Welcome!

@ThingsExpo Authors: Pat Romanski, Ed Featherston, Elizabeth White, Liz McMillan, Carmen Gonzalez

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.

@ThingsExpo Stories
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
SYS-CON Events announced today the How to Create Angular 2 Clients for the Cloud Workshop, being held June 7, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified. Now it’s a component-based well-performing framework. The immersive one-day workshop led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and...
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
SYS-CON Events announced today that MobiDev will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobile software company with over 200 develope...
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
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 18th International CloudExpo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...