Pennsylvania | 000-00121 | 23-1498399 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
23A Serangoon North Avenue 5, #01-01 K&S Corporate Headquarters, Singapore | 554369 | |
(Address of Principal Executive Offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits. |
Exhibit No. | Description |
99.1 | Press Release dated November 14, 2017. |
KULICKE AND SOFFA INDUSTRIES, INC. | |||
Date: November 14, 2017 | By: | /s/ Jonathan H. Chou | |
Name: | Jonathan H. Chou | ||
Title: | Executive Vice President and Chief Financial Officer | ||
Exhibit No. | Description |
99.1 |
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 |
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% |
• | 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. |
Kulicke & Soffa Industries, Inc. | |
Joseph Elgindy | |
Investor Relations & Strategic Initiatives | |
P: +1-215-784-7518 | |
F: +1-215-784-6180 |
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. |
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 |
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 |