EX-99.1 2 v155790_ex99-1.htm Unassociated Document
 
 
Kulicke & Soffa Industries Inc.
1005 Virginia Drive
Fort Washington, PA 19034 USA
 
215-784-6000 phone
 
215-659-7588 fax
 
www.kns.com

Exhibit 99.1
Kulicke & Soffa Reports Results for its Third Fiscal Quarter 2009

Fort Washington, PA – July 29, 2009 – Kulicke & Soffa Industries, Inc. (NASDAQ: KLIC) (“K&S”) today announced results for the quarter ended June 27, 2009. The Company reported net revenue from continuing operations of $52.1 million and a loss from continuing operations of $13.9 million, or $0.23 per share. This press release contains both GAAP and non-GAAP information.
 
On a non-GAAP٭  basis, the Company reported third quarter net revenue from continuing operations of $52.1 million and a loss from continuing operations of $12.2 million, or $0.20 per share.

GAAP Results:
  
 (Dollar amounts in
thousands except EPS)
    
Q3 2009
    
Change vs. Q2 2009
    
Change vs. Q3 2008
  
Net Revenue
   $
52,076
       106%       -28%  
Gross Profit
   $ 19,669
 
     144%       -34%  
Gross Margin
     37.8%    
589 bps
    
(319) bps
  
Net Income (Loss) from continuing operations
   $ (13,858)       58%       -192%  
Net Margin
     -26.6%    
10,474 bps
    
(2,007) bps
  
EPS – Basic and Diluted from Continuing Operations
   $ (0.23)       57%       -156%  

Non-GAAP Measures:
  
 (Dollar amounts in
thousands except EPS)
    
Q3 2009
    
Change vs. Q2 2009
    
Change vs. Q3 2008
  
Net Revenue
   $
52,076
       106%       -28%  
Gross Profit
   $
19,709
      
144%
       -34%  
Gross Margin
    
37.8%
  
 
585 bps
    
(320) bps
  
Net Income (Loss) from continuing operations
   $
(12,244)
      
53%
      
-209%
  
Net Margin
    
-23.5%
    
7,905 bps
    
(1,805) bps
  
EPS – Basic and Diluted from Continuing Operations
   $
(0.20)
      
53%
      
-170%
  

٭Non-GAAP measures exclude equity-based compensation, amortization of intangibles, cost of severance, goodwill impairment, Swiss pension curtailment, valuation allowance adjustments and related tax effects from expenses, and debt extinguishment (see reconciliations of GAAP results to Non-GAAP measures in the following financial schedules).

 
 
 

Commenting on the results, Scott Kulicke, Chairman and Chief Executive Officer said “The industry is experiencing a faster and more broad-based recovery than any of us would have predicted even a few months ago.  Increases in IC unit output have driven improvements in our customers’ capacity utilization and in increased demand across nearly all our business units.  This momentum has carried into our September quarter, resulting in our revenue forecast of $85 to $90 million.”

Other Financial Details

 
·
On a non-GAAP basis, operating expenses were $31.5 million, down $2.2 million from the March quarter.
 
·
The Company ended the quarter with total cash, cash equivalents and short term investments of $117.3 million.

Highlights

 
·
Ball bonder revenue increased 332% over March quarter levels. Approximately 20% of ball bonder units shipped in the June quarter were to the LED market. We continue to optimize our product portfolio for this important and growing segment.
 
·
Expendable tools sales increased 76% over the March quarter, consistent with the recovery in customer factory utilization.
 
·
Our wedge bonder business saw an increase in customer activity during the June quarter, with sales of wedge bonding tools up significantly and customer interest in wedge bonder equipment increasing.
 
·
Transition of final finishing for our capillaries production to our plant in China is proceeding, and we expect will be complete by the end of our September quarter.

Outlook for Fourth Fiscal Quarter 2009

Net revenue is expected to be in the range of $85 to $90 million.

