EX-99.01 2 exhibit9912017.htm EXHIBIT 99.01 Exhibit
Exhibit 99.1
logoa22.jpg
K&S Corporate Headquarters
Kulicke & Soffa Pte Ltd
23A Serangoon North Ave 5
#01-01, Singapore 554369
 
+65-6880-9600 main
+65-6880-9580 fax
www.kns.com
Co. Regn. No. 199902120H
 Kulicke & Soffa Reports Fourth Quarter & Fiscal Year 2017 Results

•Reports $215.9 million of September quarters sales up 48% over the same period last year
•Delivers $0.51 of September quarter EPS and $1.55 for the year
•Guides December quarter revenue up 27% over the same period last year
 
Singapore – November 14, 2017 – 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 September 30, 2017.    
Quarterly Results
 
 
Fiscal Q4 2017
 
Change vs.
Fiscal Q4 2016
Change vs.
Fiscal Q3 2017
Net Revenue
$215.9 million
up 48.1%
down 11.5%
Gross Profit
$104.7 million
up 57.2%
down 6.3%
Gross Margin
48.5%
up 280 bps
up 270 bps
Income from Operations
$36.9 million
up 846.2%
up 220.9%
Operating Margin
17.1%
up 1440 bps
up 1240 bps
Net Income
$36.6 million
up 255.3%
up 18.8%
Net Margin
17.0%
up 990 bps
up 440 bps
EPS – Diluted
$0.51
up 240.0%
up 18.6%
Dr. Fusen Chen, Kulicke & Soffa's President and Chief Executive Officer, stated, “We have made many tactical and organizational improvements throughout fiscal year 2017 that enhance our collective ability to deliver long-term shareholder value. Broad industry expansion combined with our strong market positions and sizable new opportunities resulted in a dramatic demand increase over the same period in the prior year."
During the September quarter the Company introduced newly defined "Capital Equipment" and "Aftermarket Products and Services" segments and refined its global R&D organization to enhance business unit accountability and market responsiveness. The Company did not incur any restructuring related charges due to these changes.
Fiscal Year 2017 Financial Highlights
•
Net revenue of $809.0 million.
•
Gross margin of 46.4%.
•
Net income was $112.0 million or $1.55 per diluted share.
•
Cash, cash equivalents, restricted cash and short-term investments were $608.9 million as at September 30, 2017.
•
The Company repurchased a total of 0.9 million shares of common stock at a cost of $18.2 million.

First Quarter Fiscal 2018 Outlook
The Company currently expects net revenue in the first fiscal quarter of 2018 ending December 30, 2017 to be approximately $185 million to $195 million, an increase of 27% over the same period in the prior year.
Looking forward, Dr. Fusen Chen commented, "We continue to seek out meaningful new growth opportunities while extending existing market positions. Our ability to deliver value is further enhanced by our expanding portfolio, meaningful partnerships, and refinements to our sales and R&D organizations."
Semiconductor unit production, a proxy for equipment demand, is expected to grow at 11.8% sequentially in calendar year 2017. The Company anticipates that in the longer-term, semiconductor unit production will grow at an 8.9% CAGR through calendar

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2021, materially higher than the previously completed four-year period CAGR of 3.4%. Looking ahead, the Company's products continue to be aligned with several of the fastest growing end-applications, including sensors, LED and NAND flash memory.
Earnings Conference Call Details
A conference call to discuss these results will be held today, November 14, 2017, 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 21, 2017 by calling toll-free +1-877-660-6853 or internationally +1-201-612-7415 and using the replay ID number of 13672443. 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, replacement demand, future growth opportunities, our research and development efforts, our ability to control costs, and our ability to identify and realize new growth opportunities within segments, such as automotive and industrial as well as surrounding technology adoption such as system in package and advanced packaging techniques. 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; 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; and the factors listed or discussed in Kulicke and Soffa Industries, Inc. 2016 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.

Contacts:
Kulicke & Soffa Industries, Inc.
 
Joseph Elgindy
 
Investor Relations & Strategic Initiatives
 
P: +1-215-784-7518
 
F: +1-215-784-6180
 

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KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share and employee data)
(Unaudited)
 
 
Three months ended
 
Twelve months ended
 
 
September 30, 2017
 
October 1, 2016
 
September 30, 2017
 
October 1, 2016
Net revenue
 
$
215,892

 
$
145,844

 
$
809,041

 
$
627,192

Cost of sales
 
111,153

 
79,223

 
433,995

 
340,463

Gross profit
 
104,739

 
66,621

 
375,046

 
286,729

Operating expenses:
 
 
 
 
 
 
 
 
Selling, general and administrative
 
36,617

 
29,778

 
131,015

 
124,706

Research and development
 
27,698

 
22,781

 
100,203

 
92,374

Impairment charges
 
—

 
—

 
35,207

 
—

Amortization of intangible assets
 
1,989

 
1,665

 
6,554

 
6,661

Restructuring
 
1,531

 
8,484

 
3,813

 
10,449

Total operating expenses
 
67,835

 
62,708

 
276,792

 
234,190

Income from operations
 
36,904

 
3,913

 
98,254

 
52,539

Other income (expense):
 
 
 
 
 
 
 
 
Interest income
 
1,989

 
1,023

 
6,491

 
3,318

Interest expense
 
(272
)
 
