
| Total gross profit | 122,443 | 134,094 | 244,406 | 305,163 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 27,213 | 31,715 | 79,937 | 97,800 | ||||||||||||
| Research and development | 16,018 | 16,595 | 46,077 | 48,314 | ||||||||||||
| Amortization of intangible assets | 2,294 | 2,391 | 6,883 | 7,163 | ||||||||||||
| Restructuring | 642 | 1,740 | 2,615 | 4,516 | ||||||||||||
| Total operating expenses | 46,167 | 52,441 | 135,512 | 157,793 | ||||||||||||
| Income from operations: | ||||||||||||||||
| Equipment | 70,852 | 77,348 | 98,745 | 137,879 | ||||||||||||
| Expendable Tools | 5,424 | 4,305 | 10,149 | 9,491 | ||||||||||||
| Total income from operations | 76,276 | 81,653 | 108,894 | 147,370 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 200 | 185 | 651 | 445 | ||||||||||||
| Interest expense | (149 | ) | (241 | ) | (633 | ) | (724 | ) | ||||||||
| Interest expense: non-cash | (1,306 | ) | (1,877 | ) | (5,174 | ) | (5,429 | ) | ||||||||
| Income from operations before income taxes | 75,021 | 79,720 | 103,738 | 141,662 | ||||||||||||
| Provision for income taxes | 6,847 | 9,006 | 10,440 | 15,964 | ||||||||||||
| Net income | $ | 68,174 | $ | 70,714 | $ | 93,298 | $ | 125,698 | ||||||||
| Net income per share: | ||||||||||||||||
| Basic | $ | 0.92 | $ | 0.97 | $ | 1.26 | $ | 1.75 | ||||||||
| Diluted | $ | 0.90 | $ | 0.95 | $ | 1.24 | $ | 1.71 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 74,067 | 72,199 | 73,811 | 71,531 | ||||||||||||
| Diluted | 75,994 | 74,130 | 75,516 | 73,082 | ||||||||||||
| Three months ended | Nine months ended | |||||||||||||||
| June 30, | July 2, | June 30, | July 2, | |||||||||||||
| Supplemental financial data: | 2012 | 2011 | 2012 | 2011 | ||||||||||||
| Depreciation and amortization | $ | 4,171 | $ | 4,470 | $ | 12,650 | $ | 13,274 | ||||||||
| Capital expenditures | $ | 2,264 | $ | 1,226 | $ | 5,145 | $ | 5,815 | ||||||||
| Equity-based compensation expense: | ||||||||||||||||
| Cost of sales | $ | 44 | $ | 55 | $ | 226 | $ | 159 | ||||||||
| Selling, general and administrative | 1,583 | 1,673 | 5,027 | 4,784 | ||||||||||||
| Research and development | 450 | 340 | 1,316 | 970 | ||||||||||||
| Total equity-based compensation expense | $ | 2,077 | $ | 2,068 | $ | 6,569 | $ | 5,913 | ||||||||
| As of | ||||||||
| June 30, | July 2, | |||||||
| 2012 | 2011 | |||||||
| Backlog of orders | $ | 224,000 | $ | 176,000 | ||||
| Number of employees | 3,208 | 3,005 | ||||||
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| June 30, | October 1, | |||||||
| 2012 | 2011 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 380,697 | $ | 378,188 | ||||
| Short-term investments | - | 6,364 | ||||||
| Accounts and notes receivable, net of allowance for doubtful accounts of $1,167 and $2,194, respectively | 177,864 | 138,649 | ||||||
| Inventories, net | 65,233 | 73,092 | ||||||
| Prepaid expenses and other current assets | 22,902 | 21,897 | ||||||
| Deferred income taxes | 1,656 | 1,651 | ||||||
| TOTAL CURRENT ASSETS | 648,352 | 619,841 | ||||||
| Property, plant and equipment, net | 25,504 | 26,501 | ||||||
| Goodwill | 41,546 | 41,546 | ||||||
| Intangible assets | 22,681 | 29,565 | ||||||
| Other assets | 10,622 | 10,938 | ||||||
| TOTAL ASSETS | $ | 748,705 | $ | 728,391 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Current portion of long term debt | $ | - | $ | 105,224 | ||||
| Accounts payable | 70,012 | 36,321 | ||||||
| Accrued expenses and other current liabilities | 48,717 | 43,528 | ||||||
| Earnout agreement payable | - | 14,848 | ||||||
| Income taxes payable | 16,390 | 14,261 | ||||||
| TOTAL CURRENT LIABILITIES | 135,119 | 214,182 | ||||||
| Deferred income taxes | 30,992 | 32,065 | ||||||
| Other liabilities | 9,728 | 12,267 | ||||||
| TOTAL LIABILITIES | 175,839 | 258,514 | ||||||
| SHAREHOLDERS' EQUITY | ||||||||
| Common stock, no par value | 451,451 | 441,749 | ||||||
| Treasury stock, at cost | (46,356 | ) | (46,356 | ) | ||||
| Accumulated income (deficit) | 165,238 | 71,940 | ||||||
| Accumulated other comprehensive income | 2,533 | 2,544 | ||||||
| TOTAL SHAREHOLDERS' EQUITY | 572,866 | 469,877 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 748,705 | $ | 728,391 | ||||
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| Three months ended | Nine months ended | |||||||||||||||
| June 30, 2012 | July 2, 2011 | June 30, 2012 | July 2, 2011 | |||||||||||||
| Net cash provided by operations | $ | 66,701 | $ | 50,300 | $ | 124,648 | $ | 152,087 | ||||||||
| Net cash used in discontinued operations | (424 | ) | (579 | ) | (1,469 | ) | (1,547 | ) | ||||||||
| Net cash provided by operating activities | $ | 66,277 | $ | 49,721 | $ | 123,179 | $ | 150,540 | ||||||||
| Net cash used in investing activities, continuing operations | (2,264 | ) | (1,420 | ) | (13,629 | ) | (9,057 | ) | ||||||||
| Net cash provided by (used in) financing activities, continuing operations | (109,515 | ) | 4,805 | (106,972 | ) | 8,836 | ||||||||||
| Effect of exchange rate changes on cash and cash equivalents | 60 | 499 | (69 | ) | 850 | |||||||||||
| Changes in cash and cash equivalents | $ | (45,442 | ) | $ | 53,605 | $ | 2,509 | $ | 151,169 | |||||||
| Cash and cash equivalents, beginning of period | 426,139 | 275,676 | 378,188 | 178,112 | ||||||||||||
| Cash and cash equivalents, end of period | $ | 380,697 | $ | 329,281 | $ | 380,697 | $ | 329,281 | ||||||||
| Short-term investments & restricted cash | - | 6,253 | - | 6,253 | ||||||||||||
| Total cash, cash equivalents, restricted cash and short-term investments | $ | 380,697 | $ | 335,534 | $ | 380,697 | $ | 335,534 | ||||||||