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Kulicke & Soffa Reports Second Quarter 2013 Results

  Kulicke & Soffa Reports Second Quarter 2013 Results

Business Wire

SINGAPORE -- April 30, 2013

Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) (“Kulicke & Soffa”, “K&S” or
the “Company”) today announced results for its second fiscal quarter ended
March 30, 2013.


Quarterly Results
                       Fiscal Q2 2013  Change vs.      Change vs.
                                          Fiscal Q2 2012   Fiscal Q1 2013
Net Revenue             $106.1 million  (27.5%)         (7.0%)
Gross Profit            $48.8 million   (26.8%)         (5.2%)
Gross Margin            46.0%           40 bps          80 bps
Income from Operations   $8.2 million     (59.5%)          94.8%
Operating Margin        7.7%            (610) bps       400 bps
Net Income               $7.3 million     (55.9%)          103.6%
Net Margin              6.9%            (450) bps       370 bps
EPS – Diluted           $0.10           (54.5%)         100%
                                                           

Bruno Guilmart, Kulicke & Soffa’s President and Chief Executive Officer, said,
“The second fiscal quarter’s revenue exceeded the high-end of our guidance
range. The broadening of our customer base helped partially offset softer
demand from certain key customers. Importantly, despite the recent softness
and based on the latest VLSI reports and internal data, we believe that we
have at least maintained our market share and we remain confident in the
ongoing copper transition.”

Second Quarter Fiscal 2013 Key Product Trends

  *Ball bonder equipment net revenue decreased 4.3% over the December
    quarter.
  *67.7% of ball bonder equipment was sold as copper capable bonders.
  *Wedge bonder equipment net revenue decreased 56.6% from the December
    quarter.

Second Quarter Fiscal 2013 Financial Highlights

  *Net revenue of $106.1 million.
  *Gross margin of 46.0%.
  *Net income was $7.3 million or $0.10 per share.
  *Cash and cash equivalents were $498.6 million as at March 30, 2013.

Third Quarter Fiscal 2013 Outlook

The Company expects net revenue in the third fiscal quarter of 2013 ending
June 29, 2013 to be approximately $120 million to $130 million.

Looking forward, Bruno Guilmart commented, “Wire bonding remains a very
significant manufacturing process step for the overwhelming majority of global
semiconductor products. We do not expect this to change over the foreseeable
future, as wire bonding is and will likely continue to be the most
cost-effective interconnect solution. We remain positive in our core business
outlook and continue to invest in new products that maintain our existing
market leadership positions, such as our recently released PowerFusion^PS[TM
]line of wedge bonding solutions. We also remain focused on new opportunities,
such as investments in our advanced packaging program, which will provide new
vectors of long-term growth with an attractive return on investment profile.”

Earnings Conference Call Details

A conference call to discuss these results will be held today, April 30, 2013,
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 investor.kns.com.

A replay will be available from approximately one hour after the completion of
the call through May 7, 2013 by calling toll-free +1-877-660-6853 or
internationally +1-201-612-7415 and using the replay ID number of 421379. A
webcast replay will also be available at investor.kns.com.

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          Six months ended
                         March 30,     March 31,     March 30,     March 31,
                         2013          2012          2013          2012
                                                                   
Net revenue:
Equipment                $ 91,083      $ 131,053     $ 190,985     $ 237,202
Expendable Tools          15,027      15,255      29,164      29,130  
Total net revenue          106,110       146,308       220,149       266,332
                                                                   
Cost of sales:
Equipment                  51,140        72,835        107,572       131,839
Expendable Tools          6,150       6,786       12,232      12,530  
Total cost of sales        57,290        79,621        119,804       144,369
                                                                   
Gross profit:
Equipment                  39,943        58,218        83,413        105,363
Expendable Tools          8,877       8,469       16,932      16,600  
Total gross profit        48,820      66,687      100,345     121,963 
                                                                   
Operating expenses:
Selling, general and       26,204        27,484        52,234        52,724
administrative
Research and               12,207        15,911        30,460        30,059
development
Amortization of            2,294         2,294         4,587         4,589
intangible assets
Restructuring             (75     )    756         669         1,973   
Total operating           40,630      46,445      87,950      89,345  
expenses
                                                                   
                                                                   
Income from
operations:
Equipment                  4,428         18,016        6,173         27,893
Expendable Tools          3,762       2,226       6,222       4,725   
Total income from          8,190         20,242        12,395        32,618
operations
                                                                   
Other income
(expense):
Interest income            188           191           362           451
Interest expense           (1      )     (242    )     (1      )     (484    )
Interest expense:         -           (1,958  )    -           (3,868  )
non-cash
                                                                   
Income from operations     8,377         18,233        12,756        28,717
before income taxes
                                                                   
