EX-12 5 dex12.htm COMPUTATION OF RATIO Computation of Ratio

Exhibit 12

 

Kulicke and Soffa Industries, Inc.

Fixed Charge Coverage Ratio Calculation

Dollars in thousands

 

     Fiscal Year Ended September 30,
    

Nine Months

Ended

June 30,

2004

     1999
     2000
    2001
     2002
     2003
    

Interest expense, including amortization of debt issue costs

    $ 215     $ 7,699    $ 13,933     $ 18,687     $ 17,431     $ 9,052

Portion of rental expense deemed to represent interest

      1,072       1,075      2,302       3,881       3,724       1,934
    
 
  
 
 
 

Total Fixed Charges

    $ 1,287     $ 8,774    $ 16,235     $ 22,568     $ 21,155     $ 10,986
    
 
  
 
 
 

Earnings before fixed charges:

                                              

Income (loss) from continuing operations before income tax

    $ (13,001 )   $ 148,413    $ (77,547 )   $ (233,615 )   $ (46,402 )   $ 58,998

Equity in loss of joint ventures and minority interest

      837       1,221      (352 )     (10 )     —         —  

Fixed charges

      1,287       8,774      16,235       22,568       21,155       10,986
    
 
  
 
 
 

Total earnings (loss) before fixed charges

    $ (10,877 )   $ 158,408    $ (61,664 )   $ (211,057 )   $ (25,247 )   $ 69,984
    
 
  
 
 
 

Ratio of earnings to fixed charges (1)

      —         18      —         —         —         6
    
 
  
 
 
 

 

(1) We would have had to generate additional earnings of $12.2 million in 1999, $77.9 million in 2001, $233.6 million in 2002 and $46.4 million in 2003 to achieve a ratio of 1:1.