Earnings Conference Call Details

A conference call and simultaneous audio webcast will be held today, July 29, 2009 beginning at 9:00 am (ET). Interested parties may call (877) 407-8037 or (201) 689-8037, log on to http://www.kns.com/investors/events for listen-only mode. A replay will be available approximately one hour after the completion of the call by calling toll-free (877) 660-6853 or internationally (201) 612-7415 and using the following replay access codes: 5521 (account number) and 327979 (replay ID number). A replay will also be available on the K&S website at http://www.kns.com/investors/events. The replay will be available via phone and website for a limited time.

Discussion of Non-GAAP Measures

This press release contains non-GAAP financial measures as a supplement to the consolidated financial results presented in accordance with GAAP. The Company believes certain non-GAAP measures provide investors with an additional, useful perspective on the Company’s performance as seen through the eyes of management.  Management uses non-GAAP financial measures along with GAAP financial results for: analyzing the performance of the Company’s businesses; strategic and tactical decision making; and determining compensation. The Company does not consider non-GAAP financial measures to be a substitute for, or superior to, financial results presented in accordance with GAAP. All of the non-GAAP financial measures included herein are reconciled to the most directly comparable GAAP results in the following financial statements. These non-GAAP measures may be calculated differently from non-GAAP measures used by other companies. In addition, these non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles and some of the adjustments reflect the exclusion of items that are recurring and will be reflected in the Company’s GAAP financial results for the foreseeable future.

 
 
 

Exclusions from GAAP Results
The Company excludes the following from its GAAP results in presenting non-GAAP financial measures:

- Equity-based compensation expenses. In accordance with Statement of Financial Accounting Standards (“SFAS”) No. 123R, Share Based Payments, the Company recognizes the fair value of its equity-based compensation in expenses. Equity-based compensation consists of common stock, stock options and restricted stock granted under the Company’s equity compensation plans. Equity-based compensation is a non-cash expense that can vary significantly in amount from period to period.

- Other. The exclusion of certain other non-GAAP amounts allows for improved comparisons of the Company’s results to both prior periods and other companies. The Company excludes the following other items from non-GAAP measures as these items are not reflective of the performance of the Company’s ongoing businesses:

 
·
Settlement of Israel tax assessment
 
·
Contractual commitments for former Test facilities
 
·
Cost of severance
 
·
Goodwill impairment
 
·
Swiss pension curtailment and U.S. pension plan termination
 
·
Valuation allowance adjustments
 
·
Debt extinguishment
 
·
Amortization of intangibles

- Tax Adjustment. Non-GAAP measures are tax adjusted using the GAAP tax rate associated with each quarterly period. The tax rate is calculated by dividing each quarter’s GAAP tax expense by the GAAP net income for that quarter. Non-GAAP year-to-date measures are calculated by summing the associated quarterly non-GAAP measures, without further tax adjustments.

Non-GAAP Measures

The specific non-GAAP measures included herein are gross profit, gross margin, net income (loss), net margin, and EPS. The Company calculates these measures as follows:

- Gross Profit. K&S non-GAAP gross profit excludes the effects of equity-based compensation expense recorded within cost of sales.

- Gross Margin. K&S non-GAAP gross margin excludes the impact of equity-based compensation expense recorded within cost of sales.

- Net Income (Loss) and Earnings per Share. K&S non-GAAP net income (loss) and EPS exclude equity-based compensation, contractual commitments for former Test facilities, amortization of intangibles, cost of severance, goodwill impairment, Swiss pension curtailment and U.S. pension plan termination and related tax effects from expenses, debt extinguishment, and settlement of Israel tax assessment from income tax expense.

- Net Margin. K&S Non-GAAP net margin excludes equity-based compensation, contractual commitments for former Test facilities, amortization of intangibles, cost of severance, goodwill impairment, Swiss pension plan curtailment and U.S. pension plan termination, and related tax effects from expenses, debt extinguishment, and settlement of Israel tax assessment from income tax expense.

