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)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, Without Par Value | KLIC | The Nasdaq Global Market |
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits. |
Exhibit No. | Description |
99.1 | Press Release dated August 1, 2019 |
KULICKE AND SOFFA INDUSTRIES, INC. | |||
Date: August 1, 2019 | By: | /s/ LESTER WONG | |
Name: | Lester Wong | ||
Title: | Senior Vice President, 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 2019 | Change vs. Fiscal Q3 2018 | Change vs. Fiscal Q2 2019 | |
Net Revenue | $127.1 million | down 52.7% | up 9.7% |
Gross Profit | $58.8 million | down 53.7% | up 5.8% |
Gross Margin | 46.2% | down 100 bps | down 170 bps |
Income from Operations | $1.8 million | down 97.2% | up 172% |
Operating Margin | 1.4% | down 2260 bps | up 360 bps |
Net Income | $1.3 million | down 97.8% | up 136.1% |
Net Margin | 1.0% | down 2140 bps | up 410 bps |
EPS – Diluted(a) | $0.02 | down 97.7% | up 140% |
(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 March 30, 2019, 0.8 million shares of restricted stock units and stock options were excluded due to the Company's net loss. |
Fiscal Q3 2019 | Change vs. Fiscal Q3 2018 | Change vs. Fiscal Q2 2019 | |
Income from Operations | $4.3 million | down 93.5% | up 458.3% |
Operating Margin | 3.3% | down 2140 bps | up 440 bps |
Net Income | $3.6 million | down 94.2% | up 1700% |
Net Margin | 2.8% | down 2040 bps | up 260 bps |
EPS - Diluted | $0.06 | down 93.3% | up 100% |
• | Net revenue of $127.1 million. |
• | Gross margin of 46.2%. |
• | Net income of $1.3 million or $0.02 per share; non-GAAP net income of $3.6 million or $0.06 per share. |
• | Cash, cash equivalents, and short-term investments, net of bank overdraft were $572.3 million as of June 29, 2019. |
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 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | ||||||||||||
Net revenue | $ | 127,109 | $ | 268,834 | $ | 400,225 | $ | 704,297 | |||||||
Cost of sales | 68,329 | 141,865 | 211,073 | 380,679 | |||||||||||
Gross profit | 58,780 | 126,969 | 189,152 | 323,618 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative | 26,294 | 30,609 | 82,062 | 85,484 | |||||||||||
Research and development | 28,229 | 29,974 | 87,609 | 88,881 | |||||||||||
Amortization of intangible assets | 1,843 | 1,962 | 5,589 | 5,927 | |||||||||||
Restructuring | 587 | (39 | ) | (25 | ) | 1,268 | |||||||||
Total operating expenses | 56,953 | 62,506 | 175,235 | 181,560 | |||||||||||
Income from operations | 1,827 | 64,463 | 13,917 | 142,058 | |||||||||||
Other income (expense): | |||||||||||||||
Interest income | 3,956 | 3,459 | 11,647 | 8,420 | |||||||||||
Interest expense | (632 | ) | (263 | ) | (1,137 | ) | (799 | ) | |||||||
Income before income taxes | 5,151 | 67,659 | 24,427 | 149,679 | |||||||||||
Income tax expense | 3,864 | 7,282 | 19,106 | 122,494 | |||||||||||
Share of results of equity-method investee, net of tax | — | 121 | 72 | 144 | |||||||||||
Net income | $ | 1,287 | $ | 60,256 | $ | 5,249 | $ | 27,041 | |||||||
Net income per share: | |||||||||||||||
Basic | $ | 0.02 | $ | 0.87 | $ | 0.08 | $ | 0.39 | |||||||
Diluted | $ | 0.02 | $ | 0.86 | $ | 0.08 | $ | 0.38 | |||||||