(268
)
 
(1,059
)
 
(1,107
)
Income from operations before income taxes
 
38,621

 
4,668

 
103,686

 
54,750

Share of results of equity-method investee, net of tax
 
(197
)
 
—

 
(190
)
 
—

Income taxes expense / (benefit)
 
2,242

 
(5,661
)
 
(8,135
)
 
7,638

Net income
 
$
36,576

 
$
10,329

 
$
112,011

 
$
47,112

 
 
 
 
 
 
 
 
 
Net income per share:
 
 
 
 
 
 
 
 
Basic
 
$
0.52

 
$
0.15

 
$
1.58

 
$
0.67

Diluted
 
$
0.51

 
$
0.15

 
$
1.55

 
$
0.67

 
 
 
 
 
 
 
 
 
Weighted average shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
70,742

 
70,404

 
70,906

 
70,477

Diluted
 
72,071

 
71,017

 
72,063

 
70,841

  
 
 
Three months ended
 
Twelve months ended
Supplemental financial data:
 
September 30, 2017
 
October 1, 2016
 
September 30, 2017
 
October 1, 2016
Depreciation and amortization
 
$
4,518

 
$
4,009

 
$
16,257

 
$
16,230

Capital expenditures
 
3,779

 
1,905

 
25,688

 
6,301

Equity-based compensation expense:
 
 
 
 
 
 
 
 
Cost of sales
 
119

 
98

 
463

 
421

Selling, general and administrative
 
1,652

 
1,223

 
9,015

 
3,244

Research and development
 
481

 
473

 
2,244

 
2,065

Total equity-based compensation expense
 
$
2,252

 
$
1,794

 
$
11,722

 
$
5,730

 
 
 
As of
 
 
September 30, 2017
 
October 1, 2016
Backlog of orders1
 
190,702

 
87,200

Number of employees
 
3,055

 
2,389

 
1.
Represents customer purchase commitments. While the Company believes these orders will proceed, they are generally cancellable by customers without penalty.

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KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
 
 
As of
 
 
September 30, 2017
 
October 1, 2016
ASSETS
CURRENT ASSETS
 
 
 
 
Cash and cash equivalents
 
$
392,410

 
$
423,907

Restricted cash
 
530

 
—

Short-term investments
 
216,000

 
124,000

Accounts and notes receivable, net of allowance for doubtful accounts of $79 and $506 respectively
 
198,480

 
130,455

Inventories, net
 
122,023

 
87,295

Prepaid expenses and other current assets
 
23,939

 
15,285

TOTAL CURRENT ASSETS
 
953,382

 
780,942

 
 
 
 
 
Property, plant and equipment, net
 
67,762

 
50,342

Goodwill
 
56,318

 
81,272

Intangible assets
 
62,316

 
50,810

Deferred income taxes
 
27,771

 
16,822

Equity investments
 
1,502

 
—

Other assets
 
2,056

 
2,256

TOTAL ASSETS
 
$
1,171,107

 
$
982,444

 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
 
 

 
 

Accounts payable
 
$
51,354

 
$
41,813

Accrued expenses and other current liabilities
 
132,314

 
63,954

Income taxes payable
 
16,780

 
12,830

TOTAL CURRENT LIABILITIES
 
200,448

 
118,597

 
 
 
 
 
Financing obligation
 
16,074

 
16,701

Deferred income taxes
 
26,779

 
27,697

Other liabilities
 
14,870

 
12,931

TOTAL LIABILITIES
 
258,171

 
175,926

 
 
 
 
 
SHAREHOLDERS' EQUITY
 
 

 
 

Common stock, no par value
 
506,515

 
498,676

Treasury stock, at cost
 
(157,604
)
 
(139,407
)
Retained earnings
 
561,986

 
449,975

Accumulated other comprehensive gain/ (loss)
 
2,039

 
(2,726
)
TOTAL SHAREHOLDERS' EQUITY
 
$
912,936

 
$
806,518

 
 
 
 
 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
 
$
1,171,107

 
$
982,444


 




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KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
 
Three months ended
 
Twelve months ended
 
 
September 30, 2017
 
October 1, 2016
 
September 30, 2017
 
October 1, 2016
Net cash provided by operating activities
 
$
68,144

 
$
33,949

 
$
136,310

 
$
68,407

Net cash used in investing activities, continuing operations
 
(108,615
)
 
(125,526
)
 
(145,199
)
 
(129,165
)
Net cash used in financing activities, continuing operations
 
(21,879
)
 
(291
)
 
(22,684
)
 
(14,486
)
Effect of exchange rate changes on cash and cash equivalents
 
(597
)
 
(353
)
 
76

 
537

Changes in cash and cash equivalents
 
(62,947
)
 
(92,221
)
 
(31,497
)
 
(74,707
)
Cash and cash equivalents, beginning of period
 
455,357

 
516,128

 
423,907

 
498,614

Cash and cash equivalents, end of period
 
$
392,410

 
$
423,907

 
$
392,410

 
$
423,907

 
 
 
 
 
 
 
 
 
Restricted cash
 
530

 
—

 
530

 
—

Short-term investments
 
216,000

 
124,000

 
216,000

 
124,000

Total cash, cash equivalents, restricted cash and short-term investments
 
$
608,940

 
$
547,907

 
$
608,940

 
$
547,907

 
 



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