Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) (“Kulicke &
Soffa”, “K&S” or the “Company”) today announced results for its
fourth quarter and fiscal year ended October 1, 2016.
Quarterly Results
Fiscal Q4 2016
Change vs. Change vs.
Fiscal Q4 2015 Fiscal Q3
2016 Net Revenue $145.8 million up
22.3% down 32.6% Gross Profit $66.6
million up 14.4% down 33.4% Gross
Margin 45.7% down 320 bps
down 50 bps Income from Operations $3.9 million
up 143.8% down 89.9% Operating Margin
2.7% up 130 bps down 1510
bps Net Income $10.3 million up 5.1%
down 67.5% Net Margin 7.1%
down 110 bps down 760 bps EPS – Diluted
$0.15 up 15.4% down 66.7%
Dr. Fusen Chen, Kulicke & Soffa's President and Chief
Executive Officer, stated, “For the September quarter, we have
exceeded our revenue guidance and experienced improved demand over
the same period in the prior fiscal year. This better-than-expected
performance was largely due to the strengthening of the memory
segment and new traction within the automotive segment."
The Company's reported fourth quarter net income included a
unique operating expense reserve in the amount of $7 million
related to restructuring of its international operations. This
amount was offset by a favorable tax benefit of $7.6 million,
related to the same restructuring exercise.
Fourth Quarter Fiscal 2016 Key Product
Trends
- Ball bonder equipment net revenue
decreased 35.8% over the June quarter.
- Wedge bonder equipment net revenue
decreased 21.8% over the June quarter.
- Advanced packaging mass reflow
equipment net revenue decreased by 42.0% over the June
quarter.
Fiscal Year 2016 Financial
Highlights
- Net revenue of $627.2 million.
- Gross margin of 45.7%.
- Net income was $47.1 million or $0.67
per diluted share.
- Cash, cash equivalents and investments
were $547.9 million as at October 1, 2016.
- 7.9 million shares had been repurchased
since the stock repurchase program's August 2014 initiation,
equivalent to 10.1% of weighted average shares outstanding at the
program's inception.
First Quarter Fiscal 2017
Outlook
The Company currently expects net revenue in the first fiscal
quarter of 2017 ending December 31, 2016 to be approximately $135
million to $145 million.
Looking forward, Dr. Chen commented, “As we continue driving
efficiency through our manufacturing process and supply chain, we
maintain optimism through the softer near-term outlook. Looking
ahead, we anticipate the industry will return to a more normalized
growth rate in fiscal 2017. In parallel, we continue to
aggressively pursue meaningful opportunities becoming increasingly
accessible through our evolving industry, market-facing development
and our broadening suite of solutions."
Earnings Conference Call
Details
A conference call to discuss these results will be held today,
November 15, 2016, beginning at 8:00am (EST). 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 November 22, 2016 by calling
toll-free +1-877-660-6853 or internationally +1-201-612-7415 and
using the replay ID number of 13647734. A webcast replay will also
be available at investor.kns.com.
