EX-99.1 3 dex991.htm PRESS RELEASE Press Release

 

Exhibit 99.1

 

NEWS for Immediate Release

 

Kulicke & Soffa Reports Second Quarter 2003 Results

 

A conference call to discuss these results will be held today beginning at 9:00 AM EDT. Interested participants may call 416-695-5261 for the teleconference or log on to http://www.kns.com/investors for the live audio feed, and an audio stream replay of this call will remain available on the company’s website.

 

Willow Grove, PA—April 23, 2003—Kulicke & Soffa Industries, Inc. (Nasdaq: KLIC) today announced financial results for its second quarter of fiscal year 2003 ended March 31, 2003.

 

Revenue for the second fiscal quarter ended March 31, 2003 was $125.9 million compared to revenue in the second quarter ended March 31, 2002 of $106.9 million, an increase of 17.8%. The loss from operations during the second fiscal quarter of 2003 was $11.7 million versus a loss of $56.5 million during the second fiscal quarter of 2002. The net loss for the second quarter ended March 31, 2003 was $19.3 million or a loss of $0.39 per share versus a net loss of $43.6 million or a loss of $0.89 per share in the same quarter of 2002.

 

Commenting on the quarter just ended, C. Scott Kulicke, chairman and chief executive officer, stated, “We continued to implement programs and actions intended to return the company to profitability at the expense of short term financial performance. Our financial results for the second fiscal quarter of 2003 reflect the impact of another reduction in workforce, expenses for the termination of a third party contract, and an asset impairment charge associated with the discontinuation of a test product. In total, these actions negatively impacted the quarter by $4.3 million, compared to charges of $29.5 million recorded in the second fiscal quarter of 2002 for inventory write-offs, severance charges, and asset impairment charges.”

 

Net bookings for the second fiscal quarter ended March 31, 2003 were $109.0 million, compared to $117.0 million recorded in first quarter ended December 31, 2002. Backlog at March 31, 2003 was $44.0 million compared to backlog at December 31, 2002 of $60.0 million.

 

For the six months ended March 31, 2003, revenue was $237.3 million compared to revenue for the six months ended March 31, 2002 of $210.1 million. The net loss for the six months ended March 31, 2003 was $36.9 million or a loss per share of $0.75 compared to a net loss of $61.0 million or a loss of $1.24 per share for the same period last year.

 

C. Scott Kulicke said, “Shipments in the March quarter were right in line with our expectations. Our Maxum wire bonder sales continue to demonstrate the market dominance of this product. Orders for this equipment indicate that a much broader spectrum of customers and application needs are being satisfied by the Maxum product.”

 

He continued, “Our guidance is for flat revenue, plus or minus 5% for the third quarter, ending June 30, 2003.”

 

Kulicke & Soffa (Nasdaq: KLIC) is the world’s leading supplier of semiconductor assembly and test interconnect equipment, materials and technology. We offer unique wire bonding solutions, combining wafer dicing and wire bonding equipment with bonding wire and capillaries. Flip chip solutions include wafer bumping services and technology. Chip scale and wafer level packaging solutions include Ultra CSP® technology. Test interconnect solutions include standard and vertical probe cards, ATE interface assemblies and ATE boards for wafer testing, as well as test sockets and contactors for all types of packages. Kulicke & Soffa’s web site address is http://www.kns.com. The full text of this earnings release and summary financial statements are available at http://www.kns.com/investors/news.htm.

 

Caution Concerning Forward Looking Statements

 

This press release contains forward-looking statements which are found in various places throughout the press release. While these forward-looking statements represent our judgments and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, those listed or discussed in Kulicke & Soffa Industries’ 2002 Annual Report on Form 10-K and: the risk of failure to successfully manage our operations; the risk that anticipated orders may not materialize or that orders received may be postponed or canceled, generally without charges; the risk that anticipated cost savings will not be achieved; the volatility in the demand for semiconductors and our products and services; acts of terrorism and violence; overall global economic conditions; risks, such as changes in trade regulations, currency fluctuations, political instability and war, associated with a substantial foreign customer and supplier base and

