Welcome!

@ThingsExpo Authors: Jason Bloomberg, Elizabeth White, Liz McMillan, John Rauser, 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
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), provided an overview of various initiatives to certify the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldwide re...
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, discussed some of the security challenges of the IoT infrastructure and related how these aspects impact Smart Living. The material was delivered interac...
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
When growing capacity and power in the data center, the architectural trade-offs between server scale-up vs. scale-out continue to be debated. Both approaches are valid: scale-out adds multiple, smaller servers running in a distributed computing model, while scale-up adds fewer, more powerful servers that are capable of running larger workloads. It’s worth noting that there are additional, unique advantages that scale-up architectures offer. One big advantage is large memory and compute capacity...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists examined how DevOps helps to meet the de...
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The Internet giants are fully embracing AI. All the services they offer to their customers are aimed at drawing a map of the world with the data they get. The AIs from these companies are used to build disruptive approaches that cannot be used by established enterprises, which are threatened by these disruptions. However, most leaders underestimate the effect this will have on their businesses. In his session at 21st Cloud Expo, Rene Buest, Director Market Research & Technology Evangelism at Ara...
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...
In this presentation, Striim CTO and founder Steve Wilkes will discuss practical strategies for counteracting fraud and cyberattacks by leveraging real-time streaming analytics. In his session at @ThingsExpo, Steve Wilkes, Founder and Chief Technology Officer at Striim, will provide a detailed look into leveraging streaming data management to correlate events in real time, and identify potential breaches across IoT and non-IoT systems throughout the enterprise. Strategies for processing massive ...
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
SYS-CON Events announced today that Ayehu will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara California. Ayehu provides IT Process Automation & Orchestration solutions for IT and Security professionals to identify and resolve critical incidents and enable rapid containment, eradication, and recovery from cyber security breaches. Ayehu provides customers greater control over IT infras...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. 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...
SYS-CON Events announced today that Cloud Academy named "Bronze Sponsor" of 21st International Cloud Expo which will take place October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara, CA. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud com...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 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 planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA