Welcome!

News Feed Item

Kulicke & Soffa Reports Third Quarter 2014 Results

Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) (“Kulicke & Soffa”, “K&S” or the “Company”) today announced results for its third fiscal quarter ended June 28, 2014.

 
Quarterly Results
     

Fiscal Q3 2014

    Change vs.

Fiscal Q3 2013

    Change vs.

Fiscal Q2 2014

Net Revenue     $180.5 million     27.9%     58.1%
Gross Profit     $85.2 million     29.2%     47.7%
Gross Margin     47.2%     50 bps     (330) bps
Income from Operations $31.6 million 67.4% 212.4%
Operating Margin     17.5%     410 bps     860 bps
Net Income $26.6 million 40.9% 193.5%
Net Margin     14.7%     137 bps     680 bps
EPS – Diluted     $0.34     36.0%     183.3%
 

Bruno Guilmart, Kulicke & Soffa's President and Chief Executive Officer, said, “The 58% revenue increase, over the March Quarter, was driven by increased demand for our market-leading equipment solutions. While these offerings individually serve targeted segments, they collectively cover a wide-range of the industry's interconnect requirements. We expect to drive further enhancements to the diversity and breadth of our equipment portfolio as our ongoing Advanced Packaging investments come to fruition."

Third Quarter Fiscal 2014 Key Product Trends

  • Ball bonder equipment net revenue increased 74.7% over the March quarter.
  • 68.8% of ball bonder equipment was sold as copper capable.
  • Wedge bonder equipment net revenue increased 82.4% over the March quarter.

Third Quarter Fiscal 2014 Financial Highlights

  • Net revenue of $180.5 million.
  • Gross margin of 47.2%.
  • Net income of $26.6 million or $0.34 per share.
  • Cash, cash equivalents and short-term investments were $600.1 million as of June 28, 2014.

Fourth Quarter Fiscal 2014 Outlook

The Company currently expects net revenue in the fourth fiscal quarter of 2014, ending September 27, 2014, to be in the range of approximately $185 million to $195 million.

Looking forward, Bruno Guilmart commented, “The improved demand for our offerings combined with positive macro trends, such as the rapid growth in price-sensitive mobile devices, anticipated improvements in the PC market, and expansion of new opportunities such as the Internet-of-Things and Advanced Packaging, all add support to our longer-term value proposition. In addition to trends we currently participate in, we continue to actively seek supplemental opportunities to further enhance shareholder value."

Earnings Conference Call Details

A conference call to discuss these results will be held today, July 29, 2014, 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 5, 2014 by calling toll-free +1-877-660-6853 or internationally +1-201-612-7415 and using the replay ID number of 13586285. 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. 2013 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 28, 2014   June 29, 2013 June 28, 2014   June 29, 2013
Net revenue:
Equipment $ 165,013 $ 125,103 $ 325,770 $ 316,088
Expendable Tools 15,504   16,078   48,066   45,242  
Total net revenue 180,517 141,181 373,836 361,330
 
Cost of sales:
Equipment 88,749 67,632 173,933 175,204
Expendable Tools 6,611   7,635   18,709   19,867  
Total cost of sales 95,360 75,267 192,642 195,071
 
Gross profit:
Equipment 76,264 57,471 151,837 140,884
Expendable Tools 8,893   8,443   29,357   25,375  
Total gross profit 85,157   65,914   181,194   166,259  
 
Operating expenses:
Selling, general and administrative 28,600 28,095 76,303 80,329
Research and development 23,480 15,783 60,277 46,243
Amortization of intangible assets 1,329 2,296 3,988 6,883
Restructuring 164   873   1,139   1,542  
Total operating expenses 53,573   47,047   141,707   134,997  
 
Income from operations:
Equipment 27,804 16,474 26,217 22,647
Expendable Tools 3,780   2,393   13,270   8,615  
Total income from operations 31,584 18,867 39,487 31,262
 
Other income (expense):
Interest income 256 267 878 629
Interest expense (316 )   (732 ) (1 )
 
Income from operations before income taxes 31,524 19,134 39,633 31,890
Provision for income taxes 4,908   247   5,904   2,063  
Net income $ 26,616   $ 18,887   $ 33,729   $ 29,827  
 
Net income per share:
Basic $ 0.35   $ 0.25   $ 0.44   $ 0.40  
Diluted $ 0.34   $ 0.25   $ 0.44   $ 0.39  
 