 
 
 

About Kulicke & Soffa

Kulicke & Soffa (NASDAQ: KLIC) is a global leader in the design and manufacture of semiconductor assembly equipment. As one of the pioneers of the 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 bonding, wedge bonding 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 devices. (www.kns.com)

Caution Concerning 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 continuing recovery in the semiconductor equipment industry, increased customer activity, capacity utilization in customer factories, growth of the LED ball bonder market and future revenue, demand for our products and product development. 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: difficult 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; the risk of failure to successfully integrate Orthodyne; the risk that anticipated customer orders may not materialize or that orders received may be postponed or canceled, generally without charges; the volatility in the demand for semiconductors and our products and services; the risk that we may not be able to develop and manufacture new products and product enhancements on a timely and cost effective basis; acts of terrorism and violence;  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;  and the factors listed or discussed in Kulicke and Soffa Industries, Inc. 2008 Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission. 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.

Contacts:

Geoff Grande, CFA
FD
P: (617) 747 1721
F:  (617) 897 1511
geoff.grande@fd.com

Tom Johnson
Director – Investor Relations & Corporate Communications
Kulicke & Soffa
P: (215) 784-6411
F: (215) 784-6167
tjohnson@kns.com

#   #   #

 
 
 
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share and employee data)
(Unaudited)

   
Three months ended
    
Nine months ended
  
   
June 28,
    
June 27,
    
June 28,
    
June 27,
  
   
2008
    
2009
    
2008
    
2009
  
                         
Net revenue
   $ 72,507     $ 52,076     $ 266,820     $ 114,724  
                                 
Cost of sales
     42,805       32,407       157,893       73,082  
                                 
Gross profit
     29,702       19,669       108,927       41,642  
                                 
Selling, general and administrative
     22,180       21,887       67,052       79,575  
Research and development
     15,012       12,264       45,234       40,922  
Impairment of goodwill
     -       -       -       2,709  
U.S. pension plan termination
     -       -       9,152       -  
                                 
Total operating expenses
     37,192       34,151       121,438       123,206  
                                 
Loss from operations
     (7,490 )     (14,482 )     (12,511 )     (81,564 )
                                 
Interest income
     968       75       3,728       1,022  
Interest expense
     (850 )     (607 )     (2,607 )     (1,981 )
Gain on extinguishment of debt
     -       -       170       3,965  
Loss from continuing operations before income taxes
     (7,372 )     (15,014 )     (11,220 )     (78,558 )
                                 
Benefit for income taxes
     (2,629 )     (1,156 )     (2,618 )     (13,314 )
                                 
Loss from continuing operations
     (4,743 )     (13,858 )     (8,602 )     (65,244 )
                                 
Income from discontinued operations, net of tax
     2,946       -       17,033       22,727  
                                 
Net income (loss)
   $ (1,797 )   $ (13,858 )   $ 8,431     $ (42,517 )
                                 
Loss per share from continuing operations:
                                
Basic
   $ (0.09 )   $ (0.23 )   $ (0.16 )   $ (1.07 )
Diluted
   $ (0.09 )   $ (0.23 )   $ (0.16 )   $ (1.07 )
                                 
Income from share of discontinued operations:
                                
Basic
   $ 0.06     $ -     $ 0.32     $ 0.37  
Diluted
   $ 0.06     $ -     $ 0.32     $ 0.37  
                                 
Net income (loss) per share:
                                
Basic
   $ (0.03 )   $ (0.23 )   $ 0.16     $ (0.70 )
Diluted
   $ (0.03 )   $ (0.23 )   $ 0.16     $ (0.70 )
                                 
Weighted average shares outstanding:
                                
Basic
     53,528       61,220       53,392       60,908  
Diluted
     53,528       61,220       53,392       60,908  
                                 
Equity-based compensation expense included in continuing operations:
                                
Cost of sales
   $ 58     $ 40     $ 187     $ 39  
Selling, general and administrative
     884       499       3,198       248  
Research and development
     234       237       1,250       475  
Total
   $ 1,176     $ 776     $ 4,635     $ 762  

   
Three months ended
    
Nine months ended
  
   
June 28,
    
June 27,
    
June 28,
  
June 27,
  
Additional financial data:
  
