- 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
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 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.
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.
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
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,
continuingoperations
(108,615 ) (125,526 ) (145,199 ) (129,165 )
Net cash used in financing activities,
continuingoperations
(21,879 ) (291 ) (22,684 ) (14,486 )
Effect of exchange rate changes on cash
and cashequivalents
(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 andshort-term investments
$ 608,940 $ 547,907 $ 608,940 $ 547,907
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171114005761/en/
Kulicke & Soffa Industries, Inc.Joseph Elgindy,
+1-215-784-7518Investor Relations & Strategic InitiativesF:
+1-215-784-6180
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