 

substantial foreign manufacturing operations; potential instability in foreign capital markets; and other key factors that could adversely affect our businesses and financial performance contained in past and future filings and reports, including those with the SEC. Kulicke & Soffa Industries is under no obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

 

# # #

 

Company Contact: Michael Sheaffer, 215-784-6411, 215-784-6167 fax, msheaffer@kns.com

 

KULICKE & SOFFA INDUSTRIES, INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except per share and employee data)

(Unaudited)

 

    

Three months ended

March 31,

     

Six months ended

March 31,

  
    

2002

     

2003

     

2002

     

2003

  

Net revenue

   

$

106,917

 

   

$

125,938

 

   

$

210,072

 

   

$

237,309

 

Cost of sales

   

 

96,285

 

   

 

93,420

 

   

 

174,053

 

   

 

177,460

 

    
  
  
  

Gross profit

   

 

10,632

 

   

 

32,518

 

   

 

36,019

 

   

 

59,849

 

    
  
  
  

Selling, general and administrative

   

 

35,409

 

   

 

29,749

 

   

 

66,923

 

   

 

58,075

 

Research and development, net

   

 

13,030

 

   

 

10,478

 

   

 

25,954

 

   

 

20,121

 

Resizing

   

 

11,283

 

   

 

—  

 

   

 

11,283

 

   

 

(205

)

Gain on disposal of assets

   

 

—  

 

   

 

—  

 

   

 

—  

 

   

 

(121

)

Asset impairment

   

 

4,890

 

   

 

1,708

 

   

 

4,890

 

   

 

1,708

 

Amortization of intangibles

   

 

2,481

 

   

 

2,321

 

   

 

4,962

 

   

 

4,629

 

    
  
  
  

Operating Expense

   

 

67,093

 

   

 

44,256

 

   

 

114,012

 

   

 

84,207

 

    
  
  
  

Loss from operations

   

 

(56,461

)

   

 

(11,738

)

   

 

(77,993

)

   

 

(24,358

)

Interest, net

   

 

(3,342

)

   

 

(4,235

)

   

 

(6,750

)

   

 

(8,244

)

Other income

   

 

4

 

   

 

—  

 

   

 

10

 

   

 

—  

 

    
  
  
  

Loss before income taxes

   

 

(59,799

)

   

 

(15,973

)

   

 

(84,733

)

   

 

(32,602

)

Income taxes

   

 

(16,244

)

   

 

3,318

 

   

 

(23,725

)

   

 

4,344

 

    
  
  
  

Net loss

   

$

(43,555

)

   

$

(19,291

)

   

$

(61,008

)

   

$

(36,946

)

    
  
  
  

Net loss per share:

                                    

Basic

   

$

(0.89

)

   

$

(0.39

)

   

$

(1.24

)

   

$

(0.75

)

    
  
  
  

Diluted

   

$

(0.89

)

   

$

(0.39

)

   

$

(1.24

)

   

$

(0.75

)

    
  
  
  

Weighted average shares outstanding:

                                    

Basic

   

 

49,137

 

   

 

49,629

 

   

 

49,081

 

   

 

49,575

 

Diluted

   

 

49,137

 

   

 

49,629

 

   

 

49,081

 

   

 

49,575

 

    

Three months ended March 31,

   

Six months ended

March 31,

    

2002

   

2003

   

2002

   

2003

Additional financial data:

                            

Depreciation and amortization

   

$

12,733

   

$

9,705

   

$

23,493

   

$

19,506

Capital expenditures

   

$

8,813

   

$

1,850

   

$

9,855

   

$

4,199

    

March 31,

    

2002

   

2003

Backlog of orders

   

$

63,000

   

$

44,000

Number of employees

   

 

3,541

   

 

3,168

 

 

 

KULICKE & SOFFA INDUSTRIES, INC.

