Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - KULICKE & SOFFA INDUSTRIES INC | v333113_8-k.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 First Quarter 2013 Results
Singapore – January 29, 2013 – Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) (“Kulicke & Soffa”, “K&S” or the “Company”) today announced results for its first fiscal quarter ended December 29, 2012.
| Quarterly Results | |||
|
Fiscal Q1 2013
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Change vs. Fiscal Q1 2012 |
Change vs. Fiscal Q4 2012 | |
| Net Revenue | $114.0 million | (5.0%) | (57.6%) |
| Gross Profit | $51.5 million | (6.8%) | (58.1%) |
| Gross Margin | 45.2% | (90) bps | (50) bps |
| Income from Operations | $4.2 million | (66.0%) | (94.0%) |
| Operating Margin | 3.7% | (660) bps | (2,240) bps |
| Net Income | $3.6 million | (57.6%) | (94.6%) |
| Net Margin | 3.2% | (390) bps | (2,180) bps |
| EPS – Diluted | $0.05 | (54.5%) | (94.4%) |
Bruno Guilmart, Kulicke & Soffa’s President and Chief Executive Officer, said, “The first fiscal quarter’s revenue came in at the higher end of our guidance range. The pullback from the prior quarter reflects the high degree of seasonality in our business, with the December quarter traditionally the weakest of the fiscal year. We planned for the decline and took appropriate actions at the beginning of the quarter to accelerate our cost- containment programs. As a result, we reduced our operating expenses by 10% compared to the prior quarter, further strengthened our balance sheet and maintained a strong gross margin.”
First Quarter Fiscal 2013 Key Product Trends
| · | Ball bonder equipment net revenue decreased 64.5% over the September quarter. |
| · | 74.8% of ball bonder equipment was sold as copper capable bonders. |
| · | Wedge bonder equipment net revenue decreased 23% from the September quarter. |
First Quarter Fiscal 2013 Financial Highlights
| · | Net revenue of $114.0 million. |
| · | Gross margin of 45.2%. |
| · | Net income was $3.6 million or $0.05 per share. |
| o | Net income was reduced by $1.8 million of adjustments related to the Company’s RISC (Research Incentive Scheme for Companies) grant. |
| o | Without this item net income would have been $5.4 million or $0.07 per share. |
| · | Total cash and short-term investments were $494.2 million on December 29, 2012, a $53.9 million increase from the prior quarter ended September 29, 2012. |
Second Quarter Fiscal Year 2013 Outlook
The Company expects net revenue in the second fiscal quarter of 2013 ending March 30, 2013 to be approximately $90 million to $100 million.
Looking forward, Bruno Guilmart commented, “We expect our business to improve as we move through the fiscal year based on normal market seasonality combined with the ongoing copper transition. In general, we normally gain increased visibility from customers after the Chinese New Year Holiday. We remain confident in our long-term business prospects given the strength of our existing equipment portfolio and development pipeline, our market leadership positions, and our strong balance sheet.”
Earnings Conference Call Details
A conference call to discuss these results will be held today, January 29, 2013, beginning at 8:00 am (EST). 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 February 5, 2013 by calling toll-free +1-877-660-6853 or internationally +1-201-612-7415 and using the replay ID number of 407421. 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 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 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 wire bonding, 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 wire bonding 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. 2012 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 & Strategic Planning
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 | ||||||||
| December 29, | December 31, | |||||||
| 2012 | 2011 | |||||||
| Net revenue: | ||||||||
| Equipment | $ | 99,902 | $ | 106,149 | ||||
| Expendable Tools | 14,137 | 13,875 | ||||||
| Total net revenue | 114,039 | 120,024 | ||||||
| Cost of sales: | ||||||||
| Equipment | 56,432 | 59,004 | ||||||
| Expendable Tools | 6,082 | 5,744 | ||||||
| Total cost of sales | 62,514 | 64,748 | ||||||
| Gross profit: | ||||||||
| Equipment | 43,470 | 47,145 | ||||||
| Expendable Tools | 8,055 | 8,131 | ||||||
| Total gross profit | 51,525 | 55,276 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 26,030 | 25,240 | ||||||