Cash dividends declared per share | $ | 0.12 | $ | 0.12 | $ | 0.36 | $ | 0.12 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 64,683 | 69,125 | 65,914 | 70,019 | |||||||||||
Diluted | 65,431 | 70,302 | 66,597 | 71,113 |
Three months ended | Nine months ended | ||||||||||||||
Supplemental financial data: | June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | |||||||||||
Depreciation and amortization | $ | 4,995 | $ | 4,951 | $ | 15,001 | $ | 14,163 | |||||||
Capital expenditures | 2,136 | 4,071 | 9,312 | 16,481 | |||||||||||
Equity-based compensation expense: | |||||||||||||||
Cost of sales | 161 | 126 | 471 | 384 | |||||||||||
Selling, general and administrative | 2,616 | 2,111 | 7,871 | 5,877 | |||||||||||
Research and development | 820 | 656 | 2,430 | 1,963 | |||||||||||
Total equity-based compensation expense | $ | 3,597 | $ | 2,893 | $ | 10,772 | $ | 8,224 |
As of | |||||||
June 29, 2019 | June 30, 2018 | ||||||
Backlog of orders 1 | $ | 96,690 | $ | 146,578 | |||
Number of employees | 2,721 | 3,109 |
1. | Represents customer purchase commitments. While the Company believes these orders are firm, they are generally cancellable by customers without penalty. |
As of | |||||||
June 29, 2019 | September 29, 2018 | ||||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | $ | 395,538 | $ | 320,630 | |||
Restricted cash | 474 | 518 | |||||
Short-term investments | 248,000 | 293,000 | |||||
Accounts and other receivable, net of allowance for doubtful accounts of $0 and $385, respectively | 151,246 | 243,373 | |||||
Inventories, net | 98,049 | 115,191 | |||||
Prepaid expenses and other current assets | 25,133 | 14,561 | |||||
TOTAL CURRENT ASSETS | 918,440 | 987,273 | |||||
Property, plant and equipment, net | 74,851 | 76,067 | |||||
Goodwill | 56,248 | 56,550 | |||||
Intangible assets, net | 46,198 | 52,871 | |||||
Deferred income taxes | 8,159 | 9,017 | |||||
Equity investments | 6,301 | 1,373 | |||||
Other assets | 2,372 | 2,589 | |||||
TOTAL ASSETS | $ | 1,112,569 | $ | 1,185,740 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Short term debt | $ | 71,194 | $ | — | |||
Accounts payable | 42,337 | 48,527 | |||||
Accrued expenses and other current liabilities | 63,465 | 105,978 | |||||
Income taxes payable | 12,258 | 19,571 | |||||
TOTAL CURRENT LIABILITIES | 189,254 | 174,076 | |||||
Financing obligation | 14,701 | 15,187 | |||||
Deferred income taxes | 27,154 | 25,591 | |||||
Income taxes payable | 84,617 | 81,491 | |||||
Other liabilities | 9,408 | 9,188 | |||||
TOTAL LIABILITIES | 325,134 | 305,533 | |||||
SHAREHOLDERS' EQUITY | |||||||
Common stock, no par value | 530,016 | 519,244 | |||||
Treasury stock, at cost | (334,248 | ) | (248,664 | ) | |||
Retained earnings | 595,803 | 613,529 | |||||
Accumulated other comprehensive loss | (4,136 | ) | (3,902 | ) | |||
TOTAL SHAREHOLDERS' EQUITY | $ | 787,435 | $ | 880,207 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,112,569 | $ | 1,185,740 |
Three months ended | Nine months ended | ||||||||||||||
June 29, 2019 | June 30, 2018 | June 29, 2019 | June 30, 2018 | ||||||||||||
Net cash (used in)/provided by operating activities | $ | (154 | ) | $ | 36,770 | $ | 83,181 | $ | 93,843 | ||||||
Net cash (used in)/provided by investing activities, continuing operations | (43,315 | ) | 25,929 | 30,374 | (57,527 | ) | |||||||||
