SOURCE: Kulicke & Soffa

February 02, 2007 16:55 ET

/ CORRECTION - Kulicke & Soffa

FORT WASHINGTON, PA -- (MARKET WIRE) -- February 2, 2007 -- In the news release, "Kulicke & Soffa Reports Results for Its First Fiscal Quarter; Earnings of $0.08 per Diluted Share," issued Thursday, January 25, 2007 by Kulicke & Soffa Industries, Inc. (NASDAQ: KLIC), we are advised by the company that there are corrections to the financial results for its quarter ended December 30, 2006 ("first quarter") presented in its earnings press release and conference call on January 25, 2007. Corrected text follows.

Kulicke & Soffa Corrects First Quarter Financial Results

Kulicke & Soffa Industries, Inc. (NASDAQ: KLIC) today announced corrections to the financial results for its quarter ended December 30, 2006 ("first quarter") presented in its earnings press release and conference call on January 25, 2007. The Company made an error in calculating stock-based compensation expense included in continuing operations for the Company's first quarter. The Company failed to immediately expense all stock options granted in the first quarter to retirement eligible employees. The correction increases this non-cash compensation expense in the first quarter and decreases the expense amount over subsequent quarters.

The following table summarizes the changes to the first quarter amounts presented in the January 25, 2007 press release:

                                         Previously Presented    Corrected
   Stock-based compensation expense
   included in continuing operations            $1,179             $2,066

   Net Income                                   $4,926             $4,173

   Net Income per share:
           Basic                                $ 0.09             $ 0.07
           Diluted                              $ 0.08             $ 0.06

On January 25, 2007, the Company held its regularly scheduled conference call to discuss the financial results for the first quarter. On that call, management stated that return on invested capital ("ROIC") for the first fiscal quarter was 11.6%. As a result of the corrected data discussed above, ROIC was 10.3% for the first quarter.

The corrected financial tables for the first quarter, the definition of ROIC used by the Company, and the reconciliation of ROIC to the most comparable GAAP number are attached.

About Kulicke & Soffa

Kulicke & Soffa (NASDAQ: KLIC) is the world's leading supplier of semiconductor assembly equipment, materials, and technology. K&S provides wire bonders, capillaries, wire, die bonders, and die collets for all types of semiconductor packages using wire as the internal electrical interconnections. K&S is the only major supplier to the semiconductor assembly industry that provides customers with semiconductor assembly equipment along with the complementing packaging materials and process technology that enable our customers to achieve the highest possible yields and throughput. The ability to provide these assembly related products is unique to Kulicke & Soffa, and allows us to develop system solutions to the new technology challenges inherent in assembling and packaging next-generation semiconductor devices. Kulicke & Soffa's web site address is http://www.kns.com.


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

                                             Three months ended
                                         December 31,    December 30,
                                         -------------   -------------
                                             2005            2006
                                         -------------   -------------

Net revenue                              $     204,632   $     152,308

Cost of sales                                  139,169         113,589
                                         -------------   -------------

Gross profit                                    65,463          38,719
                                         -------------   -------------

Selling, general and administrative             20,582          22,655
Research and development, net                    8,668          11,825
                                         -------------   -------------

Operating expense                               29,250          34,480
                                         -------------   -------------

Income from operations                          36,213           4,239

Interest income                                    712           1,457
Interest expense                                  (958)           (636)
                                         -------------   -------------
Income from continuing operations               35,967           5,060
  before income taxes

Provision for income taxes                       5,349             887
                                         -------------   -------------

Income from continuing operations               30,618           4,173
                                         -------------   -------------

Loss from discontinued operations               (5,317)              -

                                         -------------   -------------
Net income                               $      25,301   $       4,173
                                         =============   =============

Income per share from continuing
 operations:
    Basic                                $        0.59   $        0.07
                                         =============   =============
    Diluted                              $        0.45   $        0.06
                                         =============   =============

Loss per share from discontinued
 operations:
    Basic                                $       (0.10)  $           -
                                         =============   =============
    Diluted                              $       (0.07)  $           -
                                         =============   =============

Net income per share:
    Basic                                $        0.49   $        0.07
                                         =============   =============
    Diluted                              $        0.38   $        0.06
                                         =============   =============

Weighted average shares outstanding:
    Basic                                       52,044          57,301
    Diluted                                     68,239          69,456

Stock-based compensation expense
 included in continuing operations:
    Cost of sales                        $          98   $          67
    Selling, general and administrative            815           1,451
    Research and development, net                  240             548
                                         -------------   -------------
Total continuing operations              $       1,153   $       2,066
                                         =============   =============
     Discontinued operations             $         347   $           -
                                         =============   =============

                                               Three months ended
                                          December 31,    December 30,
                                         -------------   -------------
Additional financial data:                   2005            2006
                                         -------------   -------------

Depreciation and amortization
  Continuing operations                  $       2,809   $       2,305
  Discontinued operations                $       1,364   $           -

Capital expenditures
  Continuing operations                  $       2,360   $       1,100
  Discontinued operations                $         605   $           -

