Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) (“Kulicke
& Soffa”, “K&S” or the “Company”), today announced
financial results of its fourth fiscal quarter and full fiscal year
ended September 29, 2018. The Company reported fourth quarter
net revenue of $184.8 million, and reported diluted EPS of $0.43
and a non-GAAP diluted EPS of $0.45.
During its fourth fiscal quarter, K&S repurchased $23.7
million of common stock in open market transactions at an average
price of $25.74 per share. The Company also recorded a quarterly
dividend equivalent to $0.12 per share during its fourth fiscal
quarter.
Quarterly Results - U.S. GAAP
Fiscal Q4 2018
Change vs.Fiscal Q4 2017
Change vs.Fiscal Q3 2018 Net Revenue
$184.8 million down 14.4%
down 31.3% Gross Profit $85.8 million
down 20.1% down 32.4% Gross Margin
46.4% down 330 bps down 80 bps Income
from Operations $24.6 million down 41.1% down 61.9% Operating
Margin 13.3% down 610 bps
down 1070 bps Net Income $29.6 million down 28.2% down 50.9% Net
Margin 16.0% down 310 bps
down 640 bps EPS – Diluted $0.43 down
24.6% down 50.0%
Quarterly Results - Non-GAAP
Fiscal Q4 2018
Change vs.Fiscal Q4 2017
Change vs.Fiscal Q3 2018 Income from Operations $27.2
million down 40.0% down 59.0% Operating Margin 14.7%
down 630 bps down 1000 bps Net Income
$31.2 million down 30.2% down 49.9% Net Margin 16.9%
down 380 bps down 630 bps EPS - Diluted
$0.45 down 27.4% down
49.4%
* 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, “Over the past two years, our
organizational redesign and development efforts have diversified
our business and provided access to several new and promising
growth opportunities. Throughout fiscal year 2018, these
fundamental improvements resulted in our ability to deliver record
levels of both gross profits and shareholders returns."
Fiscal Year 2018 Financial
Highlights
- Net revenue of $889.1 million.
- Gross margin of 46.1%.
- Net income of $56.7 million or $0.80
per share; Non-GAAP net income of $171.1 million or $2.43 per
share.
- The Company repurchased a total of 3.8
million shares of common stock at a cost of $91.1 million.
Fourth Quarter Fiscal 2018 Financial
Highlights
- Net revenue of $184.8 million.
- Gross margin of 46.4%.
- Net income of $29.6 million or $0.43
per share; Non-GAAP net income of $31.2 million or $0.45 per
share.
- Cash, cash equivalents, and short-term
investments were $613.6 million as of September 29, 2018.
First Quarter Fiscal 2019
Outlook
The Company currently expects net revenue in the first fiscal
quarter of 2019 ending December 29, 2018 to be approximately $150
million to $160 million. The midpoint of this guidance exceeds four
of the past five first fiscal quarters.
Looking forward, Dr. Fusen Chen commented, "Despite the relative
softness anticipated in the December quarter, our fundamental
market positions, new product development and significant exposure
to major trends supporting connected devices, automotive, LED and
advanced packaging provide us with a high-level of confidence as we
look ahead."
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)
Three months ended Twelve months ended September 29,
September 30, September 29, September 30, 2018 2017 2018
2017 Net revenue $ 184,824 $ 215,892 $ 889,121 $ 809,041 Cost of
sales 99,001 108,491 479,680 426,947
Gross profit 85,823 107,401 409,441 382,094
Operating expenses: Selling, general and
administrative 27,854 34,334 113,338 123,234 Research and
development 30,740 27,698 119,621 100,203 Impairment charges — — —
35,207 Amortization of intangible assets 1,899 1,989 7,826 6,554
Restructuring 756 1,531 2,024 3,813
Total operating expenses 61,249 65,552 242,809
269,011 Income from operations 24,574 41,849 166,632 113,083
Other income (expense): Interest income 3,551 1,989 11,971 6,491
Interest expense (255 ) (272 ) (1,054 ) (1,059 ) Income before
income taxes 27,870 43,566 177,549 118,515 Income tax
(benefit)/expense (1,750 ) 2,539 120,744 (7,394 ) Share of results
of equity-method investee, net of tax (15 ) (197 ) 129 (190
) Net income $ 29,635 $ 41,224 $ 56,676 $
126,099 Net income per share: Basic $ 0.44 $
0.58 $ 0.82 $ 1.78 Diluted $ 0.43 $
0.57 $ 0.80 $ 1.75 Cash dividends
declared per share $ 0.12 $ — $ 0.24 $ —
Weighted average shares outstanding: Basic 67,462
70,742 69,380 70,906 Diluted 68,675 72,071 70,419 72,063
Three months ended Twelve months
ended September 29, September 30, September 29,
September 30,
Supplemental financial data:
2018 2017 2018 2017 Depreciation and amortization $ 4,852 $ 4,518 $
19,015 $ 16,257 Capital expenditures 3,960 3,779 20,441 25,688
Equity-based compensation expense: Cost of sales 131 119 515 463
Selling, general and administrative 2,671 1,652 8,548 9,015
Research and development 659 481 2,622 2,244
Total equity-based compensation expense $ 3,461 $ 2,252
$ 11,685 $ 11,722
As of
September 29, 2018 September 30, 2017 Backlog of orders 1 $
