Kulicke & Soffa Reports Third Quarter 2013 Results

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Kulicke & Soffa Reports Third Quarter 2013 Results

SINGAPORE--(BUSINESS WIRE)-- Kulicke and Soffa Industries, Inc. (NAS: KLIC) ("Kulicke & Soffa", "K&S" or the "Company") today announced results for its third fiscal quarter ended June 29, 2013.

 
Quarterly Results
  

Fiscal Q3 2013

 

Change vs.
Fiscal Q3 2012

 

Change vs.
Fiscal Q2 2013

Net Revenue $141.2 million (44.7)% 33.1%
Gross Profit $65.9 million (46.2)% 35.0%
Gross Margin 46.7% (120) bps 70 bps
Income from Operations$18.9 million(75.3)%130.4%
Operating Margin 13.4% (1,650) bps 570 bps
Net Income$18.9 million(72.3)%157.5%
Net Margin 13.4% (1,330) bps 650 bps
EPS - Diluted $0.25 (72.2)% 150%
 

Bruno Guilmart, Kulicke & Soffa's President and Chief Executive Officer, said, "Revenue for the third fiscal quarter exceeded the high end of our guidance range. This sequential growth reflects a higher proportion of sales to our top 5 customers, along with a broader recovery of the sector. We are encouraged by our ability to maintain our cost structure while also maintaining our gross margins at 46.7%, above our trailing 3 year average of 46.0%. This reflects our brand premium and technology leadership in the market place, and also our highly responsive, scalable operating model."


Third Quarter Fiscal 2013 Key Product Trends

  • Ball bonder equipment net revenue increased 44.7% over the March quarter.
  • 85.7% of ball bonder equipment was sold as copper capable.
  • Wedge bonder equipment net revenue increased 7.8% over the March quarter.

Third Quarter Fiscal 2013 Financial Highlights

  • Net revenue of $141.2 million.
  • Gross margin of 46.7%.
  • Net income was $18.9 million or $0.25 per share.
  • Cash and cash equivalents were $508.5 million as at June 29, 2013.

Fourth Quarter Fiscal 2013 Outlook

The Company expects net revenue in the fourth fiscal quarter of 2013 ending September 28, 2013 to be approximately $175 million to $185 million.

Looking forward, Bruno Guilmart commented, "In addition to the revenue opportunities around the copper transition, demand has strengthened in the mobile device and memory segments. We also see increasing volumes from local customers in emerging markets, which further diversifies our revenue profile. We are focused on efficiently ramping capacity and scale to meet the anticipated rise in demand. In the longer term, by leveraging our technical strength and healthy balance sheet, we remain dedicated on maintaining our leading market positions while diligently exploring and entering new growth opportunities."

Earnings Conference Call Details

A conference call to discuss these results will be held today, July 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 August 7, 2013 by calling toll-free +1-877-660-6853 or internationally +1-201-612-7415 and using the replay ID number of 417170. A webcast replay will also be available at investor.kns.com.

About Kulicke & Soffa

Kulicke & Soffa (NAS: 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 endedNine months ended
June 29, 2013 June 30, 2012June 29, 2013 June 30, 2012
Net revenue:
Equipment$125,103$237,095$316,088$474,297
Expendable Tools16,078 18,430 45,242 47,560 
Total net revenue141,181255,525361,330521,857
 
Cost of sales:
Equipment67,632125,892175,204257,731
Expendable Tools7,635 7,190 19,867 19,720 
Total cost of sales75,267133,082195,071277,451
 
Gross profit:
Equipment57,471111,203140,884216,566
Expendable Tools8,443 11,240 25,375 27,840 
Total gross profit65,914 122,443 166,259 244,406 
 
Operating expenses:
Selling, general and administrative28,09527,21380,32979,937
Research and development15,78316,01846,24346,077
Amortization of intangible assets2,2962,2946,8836,883
Restructuring873 642 1,542 2,615 
Total operating expenses47,047 46,167 134,997 135,512 
 
Income from operations:
Equipment16,47470,85222,64798,745
Expendable Tools2,393 5,424 8,615 10,149 
Total income from operations18,86776,27631,262108,894
 
Other income (expense):
Interest income267200629651
Interest expense(149)(1)(633)
Interest expense: non-cash (1,306) (5,174)
 
Income from operations before income taxes19,13475,02131,890103,738
 
Provision for income taxes247 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:
Basic75,23174,06775,08373,811
Diluted76,47375,99476,20475,516
  
Three months endedNine months ended
Supplemental financial data:June 29, 2013 June 30, 2012June 29, 2013 June 30, 2012
Depreciation and amortization$4,798$4,171$14,302$12,650
Capital expenditures2,5542,2645,9575,145
Equity-based compensation expense:
Cost of sales5344275226
Selling, general and administrative2,1251,5836,3755,027
Research and development418 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 respectively147,038188,986
Inventories, net48,08758,994
Prepaid expenses and other current assets21,56521,577
Deferred income taxes3,812 3,515 
TOTAL CURRENT ASSETS728,995713,316
 
Property, plant and equipment, net32,88128,441
Goodwill41,54641,546
Intangible assets13,50420,387
Other assets9,622 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 liabilities48,50957,946
Income taxes payable2,974 8,192 
TOTAL CURRENT LIABILITIES97,729123,369
 
Deferred income taxes36,48137,875
Other liabilities9,100 10,698 
TOTAL LIABILITIES143,310 171,942 
 
SHAREHOLDERS' EQUITY
Common stock, no par value464,078455,122
Treasury stock, at cost(46,356)(46,356)
Accumulated income262,347232,520
Accumulated other comprehensive income3,169 Read Full Story

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