SINGAPORE, Nov. 15,
2023 /PRNewswire/ -- Kulicke and Soffa Industries,
Inc. (NASDAQ: KLIC) ("Kulicke & Soffa," "K&S," "our," or
the "Company"), today announced the financial results of its fourth
fiscal quarter ended September 30, 2023. The Company reported
fourth quarter net revenue of $202.3
million and net income of $23.4
million, representing EPS of $0.41 per fully diluted shares, and non-GAAP net
income of $29.4 million, representing
non-GAAP EPS of $0.51 per fully
diluted share.
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Quarterly Results -
U.S. GAAP
|
|
Fiscal Q4
2023
|
Change
vs.
Fiscal Q4
2022
|
Change
vs.
Fiscal Q3
2023
|
Net Revenue
|
$202.3
million
|
down 29.3%
|
up 6%
|
Gross Margin
|
47.4 %
|
up 110 bps
|
up 20 bps
|
Operating
Margin
|
9.6 %
|
down 1400
bps
|
up 1200 bps
|
Net Income
|
$23.4
million
|
down 64%
|
up 461.3%
|
Net Margin
|
11.5 %
|
down 1120
bps
|
up 930 bps
|
EPS –
Diluted
|
$0.41
|
down 62.7%
|
up 485.7%
|
Quarterly Results -
Non-GAAP
|
|
Fiscal Q4
2023
|
Change
vs.
Fiscal Q4
2022
|
Change
vs.
Fiscal Q3
2023
|
Income from
Operations
|
$26.3
million
|
down 64.3%
|
up 8.2%
|
Operating
Margin
|
13.0 %
|
down 1270
bps
|
up 30 bps
|
Net Income
|
$29.4
million
|
down 58.1%
|
down 7.8%
|
Net Margin
|
14.5 %
|
down 1000
bps
|
down 220 bps
|
EPS -
Diluted
|
$0.51
|
down 57.1%
|
down 7.3%
|
A reconciliation of
the GAAP and non-GAAP adjusted results is provided in the financial
tables included in this release. See
also "Use of non-GAAP Financial Results"
section.
|
Fusen Chen, Kulicke & Soffa's
President and Chief Executive Officer, stated, "The General
Semiconductor and LED end markets have shown clear improvements in
the September quarter. As we execute on a broad range of
technology-driven initiatives throughout 2024, we expect industry
conditions, and also unique K&S opportunities, to
strengthen."
Kulicke & Soffa's broadening portfolio of solutions are
becoming increasingly technology driven due to a growing industry
need for more capable semiconductor and display solutions.
Fiscal Year 2023 Financial Highlights
- Net revenue of $742.5
million.
- Gross margin of 48.3%.
- Net income of $57.1 million or
$0.99 per fully diluted share;
non-GAAP net income of $105.0 million
or $1.82 per fully diluted
share.
- GAAP cash from operations of $173.4
million; Adjusted free cash flow of $129.6 million.
- The Company repurchased a total of 1.5 million shares of common
stock at a cost of $68.1
million.
- Cash, cash equivalents, and short-term investments were
$759.4 million as of September 30, 2023.
Fourth Quarter Fiscal 2023 Financial Highlights
- Net revenue of $202.3
million.
- Gross margin of 47.4%.
- Net income of $23.4 million or
$0.41 per fully diluted share;
non-GAAP net income of $29.4 million
or $0.51 per fully diluted
share.
- GAAP cash from operations of $77.5
million; Adjusted free cash flow of $68.5 million.
- The Company repurchased a total of 0.2 million shares of common
stock at a cost of $9.2 million.
First Quarter Fiscal 2024 Outlook
While broader cyclical improvements have benefited the
utilization rates and demand for Ball Bonding systems, near-term
headwinds persist in memory and automotive markets. The Company
currently expects net revenue in the first fiscal quarter of 2024,
ending December 30, 2023, to be
approximately $170.0 million, +/-
$10 million, GAAP diluted EPS to be
approximately $0.15 +/- 10%, and
non-GAAP diluted EPS to be approximately $0.25, +/- 10%.
Management anticipates demand to sequentially improve in the
second fiscal quarter 2024 followed by broader demand improvements
in the second fiscal half due to both strengthening industry
conditions and ongoing execution of several K&S-specific
opportunities.