141,665 $ 190,702 Number of employees 2,912 3,055 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 CONDENSED BALANCE SHEETS
(In thousands)
(Unaudited)
As of September 29, 2018 September 30, 2017
ASSETS CURRENT ASSETS Cash and cash equivalents $
320,630 $ 392,410 Restricted cash 518 530 Short-term investments
293,000 216,000 Accounts and notes receivable, net of allowance for
doubtful accounts of $385 and $79, respectively 243,373 198,480
Inventories, net 115,191 122,023 Prepaid expenses and other current
assets 14,561 23,939
TOTAL CURRENT ASSETS 987,273 953,382
Property, plant and equipment, net 76,067 67,762 Goodwill
56,550 56,318 Intangible assets, net 52,871 62,316 Deferred income
taxes 9,017 27,771 Equity investments 1,373 1,502 Other assets
2,589 2,056
TOTAL ASSETS $ 1,185,740 $
1,171,107
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES Accounts payable $ 48,527 $ 51,354
Accrued expenses and other current liabilities 105,978 124,847
Income taxes payable 19,571 16,780
TOTAL CURRENT
LIABILITIES 174,076 192,981 Financing obligation 15,187
16,074 Deferred income taxes 25,591 27,152 Income taxes payable
81,491 6,438 Other liabilities 9,188 8,432
TOTAL
LIABILITIES 305,533 251,077
SHAREHOLDERS' EQUITY Common stock, no par value 519,244
506,515 Treasury stock, at cost (248,664 ) (157,604 ) Retained
earnings 613,529 569,080 Accumulated other comprehensive (loss) /
income (3,902 ) 2,039
TOTAL SHAREHOLDERS' EQUITY $
880,207 $ 920,030
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY $ 1,185,740 $ 1,171,107
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three months ended Twelve months ended September 29,
September 30, September 29, September 30, 2018 2017 2018
2017 Net cash provided by operating activities $ 29,656 $ 68,144 $
123,499 $ 136,310 Net cash provided used in investing activities,
continuing operations (39,344 ) (136,657 ) (96,871 ) (144,669 ) Net
cash used in financing activities, continuing operations (33,330 )
(21,879 ) (99,135 ) (22,684 ) Effect of exchange rate changes on
cash, cash equivalents and restricted cash 966 (597 ) 715
76 Changes in cash, cash equivalents and restricted
cash (42,052 ) (90,989 ) (71,792 ) (30,967 ) Cash, cash equivalents
and restricted cash, beginning of period* 363,200 483,929
392,940 423,907 Cash, cash equivalents and
restricted cash, end of period $ 321,148 $ 392,940 $
321,148 $ 392,940 Short-term investments
293,000 216,000 293,000 216,000 Total
cash, cash equivalents, restricted cash and short-term investments
$ 614,148 $ 608,940 $ 614,148 $ 608,940
*Certain time deposits as at October 1, 2016 have been corrected
from cash equivalents to short-term investments for comparative
purposes.
Reconciliation of U.S. GAAP Income from
Operating to Non-GAAP Income from Operation and Operating
Margin (in thousands, except percentages)
(unaudited) Three months ended September 29, 2018
September 30, 2017 June 30, 2018 Net revenue $
184,824 $ 215,892 $ 268,834 U.S. GAAP Income from operations 24,574
41,849 64,463 U.S. GAAP operating margin 13.3 % 19.4 % 24.0 %
Pre-tax non-GAAP items: Amortization related to intangible
assets acquired through business combination- selling, general and
administrative 1,899 1,989 1,962 Restructuring 756 1,531 (39 )
Impairment charges — — — Non-GAAP Income from
operations $ 27,229 $ 45,369 $ 66,386 Non-GAAP
operating margin 14.7 % 21.0 % 24.7 %
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)
Twelvemonths ended
Three months ended
September 29,2018
September 29,2018
September 30,2017
June 30, 2018 Net revenue $ 889,121 $ 184,824 $ 215,892 $
268,834 U.S. GAAP net income
56,676 29,635 41,224 60,256 U.S. GAAP net margin 6.4 % 16.0 % 19.1
% 22.4 % Pre-tax non-GAAP adjustments: Amortization related
to intangible assets acquired through business combination-
selling, general and administrative 7,826 1,899 1,989 1,962
Restructuring 2,024 756 1,531 (39 ) Income tax expense- Tax Reform
104,550 (1,137 ) — — Net income tax (benefit)/expense on non-GAAP
items (25 ) 44 (44 ) 78 Total non-GAAP adjustments
114,375 1,562 3,476 2,001 Non-GAAP net
income 171,051 31,197 44,700 62,257
Non-GAAP net margin 19.2 % 16.9 % 20.7 % 23.2 % U.S. GAAP
net income per share: Basic 0.82 0.44 0.58 0.87 Diluted 0.80 0.43
0.57 0.86 Non-GAAP adjustments per share: Basic 1.65 0.02
0.05 0.03 Diluted 1.62 0.02 0.05 0.03 Non-GAAP net income
per share: Basic $ 2.47 $ 0.46 $ 0.63 $ 0.90
Diluted $ 2.43 $ 0.45 $ 0.62 $ 0.89
Weighted average shares outstanding: Basic 69,380
67,462 70,742 69,125 Diluted 70,419
68,675 72,071 70,302
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181119005601/en/
Kulicke & Soffa Industries, Inc.Joseph
ElgindyInvestor Relations & Strategic InitiativesP:
+1-215-784-7518F: +1-215-784-6180
Kulicke and Soffa Indust... (NASDAQ:KLIC)
Historical Stock Chart
From Aug 2024 to Sep 2024
Kulicke and Soffa Indust... (NASDAQ:KLIC)
Historical Stock Chart
From Sep 2023 to Sep 2024