EX-99.1 2 v327653_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

Kulicke & Soffa Pte Ltd

6 Serangoon North Ave 5

#03-16 Singapore 554910

65.6880.9600 phone

65.6880.9580 fax

www.kns.com

Kulicke & Soffa Reports Fourth Quarter and Fiscal Year 2012 Results

Singapore – November 8, 2012 – Kulicke & Soffa Industries, Inc. (NASDAQ: KLIC) (“K&S” or the “Company”) today announced results for its fourth quarter and fiscal year ended September 29, 2012.

Quarterly Results
	Fiscal Q4 2012	Change vs. Fiscal Q4 2011	Change vs. Fiscal Q3 2012
Net Revenue	$269.2 million	49.2%	5.3%
Gross Profit	$123.0 million	48.6%	0.4%
Gross Margin	45.7%	(20) bps	(220) bps
Income from Operations	$70.3 million	210.0%	(7.8%)
Operating Margin	26.1%	1,350 bps	(380) bps
Net Income	$67.3 million	3,418.9%	(1.3%)
Net Margin	25.0%	2,390 bps	(170) bps
EPS – Diluted	$0.89	2,866.7%	(1.1%)

Bruno Guilmart, Kulicke & Soffa’s President and Chief Executive Officer, said, “The fourth quarter ended a very strong year for K&S with results at the high-end of our guidance. We are succeeding in a challenging market due to our multi-segment leadership, flexible manufacturing strategy, R&D strength, free cash flow generation and our improving, debt-free balance sheet. We were able to achieve record annual net income of $160.6 million due to the operating leverage we have created in our business combined with a favorable product mix.”

Fourth Quarter Fiscal 2012 Key Product Trends

Ball bonder equipment net revenue increased 7.0% over the June quarter.

84.5% of ball bonder equipment was sold as copper capable bonders.

Wedge bonder equipment net revenue increased 20.8% from the June quarter.

Fiscal Year 2012 Financial Highlights

Net revenue of $791.0 million.

Gross margin of 46.4%.

Net income of $160.6 million or $2.13 per share.

Total cash and short-term investments were $440.2 million on September 29, 2012, a $59.5 million increase from the prior quarter ended June 30, 2012.

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First Quarter Fiscal Year 2013 Outlook

The Company expects net revenue in the typically seasonally slower fiscal first quarter of 2013 ending December 29, 2012, to be approximately $95 million to $115 million.

Looking forward, Bruno Guilmart commented, “We are confident in the near and long-term prospects for our business. Structural improvements we previously implemented give us an added advantage in navigating periods of fluctuating demand. These improvements include our corporate-wide cost containment program and our now debt-free balance sheet. We also continue to benefit from our flexible manufacturing strategy and strong product offerings. In addition to maintaining a disciplined operations strategy, we are pursuing opportunities that will position us for growth.”

Earnings Conference Call Details

A conference call to discuss these results will be held today, November 8, 2012, beginning at 8:00 am (EST). To access the conference call, interested parties may call +1-877-407-8037 or internationally +1-201-689-8037. The call will also be available by live webcast at www.kns.com/investors/events.

A replay will be available from approximately one hour after the completion of the call through November 15, 2012 by calling toll-free +1-877-660-6853 or internationally +1-201-612-7415 and using the replay ID number of 401769. A webcast replay will also be available at www.kns.com/investors/events.

About Kulicke & Soffa

Kulicke & Soffa (NASDAQ: KLIC) is a global leader in the design and manufacture of semiconductor and LED assembly equipment. As a pioneer in this industry, K&S has provided customers with market leading packaging solutions for decades. In recent years, K&S has expanded its product offerings through strategic acquisitions, adding die and wedge bonders and a broader range of expendable tools to its core ball bonding products. Combined with its extensive expertise in process technology, K&S is well positioned to help customers meet the challenges of assembling the next-generation semiconductor and LED devices. (www.kns.com)

Caution Concerning Results and Forward Looking Statements

In addition to historical statements, this press release contains statements relating to future events and our future results. These statements are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, and include, but are not limited to, statements that relate to our future revenue, sustained, increasing, continuing or strengthening demand for our products, our improving balance sheet, the continuing transition from gold to copper wire bonding, replacement demand, our research and development efforts, our ability to identify and realize new growth opportunities and our ability to control costs. While these forward-looking statements represent our judgments and future expectations concerning 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: the risk that customer orders already received may be postponed or canceled, generally without charges; the risk that anticipated customer orders may not materialize; the risk that our suppliers may not be able to meet our demands on a timely basis; the volatility in the demand for semiconductors and our products and services; a slowdown of transition from gold to copper wire bonding by our customers and the industry, volatile global economic conditions, which could result in, among other things, sharply lower demand for products containing semiconductors and for the Company’s products, and disruption of capital and credit markets; the risk of failure to successfully manage our operations; acts of terrorism and violence; risks, such as changes in trade regulations, currency fluctuations, political instability and war, which may be associated with a substantial non-U.S. customer and supplier base and substantial non-U.S. manufacturing operations; and the factors listed or discussed in Kulicke and Soffa Industries, Inc. 2011 Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission. Kulicke & Soffa Industries, Inc 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.

