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 May 31, 2018 |
KULICKE AND SOFFA INDUSTRIES, INC. | |||
Date: May 31, 2018 | By: | /s/ LESTER WONG | |
Name: | Lester Wong | ||
Title: | Senior Vice President, Interim Chief Financial Officer and General Counsel | ||
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 - U.S. GAAP | |||
Fiscal Q2 2018 | Change vs. Fiscal Q2 2017 (As Restated) | Change vs. Fiscal Q1 2018 (As Restated) | |
Net Revenue | $221.8 million | up 11.1% | up 3.8% |
Gross Profit | $99.4 million | up 7.7% | up 2.3% |
Gross Margin | 44.8% | down 140 bps | down 70 bps |
Income from Operations | $38.4 million | up 5.2% | down 2.0% |
Operating Margin | 17.3% | down 100 bps | down 100 bps |
Net Income | $36.3 million | up 11.0% | up 152.2% |
Net Margin | 16.4% | - | up 4890 bps |
EPS – Diluted(a) | $0.51 | up 13.3% | up 151.5% |
(a) | GAAP diluted net earnings per share reflects any dilutive effect of outstanding restricted stock units and stock options, but that effect is excluded when calculating GAAP diluted net (loss) per share because it would be anti-dilutive. For the three months ended December 30, 2017, 1.2 million shares of restricted stock units and stock options were excluded due to the Company's net loss. |
Fiscal Q2 2018 | Change vs. Fiscal Q2 2017 (As Restated) | Change vs. Fiscal Q1 2018 (As Restated) | |
Income from Operations | $40.5 million | up 6.3% | down 4.5% |
Operating Margin | 18.2% | down 90 bps | down 160 bps |
Net Income | $38.2 million | up 11.4% | down 3.0% |
Net Margin | 17.2% | - | down 120 bps |
EPS - Diluted | $0.54 | up 14.9% | down 1.8% |
• | Net revenue of $221.8 million. |
• | Gross margin of 44.8%. |
• | Net income of $36.3 million or $0.51 per share; Non-GAAP net income of $38.2 million or $0.54 per share. |
• | Cash, cash equivalents, and short-term investments were $628.2 million as of March 31, 2018. |
Kulicke & Soffa Industries, Inc. | |
Joseph Elgindy | |
Investor Relations & Strategic Initiatives | |
P: +1-215-784-7518 | |
F: +1-215-784-6180 | |
Three months ended | Six months ended | ||||||||||||||
March 31, 2018 | April 1, 2017 As Restated | March 31, 2018 | April 1, 2017 As Restated | ||||||||||||
Net revenue | $ | 221,772 | $ | 199,613 | $ | 435,463 | $ | 349,252 | |||||||
Cost of sales | 122,325 | 107,350 | 238,814 | 188,562 | |||||||||||
Gross profit | 99,447 | 92,263 | 196,649 | 160,690 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative | 30,339 | 29,107 | 54,875 | 55,447 | |||||||||||
Research and development | 28,657 | 25,020 | 58,907 | 46,525 | |||||||||||
Amortization of intangible assets | 2,022 | 1,521 | 3,965 | 3,044 | |||||||||||
Restructuring | (7 | ) | 112 | 1,307 | 112 | ||||||||||
Total operating expenses | 61,011 | 55,760 | 119,054 | 105,128 | |||||||||||
Income from operations | 38,436 | 36,503 | 77,595 | 55,562 | |||||||||||
Other income (expense): | |||||||||||||||
Interest income | 2,986 | 1,579 | 4,961 | 2,751 | |||||||||||
Interest expense | (270 | ) | (261 | ) | (536 | ) | (523 | ) | |||||||
Income before income taxes | 41,152 | 37,821 | 82,020 | 57,790 | |||||||||||
Income tax expense | 4,800 | 5,151 | 115,212 | 7,724 | |||||||||||
Share of results of equity-method investee, net of tax | 39 | — | 23 | — | |||||||||||
Net income / (loss) | $ | 36,313 | $ | 32,670 | $ | (33,215 | ) | $ | 50,066 | ||||||
Net income / (loss) per share: | |||||||||||||||