| Research and development | 18,253 | 14,148 | ||||||
| Amortization of intangible assets | 2,293 | 2,295 | ||||||
| Restructuring | 744 | 1,217 | ||||||
| Total operating expenses | 47,320 | 42,900 | ||||||
| Income from operations: | ||||||||
| Equipment | 1,745 | 9,877 | ||||||
| Expendable Tools | 2,460 | 2,499 | ||||||
| Total income from operations | 4,205 | 12,376 | ||||||
| Other income (expense): | ||||||||
| Interest income | 174 | 260 | ||||||
| Interest expense | - | (242 | ) | |||||
| Interest expense: non-cash | - | (1,910 | ) | |||||
| Income from operations before income taxes | 4,379 | 10,484 | ||||||
| Provision for income taxes | 775 | 1,977 | ||||||
| Net income | $ | 3,604 | $ | 8,507 | ||||
| Net income per share: | ||||||||
| Basic | $ | 0.05 | $ | 0.12 | ||||
| Diluted | $ | 0.05 | $ | 0.11 | ||||
| Weighted average shares outstanding: | ||||||||
| Basic | 74,852 | 73,540 | ||||||
| Diluted | 76,209 | 74,628 | ||||||
| Three months ended | ||||||||
| December 29, | December 31, | |||||||
| Supplemental financial data: | 2012 | 2011 | ||||||
| Depreciation and amortization | $ | 4,802 | $ | 4,258 | ||||
| Capital expenditures | $ | 1,616 | $ | 1,498 | ||||
| Equity-based compensation expense: | ||||||||
| Cost of sales | $ | 148 | $ | 85 | ||||
| Selling, general and administrative | 2,326 | 1,611 | ||||||
| Research and development | 727 | 403 | ||||||
| Total equity-based compensation expense | $ | 3,201 | $ | 2,099 | ||||
| As of | ||||||||
| December 29, | December 31, | |||||||
| 2012 | 2011 | |||||||
| Backlog of orders | $ | 71,000 | $ | 88,000 | ||||
| Number of employees | 2,609 | 2,735 | ||||||
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| KULICKE & SOFFA INDUSTRIES, INC. |
| CONSOLIDATED BALANCE SHEETS |
| (In thousands) |
| (Unaudited) |
| December 29, | September 29, | |||||||
| 2012 | 2012 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 494,170 | $ | 440,244 | ||||
| Restricted cash | 2,900 | - | ||||||
| Accounts and notes receivable, net of allowance for doubtful | ||||||||
| accounts of $1,019 and $937, respectively | 98,715 | 188,986 | ||||||
| Inventories, net | 54,328 | 58,994 | ||||||
| Prepaid expenses and other current assets | 16,018 | 21,577 | ||||||
| Deferred income taxes | 3,522 | 3,515 | ||||||
| TOTAL CURRENT ASSETS | 669,653 | 713,316 | ||||||
| Property, plant and equipment, net | 28,781 | 28,441 | ||||||
| Goodwill | 41,546 | 41,546 | ||||||
| Intangible assets | 18,092 | 20,387 | ||||||
| Other assets | 11,416 | 11,919 | ||||||
| TOTAL ASSETS | $ | 769,488 | $ | 815,609 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable | $ | 20,305 | $ | 57,231 | ||||
| Accrued expenses and other current liabilities | 42,040 | 57,946 | ||||||
| Income taxes payable | 6,817 | 8,192 | ||||||
| TOTAL CURRENT LIABILITIES | 69,162 | 123,369 | ||||||
| Deferred income taxes | 38,007 | 37,875 | ||||||
| Other liabilities | 10,994 | 10,698 | ||||||
| TOTAL LIABILITIES | 118,163 | 171,942 | ||||||
| SHAREHOLDERS' EQUITY | ||||||||
| Common stock, no par value | 458,482 | 455,122 | ||||||
| Treasury stock, at cost | (46,356 | ) | (46,356 | ) | ||||
| Accumulated income | 236,124 | 232,520 | ||||||
| Accumulated other comprehensive income | 3,075 | 2,381 | ||||||
| TOTAL SHAREHOLDERS' EQUITY | 651,325 | 643,667 | ||||||
| TOTAL LIABILITIES AND | ||||||||
| SHAREHOLDERS' EQUITY | $ | 769,488 | $ | 815,609 | ||||
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| KULICKE & SOFFA INDUSTRIES, INC. | |||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||
| (In thousands) | |||||
| (Unaudited) | |||||
| Three months ended | ||||||||
| December 29, 2012 | December 31, 2011 | |||||||
| Net cash provided by operations | $ | 58,494 | $ | 34,324 | ||||
| Net cash used in discontinued operations | - | (486 | ) | |||||
| Net cash provided by operating activities | $ | 58,494 | $ | 33,838 | ||||
| Net cash used in investing activities | (4,516 | ) | (9,982 | ) | ||||
| Net cash provided by financing activities | 159 | 1,576 | ||||||
| Effect of exchange rate changes on cash and cash equivalents | (211 | ) | 141 | |||||
| Changes in cash and cash equivalents | $ | 53,926 | $ | 25,573 | ||||
| Cash and cash equivalents, beginning of period | 440,244 | 378,188 | ||||||
| Cash and cash equivalents, end of period | $ | 494,170 | $ | 403,761 | ||||
| Total cash, cash equivalents and short-term investments | $ | 494,170 | $ | 403,761 | ||||
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