2008
    
2009
    
2008
    
2009
  
                         
Depreciation and amortization
                        
Continuing operations
   $ 2,155     $ 5,137     $ 6,744     $ 16,372  
Discontinued operations
   $ 255     $ -     $ 727     $ -  
                                 
Capital expenditures
                                
Continuing operations
   $ 1,620     $ 1,053     $ 6,306     $ 4,399  
Discontinued operations
   $ -     $ -     $ 119     $ -  
                                 
                   
June28,
  
June27,
  
                   
2008
    
2009
  
                                 
Backlog of orders
                                
Continuing operations
                   $ 62,000     $ 38,000  
Discontinued operations
                   $ 22,000     $ -  
                                 
Number of employees
                                
Continuing operations
                     2,490       2,144  
Discontinued operations
                     253       -  

Note – 
Statements of operations and additional financial data reflect accounting for the sale of the company's Wire business as a discontinued operation in accordance with the requirements of FAS 144.

 
 
 

KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)

         
(Unaudited)
  
   
September 27,
    
June 27,
  
   
2008
    
2009
  
ASSETS
            
             
CURRENT ASSETS
            
Cash and cash equivalents
   $ 144,932     $ 114,687  
Restricted cash
     35,000       281  
Short-term investments
     6,149       2,317  
Accounts and notes receivable, net of allowance for doubtful accounts of $1,376 and $1,784 respectively
     56,643       50,542  
Inventories, net
     27,236       42,103  
Prepaid expenses and other current assets
     18,729       10,508  
Deferred income taxes
     2,118       1,162  
Current assets of discontinued operations
     127,958       -  
                 
TOTAL CURRENT ASSETS
     418,765       221,600  
                 
Property, plant and equipment, net
     36,900       38,250  
Intangible assets
     386       51,647  
Goodwill
     2,709       26,698  
Other assets
     5,468       5,767  
Non-current assets of discontinued operations
     32,909       -  
                 
TOTAL ASSETS
   $ 497,137     $ 343,962  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                
                 
CURRENT LIABILITIES
                
Current portion of long term debt
   $ 72,412     $ -  
Accounts payable
     25,028       20,682  
Accrued expenses and other current liabilities
     27,255       30,689  
Income taxes payable
     569       586  
Current liabilities of discontinued operations
     34,411       -  
                 
TOTAL CURRENT LIABILITIES
     159,675       51,957  
                 
Long term debt
     175,000       158,964  
Other liabilities
     37,780       10,666  
Deferred income taxes
     21,591       15,319  
Other liabilities of discontinued operations
     624       -  
                 
TOTAL LIABILITIES
     394,670       236,906  
                 
SHAREHOLDERS' EQUITY
                
Common stock, no par value
     295,841       343,534  
Treasury stock, at cost
     (46,118 )     (46,118 )
Accumulated deficit
     (149,465 )     (191,982 )
Accumulated other comprehensive income
     2,209       1,622  
                 
TOTAL SHAREHOLDERS' EQUITY
     102,467       107,056  
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
   $ 497,137     $ 343,962  
 
 
 
 

KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

   
Three months ended
    
Nine months ended
  
   
June 28, 2008
    
June 27, 2009
    
June 28, 2008
    
June 27, 2009
  
                         
Net cash provided by (used in) continuing operations
   $ 6,961     $ (11,412 )   $ 24,936     $ (41,245 )
Net cash provided by (used in) discontinued operations
     5,964       (481 )     (1,893 )     (1,699 )
Net cash provided by (used in) operating activities
   $ 12,925     $ (11,893 )   $ 23,043     $ (42,944 )
                                 
Net cash used in investing activities
     (737 )     (1,005 )     (5,444 )     (52,894 )
Net cash provided by (used in) investing activities, discontinued operations
     (53 )     -       (156 )     149,857  
Net cash provided by (used in) investing activities
   $ (790 )   $ (1,005 )   $ (5,600 )   $ 96,963  
                                 
