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 August 1, 2018 |
KULICKE AND SOFFA INDUSTRIES, INC. | |||
Date: August 1, 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 Q3 2018 | Change vs. Fiscal Q3 2017 (As Restated) | Change vs. Fiscal Q2 2018 | |
Net Revenue | $268.8 million | up 10.2% | up 21.2% |
Gross Profit | $127.0 million | up 11.4% | up 27.8% |
Gross Margin | 47.2% | up 50 bps | up 240 bps |
Income from Operations | $64.5 million | up 310.8% | up 68.0% |
Operating Margin | 24.0% | up 1760 bps | up 670 bps |
Net Income | $60.3 million | up 73.3% | up 66.1% |
Net Margin | 22.4% | up 810 bps | up 600 bps |
EPS – Diluted | $0.86 | up 79.2% | up 68.6% |
Fiscal Q3 2018 | Change vs. Fiscal Q3 2017 (As Restated) | Change vs. Fiscal Q2 2018 | |
Income from Operations | $66.4 million | up 21.6% | up 64.0% |
Operating Margin | 24.7% | up 230 bps | up 650 bps |
Net Income | $62.3 million | down 15.2% | up 63.1% |
Net Margin | 23.2% | down 690 bps | up 600 bps |
EPS - Diluted | $0.89 | down 11.9% | up 64.8% |
• | Net revenue of $268.8 million. |
• | Gross margin of 47.2%. |
• | Net income of $60.3 million or $0.86 per share; Non-GAAP net income of $62.3 million or $0.89 per share. |
• | Cash, cash equivalents, and short-term investments were $620.7 million as of June 30, 2018. |
Kulicke & Soffa Industries, Inc. | |
Joseph Elgindy | |
Investor Relations & Strategic Initiatives | |
P: +1-215-784-7518 | |
F: +1-215-784-6180 | |
Three months ended | Nine months ended | ||||||||||||||
June 30, 2018 | July 1, 2017 As Restated | June 30, 2018 | July 1, 2017 As Restated | ||||||||||||
Net revenue | $ | 268,834 | $ | 243,897 | $ | 704,297 | $ | 593,149 | |||||||
Cost of sales | 141,865 | 129,894 | 380,679 | 318,456 | |||||||||||
Gross profit | 126,969 | 114,003 | 323,618 | 274,693 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative | 30,609 | 33,453 | 85,484 | 88,900 | |||||||||||
Research and development | 29,974 | 25,980 | 88,881 | 72,505 | |||||||||||
Impairment charges | — | 35,207 | — | 35,207 | |||||||||||
Amortization of intangible assets | 1,962 | 1,521 | 5,927 | 4,565 | |||||||||||
Restructuring | (39 | ) | 2,170 | 1,268 | 2,282 | ||||||||||
Total operating expenses | 62,506 | 98,331 | 181,560 | 203,459 | |||||||||||
Income from operations | 64,463 | 15,672 | 142,058 | 71,234 | |||||||||||
Other income (expense): | |||||||||||||||
Interest income | 3,459 | 1,751 | 8,420 | 4,502 | |||||||||||
Interest expense | (263 | ) | (264 | ) | (799 | ) | (787 | ) | |||||||
Income before income taxes | 67,659 | 17,159 | 149,679 | 74,949 | |||||||||||
Income tax expense/(benefit) | 7,282 | (17,657 | ) | 122,494 | (9,933 | ) | |||||||||
Share of results of equity-method investee, net of tax | 121 | 7 | 144 | 7 | |||||||||||
Net income | $ | 60,256 | $ | 34,809 | $ | 27,041 | $ | 84,875 | |||||||
Net income per share: | |||||||||||||||
Basic | $ | 0.87 | $ | 0.49 | $ | 0.39 | $ | 1.20 | |||||||
Diluted | $ | 0.86 | $ | 0.48 | $ | 0.38 | $ | 1.18 | |||||||
Cash dividends declared per share | $ | 0.12 | $ | — | $ | 0.12 | $ | — | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 69,125 | 71,063 | 70,019 | 70,960 | |||||||||||
Diluted | 70,302 | 72,483 | 71,113 | 72,169 |
Three months ended | Nine months ended | ||||||||||||||
Supplemental financial data: | June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | |||||||||||
Depreciation and amortization | $ | 4,951 | $ | 3,963 | $ | 14,163 | $ | 11,739 | |||||||
Capital expenditures | 4,071 | 3,803 | 16,481 | 21,909 | |||||||||||
Equity-based compensation expense: | |||||||||||||||
Cost of sales | 126 | 97 | 384 | 344 | |||||||||||
Selling, general and administrative | 2,111 | 2,179 | 5,877 | 7,363 | |||||||||||
Research and development | 656 | 514 | 1,963 | 1,763 | |||||||||||
Total equity-based compensation expense | $ | 2,893 | $ | 2,790 | $ | 8,224 | $ | 9,470 |
As of | |||||||
June 30, 2018 | July 1, 2017 | ||||||
Backlog of orders 1 | $ | 146,578 | $ | 198,592 | |||
Number of employees | 3,109 | 3,299 |
1. | Represents customer purchase commitments. While the Company believes these orders are firm, they are generally cancellable by customers without penalty. |
As of | |||||||
June 30, 2018 | September 30, 2017 | ||||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | $ | 362,686 | $ | 392,410 | |||
Restricted cash | 514 | 530 | |||||
Short-term investments | 258,000 | 216,000 | |||||
Accounts and other receivable, net of allowance for doubtful accounts of $675 and $79 respectively | 256,694 | 198,480 | |||||
Inventories, net | 123,293 | 122,023 | |||||