Earnings Conference Call Details
A conference call to discuss these results will be held
tomorrow, November 16, 2023, beginning at 8:00am EST. To
access the conference call, interested parties may call
+1-877-407-8037 or internationally +1-201-689-8037. A live webcast
and supplemental earnings presentation will also be available
at investor.kns.com.
A replay will be available from approximately one hour after the
completion of the call through November 23, 2023 by calling
toll-free +1-877-660-6853 or internationally +1-201-612-7415 and
using the replay ID number of 13734623. A webcast replay will also
be available at investor.kns.com.
Use of Non-GAAP Financial Results
In addition to U.S. GAAP results, this press release also
contains the following non-GAAP financial results: income from
operations, operating margin, net income, net margin, net income
per fully diluted share and adjusted free cash flow. The Company's
non-GAAP results exclude amortization related to intangible assets
acquired through business combinations, costs associated with
restructuring and severance, equity-based compensation, acquisition
and integration cost, impairment relating to assets acquired
through business combinations, impairment relating to equity
investments, income tax expense arising from discrete tax items
triggered by acquisition, restructuring and significant changes in
tax laws, gain/loss on disposal of business, as well as tax
benefits or expenses associated with the foregoing non-GAAP items.
The non-GAAP adjustments may or may not be infrequent or
nonrecurring in nature, but are a result of periodic or non-core
operating activities. These non-GAAP measures are consistent with
the way management analyzes and assesses the Company's operating
results. The Company believes these non-GAAP measures enhance
investors' understanding of the Company's underlying operational
performance, as well as their ability to compare the Company's
period-to-period financial results and the Company's overall
performance to that of its competitors.
Management uses both U.S. GAAP metrics as well as non-GAAP
metrics to evaluate the Company's operating and financial results.
Non-GAAP financial measures may not provide information that is
directly comparable to that provided by other companies in the
Company's industry, as other companies in the industry may
calculate non-GAAP financial results differently. In addition,
there are limitations in using non-GAAP financial measures because
the non-GAAP financial measures are not prepared in accordance with
GAAP, may be different from non-GAAP financial measures used by
other companies and exclude expenses that may have a material
impact on the Company's reported financial results. The
presentation of non-GAAP items is meant to supplement, but not
substitute for, GAAP financial measures or information. The Company
believes the presentation of non-GAAP results in combination with
GAAP results provides better transparency to the investment
community when analyzing business trends, providing meaningful
comparisons with prior period performance and enhancing investors'
ability to view the Company's results from management's
perspective. A reconciliation of each available GAAP to non-GAAP
financial measure discussed in this press release is contained in
the financial tables at the end of this press release.
Management has not reconciled its outlook for non-GAAP diluted
EPS to diluted EPS for Q1, FY 2024 as it does not provide guidance
on the reconciling items between diluted EPS and non-GAAP diluted
EPS, as a result of the uncertainty regarding, and the potential
variability of, these items. The actual amount of such reconciling
items could have a significant impact on our non-GAAP diluted EPS
and, accordingly, a reconciliation of diluted EPS to non-GAAP
diluted EPS for Q1, FY 2024 is not available without unreasonable
effort.
About Kulicke & Soffa
Founded in 1951, Kulicke & Soffa specializes in
developing cutting-edge semiconductor and electronics assembly
solutions enabling a smart and more sustainable future. Our
ever-growing range of products and services supports growth and
facilitates technology transitions across large-scale markets, such
as advanced display, automotive, communications, compute, consumer,
data storage, energy storage and industrial.
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. While these forward-looking statements represent our
judgments and future expectations concerning our business,
including the importance and competitiveness of our advanced
display products and other emerging technology transitions, 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
persistent macroeconomic headwinds on our business, our ability to
develop, manufacture and gain market acceptance of new products,
and the other factors listed or discussed in our Annual Report on
Form 10-K for the fiscal year ended October
1, 2022, filed on November 17,
2022, and amended on August 8,
2023, 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.
Contacts:
Kulicke and Soffa Industries, Inc.
Joseph Elgindy
Finance
P: +1-215-784-7518
KULICKE AND SOFFA INDUSTRIES,
INC.
