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 19, 2018 |
KULICKE AND SOFFA INDUSTRIES, INC. | |||
Date: November 19, 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 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% |
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% |
• | 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. |
• | 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. |
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 29, 2018 | September 30, 2017 | September 29, 2018 | September 30, 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 | ||||||||||||||
Supplemental financial data: | September 29, 2018 | September 30, 2017 | September 29, 2018 | September 30, 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. |
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 |
Three months ended | Twelve months ended | ||||||||||||||
September 29, 2018 | September 30, 2017 | September 29, 2018 | September 30, 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. |
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 | % |
Twelve months 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 |