Net cash provided by (used in) financing activities
     225       51       (3,287 )     (84,304 )
Effect of exchange rate changes on cash and cash equivalents
     89       (73 )     (531 )     40  
Changes in cash and cash equivalents
   $ 12,449     $ (12,920 )   $ 13,625     $ (30,245 )
Cash and cash equivalents, beginning of period
     151,747       127,607       150,571       144,932  
Cash and cash equivalents, end of period
   $ 164,196     $ 114,687     $ 164,196     $ 114,687  
                                 
Short-term investments
     8,560       2,317       8,560       2,317  
Restricted cash
     10,000       281       10,000       281  
Total Cash, cash equivalents, restricted cash and short-term investments
   $ 182,756     $ 117,285     $ 182,756     $ 117,285  
 
 
 
 

KULICKE & SOFFA INDUSTRIES, INC.
OPERATING RESULTS BY BUSINESS SEGMENT
(In thousands)
(Unaudited)

Fiscal 2009:

         
Expendable
        
   
Equipment
    
Tools
        
   
Segment
    
Segment
    
Consolidated
  
Three months ended June 27, 2009
                        
                         
Net revenue
   $ 37,544     $ 14,532     $ 52,076  
Cost of sales
     25,612       6,795       32,407  
Gross profit
     11,932       7,737       19,669  
Operating expenses
     28,793       5,358       34,151  
Income (loss) from continuing operations
   $ (16,861 )   $ 2,379     $ (14,482 )
                         
Nine months ended June 27, 2009
                        
                         
Net revenue
   $ 78,180     $ 36,544     $ 114,724  
Cost of sales
     54,833       18,249       73,082  
Gross profit
     23,347       18,295       41,642  
Operating expenses
     102,507       17,990       120,497  
Impairment of goodwill
     2,709       -       2,709  
Income (loss) from continuing operations
   $ (81,869 )   $ 305     $ (81,564 )

Fiscal 2008:

         
Expendable
        
   
Equipment
    
Tools
        
   
Segment
    
Segment
    
Consolidated
  
Three months ended June 28, 2008
                  
                   
Net revenue
   $ 59,043     $ 13,464     $ 72,507  
Cost of sales
     35,954       6,851       42,805  
Gross profit
     23,089       6,613       29,702  
Operating expenses
     30,308       6,884       37,192  
Loss from continuing operations
   $ (7,219 )   $ (271 )   $ (7,490 )
                         
Nine months ended June 28, 2008
                        
                         
Net revenue
   $ 224,061     $ 42,759     $ 266,820  
Cost of sales
     136,550       21,343       157,893  
Gross profit
     87,511       21,416       108,927  
Operating expenses
     91,068       21,218       112,286  
U.S. pension plan termination
     9,152       -       9,152  
Income (loss) from continuing operations
   $ (12,709 )   $ 198     $ (12,511 )
 
 
 
 
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS - SUMMARY
COMPARISON OF GAAP RESULTS TO NON-GAAP MEASURES
(In thousands, except share amounts)
(Unaudited)

   
Three months ended
    
Three months ended
    
Nine months ended
    
Nine months ended
  
   
June 28,
    
June 27,
    
June 28,
    
June 27,
  
   
2008
    
2009
    
2008
    
2009
  
                         
   
(GAAP results)
  
                         
Net revenue
   $ 72,507     $ 52,076     $ 266,820     $ 114,724  
Gross profit
     29,702       19,669       108,927       41,642  
Loss from operations
     (7,490 )     (14,482 )     (12,511 )     (81,564 )
Net loss from continuing operations
     (4,743 )     (13,858 )     (8,602 )     (65,244 )
                                 
Weighted average shares outstanding, continuing operations
                                
    Basic
     53,528       61,220       53,392       60,908  
    Diluted
     53,528       61,220       53,392       60,908  
                                 
Net loss per share from continuing operations
                                
    Basic
   $ (0.09 )   $ (0.23 )     (0.16 )   $ (1.07 )
    Diluted
   $ (0.09 )   $ (0.23 )     (0.16 )   $ (1.07 )
                                 