About Kulicke &
Soffa
Kulicke & Soffa (NASDAQ: KLIC) is a leading provider of
semiconductor packaging and electronic assembly solutions
supporting the global automotive, consumer, communications,
computing, and industrial segments. As a pioneer in the
semiconductor space, 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
and organic development, adding advanced packaging, electronics
assembly, wedge bonding and a broader range of expendable tools to
its core offerings. Combined with its extensive expertise in
process technology and focus on development, K&S is well
positioned to help customers meet the challenges of packaging and
assembling the next-generation of electronic 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 substantial completion of transition from gold to
copper wire bonding by 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. 2015 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 Twelve
months ended October 1, October 3,
October 1, October 3, 2016 2015
2016 2015 Net revenue 145,844 119,172 627,192 536,471
Cost of sales 79,223 60,955 340,463 277,379
Gross profit 66,621 58,217 286,729
259,092 Operating expenses: Selling, general and
administrative 29,778 29,944 124,706 120,084 Research and
development 22,781 21,900 92,374 90,033 Amortization of intangible
assets 1,665 2,851 6,661 9,883 Restructuring 8,484 1,874
10,449 1,841 Total operating expenses 62,708
56,569 234,190 221,841 Income from
operations 3,913 1,648 52,539 37,251 Other income (expense):
Interest income 1,023 453 3,318 1,637 Interest expense (268 ) (273
) (1,107 ) (1,183 ) Income from operations before income taxes
4,668 1,828 54,750 37,705 Income taxes (benefit)/ expense (5,661 )
(7,999 ) 7,638 (12,934 ) Net income $ 10,329 $ 9,827
$ 47,112 $ 50,639 Net income per share:
Basic $ 0.15 $ 0.14 $ 0.67 $ 0.67
Diluted $ 0.15 $ 0.13 $ 0.67 $ 0.67
Weighted average shares outstanding: Basic 70,404 72,731
70,477 75,414 Diluted 71,017 72,883 70,841 75,659
Three
months ended Twelve months ended October
1, October 3, October 1, October
3, Supplemental financial data: 2016 2015
2016 2015 Depreciation and amortization $ 4,009 $
4,994 $ 16,230 $ 18,972 Capital expenditures 1,905 3,810 6,301
9,519 Equity-based compensation expense: Cost of sales 98 89 421
393 Selling, general and administrative 1,223 2,738 3,244 9,127
Research and development 473 626 2,065 2,469
Total equity-based compensation expense $ 1,794 $ 3,453
$ 5,730 $ 11,989
As of October 1,
October 3, 2016 2015 Backlog of orders1 87,200
52,500 Number of employees 2,389 2,373 1. Represents
customer purchase commitments. While the Company believes these
orders will proceed, they are generally cancellable by customers
without penalty.
KULICKE & SOFFA
INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS (In
thousands) (Unaudited) As of October 1,
2016 October 3, 2015 ASSETS CURRENT
ASSETS Cash and cash equivalents $ 547,907 $ 498,614
Accounts and notes receivable, net of
allowance for doubtful accounts of $506 and
$143 respectively
130,455 108,596 Inventories, net 87,295 79,096 Prepaid expenses and
other current assets 15,285 16,937 Deferred income taxes —
4,126
TOTAL CURRENT ASSETS 780,942 707,369
Property, plant and equipment, net 50,342 53,234 Goodwill 81,272
81,272 Intangible assets 50,810 57,471 Other assets 19,078
5,120
TOTAL ASSETS $ 982,444 $ 904,466
LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT
LIABILITIES Accounts payable $ 41,813 $ 25,521 Accrued expenses
and other current liabilities 63,954 45,971 Income taxes payable
12,830 2,442
TOTAL CURRENT LIABILITIES 118,597
73,934 Financing obligation 16,701 16,483 Deferred income
taxes 27,697 33,958 Other liabilities 12,931 10,842
TOTAL LIABILITIES 175,926 135,217
SHAREHOLDERS' EQUITY Common stock, no par value 498,676
492,339 Treasury stock, at cost (139,407 ) (124,856 ) Retained
earnings 449,975 402,863 Accumulated other comprehensive loss
(2,726 ) (1,097 )
TOTAL SHAREHOLDERS' EQUITY $ 806,518
$ 769,249
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 982,444 $ 904,466
KULICKE & SOFFA INDUSTRIES,
INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In
thousands) (Unaudited) Three months ended
Twelve months ended October 1, October
3, October 1, October 3, 2016
2015 2016 2015 Net cash provided by operating
activities 33,949 39,529 68,407 87,875
Net cash used in investing activities,
continuing
operations
(1,526 ) (3,190 ) (5,165 ) (94,109 )
Net cash used in financing activities,
continuing
operations
(291 ) (14,622 ) (14,486 ) (84,459 ) Effect of exchange rate
changes on cash and cash equivalents (353 ) 972 537
1,326 Changes in cash and cash equivalents 31,779 22,689
49,293 (89,367 ) Cash and cash equivalents, beginning of period
516,128 475,925 498,614 587,981 Cash
and cash equivalents, end of period $ 547,907 $ 498,614
$ 547,907 $ 498,614
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version on businesswire.com: http://www.businesswire.com/news/home/20161115005757/en/
Kulicke & Soffa Industries, Inc.Joseph
ElgindyInvestor Relations & Strategic InitiativesP:
+1-215-784-7500P: +31-40-272-3016F:
+1-215-784-6180investor@kns.com
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