|By Business Wire||
|July 29, 2014 06:55 AM EDT||
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.
Fiscal Q3 2014
Fiscal Q3 2013
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)
|Three months ended||Nine months ended|
|June 28, 2014||June 29, 2013||June 28, 2014||June 29, 2013|
|Total net revenue||180,517||141,181||373,836||361,330|
|Cost of sales:|
|Total cost of sales||95,360||75,267||192,642||195,071|
|Total gross profit||85,157||65,914||181,194||166,259|
|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|
|Total operating expenses||53,573||47,047||141,707||134,997|
|Income from operations:|
|Total income from operations||31,584||18,867||39,487||31,262|
|Other income (expense):|
|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 per share:|
|Weighted average shares outstanding:|
|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||$||14,302|
|Equity-based compensation expense:|
|Cost of sales||82||53||269||275|
|Selling, general and administrative||2,182||2,125||6,924||6,375|
|Research and development||471||418||1,624||1,438|
|Total equity-based compensation expense||$||2,735||$||2,596||$||8,817||$||8,088|
|June 28, 2014||June 29, 2013|
|Backlog of orders 1||$||130,500||$||125,000|
|Number of employees||2,643||2,437|
1. Represents customer purchase commitments. While the Company believes these orders are firm, they are generally cancellable by customers without penalty.
|KULICKE & SOFFA INDUSTRIES, INC.|
|CONSOLIDATED BALANCE SHEETS|
|June 28, 2014||September 28, 2013|
|Cash and cash equivalents||$||597,457||$||521,788|
|Accounts and notes receivable, net of allowance for doubtful accounts of $239 and $504 respectively||154,410||162,714|
|Prepaid expenses and other current assets||19,153||24,012|
|Deferred income taxes||4,063||4,487|
|TOTAL CURRENT ASSETS||831,605||754,388|
|Property, plant and equipment, net||52,231||47,541|
|LIABILITIES AND SHAREHOLDERS' EQUITY|
|Accrued expenses and other current liabilities||41,406||38,868|
|Income taxes payable||4,076||1,504|
|TOTAL CURRENT LIABILITIES||111,704||77,402|
|Deferred income taxes||40,115||40,709|
|Common stock, no par value||476,547||467,525|
|Treasury stock, at cost||(46,356||)||(46,356||)|
|Accumulated other comprehensive income||3,671||3,618|
|TOTAL SHAREHOLDERS' EQUITY||759,469||716,665|
|TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY||$||939,863||$||862,994|
|KULICKE & SOFFA INDUSTRIES, INC.|
|CONSOLIDATED STATEMENTS OF CASH FLOWS|
|Three months ended||Nine months ended|
|June 28, 2014||June 29, 2013||June 28, 2014||June 29, 2013|
|Net cash provided by operating activities||$||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|
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