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Contacts:

Kulicke & Soffa Industries, Inc.
Joseph Elgindy
Investor Relations
P: +1-215-784-7518
F: +1-215-784-6180
jelgindy@kns.com

Global IR Partners
David Pasquale
P: +1-914-337-8801
klic@globalirpartners.com

# # #

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KULICKE & SOFFA INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share and employee data)

(Unaudited)

	Three months ended						Twelve months ended
	September 29,			October 1,			September 29,			October 1,
	2012			2011			2012			2011

Net revenue:
Equipment	$	252,785		$	161,225		$	727,082		$	759,331
Expendable Tools		16,381			19,146			63,941			71,070
Total net revenue		269,166			180,371			791,023			830,401

Cost of sales:
Equipment		139,479			89,350			397,210			412,914
Expendable Tools		6,703			8,275			26,423			29,578
Total cost of sales		146,182			97,625			423,633			442,492

Gross profit:
Equipment		113,306			71,875			329,872			346,417
Expendable Tools		9,678			10,871			37,518			41,492
Total gross profit		122,984			82,746			367,390			387,909

Operating expenses:
Selling, general and administrative		31,029			40,471			110,966			138,273
Research and development		17,369			16,821			63,446			65,135
Amortization of intangible assets		2,295			2,386			9,178			9,549
Restructuring		1,959			377			4,574			4,892
Total operating expenses		52,652			60,055			188,164			217,849


Income from operations:
Equipment		67,046			18,908			165,791			156,786
Expendable Tools		3,286			3,783			13,435			13,274
Total income from operations		70,332			22,691			179,226			170,060

Other income (expense):
Interest income		182			202			833			648
Interest expense		-			(241	)		(633	)		(965	)
Interest expense: non-cash		(1	)		(1,886	)		(5,175	)		(7,315	)

Income from operations before income taxes		70,513			20,766			174,251			162,428

Provision (benefit) for income taxes		3,231			18,854			13,671			34,818

Net income	$	67,282		$	1,912		$	160,580		$	127,610

Net income per share:
Basic	$	0.91		$	0.03		$	2.17		$	1.77
Diluted	$	0.89		$	0.03		$	2.13		$	1.73

Weighted average shares outstanding:
Basic		74,116			72,688			73,887			71,820
Diluted		75,942			74,184			75,502			73,341

	Three months ended				Twelve months ended
	September 29,		October 1,		September 29,		October 1,
Supplemental financial data:	2012		2011		2012		2011

Depreciation and amortization	$	4,615	$	4,487	$	17,265	$	17,761

Capital expenditures	$	1,757	$	1,873	$	6,902	$	7,688

Equity-based compensation expense:
Cost of sales	$	86	$	54	$	312	$	213
Selling, general and administrative		1,575		887		6,602		5,671
Research and development		461		358		1,777		1,328
Total equity-based compensation expense	$	2,122	$	1,299	$	8,691	$	7,212

	As of
	September 29,		October 1,
	2012		2011

Backlog of orders	$	90,000	$	103,000

Number of employees		2,936		2,866

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KULICKE & SOFFA INDUSTRIES, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

	September 29,			October 1,
	2012			2011
ASSETS

CURRENT ASSETS
Cash and cash equivalents	$	440,244		$	378,188
Short-term investments		-			6,364
Accounts and notes receivable, net of allowance for doubtful
accounts of $937 and $2,194, respectively		188,986			138,649
Inventories, net		58,994			73,092
Prepaid expenses and other current assets		21,577			21,897
Deferred income taxes		3,515			1,651

TOTAL CURRENT ASSETS		713,316			619,841

Property, plant and equipment, net		28,441			26,501
Goodwill		41,546			41,546
Intangible assets		20,387			29,565
Other assets		11,919			10,938

TOTAL ASSETS	$	815,609		$	728,391

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
Current portion of long term debt	$	-		$	105,224
Accounts payable		57,231			36,321
Accrued expenses and other current liabilities		57,946			43,528
Earnout agreement payable		-			14,848
Income taxes payable		8,192			14,261

TOTAL CURRENT LIABILITIES		123,369			214,182

Deferred income taxes		37,875			32,065
Other liabilities		10,698			12,267

TOTAL LIABILITIES		171,942			258,514

SHAREHOLDERS' EQUITY
Common stock, no par value		455,122			441,749
Treasury stock, at cost		(46,356	)		(46,356	)
Accumulated income		232,520			71,940
Accumulated other comprehensive income		2,381			2,544

TOTAL SHAREHOLDERS' EQUITY		643,667			469,877

TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY	$	815,609		$	728,391

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KULICKE & SOFFA INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Three months ended						Twelve months ended
	September 29, 2012			October 1, 2011			September 29, 2012			October 1, 2011

Net cash provided by operating activities	$	59,321		$	50,169		$	183,969		$	202,257
Net cash used in discontinued operations		(29	)		(314	)		(1,498	)		(1,861	)
Net cash provided by operating activities	$	59,292		$	49,855		$	182,471		$	200,396

Net cash used in investing activities, continuing operations	$	(1,757	)	$	(2,049	)	$	(15,386	)	$	(11,106	)

Net cash provided by (used in) financing activities		1,834			460			(105,138	)		9,296
Effect of exchange rate on cash and cash equivalents		178			640			109			1,490
Changes in cash and cash equivalents	$	59,547		$	48,906		$	62,056		$	200,076
Cash and cash equivalents, beginning of period		380,697			329,282			378,188			178,112
Cash and cash equivalents, end of period	$	440,244		$	378,188		$	440,244		$	378,188

Short-term investments & restricted cash		-			6,364			-			6,364
Total cash, cash equivalents, restricted cash and short-term investments	$	440,244		$	384,552		$	440,244		$	384,552

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