Basic | $ | 0.52 | $ | 0.46 | $ | (0.47 | ) | $ | 0.71 | ||||||
Diluted | $ | 0.51 | $ | 0.45 | $ | (0.47 | ) | $ | 0.69 | ||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 70,361 | 70,964 | 70,467 | 70,909 | |||||||||||
Diluted | 71,425 | 72,270 | 70,467 | 72,039 |
Three months ended | Six months ended | ||||||||||||||
Supplemental financial data: | March 31, 2018 | April 1, 2017 | March 31, 2018 | April 1, 2017 | |||||||||||
Depreciation and amortization | $ | 4,744 | $ | 3,831 | $ | 9,212 | $ | 7,775 | |||||||
Capital expenditures | 6,153 | 15,877 | 12,410 | 18,106 | |||||||||||
Equity-based compensation expense: | |||||||||||||||
Cost of sales | 126 | 106 | 258 | 247 | |||||||||||
Selling, general and administrative | 1,443 | 2,450 | 3,766 | 5,184 | |||||||||||
Research and development | 653 | 522 | 1,307 | 1,249 | |||||||||||
Total equity-based compensation expense | $ | 2,222 | $ | 3,078 | $ | 5,331 | $ | 6,680 |
As of | |||||||
March 31, 2018 | April 1, 2017 | ||||||
Backlog of orders 1 | $ | 177,754 | $ | 181,201 | |||
Number of employees | 3,276 | 3,340 |
1. | Represents customer purchase commitments. While the Company believes these orders are firm, they are generally cancellable by customers without penalty. |
As of | |||||||
March 31, 2018 | September 30, 2017 | ||||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | $ | 340,151 | $ | 392,410 | |||
Restricted cash | 535 | 530 | |||||
Short-term investments | 288,000 | 216,000 | |||||
Accounts and other receivable, net of allowance for doubtful accounts of $680 and $79 respectively | 224,484 | 198,480 | |||||
Inventories, net | 118,831 | 122,023 | |||||
Prepaid expenses and other current assets | 23,754 | 23,939 | |||||
TOTAL CURRENT ASSETS | 995,755 | 953,382 | |||||
Property, plant and equipment, net | 75,619 | 67,762 | |||||
Goodwill | 57,478 | 56,318 | |||||
Intangible assets, net | 60,180 | 62,316 | |||||
Deferred income taxes | 10,922 | 27,771 | |||||
Equity investments | 1,479 | 1,502 | |||||
Other assets | 2,577 | 2,056 | |||||
TOTAL ASSETS | $ | 1,204,010 | $ | 1,171,107 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable | $ | 82,716 | $ | 51,354 | |||
Accrued expenses and other current liabilities | 85,133 | 124,847 | |||||
Income taxes payable | 19,340 | 16,780 | |||||
TOTAL CURRENT LIABILITIES | 187,189 | 192,981 | |||||
Financing obligation | 16,257 | 16,074 | |||||
Deferred income taxes | 27,800 | 27,152 | |||||
Income taxes payable | 83,626 | 6,438 | |||||
Other liabilities | 9,211 | 8,432 | |||||
TOTAL LIABILITIES | 324,083 | 251,077 | |||||
SHAREHOLDERS' EQUITY | |||||||
Common stock, no par value | 513,315 | 506,515 | |||||
Treasury stock, at cost | (182,354 | ) | (157,604 | ) | |||
Retained earnings | 539,871 | 569,080 | |||||
Accumulated other comprehensive income | 9,095 | 2,039 | |||||
TOTAL SHAREHOLDERS' EQUITY | 879,927 | 920,030 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,204,010 | $ | 1,171,107 |
Three months ended | Six months ended | ||||||||||||||
March 31, 2018 | April 1, 2017 | March 31, 2018 | April 1, 2017 | ||||||||||||
Net cash provided by operating activities | $ | 6,740 | $ | 12,929 | $ | 57,073 | $ | 42,978 | |||||||
Net cash used in investing activities, continuing operations | (35,273 | ) | (29,740 | ) | (83,456 | ) | (32,399 | ) | |||||||
