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Kulicke & Soffa Reports Third Quarter 2013 Results

Stocks in this article: KLIC

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 and 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 Nine months ended
June 29, 2013   June 30, 2012 June 29, 2013   June 30, 2012
Net revenue:
Equipment $ 125,103 $ 237,095 $ 316,088 $ 474,297
Expendable Tools 16,078   18,430   45,242   47,560  
Total net revenue 141,181 255,525 361,330 521,857
 
Cost of sales:
Equipment 67,632 125,892 175,204 257,731
Expendable Tools 7,635   7,190   19,867   19,720  
Total cost of sales 75,267 133,082 195,071 277,451
 
Gross profit:
Equipment 57,471 111,203 140,884 216,566
Expendable Tools 8,443   11,240   25,375   27,840  
Total gross profit 65,914   122,443   166,259   244,406  
 
Operating expenses:
Selling, general and administrative 28,095 27,213 80,329 79,937
Research and development 15,783 16,018 46,243 46,077
Amortization of intangible assets 2,296 2,294 6,883 6,883
Restructuring 873   642   1,542   2,615  
Total operating expenses 47,047   46,167   134,997   135,512  
 
Income from operations:
Equipment 16,474 70,852 22,647 98,745
Expendable Tools 2,393   5,424   8,615   10,149  
Total income from operations 18,867 76,276 31,262 108,894
 
Other income (expense):
Interest income 267 200 629 651
Interest expense (149 ) (1 ) (633 )
Interest expense: non-cash   (1,306 )   (5,174 )
 
Income from operations before income taxes 19,134 75,021 31,890 103,738
 
Provision for income taxes 247   6,847   2,063   10,440  
 
Net income $ 18,887   $ 68,174   $ 29,827   $ 93,298  
 
Net income per share:
Basic $ 0.25   $ 0.92   $ 0.40   $ 1.26  
Diluted $ 0.25   $ 0.90   $ 0.39   $ 1.24  
 
Weighted average shares outstanding:
Basic 75,231 74,067 75,083 73,811
Diluted 76,473 75,994 76,204 75,516
   
Three months ended Nine months ended
Supplemental financial data: June 29, 2013   June 30, 2012 June 29, 2013   June 30, 2012
Depreciation and amortization $ 4,798 $ 4,171 $ 14,302 $ 12,650
Capital expenditures 2,554 2,264 5,957 5,145
Equity-based compensation expense:
Cost of sales 53 44 275 226
Selling, general and administrative 2,125 1,583 6,375 5,027
Research and development 418   450   1,438   1,316
Total equity-based compensation expense $ 2,596   $ 2,077   $ 8,088   $ 6,569
 
 

 

As of

June 29, 2013

June 30, 2012

Backlog of orders

$

125,000

$

224,000

Number of employees

2,437

3,208

 
 
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 
As of
June 29, 2013   September 29, 2012
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 508,493 $ 440,244
Accounts and notes receivable, net of allowance for doubtful accounts of $817 and $937 respectively 147,038 188,986
Inventories, net 48,087 58,994
Prepaid expenses and other current assets 21,565 21,577
Deferred income taxes 3,812   3,515  
TOTAL CURRENT ASSETS 728,995 713,316
 
Property, plant and equipment, net 32,881 28,441
Goodwill 41,546 41,546
Intangible assets 13,504 20,387
Other assets 9,622   11,919  
TOTAL ASSETS $ 826,548   $ 815,609  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 46,246 $ 57,231
Accrued expenses and other current liabilities 48,509 57,946
Income taxes payable 2,974   8,192  
TOTAL CURRENT LIABILITIES 97,729 123,369
 
Deferred income taxes 36,481 37,875
Other liabilities 9,100   10,698  
TOTAL LIABILITIES 143,310   171,942  
 
SHAREHOLDERS' EQUITY
Common stock, no par value 464,078 455,122
Treasury stock, at cost (46,356 ) (46,356 )
Accumulated income 262,347 232,520
Accumulated other comprehensive income 3,169   2,381  
TOTAL SHAREHOLDERS' EQUITY 683,238   643,667  
 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 826,548   $ 815,609  
 
   
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 
Three months ended Nine months ended
June 29, 2013   June 30, 2012 June 29, 2013   June 30, 2012
Net cash provided by operations $ 11,348 $ 66,701 $ 68,180 $ 124,648
Net cash used in discontinued operations   (424 )   (1,469 )
Net cash provided by operating activities 11,348 66,277 68,180 123,179
Net cash used in investing activities, continuing operations (2,554 ) (2,264 )

(647

) (13,629 )
Net cash provided by (used in) financing activities, continuing operations 328 (109,515 ) 868 (106,972 )
Effect of exchange rate changes on cash and cash equivalents 752   60   (152 ) (69 )
Changes in cash and cash equivalents 9,874 (45,442 ) 68,249 2,509
Cash and cash equivalents, beginning of period 498,619   426,139   440,244   378,188  
Cash and cash equivalents, end of period $ 508,493   $ 380,697   $ 508,493   $ 380,697  
 




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