CONSOLIDATED BALANCE SHEET

(In thousands)

    

September 30, 2002

     

(Unaudited)

March 31,

2003

  

ASSETS

                  

CURRENT ASSETS

                  

Cash and cash equivalents

   

$

85,986

 

   

$

44,588

 

Restricted cash

   

 

3,180

 

   

 

2,880

 

Short-term investments

   

 

22,134

 

   

 

16,132

 

Accounts and notes receivable (less allowance for doubtful accounts:

9/30/02 - $6,033; 3/31/03 - $5,769)

   

 

89,132

 

   

 

98,410

 

Inventories, net

   

 

50,887

 

   

 

54,784

 

Prepaid expenses and other current assets

   

 

10,508

 

   

 

13,061

 

Deferred income taxes

   

 

16,072

 

   

 

15,245

 

    
  

TOTAL CURRENT ASSETS

   

 

277,899

 

   

 

245,100

 

Property, plant and equipment, net

   

 

89,742

 

   

 

77,925

 

Intangible assets, (net of accumulated amortization:

                  

9/30/02 - $16,927; 3/31/03 - $21,575)

   

 

75,509

 

   

 

70,880

 

Goodwill

   

 

87,107

 

   

 

87,107

 

Other assets

   

 

8,425

 

   

 

8,050

 

    
  

TOTAL ASSETS

   

$

538,682

 

   

$

489,062

 

    
  

LIABILITIES AND SHAREHOLDERS’ EQUITY

                  

CURRENT LIABILITIES

                  

Debt due within one year

   

$

186

 

   

$

122

 

Accounts payable

   

 

55,659

 

   

 

49,180

 

Accrued expenses

   

 

52,581

 

   

 

43,777

 

Income taxes payable

   

 

9,660

 

   

 

12,350

 

    
  

TOTAL CURRENT LIABILITIES

   

 

118,086

 

   

 

105,429

 

Long term debt

   

 

300,393

 

   

 

300,437

 

Other liabilities

   

 

14,106

 

   

 

12,596

 

Deferred taxes

   

 

36,774

 

   

 

35,947

 

    
  

TOTAL LIABILITIES

   

 

469,359

 

   

 

454,409

 

    
  

SHAREHOLDERS’ EQUITY

                  

Common stock, without par value

   

 

199,886

 

   

 

201,138

 

Retained deficit

   

 

(119,103

)

   

 

(156,049

)

Accumulated other comprehensive loss

   

 

(11,460

)

   

 

(10,436

)

    
  

TOTAL SHAREHOLDERS’ EQUITY

   

 

69,323

 

   

 

34,653

 

    
  

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

   

$

538,682

 

   

$

489,062

 

    
  

 

 

KULICKE & SOFFA INDUSTRIES, INC.

OPERATING RESULTS BY BUSINESS SEGMENT

(In thousands)

(Unaudited)

 

Fiscal 2003:

 

Quarter ended March 31, 2003:

   

Equipment Segment

     

Packaging Materials Segment

   

Advanced Packaging Segment

     

Test Segment

     

Corporate

     

Consolidated

  

Net revenue

   

$

52,569

 

   

$

43,602

   

$

3,658

 

   

$

26,109

 

   

$

—  

 

   

$

125,938

 

Cost of sales

   

 

33,338

 

   

 

33,604

   

 

5,371

 

   

 

21,107

 

   

 

—  

 

   

 

93,420

 

    
  
  
  
  
  

Gross profit

   

 

19,231

 

   

 

9,998

   

 

(1,713

)

   

 

5,002

 

   

 

—  

 

   

 

32,518

 

Operating costs

   

 

18,586

 

   

 

6,518

   

 

2,076

 

   

 

10,727

 

   

 

4,641

 

   

 

42,548

 

Asset impairment

   

 

17

 

   

 

—  

   

 

—  

 

   

 

1,691

 

   

 

—  

 

   

 

1,708

 

    
  
  
  
  
  

Income (loss) from operations

   

$

628

 

   

$

3,480

   

$

(3,789

)

   

$

(7,416

)

   

$

(4,641

)

   

$

(11,738

)

    
  
  
  
  
  

Six months ended March 31, 2003:

                                                    

Net revenue

   

$

97,464

 

   

$

83,159

   

$

7,905

 