Net cash used in financing activities, continuing operations | (20,850 | ) | (785 | ) | (24,241 | ) | (643 | ) | |||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,120 | ) | (627 | ) | (1,630 | ) | 1,360 | ||||||||
Changes in cash, cash equivalents and restricted cash | (50,503 | ) | (18,223 | ) | (52,254 | ) | 11,296 | ||||||||
Cash, cash equivalents and restricted cash, beginning of period* | 391,189 | 453,426 | 392,940 | 423,907 | |||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 340,686 | $ | 435,203 | $ | 340,686 | $ | 435,203 | |||||||
Short-term investments | 288,000 | 139,000 | 288,000 | 139,000 | |||||||||||
Total cash, cash equivalents, restricted cash and short-term investments | $ | 628,686 | $ | 574,203 | $ | 628,686 | $ | 574,203 | |||||||
*Certain time deposits as at October 1, 2016 have been corrected from cash equivalents to short-term investments for comparative purposes. |
Three months ended | ||||||||||||
March 31, 2018 | April 1, 2017 As Restated | December 30, 2017 As Restated | ||||||||||
Net revenue | $ | 221,772 | $ | 199,613 | $ | 213,691 | ||||||
U.S. GAAP Income from operations | 38,436 | 36,503 | 39,159 | |||||||||
U.S. GAAP operating margin | 17.3 | % | 18.3 | % | 18.3 | % | ||||||
Pre-tax non-GAAP items: | ||||||||||||
Amortization related to intangible assets acquired through business combination- selling, general and administrative | 2,022 | 1,521 | 1,943 | |||||||||
Restructuring | (7 | ) | 112 | 1,314 | ||||||||
Non-GAAP Income from operations | $ | 40,451 | $ | 38,136 | $ | 42,416 | ||||||
Non-GAAP operating margin | 18.2 | % | 19.1 | % | 19.8 | % |
Three months ended | ||||||||||||
March 31, 2018 | April 1, 2017 As Restated | December 30, 2017 As Restated | ||||||||||
Net revenue | $ | 221,772 | $ | 199,613 | $ | 213,691 | ||||||
U.S. GAAP net income/(loss) | 36,313 | 32,670 | (69,528 | ) | ||||||||
U.S. GAAP net margin | 16.4 | % | 16.4 | % | (32.5 | )% | ||||||
Pre-tax non-GAAP adjustments: | ||||||||||||
Amortization related to intangible assets acquired through business combination- selling, general and administrative | 2,022 | 1,521 | 1,943 | |||||||||
Restructuring | (7 | ) | 112 | 1,314 | ||||||||
Income tax expense- Tax Reform | — | — | 105,688 | |||||||||
Net income tax benefit on non-GAAP items | (111 | ) | (30 | ) | (36 | ) | ||||||
Total non-GAAP adjustments | 1,904 | 1,603 | 108,909 | |||||||||
Non-GAAP net income | 38,217 | 34,273 | 39,381 | |||||||||
Non-GAAP net margin | 17.2 | % | 17.2 | % | 18.4 | % | ||||||
U.S. GAAP net income/(loss) per share: | ||||||||||||
Basic | 0.52 | 0.46 | (0.99 | ) | ||||||||
Diluted (a) | 0.51 | 0.45 | (0.99 | ) | ||||||||
Non-GAAP adjustments per share: | ||||||||||||
Basic | 0.03 | 0.02 | 1.54 | |||||||||
Diluted | 0.03 | 0.02 | 1.52 | |||||||||
Non-GAAP net income per share: | ||||||||||||
Basic | $ | 0.54 | $ | 0.48 | $ | 0.56 | ||||||
Diluted (b) | $ | 0.54 | $ | 0.47 | $ | 0.55 |
(a) | GAAP diluted net earnings per share reflects any dilutive effect of outstanding restricted stock units and stock options, but that effect is excluded when calculating GAAP diluted net (loss) per share because it would be anti-dilutive. For the three months ended December 30, 2017, 1.2 million shares of restricted stock units and stock options were excluded due to the Company's net loss. |
(b) | Non-GAAP diluted net earnings per share reflects any dilutive effect of outstanding restricted stock units and stock options. |