Weighted average shares outstanding:
Basic 76,596 75,231 76,308 75,083
Diluted 77,605 76,473 77,086 76,204
 
   
Three months ended Nine months ended
Supplemental financial data: June 28, 2014   June 29, 2013 June 28, 2014   June 29, 2013
Depreciation and amortization $ 3,509 $ 4,798 $ 9,995 $ 14,302
Capital expenditures 1,022 2,554 9,596 5,957
Equity-based compensation expense:
Cost of sales 82 53 269 275
Selling, general and administrative 2,182 2,125 6,924 6,375
Research and development 471   418   1,624   1,438
Total equity-based compensation expense $ 2,735   $ 2,596   $ 8,817   $ 8,088
 
       
As of
June 28, 2014   June 29, 2013
Backlog of orders 1 $ 130,500 $ 125,000
Number of employees 2,643 2,437
 

1. Represents customer purchase commitments. While the Company believes these orders are firm, they are generally cancellable by customers without penalty.

 
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 
As of
June 28, 2014   September 28, 2013
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 597,457 $ 521,788
Short-term investments 2,600 3,252
Accounts and notes receivable, net of allowance for doubtful accounts of $239 and $504 respectively 154,410 162,714
Inventories, net 53,922 38,135
Prepaid expenses and other current assets 19,153 24,012
Deferred income taxes 4,063   4,487  
TOTAL CURRENT ASSETS 831,605 754,388
 
Property, plant and equipment, net 52,231 47,541
Goodwill 41,546 41,546
Intangible assets 7,221 11,209
Other assets 7,260   8,310  
TOTAL ASSETS $ 939,863   $ 862,994  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 66,222 $ 37,030
Accrued expenses and other current liabilities 41,406 38,868
Income taxes payable 4,076   1,504  
TOTAL CURRENT LIABILITIES 111,704 77,402
 
Financing obligation 19,618 19,396
Deferred income taxes 40,115 40,709
Other liabilities 8,957   8,822  
TOTAL LIABILITIES 180,394   146,329  
 
SHAREHOLDERS' EQUITY
Common stock, no par value 476,547 467,525
Treasury stock, at cost (46,356 ) (46,356 )
Accumulated income 325,607 291,878
Accumulated other comprehensive income 3,671   3,618  
TOTAL SHAREHOLDERS' EQUITY 759,469   716,665  
       
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 939,863   $ 862,994  
 
   
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 
Three months ended Nine months ended
June 28, 2014   June 29, 2013 June 28, 2014   June 29, 2013
Net cash provided by operating activities $ 5,919 $ 11,348 $ 84,189 $ 68,180
Net cash provided by (used in) investing activities, continuing operations 4,657 (2,554 ) (8,672 ) (647 )
Net cash (used in) provided by financing activities, continuing operations (274 ) 328 205 868
Effect of exchange rate changes on cash and cash equivalents 45   752   (53 ) (152 )
Changes in cash and cash equivalents 10,347 9,874 75,669 68,249
Cash and cash equivalents, beginning of period 587,110   498,619   521,788   440,244  
Cash and cash equivalents, end of period $ 597,457   $ 508,493   $ 597,457   $ 508,493  
 

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Businesses are struggling to manage the information flow and interactions between all of these new devices and things jumping on their network, and the apps and IT systems they control. The data businesses gather is only helpful if they can do something with it. In his session at @ThingsExpo, Chris Witeck, Principal Technology Strategist at Citrix, will discuss how different the impact of IoT will be for large businesses, expanding how IoT will allow large organizations to make their legacy ap...
Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of companies worldwide-from publishers and broadcasters, to enterprises, marketing agencies and household-name brands. Building on its established design leadership, Adobe enables customers not o...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Tintri VM-aware storage is the simplest for virtualized applications and cloud. Organizations including GE, Toyota, United Healthcare, NASA and 6 of the Fortune 15 have said “No to LUNs.” With Tintri they mana...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to connect your brand strategy with the right consumer. 24Notion ranked #12 on Corporate Social Responsibility - Book of List.
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
DevOps and microservices are permeating software engineering teams broadly, whether these teams are in pure software shops but happen to run a business, such Uber and Airbnb, or in companies that rely heavily on software to run more traditional business, such as financial firms or high-end manufacturers. Microservices and DevOps have created software development and therefore business speed and agility benefits, but they have also created problems; specifically, they have created software sec...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...