Net cash provided by/(used in) financing activities, continuing operations | 20,341 | (41,564 | ) | (38,751 | ) | (65,805 | ) | ||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (197 | ) | 1,379 | 60 | (251 | ) | |||||||||
Changes in cash, cash equivalents and restricted cash | (23,325 | ) | 22,514 | 74,864 | (29,740 | ) | |||||||||
Cash, cash equivalents and restricted cash, beginning of period | 419,337 | 340,686 | 321,148 | 392,940 | |||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 396,012 | $ | 363,200 | $ | 396,012 | $ | 363,200 | |||||||
Short-term investments | 248,000 | 258,000 | 248,000 | 258,000 | |||||||||||
Total cash, cash equivalents, restricted cash and short-term investments | $ | 644,012 | $ | 621,200 | $ | 644,012 | $ | 621,200 |
Three months ended | ||||||||||||
June 29, 2019 | June 30, 2018 | March 30, 2019 | ||||||||||
Net revenue | $ | 127,109 | $ | 268,834 | $ | 115,908 | ||||||
U.S. GAAP income/(loss) from operations | 1,827 | 64,463 | (2,465 | ) | ||||||||
U.S. GAAP operating margin | 1.4 | % | 24.0 | % | (2.1 | )% | ||||||
Pre-tax non-GAAP items: | ||||||||||||
Amortization related to intangible assets acquired through business combination- selling, general and administrative | 1,843 | 1,962 | 1,869 | |||||||||
Restructuring | 587 | (39 | ) | (643 | ) | |||||||
Non-GAAP income/(loss) from operations | $ | 4,257 | $ | 66,386 | $ | (1,239 | ) | |||||
Non-GAAP operating margin | 3.3 | % | 24.7 | % | (1.1 | )% |
Three months ended | ||||||||||||
June 29, 2019 | June 30, 2018 | March 30, 2019 | ||||||||||
Net revenue | $ | 127,109 | $ | 268,834 | $ | 115,908 | ||||||
U.S. GAAP net income/(loss) | 1,287 | 60,256 | (3,555 | ) | ||||||||
U.S. GAAP net margin | 1.0 | % | 22.4 | % | (3.1 | )% | ||||||
Non-GAAP adjustments: | ||||||||||||
Amortization related to intangible assets acquired through business combination- selling, general and administrative | 1,843 | 1,962 | 1,869 | |||||||||
Restructuring | 587 | (39 | ) | (643 | ) | |||||||
Income tax expense- Tax Reform | — | — | 2,499 | |||||||||
Net income tax (benefit)/expense on non-GAAP items | (102 | ) | 78 | 28 | ||||||||
Total non-GAAP adjustments | 2,328 | 2,001 | 3,753 | |||||||||
Non-GAAP net income | 3,615 | 62,257 | 198 | |||||||||
Non-GAAP net margin | 2.8 | % | 23.2 | % | 0.2 | % | ||||||
U.S. GAAP net income/(loss) per share: | ||||||||||||
Basic | 0.02 | 0.87 | (0.05 | ) | ||||||||
Diluted(a) | 0.02 | 0.86 | (0.05 | ) | ||||||||
Non-GAAP adjustments per share:(b) | ||||||||||||
Basic | 0.04 | 0.03 | 0.05 | |||||||||
Diluted | 0.04 | 0.03 | 0.05 | |||||||||
Non-GAAP net income per share: | ||||||||||||
Basic | $ | 0.06 | $ | 0.90 | $ | — | ||||||
Diluted(c) | $ | 0.06 | $ | 0.89 | $ | — |
(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 March 30, 2019, 0.8 million shares of restricted stock units and stock options were excluded due to the Company's net loss. |
(b) | Non-GAAP adjustments per share includes amortization related to intangible assets acquired through business combinations, 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. |
(c) | Non-GAAP diluted net earnings per share reflects any dilutive effect of outstanding restricted stock units and stock options. |