Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) (“Kulicke & Soffa”,
“K&S” or the “Company”), today announced financial results of its third
fiscal quarter ended June 30, 2018. The Company reported third quarter
net revenue of $268.8 million, and reported diluted EPS of $0.86 and a
non-GAAP diluted EPS of $0.89.
During its third fiscal quarter, K&S repurchased $42.6 million of common
stock in open market transactions at an average price of $23.75 per
share. The Company also recorded a quarterly dividend equivalent to
$0.12 per share during its third fiscal quarter.
Change vs.Fiscal Q3 2017 (As Restated)
Change vs.Fiscal Q2 2018
Quarterly Results – Non-GAAP
Change vs.Fiscal Q3 2017 (As Restated)
Change vs.Fiscal Q2 2018
* A reconciliation of the GAAP and non-GAAP adjusted results is
provided in the financial tables included in this release. See also “Use
of Non-GAAP Financial Results” section.
Dr. Fusen Chen, Kulicke & Soffa’s President and Chief Executive Officer,
stated, “Strong June quarter results were due to a sequential increase
in sales of high-volume Ball and Wedge bonding tools. Improved margins
were due to a relative increase in demand from high-performance
Automotive and Semiconductor markets.”
Third Quarter Fiscal 2018 Financial Highlights
Fourth Quarter Fiscal 2018 Outlook
The Company currently expects net revenue in the fourth fiscal quarter
of 2018 ending September 29, 2018 to be approximately $180 million to
$190 million. The midpoint of this guidance would represent an increase
of approximately 10% over fiscal year 2017.
Looking forward, Dr. Fusen Chen commented, “We continue to execute
towards further increasing market opportunities, enhancing revenue and
delivering profitability. Ongoing progress, evident in recent results,
supports our long-term targets. Market relevance of our product
portfolio combined with wide range of growing opportunities further
increases our long-term confidence.”
Use of Non-GAAP Financial Results
In addition to U.S. GAAP results, this press release also contains
non-GAAP financial results. The Company’s non-GAAP results exclude
amortization related to intangible assets acquired through business
combinations, goodwill impairment, costs associated with restructuring,
income tax expense related to the Tax Cuts and Jobs Act of 2017 as well
as tax benefits or expense associated with the foregoing non-GAAP items.
These non-GAAP measures are consistent with the way management analyzes
and assesses the Company’s operating results. The Company believes these
non-GAAP measures enhance investors’ understanding of the Company’s
underlying operational performance, as well as their ability to compare
the Company’s period-to-period financial results and the Company’s
overall performance to that of its competitors.
Management uses both U.S. GAAP metrics as well as non-GAAP operating
income, operating margin, net income, net margin and net income per
diluted share to evaluate the Company’s operating and financial results.
Non-GAAP financial measures may not provide information that is directly
comparable to that provided by other companies in the Company’s
industry, as other companies in the industry may calculate non-GAAP
financial results differently. In addition, there are limitations in
using non-GAAP financial measures because the non-GAAP financial
measures are not prepared in accordance with GAAP, may be different from
non-GAAP financial measures used by other companies and exclude expenses
that may have a material impact on the Company’s reported financial
results. The presentation of non-GAAP items is meant to supplement, but
not substitute for, GAAP financial measures or information. The Company
believes the presentation of non-GAAP results in combination with GAAP
results provides better transparency to the investment community when
analyzing business trends, providing meaningful comparisons with prior
period performance and enhancing investors’ ability to view the
Company’s results from management’s perspective. A reconciliation of
each available GAAP to non-GAAP financial measure discussed in this
press release is contained in the attached exhibit.
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 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 expected dividend
payouts and growth opportunities. 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 the Company fails to meet its operational and financial targets in
order to adhere to its dividend policy; 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; the risk that identified market opportunities may
not grow or developed as we anticipated; 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; the possibility that we
may need to impair the carrying value of goodwill and/or intangibles
established in connection with one or more of our prior acquisitions;
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; the impact of changes
in tax law; the risk that the Company will not identify suitable
acquisition opportunities or that any acquisitions will not be
successful; the risk that the Company fails to timely remediate the
material weaknesses identified in the Company’s internal controls over
financial reporting or that new material weaknesses or significant
deficiencies emerge; and the factors listed or discussed in Kulicke and
Soffa Industries, Inc. 2017 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 CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share and employee data)
(Unaudited)
July 1, 2017As Restated
July 1, 2017As Restated
As of
June 30, 2018
July 1, 2017
Backlog of orders 1
$
146,578
$
198,592
Number of employees
3,109
3,299
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
(Unaudited)
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Reconciliation of U.S. GAAP Income from Operating
to Non-GAAP Income from Operation and Operating Margin
(in thousands, except percentages)
(unaudited)
July 1, 2017As Restated
Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income
and
U.S. GAAP net income per share to Non-GAAP net income per share
(in thousands, except per share data)
(unaudited)
July 1, 2017As Restated
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