Attached files
| file | filename |
|---|---|
| 8-K - KULICKE & SOFFA INDUSTRIES INC | v209564_8k.htm |
Exhibit
99.1
 |
Kulicke
& Soffa Pte Ltd
6
Serangoon North Ave 5
#03-16
Singapore 554910
|
65.6880.9600
phone
65.6880.9580
fax
www.kns.com
Kulicke
& Soffa Industries, Inc. Reports Results for its First Quarter Fiscal
2011
Singapore –
February 1, 2011 – Kulicke & Soffa
Industries, Inc. (NASDAQ: KLIC) (“K&S” or the “Company”) today
announced results for its first fiscal quarter ended January 1,
2011. All information included in this press release relates to GAAP
results.
For its
first quarter of fiscal 2011, the Company reported net revenue of $148.9 million
and net income of $15.1 million, or $0.21 per diluted share.
Quarterly
GAAP Results
|
Fiscal
Q1 2011
|
Change
vs.
Fiscal
Q1 2010
|
Change
vs.
Fiscal
Q4 2010
|
|
|
Net
Revenue
|
$148.9
million
|
15.9%
|
(42.6%)
|
|
Gross
Profit
|
$72.1
million
|
27.9%
|
(35.8%)
|
|
Gross
Margin
|
48.4%
|
450
basis points
|
510
basis points
|
|
Income
from Operations
|
$22.1
million
|
22.7%
|
(61.1%)
|
|
Operating
Margin
|
14.8%
|
80
basis points
|
(710)
basis points
|
|
Net
Income
|
$15.1
million
|
(4.7%)
|
(73.1%)
|
|
Net
Margin
|
10.1%
|
(220)
basis points
|
(1150)
basis points
|
|
EPS
– Diluted
|
$0.21
|
0.0%
|
(73.1%)
|
Commenting
on the results, Bruno Guilmart, President and Chief Executive Officer, said,
“Revenue in the December quarter came in better than expected, with the
sequential decline in ball bonder shipments significantly less than
anticipated.
“We
continue to see strong momentum in the gold to copper transition and have
shipped initial volume orders of our newly introduced IConnPS
ProCuTM
machine. Given the proven productivity advantage of our ProCu machine
we expect to see increased demand as we gain market share and benefit from
replacement orders.
“Our
wedge bonder equipment line continued to perform very well, with revenue
increasing 66% in the December quarter compared to the September
quarter. The increase was driven primarily by higher sales from the
power semiconductor market but also continued demand in the automotive and
renewable energy markets. The higher volume shipments of wedge bonder
equipment during the December quarter contributed to the higher overall gross
margin for the company.”
Key Product
Trends
|
|
·
|
Ball
bonder net revenue decreased 58.1% over the September
quarter. This sequential decrease was predominantly driven by
reduced OSAT customer demand.
|
|
|
·
|
The
first volume orders of the newly released IConnPS
ProCu wire bonder have been recognized in the December
quarter.
|
|
|
·
|
Sustained
volumes of wedge bonder shipments are anticipated to continue through the
March quarter.
|
Financial
Highlights
|
|
·
|
Net
revenue decreased sequentially although less than anticipated, exceeding
the high end of guidance.
|
|
|
·
|
Gross
margin increased 5.1% from the prior quarter to
48.4%.
|
|
|
·
|
Operating
margin was 14.8%.
|
|
|
·
|
Net
income was $15.1 million.
|
|
|
·
|
Diluted
EPS was $0.21.
|
|
|
·
|
Operations
generated $25.3 million of net
cash.
|
Second Quarter Fiscal 2011
Outlook
The
Company expects net revenue for the second quarter fiscal 2011 to be
approximately $175 million to $195 million.
Looking
forward, Bruno Guilmart, President and Chief Executive Officer, commented, “We
expect our ball bonder business to benefit from our technology leadership as
customers continue to transition from gold to copper wire bonding, replacement
demand and improving OSAT volumes as well as continued strength in our wedge
bonder business.”
Earnings Conference Call
Details
A
conference call to discuss these results will be held today, February 1, 2011
beginning at 8:00 am (ET). To access the conference call, interested parties may
call (877) 407-8037 or (201) 689-8037, or can access the live webcast at www.kns.com/investors/events.
