Form 8-K KULICKE & SOFFA INDUSTRI For: May 04
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________
FORM 8-K
____________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): May 4, 2016
____________________________________________________
KULICKE AND SOFFA INDUSTRIES, INC.
(Exact Name of Registrant as Specified in Charter)
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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) | |
Registrant’s telephone number, including area code: (215) 784-6000
N/A
(Former Name or Former Address, if Changed Since Last Report)
____________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ | 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)) |
Item 2.02 Results of Operations and Financial Condition.
On May 4, 2016, Kulicke and Soffa Industries, Inc. (the “Company”) issued a press release announcing its financial results for its second fiscal quarter ended April 2, 2016. A copy of this press release is furnished as Exhibit 99.1 to this report, and is incorporated by reference into this Item 2.02 as if fully set forth herein.
The information in this report, furnished under “Item 2.02 Results of Operations and Financial Condition,” shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits. |
Exhibit No. | Description |
99.1 | Press Release dated May 4, 2016 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
KULICKE AND SOFFA INDUSTRIES, INC. | |||
Date: May 4, 2016 | By: | /s/ Jonathan H. Chou | |
Name: | Jonathan H. Chou | ||
Title: | Interim Chief Executive Officer, Chief Financial Officer | ||
EXHIBIT INDEX
Exhibit No. | Description |
99.1 | Press Release dated May 4, 2016 |
Exhibit 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 | |
Kulicke & Soffa Reports Second Quarter 2016 Results
Singapore – May 4, 2016 – Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) (“Kulicke & Soffa”, “K&S” or the “Company”) today announced results for its second fiscal quarter ended April 2, 2016.
Quarterly Results | |||
Fiscal Q2 2016 | Change vs. Fiscal Q2 2015 | Change vs. Fiscal Q1 2016 | |
Net Revenue | $156.4 million | up 7.7% | up 44.1% |
Gross Profit | $69.6 million | up 1.6% | up 38.1% |
Gross Margin | 44.5% | down 270 bps | down 200 bps |
Income from Operations | $11.7 million | up 19.6% | up 786.7% |
Operating Margin | 7.5% | up 80 bps | up 910 bps |
Net Income | $5.1 million | down 35.8% | up 5692.3% |
Net Margin | 3.3% | down 220 bps | up 340 bps |
EPS – Diluted | $0.07 | down 30.0% | up 100% |
Jonathan Chou, Kulicke & Soffa's Interim Chief Executive Officer, Chief Financial Officer, stated, “This quarter's strong sequential revenue and operating income increases were driven by solid demand within our core offerings and also our advanced packaging mass reflow solutions. Our broad offerings continue to satisfy new capacity and capability requirements for our comprehensive base of customers."
During the March quarter, the Company incurred a total tax expense of $7.0 million. This quarterly tax expense included a discrete tax item of $4.4 million related to a settlement associated with a previous year. Net income of $5.1 million would have been $9.5 million without this discrete item.
Second Quarter Fiscal 2016 Key Product Trends
• | Ball bonder equipment net revenue increased 54.8% over the December quarter. |
• | Wedge bonder equipment net revenue increased by 11.6% over the December quarter. |
• | Advanced Packaging Mass Reflow equipment net revenue increased by 152.7% over the December quarter. |
Second Quarter Fiscal 2016 Financial Highlights
• | Net revenue of $156.4 million. |
• | Gross margin of 44.5%. |
• | Net income of $5.1 million or $0.07 per share. |
• | Cash and cash equivalents were $482.0 million as of April 2, 2016. |
• | 7.9 million shares had been repurchased since the stock repurchase program's August 2014 initiation, equivalent to 10.1% of weighted average shares outstanding at the program's inception. |
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Third Quarter Fiscal 2016 Outlook
The Company currently expects net revenue in the third fiscal quarter of 2016 ending July 2, 2016 to be approximately $195 million to $205 million.
Looking forward, Jonathan Chou commented, “Our broadening product offerings continues to be closely aligned with major industry trends which are driving capacity and capability requirements. As we have in the March quarter, we expect to continue benefiting from new System-In-Package demand requirements through the near term. In the longer-term we are well positioned to participate in growth associated with the Automotive, Industrial and Advanced Packaging segments."
Earnings Conference Call Details
A conference call to discuss these results will be held today, May 4, 2016, beginning at 8:00 am (EDT). 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 investor.kns.com.
A replay will be available from approximately one hour after the completion of the call through May 11, 2016 by calling toll-free +1-877-660-6853 or internationally +1-201-612-7415 and using the replay ID number of 13634930. A webcast replay will also be available at investor.kns.com.
About Kulicke & Soffa
Kulicke & Soffa (NASDAQ: KLIC) is a global leader in the design and manufacture of semiconductor, LED and electronic 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 and organic development, adding advanced packaging, advanced SMT, 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 and LED devices. (www.kns.com) The content of our website is not incorporated by reference herein.