Prepaid expenses and other current assets | 21,255 | 23,939 | |||||
TOTAL CURRENT ASSETS | 1,022,442 | 953,382 | |||||
Property, plant and equipment, net | 76,064 | 67,762 | |||||
Goodwill | 56,649 | 56,318 | |||||
Intangible assets, net | 55,131 | 62,316 | |||||
Deferred income taxes | 11,781 | 27,771 | |||||
Equity investments | 1,358 | 1,502 | |||||
Other assets | 2,500 | 2,056 | |||||
TOTAL ASSETS | $ | 1,225,925 | $ | 1,171,107 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable | $ | 78,777 | $ | 51,354 | |||
Accrued expenses and other current liabilities | 106,193 | 124,847 | |||||
Income taxes payable | 18,608 | 16,780 | |||||
TOTAL CURRENT LIABILITIES | 203,578 | 192,981 | |||||
Financing obligation | 15,437 | 16,074 | |||||
Deferred income taxes | 27,316 | 27,152 | |||||
Income taxes payable | 88,571 | 6,438 | |||||
Other liabilities | 8,941 | 8,432 | |||||
TOTAL LIABILITIES | 343,843 | 251,077 | |||||
SHAREHOLDERS' EQUITY | |||||||
Common stock, no par value | 516,208 | 506,515 | |||||
Treasury stock, at cost | (224,938 | ) | (157,604 | ) | |||
Retained earnings | 591,951 | 569,080 | |||||
Accumulated other comprehensive (loss) / income | (1,139 | ) | 2,039 | ||||
TOTAL SHAREHOLDERS' EQUITY | $ | 882,082 | $ | 920,030 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,225,925 | $ | 1,171,107 |
Three months ended | Nine months ended | ||||||||||||||
June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | ||||||||||||
Net cash provided by operating activities | $ | 36,770 | $ | 25,188 | $ | 93,843 | $ | 68,166 | |||||||
Net cash provided by / (used in) investing activities, continuing operations | 25,929 | 24,387 | (57,527 | ) | (8,012 | ) | |||||||||
Net cash used in financing activities, continuing operations | (41,564 | ) | (162 | ) | (65,805 | ) | (805 | ) | |||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,379 | (687 | ) | (251 | ) | 673 | |||||||||
Changes in cash, cash equivalents and restricted cash | 22,514 | 48,726 | (29,740 | ) | 60,022 | ||||||||||
Cash, cash equivalents and restricted cash, beginning of period* | 340,686 | 435,203 | 392,940 | 423,907 | |||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 363,200 | $ | 483,929 | $ | 363,200 | $ | 483,929 | |||||||
Short-term investments | 258,000 | 110,000 | 258,000 | 110,000 | |||||||||||
Total cash, cash equivalents, restricted cash and short-term investments | $ | 621,200 | $ | 593,929 | $ | 621,200 | $ | 593,929 | |||||||
*Certain time deposits as at October 1, 2016 have been corrected from cash equivalents to short-term investments for comparative purposes. |
Three months ended | ||||||||||||
June 30, 2018 | July 1, 2017 As Restated | March 31, 2018 | ||||||||||
Net revenue | $ | 268,834 | $ | 243,897 | $ | 221,772 | ||||||
U.S. GAAP Income from operations | 64,463 | 15,672 | 38,436 | |||||||||
U.S. GAAP operating margin | 24.0 | % | 6.4 | % | 17.3 | % | ||||||
Pre-tax non-GAAP items: | ||||||||||||
Amortization related to intangible assets acquired through business combination- selling, general and administrative | 1,962 | 1,521 | 2,022 | |||||||||
Restructuring | (39 | ) | 2,170 | (7 | ) | |||||||
Impairment charges | — | 35,207 | — | |||||||||
Non-GAAP Income from operations | $ | 66,386 | $ | 54,570 | $ | 40,451 | ||||||
Non-GAAP operating margin | 24.7 | % | 22.4 | % | 18.2 | % |
Three months ended | ||||||||||||
June 30, 2018 | July 1, 2017 As Restated | March 31, 2018 | ||||||||||
Net revenue | $ | 268,834 | $ | 243,897 | $ | 221,772 | ||||||
U.S. GAAP net income | 60,256 | 34,809 | 36,313 | |||||||||
U.S. GAAP net margin | 22.4 | % | 14.3 | % | 16.4 | % | ||||||
Pre-tax non-GAAP adjustments: | ||||||||||||
Amortization related to intangible assets acquired through business combination- selling, general and administrative | 1,962 | 1,521 | 2,022 | |||||||||
Restructuring | (39 | ) | 2,170 | (7 | ) | |||||||
Impairment charges | — | 35,207 | — | |||||||||
Net income tax expense/(benefit) on non-GAAP items | 78 | (241 | ) | (111 | ) | |||||||
Total non-GAAP adjustments | 2,001 | 38,657 | 1,904 | |||||||||
Non-GAAP net income | 62,257 | 73,466 | 38,217 | |||||||||
Non-GAAP net margin | 23.2 | % | 30.1 | % | 17.2 | % | ||||||
U.S. GAAP net income per share: | ||||||||||||
Basic | 0.87 | 0.49 | 0.52 | |||||||||
Diluted | 0.86 | 0.48 | 0.51 | |||||||||
Non-GAAP adjustments per share: | ||||||||||||
Basic | 0.03 | 0.54 | 0.03 | |||||||||
Diluted | 0.03 | 0.53 | 0.03 | |||||||||
Non-GAAP net income per share: | ||||||||||||
Basic | $ | 0.90 | $ | 1.03 | $ | 0.54 | ||||||
Diluted | $ | 0.89 | $ | 1.01 | $ | 0.54 |