A replay
will be available from approximately one hour after the completion of the call
through February 8, 2011 by calling toll-free (877) 660-6853 or internationally
(201) 612-7415 and using the following replay access codes: 5521 (account
number) and 364696 (replay ID number). A webcast replay will also be available
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)
- 2
-
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 our future revenue, sustained, increasing, continuing or
strengthening demand for our products, increasing market share, the continuing
transition from gold to copper wire bonding, replacement demand and improving
OSAT volumes. 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; 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. 2010 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.
Contacts:
Kulicke
& Soffa Industries, Inc.
Joseph
Elgindy
Investor
Relations
P: (215)
784-7518
F: (215)
784-6180
jelgindy@kns.com
Global
IR Partners
David
Pasquale
P: (914)
337-8801
klic@globalirpartners.com
# # #
- 3
-
|
KULICKE
& SOFFA INDUSTRIES, INC.
|
||||||||
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
||||||||
|
(In
thousands, except per share and employee data)
|
||||||||
|
(Unaudited)
|
||||||||
|
Three
months ended
|
||||||||
|
|
January
1,
|
January
2,
|
||||||
|
2011
|
2010
|
|||||||
|
Net
revenue:
|
||||||||
|
Equipment
|
$ | 132,698 | $ | 111,597 | ||||
|
Expendable
Tools
|
16,165 | 16,818 | ||||||
|
Total
net revenue
|
148,863 | 128,415 | ||||||
|
Cost
of sales:
|
||||||||
|
Equipment
|
70,238 | 65,145 | ||||||
|
Expendable
Tools
|
6,513 | 6,897 | ||||||
|
Total
cost of sales
|
76,751 | 72,042 | ||||||
|
Gross
profit:
|
||||||||
|
Equipment
|
62,460 | 46,452 | ||||||
|
Expendable
Tools
|
9,652 | 9,921 | ||||||
|
Total
gross profit
|
72,112 | 56,373 | ||||||
|
Operating
expenses:
|
||||||||
|
Selling,
general and administrative
|
30,672 | 22,639 | ||||||
|
Research
and development
|
15,195 | 13,161 | ||||||
|
Amortization
of intangible assets
|
2,386 | 2,388 | ||||||
|
Restructuring
|
1,792 | 199 | ||||||
|
Total
operating expenses
|
50,045 | 38,387 | ||||||
|
Income
from operations:
|
||||||||
|
Equipment
|
19,184 | 14,847 | ||||||
|
Expendable
Tools
|
2,883 | 3,139 | ||||||
|
Total
income from operations
|
22,067 | 17,986 | ||||||
|
Other
income (expense):
|
||||||||
|
Interest
income
|
105 | 97 | ||||||
|
Interest
expense
|
(242 | ) | (371 | ) | ||||
|
Interest
expense: non-cash
|
(1,772 | ) | (1,712 | ) | ||||
|
Income
from operations before income taxes
|
20,158 | 16,000 | ||||||
|
Provision
for income taxes
|
5,059 | 160 | ||||||
|
Net
income
|
$ | 15,099 | $ | 15,840 | ||||
|
Net
income per share:
|
||||||||
|
Basic
|
$ | 0.21 | $ | 0.23 | ||||
|
Diluted
|
$ | 0.21 | $ | 0.21 | ||||
|
Weighted
average shares outstanding:
|
||||||||
|
Basic
|
70,881 | 69,684 | ||||||
|
Diluted
|
71,706 | 73,687 | ||||||
|
Three
months ended
|
||||||||
|
January
1,
|
January
2,
|
|||||||
|
Supplemental
financial data:
|
2011
|
2010
|
||||||
|
Depreciation
and amortization
|
$ | 4,407 | $ | 4,509 | ||||
|
Capital
expenditures
|
$ | 2,705 | $ | 1,096 | ||||
|
Equity-based
compensation expense:
|
||||||||
|
Cost
of sales
|
$ | 48 | $ | 46 | ||||
|
Selling,
general and administrative
|
963 | 714 | ||||||
|
Research
and development
|
276 | 344 | ||||||
|
Total
equity-based compensation expense
|
$ | 1,287 | $ | 1,104 | ||||
|
As
of
|
||||||||
|
January
1,
|
January
2,
|
|||||||
|
2011
|
2010
|
|||||||
|
Backlog
of orders
|
$ | 193,000 | $ | 36,000 | ||||
|
Number
of employees
|
2,628 | 2,574 | ||||||
- 4
-
|
KULICKE
& SOFFA INDUSTRIES, INC.