   
(Non-GAAP measures)
  
                                 
Net revenue
   $ 72,507     $ 52,076     $ 266,820     $ 114,724  
Gross profit
     29,760       19,709       109,114       41,681  
Income (loss) from operations
     (6,275 )     (11,802 )     1,421       (59,286 )
Net income (loss) from continuing operations
     (3,961 )     (12,244 )     700       (60,287 )
                                 
Weighted average shares outstanding, continuing operations
                                
    Basic
     53,528       61,220       53,392       60,908  
    Diluted
     53,528       61,220       62,297       60,908  
                                 
Net income (loss) per share from continuing operations
                                
    Basic
   $ (0.07 )   $ (0.20 )   $ 0.01     $ (0.99 )
    Diluted
   $ (0.07 )   $ (0.20 )   $ 0.02     $ (0.99 )
 
 
 
 

KULICKE & SOFFA INDUSTRIES, INC.
OPERATING RESULTS BY BUSINESS SEGMENT - SUMMARY
COMPARISON OF GAAP RESULTS TO NON-GAAP MEASURES
(In thousands)
(Unaudited)

         
Expendable
        
   
Equipment
    
Tools
        
   
Segment
    
Segment
    
Consolidated
  
                   
Fiscal 2009:
                  
                   
Three months ended June 27, 2009
                  
   
(GAAP results)
  
                   
Net revenue
   $ 37,544     $ 14,532     $ 52,076  
Gross profit
     11,932       7,737       19,669  
Income (loss) from operations
     (16,861 )     2,379       (14,482 )
                         
   
(Non-GAAP measures)
  
                         
Net revenue
   $ 37,544     $ 14,532     $ 52,076  
Gross profit
     11,962       7,747       19,709  
Income (loss) from operations
     (15,686 )     3,884       (11,802 )
                         
Nine months ended June 27, 2009
                        
   
(GAAP results)
  
                         
Net revenue
   $ 78,180     $ 36,544     $ 114,724  
Gross profit
     23,347       18,295       41,642  
Income (loss) from operations
     (81,869 )     305       (81,564 )
                         
   
(Non-GAAP measures)
  
                         
Net revenue
   $ 78,180     $ 36,544     $ 114,724  
Gross profit
     23,412       18,269       41,681  
Income (loss) from operations
     (66,378 )     7,092       (59,286 )
                         
Fiscal 2008:
                        
                         
Three months ended June 28, 2008
                        
   
(GAAP results)
  
                         
Net revenue
   $ 59,043     $ 13,464     $ 72,507  
Gross profit
     23,089       6,613       29,702  
Loss from operations
     (7,219 )     (271 )     (7,490 )
                         
   
(Non-GAAP measures)
  
                         
Net revenue
   $ 59,043     $ 13,464     $ 72,507  
Gross profit
     23,121       6,639       29,760  
Income (loss) from operations
     (6,307 )     32       (6,275 )
                         
Nine months ended June 28, 2008
                        
   
(GAAP results)
  
                         
Net revenue
   $ 224,061     $ 42,759     $ 266,820  
Gross profit
     87,511       21,416       108,927  
Income (loss) from operations
     (12,709 )     198       (12,511 )
                         
   
(Non-GAAP measures)
  
                         
Net revenue
   $ 224,061     $ 42,759     $ 266,820  
Gross profit
     87,614       21,500       109,114  
Income from operations
     157       1,264       1,421  

 
 
 

KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
RECONCILIATION OF GAAP RESULTS TO NON-GAAP MEASURES
(In thousands, except share amounts)
(Unaudited)

   
Three months ended
          
Three months ended
          
Nine months ended
          
Nine months ended
        
   
June 28,
    
% of
    
June 27,
    
% of
    
June 28,
    
% of
    
June 27,
    
% of
  
   
2008
    
Revenue
    
2009
    
Revenue
    
2008
    
Revenue
    
2009
    
Revenue
  
                                                 
Net revenue (GAAP results)
   $ 72,507           $ 52,076           $ 266,820           $ 114,724        
Net revenue (Non-GAAP measures)
     72,507             52,076             266,820             114,724        
                                                         