   

$

48,781

 

   

$

—  

 

   

$

237,309

 

Cost of sales

   

 

63,954

 

   

 

62,888

   

 

10,789

 

   

 

39,829

 

   

 

—  

 

   

 

177,460

 

    
  
  
  
  
  

Gross profit

   

 

33,510

 

   

 

20,271

   

 

(2,884

)

   

 

8,952

 

   

 

—  

 

   

 

59,849

 

Operating costs

   

 

36,109

 

   

 

13,809

   

 

3,694

 

   

 

21,191

 

   

 

8,022

 

   

 

82,825

 

Resizing

   

 

—  

 

   

 

—  

   

 

(102

)

   

 

(103

)

   

 

—  

 

   

 

(205

)

Asset impairment

   

 

17

 

   

 

—  

   

 

—  

 

   

 

1,691

 

   

 

—  

 

   

 

1,708

 

Gain on disposal of assets

   

 

—  

 

   

 

—  

   

 

(121

)

   

 

—  

 

   

 

—  

 

   

 

(121

)

    
  
  
  
  
  

Income (loss) from operations

   

$

(2,616

)

   

$

6,462

   

$

(6,355

)

   

$

(13,827

)

   

$

(8,022

)

   

$

(24,358

)

    
  
  
  
  
  

 

Fiscal 2002:

 

Quarter ended March 31, 2002:

   

Equipment Segment

     

Packaging Materials Segment

     

Advanced Packaging Segment

     

Test Segment

     

Corporate

     

Consolidated

  

Net revenue

   

$

37,216

 

   

$

35,408

 

   

$

5,688

 

   

$

28,605

 

   

$

—  

 

   

$

106,917

 

Cost of sales

   

 

43,938

 

   

 

27,545

 

   

 

6,444

 

   

 

18,358

 

   

 

—  

 

   

 

96,285

 

    
  
  
  
  
  

Gross profit

   

 

(6,722

)

   

 

7,863

 

   

 

(756

)

   

 

10,247

 

   

 

—  

 

   

 

10,632

 

Operating costs

   

 

22,106

 

   

 

5,973

 

   

 

5,125

 

   

 

13,762

 

   

 

3,954

 

   

 

50,920

 

Resizing costs

   

 

6,064

 

   

 

736

 

   

 

1,104

 

   

 

2,796

 

   

 

583

 

   

 

11,283

 

Asset impairment

   

 

2,165

 

   

 

1,480

 

   

 

—  

 

   

 

1,245

 

   

 

—  

 

   

 

4,890

 

    
  
  
  
  
  

Income (loss) from operations

   

$

(37,057

)

   

$

(326

)

   

$

(6,985

)

   

$

(7,556

)

   

$

(4,537

)

   

$

(56,461

)

    
  
  
  
  
  

Six months ended March 31, 2002:

                                                      

Net revenue

   

$

72,900

 

   

$

69,523

 

   

$

12,228

 

   

$

55,421

 

   

$

—  

 

   

$

210,072

 

Cost of sales

   

 

70,541

 

   

 

53,765

 

   

 

13,001

 

   

 

36,746

 

   

 

—  

 

   

 

174,053

 

    
  
  
  
  
  

Gross profit

   

 

2,359

 

   

 

15,758

 

   

 

(773

)

   

 

18,675

 

   

 

—  

 

   

 

36,019

 

Operating costs

   

 

41,564

 

   

 

12,209

 

   

 

10,700

 

   

 

25,968

 

   

 

7,398

 

   

 

97,839

 

Resizing costs

   

 

6,064

 

   

 

736

 

   

 

1,104

 

   

 

2,796

 

   

 

583

 

   

 

11,283

 

Asset impairment

   

 

2,165

 

   

 

1,480

 

   

 

—  

 

   

 

1,245

 

   

 

—  

 

   

 

4,890

 

    
  
  
  
  
  

Income (loss) from operations

   

$

(47,434

)

   

$

1,333

 

   

$

(12,577

)

   

$

(11,334

)

   

$

(7,981

)

   

$

(77,993

)