Welcome!

@ThingsExpo Authors: Carmen Gonzalez, Yeshim Deniz, Liz McMillan, William Schmarzo, Rene Buest

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 explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and 21st International Cloud Expo, which will take place in November in Silicon Valley, California.
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, looked at differ...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
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, whic...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, Cloud Expo and @ThingsExpo are two of the most important technology events of the year. Since its launch over eight years ago, Cloud Expo and @ThingsExpo have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, I provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading the...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
In his session at @ThingsExpo, Steve Wilkes, CTO and founder of Striim, will delve into four enterprise-scale, business-critical case studies where streaming analytics serves as the key to enabling real-time data integration and right-time insights in hybrid cloud, IoT, and fog computing environments. As part of this discussion, he will also present a demo based on its partnership with Fujitsu, highlighting their technologies in a healthcare IoT use-case. The demo showcases the tracking of patie...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud enviro...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business. Though, IoT is far more complex than most firms expected with a majority of IoT projects having failed. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, Chief IoTologist at Wipro, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology portfolios and business models to adopt and leverage IoT. He will delve in...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change the...