Gross profit (GAAP results)
     29,702       41.0 %     19,669       37.8 %     108,927       40.8 %     41,642       36.3 %
-  Equity-based compensation expense
     58               40               187               39          
Gross profit (Non-GAAP measures)
     29,760       41.0 %     19,709       37.8 %     109,114       40.9 %     41,681       36.3 %
                                                                 
Loss from operations (GAAP results)
     (7,490 )     -10.3 %     (14,482 )     -27.8 %     (12,511 )     -4.7 %     (81,564 )     -71.1 %
-  Equity-based compensation expense
     1,176               776               4,635               762          
- Severance plan
     -               567               -               7,122          
- Impairment of goodwill
     -               -               -               2,709          
- Facilities contractual commitments
     -               -               -               2,608          
- Pension plan curtailment
     -               (1,446 )             -               (1,446 )        
- Tax settlement expense
     -               -               -               2,212          
- U.S. pension plan termination
     -               -               9,152               -          
- Amortization of intangibles
     39               2,783               145               8,311          
Income (loss) from operations (Non-GAAP measures)
     (6,275 )     -8.7 %     (11,802 )     -22.7 %     1,421       0.5 %     (59,286 )     -51.7 %
                                                                 
Net loss (GAAP results)
     (4,743 )     -6.5 %     (13,858 )     -26.6 %     (8,602 )     -3.2 %     (65,244 )     -56.9 %
-  Equity-based compensation expense
     1,176               776               4,635               762          
- Severance plan
     -               567               -               7,122          
- Impairment of goodwill
     -               -               -               2,709          
- Facilities contractual commitments
     -               -               -               2,608          
- Pension plan curtailment
     -               (1,446 )             -               (1,446 )        
- Tax settlement expense
     -               -               -               2,212          
- U.S. pension plan termination
     -               -               9,152               -          
- Amortization of intangibles
     39               2,783               145               8,311          
- Gain on extinguishment of debt
     -               -               (170 )             (3,965 )        
- Tax settlement benefit
     -               -               -               (12,154 )        
- Other tax adjustments
     -               (1,047 )             -               (1,047 )        
- Tax effect of non-GAAP adjustments
     (433 )             (19 )             (4,460 )             (155 )        
Net income (loss) (Non-GAAP measures)
     (3,961 )     -5.5 %     (12,244 )     -23.5 %     700       0.3 %     (60,287 )     -52.5 %
                                                                 
Weighted average shares outstanding, continuing operations (GAAP & Non-GAAP)
                                                                
   Basic
     53,528               61,220               53,392               60,908          
  Diluted
     53,528               61,220               62,297               60,908          
                                                                 
Net loss per share from continuing operations (GAAP results)
                                                                
   Basic
   $ (0.09 )           $ (0.23 )           $ (0.16 )           $ (1.07 )        
   Diluted
   $ (0.09 )           $ (0.23 )           $ (0.16 )           $ (1.07 )        
                                                                 
Adjustments to net income per share
                                                                
   Basic
   $ 0.02             $ 0.03             $ 0.17             $ 0.08          
   Diluted
   $ 0.02             $ 0.03             $ 0.18             $ 0.08          
                                                                 
Net income (loss) per share from continuing operations (Non-GAAP measures)
                                                                
   Basic
   $ (0.07 )           $ (0.20 )           $ 0.01             $ (0.99 )        
   Diluted
   $ (0.07 )           $ (0.20 )           $ 0.02             $ (0.99 )        
 
 
 
 

KULICKE & SOFFA INDUSTRIES, INC.
OPERATING RESULTS BY BUSINESS SEGMENT
RECONCILIATION OF GAAP RESULTS TO NON-GAAP MEASURES
(In thousands)
(Unaudited)