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, replacement demand, our research and development efforts, our ability to control costs, and our ability to identify and realize new growth opportunities within segments, such as automotive and industrial as well as surrounding technology adoption such as system in package and advanced packaging techniques. 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; the risk that identified market opportunities may not grow or developed as we anticipated; 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. 2015 Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission. Kulicke and 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 & Strategic Initiatives | |
P: +1-215-784-7500 | |
P: +31-40-272-3016 | |
F: +1-215-784-6180 | |
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KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share and employee data)
(Unaudited)
Three months ended | Six months ended | |||||||||||||||
April 2, 2016 | March 28, 2015 | April 2, 2016 | March 28, 2015 | |||||||||||||
Net revenue | $ | 156,400 | $ | 145,227 | $ | 264,934 | $ | 252,665 | ||||||||
Cost of sales | 86,753 | 76,657 | 144,866 | 129,361 | ||||||||||||
Gross profit: | 69,647 | 68,570 | 120,068 | 123,304 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative | 33,788 | 32,891 | 58,152 | 56,989 | ||||||||||||
Research and development | 22,439 | 23,172 | 46,633 | 42,753 | ||||||||||||
Amortization of intangible assets | 1,665 | 2,757 | 3,331 | 4,086 | ||||||||||||
Restructuring | 46 | (41 | ) | 1,948 | (41 | ) | ||||||||||
Total operating expenses | 57,938 | 58,779 | 110,064 | 103,787 | ||||||||||||
Income from operations: | 11,709 | 9,791 | 10,004 | 19,517 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest income | 701 | 453 | 1,323 | 715 | ||||||||||||
Interest expense | (276 | ) | (316 | ) | (549 | ) | (619 | ) | ||||||||
Income from operations before income taxes | 12,134 | 9,928 | 10,778 | 19,613 | ||||||||||||
Income taxes expense | 7,045 | 1,997 | 5,780 | 3,840 | ||||||||||||
Net income | $ | 5,089 | $ | 7,931 | $ | 4,998 | $ | 15,773 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.07 | $ | 0.10 | $ | 0.07 | $ | 0.21 | ||||||||
Diluted | $ | 0.07 | $ | 0.10 | $ | 0.07 | $ | 0.20 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 70,389 | 76,821 | 70,563 | 76,855 | ||||||||||||
Diluted | 70,634 | 77,570 | 70,801 | 77,488 | ||||||||||||
Three months ended | Six months ended | |||||||||||||||
Supplemental financial data: | April 2, 2016 | March 28, 2015 | April 2, 2016 | March 28, 2015 | ||||||||||||
Depreciation and amortization | $ | 4,151 | $ | 5,007 | $ | 8,202 | $ | 8,563 | ||||||||
Capital expenditures | 1,522 | 1,191 | 2,916 | 3,444 | ||||||||||||
Equity-based compensation expense: | ||||||||||||||||
Cost of sales | 97 | 88 | 225 | 216 | ||||||||||||
Selling, general and administrative | 1,460 | 1,976 | 690 | 4,475 | ||||||||||||
Research and development | 416 | 517 | 1,120 | 1,325 | ||||||||||||
Total equity-based compensation expense | $ | 1,973 | $ | 2,581 | $ | 2,035 | $ | 6,016 | ||||||||
As of | ||||||||
April 2, 2016 | March 28, 2015 | |||||||
Backlog of orders 1 | $ | 130,549 | $ | 77,509 | ||||
Number of employees | 2,639 | 2,822 | ||||||
1. | Represents customer purchase commitments. While the Company believes these orders are firm, they are generally cancellable by customers without penalty. |
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KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
As of | ||||||||
April 2, 2016 | October 3, 2015 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 481,993 | $ | 498,614 | ||||
Accounts and other receivable, net of allowance for doubtful accounts of $366 and $621 respectively | 162,546 | 108,596 | ||||||
Inventories, net | 79,780 | 79,096 | ||||||
Prepaid expenses and other current assets | 16,463 | 16,937 | ||||||
Deferred income taxes | — | 4,126 | ||||||
TOTAL CURRENT ASSETS | 740,782 | 707,369 | ||||||
Property, plant and equipment, net | 51,312 | 53,234 | ||||||
Goodwill | 81,272 | 81,272 | ||||||
Intangible assets | 54,140 | 57,471 | ||||||
Other assets | 7,472 | 5,120 | ||||||
TOTAL ASSETS | $ | 934,978 | $ | 904,466 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 59,817 | $ | 25,521 | ||||
Accrued expenses and other current liabilities | 45,612 | 45,971 | ||||||
Income taxes payable | 10,272 | 2,442 | ||||||
TOTAL CURRENT LIABILITIES | 115,701 | 73,934 | ||||||
Financing obligation | 17,174 | 16,483 | ||||||
Deferred income taxes | 28,473 | 33,958 | ||||||
Other liabilities | 10,724 | 10,842 | ||||||
TOTAL LIABILITIES | 172,072 | 135,217 | ||||||
SHAREHOLDERS' EQUITY | ||||||||
Common stock, no par value | 494,022 | 492,339 | ||||||
Treasury stock, at cost | (139,407 | ) | (124,856 | ) | ||||
Retained earnings | 407,861 | 402,863 | ||||||
Accumulated other comprehensive income | 430 | (1,097 | ) | |||||
TOTAL SHAREHOLDERS' EQUITY | 762,906 | 769,249 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 934,978 | $ | 904,466 | ||||
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KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three months ended | Six months ended | |||||||||||||||
April 2, 2016 | March 28, 2015 | April 2, 2016 | March 28, 2015 | |||||||||||||
Net cash (used in) / provided by operating activities | $ | (8,673 | ) | $ | 2,118 | $ | (979 | ) | $ | 48,560 | ||||||
Net cash used in investing activities, continuing operations | (180 | ) | (86,381 | ) | (1,792 | ) | (90,557 | ) | ||||||||
Net cash used in financing activities, continuing operations | (1,668 | ) | (10,971 | ) | (14,093 | ) | (18,592 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (421 | ) | (210 | ) | 243 | (246 | ) | |||||||||
Changes in cash and cash equivalents | (10,942 | ) | (95,444 | ) | (16,621 | ) | (60,835 | ) | ||||||||
Cash and cash equivalents, beginning of period | 492,935 | 622,590 | 498,614 | 587,981 | ||||||||||||
Cash and cash equivalents, end of period | $ | 481,993 | $ | 527,146 | $ | 481,993 | $ | 527,146 | ||||||||
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