Kulicke & Soffa Reports First Quarter 2013 Results Business Wire 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 Change vs. Change vs. Fiscal Q1 2013 Fiscal Q1 2012 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 $4.2 million (66.0%) (94.0%) Operations 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. *Net income was reduced by $1.8 million of adjustments related to the Company’s RISC (Research Incentive Scheme for Companies) grant. *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. 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 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, 98,715 188,986 respectively 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 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 - (486 ) operations Net cash provided by operating $ 58,494 $ 33,838 activities Net cash used in investing activities (4,516 ) (9,982 ) Net cash provided by financing 159 1,576 activities Effect of exchange rate changes on (211 ) 141 cash and cash equivalents Changes in cash and cash equivalents $ 53,926 $ 25,573 Cash and cash equivalents, beginning 440,244 378,188 of period Cash and cash equivalents, end of $ 494,170 $ 403,761 period Total cash, cash equivalents and $ 494,170 $ 403,761 short-term investments Contact: Kulicke & Soffa Industries, Inc. Joseph Elgindy Investor Relations & Strategic Planning P: +1-215-784-7518 F: +1-215-784-6180 email@example.com or Global IR Partners David Pasquale P: +1-914-337-8801 firstname.lastname@example.org
Kulicke & Soffa Reports First Quarter 2013 Results
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