               
Expendable
              
   
Equipment
    
% of
    
Tools
    
% of
        
   
Segment
    
Revenue
    
Segment
    
Revenue
    
Consolidated
  
                               
Fiscal 2009:
                              
                               
Three months ended June 27, 2009
                              
                               
Net revenue (GAAP results)
     37,544             14,532             52,076  
Net revenue (Non-GAAP measures)
     37,544             14,532             52,076  
                                     
Gross profit (GAAP results)
     11,932       31.8 %     7,737       53.2 %     19,669  
- Equity-based compensation expense
     30               10               40  
Gross profit (Non-GAAP measures)
     11,962       31.9 %     7,747       53.3 %     19,709  
                                         
Income (loss) from operations (GAAP results)
     (16,861 )     -44.9 %     2,379       16.4 %     (14,482 )
- Equity-based compensation expense
     588               188               776  
- Severance plan
     (93 )             660               567  
- Pension plan curtailment
     (1,446 )             -               (1,446 )
- Amortization of intangibles
     2,126               657               2,783  
Income (loss) from operations (Non-GAAP measures)
     (15,686 )     -41.8 %     3,884       26.7 %     (11,802 )
                                         
Nine months ended June 27, 2009
                                        
                                         
Net revenue (GAAP results)
     78,180               36,544               114,724  
Net revenue (Non-GAAP measures)
     78,180               36,544               114,724  
                                         
Gross profit (GAAP results)
     23,347       29.9 %     18,295       50.1 %     41,642  
- Equity-based compensation expense
     65               (26 )             39  
Gross profit (Non-GAAP measures)
     23,412       29.9 %     18,269       50.0 %     41,681  
                                         
Income (loss) from operations (GAAP results)
     (81,869 )     -104.7 %     305       0.8 %     (81,564 )
- Equity-based compensation expense
     682               80               762  
- Severance plan
     5,041               2,081               7,122  
- Impairment of goodwill
     2,709               -               2,709  
- Facilities contractual commitments
     2,165               443               2,608  
- Pension plan curtailment
     (1,446 )             -               (1,446 )
- Tax settlement expense
     -               2,212               2,212  
- Amortization of intangibles
     6,340               1,971               8,311  
Income (loss) from operations (Non-GAAP measures)
     (66,378 )     -84.9 %     7,092       19.4 %     (59,286 )
                                         
Fiscal 2008:
                                        
                                         
Three months ended June 28, 2008
                                        
                                         
Net revenue (GAAP results)
     59,043               13,464               72,507  
Net revenue (Non-GAAP measures)
     59,043               13,464               72,507  
                                         
Gross profit (GAAP results)
     23,089       39.1 %     6,613       49.1 %     29,702  
- Equity-based compensation expense
     32               26               58  
Gross profit (Non-GAAP measures)
     23,121       39.2 %     6,639       49.3 %     29,760  
                                         
Loss from operations (GAAP results)
     (7,219 )     -12.2 %     (271 )     -2.0 %     (7,490 )
- Equity-based compensation expense
     873               303               1,176  
- Amortization of intangibles
     39               -               39  
Income (loss) from operations (Non-GAAP measures)
     (6,307 )     -10.7 %     32       0.2 %     (6,275 )
                                         
Nine months ended June 28, 2008
                                        
                                         
Net revenue (GAAP results)
     224,061               42,759               266,820  
Net revenue (Non-GAAP measures)
     224,061               42,759               266,820  
                                         
Gross profit (GAAP results)
     87,511       39.1 %     21,416       50.1 %     108,927  
- Equity-based compensation expense
     103               84               187  
Gross profit (Non-GAAP measures)
     87,614       39.1 %     21,500       50.3 %     109,114  
                                         
Income (loss) from operations (GAAP results)
     (12,709 )     -5.7 %     198       0.5 %     (12,511 )
- Equity-based compensation expense
     3,569               1,066               4,635  
- U.S. pension plan termination
     9,152               -               9,152  
- Amortization of intangibles
     145               -               145  
Income from operations (Non-GAAP measures)
     157       0.1 %     1,264       3.0 %     1,421