|
||||||||
|
CONSOLIDATED
BALANCE SHEETS
|
||||||||
|
(In
thousands)
|
||||||||
|
(Unaudited)
|
||||||||
|
|
January
1,
|
October
2,
|
||||||
|
2011
|
2010
|
|||||||
|
ASSETS
|
||||||||
|
CURRENT
ASSETS
|
||||||||
|
Cash
and cash equivalents
|
$ | 197,551 | $ | 178,112 | ||||
|
Restricted
cash
|
- | 237 | ||||||
|
Short-term
investments
|
6,074 | 2,985 | ||||||
|
Accounts
and notes receivable, net of allowance for doubtful
|
||||||||
|
accounts
of $1,261 and $980, respectively
|
161,045 | 196,035 | ||||||
|
Inventories,
net
|
74,661 | 73,893 | ||||||
|
Prepaid
expenses and other current assets
|
13,224 | 15,985 | ||||||
|
Deferred
income taxes
|
5,445 | 5,443 | ||||||
|
TOTAL
CURRENT ASSETS
|
458,000 | 472,690 | ||||||
|
Property,
plant and equipment, net
|
30,766 | 30,059 | ||||||
|
Goodwill
|
26,698 | 26,698 | ||||||
|
Intangible
assets
|
36,726 | 39,111 | ||||||
|
Other
assets
|
11,641 | 11,611 | ||||||
|
TOTAL
ASSETS
|
$ | 563,831 | $ | 580,169 | ||||
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||
|
CURRENT
LIABILITIES
|
||||||||
|
Accounts
payable
|
$ | 41,567 | $ | 82,353 | ||||
|
Accrued
expenses and other current liabilities
|
40,781 | 41,498 | ||||||
|
Income
taxes payable
|
3,904 | 1,279 | ||||||
|
TOTAL
CURRENT LIABILITIES
|
86,252 | 125,130 | ||||||
|
Long
term debt
|
100,110 | 98,475 | ||||||
|
Deferred
income taxes
|
20,896 | 20,355 | ||||||
|
Other
liabilities
|
14,657 | 13,729 | ||||||
|
TOTAL
LIABILITIES
|
221,915 | 257,689 | ||||||
|
SHAREHOLDERS'
EQUITY
|
||||||||
|
Common
stock, no par value
|
427,397 | 423,715 | ||||||
|
Treasury
stock, at cost
|
(46,356 | ) | (46,356 | ) | ||||
|
Accumulated
deficit
|
(40,571 | ) | (55,670 | ) | ||||
|
Accumulated
other comprehensive income
|
1,446 | 791 | ||||||
|
TOTAL
SHAREHOLDERS' EQUITY
|
341,916 | 322,480 | ||||||
|
TOTAL
LIABILITIES AND
|
||||||||
|
SHAREHOLDERS'
EQUITY
|
$ | 563,831 | $ | 580,169 | ||||
- 5
-
|
KULICKE
& SOFFA INDUSTRIES, INC.
|
||||||||
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
||||||||
|
(In
thousands)
|
||||||||
|
(Unaudited)
|
||||||||
|
|
||||||||
|
Three
months ended
|
||||||||
|
January 1, 2011
|
January 2, 2010
|
|||||||
|
Net
cash provided by operations
|
$ | 25,310 | $ | 34,125 | ||||
|
Net
cash used in discontinued operations
|
(524 | ) | (496 | ) | ||||
|
Net
cash provided by operating activities
|
$ | 24,786 | $ | 33,629 | ||||
|
Net
cash used in investing activities, continuing operations
|
(5,648 | ) | (1,031 | ) | ||||
|
Net
cash used in investing activities, discontinued operations
|
- | (1,838 | ) | |||||
|
Net
cash used in investing activities
|
$ | (5,648 | ) | $ | (2,869 | ) | ||
|
Net
cash used in financing activities, continuing operations
|
125 | (23 | ) | |||||
|
Effect
of exchange rate changes on cash and cash equivalents
|
176 | (90 | ) | |||||
|
Changes
in cash and cash equivalents
|
$ | 19,439 | $ | 30,647 | ||||
|
Cash
and cash equivalents, beginning of period
|
178,112 | 144,560 | ||||||
|
Cash
and cash equivalents, end of period
|
$ | 197,551 | $ | 175,207 | ||||
|
Short-term
investments & restricted cash
|
6,074 | 216 | ||||||
|
Total
Cash, cash equivalents, restricted cash and short-term
investments
|
$ | 203,625 | $ | 175,423 | ||||
- 6
-