Provision for income       1,041         1,616         1,816         3,593
taxes
                                                                
Net income               $ 7,336      $ 16,617     $ 10,940     $ 25,124  
                                                                   
Net income per share:
Basic                    $ 0.10       $ 0.23       $ 0.15       $ 0.34    
Diluted                  $ 0.10       $ 0.22       $ 0.14       $ 0.33    
                                                                   
Weighted average
shares outstanding:
Basic                      75,166        73,825        75,009        73,683
Diluted                    76,553        75,553        76,332        75,160
                                                                   
                         Three months ended          Six months ended
                         March 30,     March 31,     March 30,     March 31,
Supplemental financial   2013          2012          2013          2012
data:
                                                                   
Depreciation and         $ 4,702       $ 4,221       $ 9,504       $ 8,479
amortization
                                                                   
Capital expenditures     $ 1,787       $ 1,383       $ 3,403       $ 2,881
                                                                   
Equity-based
compensation expense:
Cost of sales            $ 74          $ 97          $ 222         $ 182
Selling, general and       1,925         1,833         4,251         3,444
administrative
Research and              293         463         1,020       866     
development
Total equity-based       $ 2,292     $ 2,393     $ 5,493     $ 4,492   
compensation expense
                                                                   
                                                     As of
                                                     March 30,     March 31,
                                                     2013          2012
                                                                   
Backlog of orders                                    $ 56,000      $ 164,000
                                                                   
Number of employees                                    2,328         2,802
                                                                   


KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
                                                  March 30,    September 29,
                                                   2013          2012
ASSETS
                                                                 
CURRENT ASSETS
Cash and cash equivalents                          $ 498,619     $  440,244
Short-term investments                               -              -
Accounts and notes receivable, net of allowance
for doubtful accounts of $852 and $937,              117,232        188,986
respectively
Inventories, net                                     45,594         58,994
Prepaid expenses and other current assets            18,467         21,577
Deferred income taxes                               3,511        3,515    
                                                                 
TOTAL CURRENT ASSETS                                 683,423        713,316
                                                                 
Property, plant and equipment, net                   26,592         28,441
Goodwill                                             41,546         41,546
Intangible assets                                    15,798         20,387
Other assets                                        11,039       11,919   
                                                                 
TOTAL ASSETS                                       $ 778,398    $  815,609  
                                                                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                                                                 
CURRENT LIABILITIES
Accounts payable                                   $ 26,385      $  57,231
Accrued expenses and other current liabilities       38,139         57,946
Income taxes payable                                5,558        8,192    
                                                                 
TOTAL CURRENT LIABILITIES                            70,082         123,369
                                                                 
Deferred income taxes                                38,085         37,875
Other liabilities                                   9,031        10,698   
                                                                 
TOTAL LIABILITIES                                   117,198      171,942  
                                                                 
SHAREHOLDERS' EQUITY
Common stock, no par value                           461,154        455,122
Treasury stock, at cost                              (46,356 )      (46,356  )
Accumulated income                                   243,460        232,520
Accumulated other comprehensive income              2,942        2,381    
                                                                 
TOTAL SHAREHOLDERS' EQUITY                          661,200      643,667  
                                                                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY         $ 778,398    $  815,609  
                                                                 

                                                                 
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
                                                             
                  Three months ended                Six months ended
                  March 30, 2013   March 31, 2012   March 30,      March 31,
                                                    2013           2012
                                                                   
Net cash
provided by       $  (1,662   )    $  23,623        $  56,832      $ 57,947
(used in)
operations
Net cash used
in discontinued     -              (559     )      -           (1,045  )
operations
Net cash
provided by
(used in)            (1,662   )       23,064           56,832        56,902
operating
activities
                                                                   
Net cash
provided by
(used in)
investing            6,423            (1,383   )       1,907         (11,365 )
activities,
continuing
operations
                                                                   
Net cash
provided by
financing            381              967              540           2,543
activities,
continuing
operations
Effect of
exchange rate
changes on cash     (693     )      (270     )      (904    )    (129    )
and cash
equivalents
  Changes in
  cash and cash      4,449            22,378          58,375        47,951
  equivalents
  Cash and cash
  equivalents,      494,170        403,761        440,244     378,188 
  beginning of
  period
  Cash and cash
  equivalents,    $  498,619      $  426,139     $  498,619    $ 426,139 
  end of period
                                                                   
  Short-term
  investments &     -              -              -           -       
  restricted
  cash
  Total cash,
  cash
  equivalents,
  restricted      $  498,619      $  426,139      $  498,619    $ 426,139 
  cash and
  short-term
  investments
                                                                   

Contact:

Kulicke & Soffa Industries, Inc.
Joseph Elgindy
Investor Relations & Strategic Planning
P: +1-215-784-7518
F: +1-215-784-6180
jelgindy@kns.com
or
Global IR Partners
David Pasquale
P: +1-914-337-8801
klic@globalirpartners.com