Backlog of orders
  Continuing operations                  $      66,000   $      56,000
  Discontinued operations                $       7,000   $           -

Number of employees
  Continuing operations                          2,580           2,700
  Discontinued operations                          932               -






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

                                                            (Unaudited)
                                           September 30,    December 30,
                                               2006            2006
                                           -------------   -------------
                              ASSETS

CURRENT ASSETS
Cash and cash equivalents                  $     133,967   $     127,898
Restricted cash                                    1,973               -
Short-term investments                            21,343          11,560
Accounts and notes receivable (less
 allowance for doubtful accounts: 9/30/06
 - $3,068; 12/30/06 - $3,579)                    120,651         123,118
Inventories, net                                  47,866          58,282
Current assets of discontinued operations          3,832               -
Prepaid expenses and other current assets         10,446          10,996
Deferred income taxes                              3,990           3,992
                                           -------------   -------------

  TOTAL CURRENT ASSETS                           344,068         335,846

Property, plant and equipment, net                28,487          39,271
Intangible assets, (net of accumulated
 amortization: 9/30/06 - $0; 12/30/06 - $0)             -             626
Goodwill                                          29,684          29,684
Other assets                                       3,262           4,657
                                           -------------   -------------

  TOTAL ASSETS                             $     405,501   $     410,084
                                           =============   =============

                  LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable                           $      42,881   $      37,484
Accrued expenses                                  32,970          32,374
Income taxes payable                              19,239          20,453
                                           -------------   -------------

  TOTAL CURRENT LIABILITIES                       95,090          90,311

Long term debt                                   195,000         195,000
Other liabilities                                 10,640          10,331
Deferred taxes                                    25,465          26,455
                                           -------------   -------------

  TOTAL LIABILITIES                              326,195         322,097
                                           -------------   -------------

Commitments and contingencies                          -               -

SHAREHOLDERS' EQUITY
Common stock, without par value                  277,194         280,518
Accumulated deficit                             (191,824)       (187,651)
Accumulated other comprehensive loss              (6,064)         (4,880)
                                           -------------   -------------

  TOTAL SHAREHOLDERS' EQUITY                      79,306          87,987
                                           -------------   -------------
  TOTAL LIABILITIES AND
      SHAREHOLDERS' EQUITY                 $     405,501   $     410,084
                                           =============   =============




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

Fiscal 2007:
                                                   Packaging
Three months ended                    Equipment    Materials
 December 30, 2006:                    Segment      Segment    Consolidated
                                     -----------  ------------ ------------

Net revenue                          $    58,166  $     94,142 $    152,308
Cost of sales                             33,176        80,413      113,589
                                     -----------  ------------ ------------
Gross profit                              24,990        13,729       38,719
Operating costs                           25,194         9,286       34,480
                                     -----------  ------------ ------------
Income from operations               $      (204) $      4,443 $      4,239
                                     ===========  ============ ============


Fiscal 2006:
                                                   Packaging
Three months ended                    Equipment    Materials
 December 30, 2005:                    Segment      Segment    Consolidated
                                     -----------  ------------ ------------

Net revenue                          $   120,672  $     83,960 $    204,632
Cost of sales                             68,695        70,474      139,169
                                     -----------  ------------ ------------
Gross profit                              51,977        13,486       65,463
Operating costs                           21,943         7,307       29,250
                                     -----------  ------------ ------------
Income from operations               $    30,034  $      6,179 $     36,213
                                     ===========  ============ ============




              Company's Return on Invested Capital Calculation
               (For the Three Months ending December 30, 2006)

We define Return On Invested Capital (ROIC) as Operating Income divided
by adjusted net Invested Capital. Total Assets are adjusted for
discontinued operations' assets held for sale. Net Invested Capital is
defined as Total Assets less Current Liabilities. We believe ROIC is a
useful measure in providing investors with information regarding our
performance. ROIC is a widely accepted measure of earnings efficiency in
relation to capital employed. We believe that increasing the return on
capital employed, as measured by ROIC, is an effective method to sustain
and increase shareholder value. Reconciliation to the most comparable
U.S. GAAP measurements are shown below.



                                   Adjustments
                                   -----------
($ 000)               As Reported  Depreciation/  Company's
                                   Amortization     ROIC

Operating Income from                                         Adjusted Net
 Continued Operations   $  4,239    $   2,305    $  6,544  Operating Income

                                                 $ 26,176(a)  Annualized
                                     Company
                                    Cash Limit(1)

Cash & Cash
Equivalents             $139,458    $ (64,458)   $ 75,000

Non-Cash Assets          270,626                  270,626

                        --------                 --------

Total Assets             410,084                  345,626

Total Current
 Liabilities              90,311                   90,311

                        --------                 --------

Net Invested
 Capital                $319,773                 $255,315(b)  Adjusted Net
                                                              Invested
                                                              Capital

                                                 10.3%(a)/(b) ROIC

(1) Only the first $75 million of cash is used for the ROIC
    calculation

Contact Information

  • Company Contact:
    Michael Sheaffer
    215-784-6411
    215-784-6167 fax
    Email Contact