Welcome!

@ThingsExpo Authors: Elizabeth White, Kevin Jackson, Liz McMillan, Yeshim Deniz, Pat Romanski

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
SYS-CON Events announced today that Matrix.org has been named “Silver Sponsor” of Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Matrix is an ambitious new open standard for open, distributed, real-time communication over IP. It defines a new approach for interoperable Instant Messaging and VoIP based on pragmatic HTTP APIs and WebRTC, and provides open source reference implementations to showcase and bootstrap the new standard. Our focus is on simplicity, security, and supporting the fullest feature set.
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at Internet of @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, will discuss how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.

SUNNYVALE, Calif., Oct. 20, 2014 /PRNewswire/ -- Spansion Inc. (NYSE: CODE), a global leader in embedded systems, today added 96 new products to the Spansion® FM4 Family of flexible microcontrollers (MCUs). Based on the ARM® Cortex®-M4F core, the new MCUs boast a 200 MHz operating frequency and support a diverse set of on-chip peripherals for enhanced human machine interfaces (HMIs) and machine-to-machine (M2M) communications. The rich set of periphera...

SYS-CON Events announced today that Aria Systems, the recurring revenue expert, has been named "Bronze Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Aria Systems helps leading businesses connect their customers with the products and services they love. Industry leaders like Pitney Bowes, Experian, AAA NCNU, VMware, HootSuite and many others choose Aria to power their recurring revenue business and deliver exceptional experiences to their customers.
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
The Internet of Things (IoT) is making everything it touches smarter – smart devices, smart cars and smart cities. And lucky us, we’re just beginning to reap the benefits as we work toward a networked society. However, this technology-driven innovation is impacting more than just individuals. The IoT has an environmental impact as well, which brings us to the theme of this month’s #IoTuesday Twitter chat. The ability to remove inefficiencies through connected objects is driving change throughout every sector, including waste management. BigBelly Solar, located just outside of Boston, is trans...
SYS-CON Events announced today that Matrix.org has been named “Silver Sponsor” of Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Matrix is an ambitious new open standard for open, distributed, real-time communication over IP. It defines a new approach for interoperable Instant Messaging and VoIP based on pragmatic HTTP APIs and WebRTC, and provides open source reference implementations to showcase and bootstrap the new standard. Our focus is on simplicity, security, and supporting the fullest feature set.
Predicted by Gartner to add $1.9 trillion to the global economy by 2020, the Internet of Everything (IoE) is based on the idea that devices, systems and services will connect in simple, transparent ways, enabling seamless interactions among devices across brands and sectors. As this vision unfolds, it is clear that no single company can accomplish the level of interoperability required to support the horizontal aspects of the IoE. The AllSeen Alliance, announced in December 2013, was formed with the goal to advance IoE adoption and innovation in the connected home, healthcare, education, aut...
SYS-CON Events announced today that Red Hat, the world's leading provider of open source solutions, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, a...
The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic strategies that utility/cloud computing provides. Whether public, private, or in a hybrid form, clo...
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation and integration; and visibility through intelligent business operations and big data.
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
Be Among the First 100 to Attend & Receive a Smart Beacon. The Physical Web is an open web project within the Chrome team at Google. Scott Jenson leads a team that is working to leverage the scalability and openness of the web to talk to smart devices. The Physical Web uses bluetooth low energy beacons to broadcast an URL wirelessly using an open protocol. Nearby devices can find all URLs in the room, rank them and let the user pick one from a list. Each device is, in effect, a gateway to a web page. This unlocks entirely new use cases so devices can offer tiny bits of information or simple i...
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, will address the big issues involving these technologies and, more important, the results they will achieve. How important are public, private, and hybrid cloud to the enterprise? How does one define Big Data? And how is the IoT tying all this together?
TechCrunch reported that "Berlin-based relayr, maker of the WunderBar, an Internet of Things (IoT) hardware dev kit which resembles a chunky chocolate bar, has closed a $2.3 million seed round, from unnamed U.S. and Switzerland-based investors. The startup had previously raised a €250,000 friend and family round, and had been on track to close a €500,000 seed earlier this year — but received a higher funding offer from a different set of investors, which is the $2.3M round it’s reporting."
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. Over the summer Gartner released its much anticipated annual Hype Cycle report and the big news is that Internet of Things has now replaced Big Data as the most hyped technology. Indeed, we're hearing more and more about this fascinating new technological paradigm. Every other IT news item seems to be about IoT and its implications on the future of digital busines...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
The Internet of Things needs an entirely new security model, or does it? Can we save some old and tested controls for the latest emerging and different technology environments? In his session at Internet of @ThingsExpo, Davi Ottenheimer, EMC Senior Director of Trust, will review hands-on lessons with IoT devices and reveal privacy options and a new risk balance you might not expect.