CONSOLIDATED
CONDENSED STATEMENTS OF OPERATIONS
(In thousands,
except per share and employee data)
(Unaudited)
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
September 30,
2023
|
|
October 1,
2022
|
|
September 30,
2023
|
|
October 1,
2022
|
Net revenue
|
$
202,320
|
|
$
286,313
|
|
$
742,491
|
|
$
1,503,620
|
Cost of
sales
|
106,481
|
|
153,626
|
|
383,836
|
|
755,300
|
Gross profit
|
95,839
|
|
132,687
|
|
358,655
|
|
748,320
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
37,380
|
|
31,275
|
|
145,493
|
|
134,869
|
Research and
development
|
37,616
|
|
32,356
|
|
144,701
|
|
136,852
|
Impairment
charges
|
—
|
|
—
|
|
21,535
|
|
1,346
|
Acquisition-related
cost
|
13
|
|
118
|
|
511
|
|
118
|
Amortization of
intangible assets
|
1,356
|
|
1,374
|
|
6,099
|
|
4,917
|
Restructuring
|
—
|
|
20
|
|
879
|
|
146
|
Total
operating expenses
|
76,365
|
|
65,143
|
|
319,218
|
|
278,248
|
Income from
operations
|
19,474
|
|
67,544
|
|
39,437
|
|
470,072
|
Other income /
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
9,500
|
|
4,025
|
|
32,906
|
|
7,124
|
Interest
expense
|
(26)
|
|
(35)
|
|
(142)
|
|
(208)
|
Income before income
taxes
|
28,948
|
|
71,534
|
|
72,201
|
|
476,988
|
Income tax
expense
|
5,591
|
|
6,630
|
|
15,053
|
|
43,443
|
Net
income
|
$
23,357
|
|
$
64,904
|
|
$
57,148
|
|
$
433,545
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
Basic
|
$
0.41
|
|
$
1.12
|
|
$
1.01
|
|
$
7.21
|
Diluted
|
$
0.41
|
|
$
1.10
|
|
$
0.99
|
|
$
7.09
|
|
|
|
|
|
|
|
|
Cash dividends declared
per share
|
$
0.19
|
|
$
0.17
|
|
$
0.76
|
|
$
0.68
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
56,442
|
|
57,804
|
|
56,682
|
|
60,164
|
Diluted
|
57,408
|
|
58,816
|
|
57,548
|
|
61,182
|
|
Three months
ended
|
|
Twelve months
ended
|
Supplemental
financial data:
|
September 30,
2023
|
|
October 1,
2022
|
|
September 30,
2023
|
|
October 1,
2022
|
Depreciation and
amortization
|
$
8,111
|
|
$
5,520
|
|
$
28,857
|
|
$
21,293
|
Capital
expenditures
|
4,217
|
|
21,020
|
|
47,702
|
|
32,233
|
Equity-based
compensation expense:
|
|
|
|
|
|
|
|
Cost of
sales
|
289
|
|
233
|
|
1,192
|
|
960
|
Selling, general and
administrative
|
3,841
|
|
3,426
|
|
16,239
|
|
13,911
|
Research and
development
|
1,311
|
|
854
|
|
5,313
|
|
4,115
|
Total
equity-based compensation expense
|
$
5,441
|
|
$
4,513
|
|
$
22,744
|
|
$
18,986
|
|
As of
|
|
September 30,
2023
|
|
October 1,
2022
|
Number of
employees
|
3,025
|
|
3,167
|
KULICKE AND SOFFA
INDUSTRIES, INC.
CONSOLIDATED
CONDENSED BALANCE SHEETS
(In
thousands)
(Unaudited)
|
|
|
As of
|
|
September 30,
2023
|
|
October 1,
2022
|
ASSETS
|
CURRENT
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
529,402
|
|
$
555,537
|
Short-term
investments
|
230,000
|
|
220,000
|
Accounts and notes
receivable, net of allowance for doubtful accounts of $49
and $0 respectively
|
158,601
|
|
309,323
|
Inventories,
net
|
217,304
|
|
184,986
|
Prepaid expenses and
other current assets
|
53,751
|
|
62,200
|
TOTAL CURRENT
ASSETS
|
1,189,058
|
|
1,332,046
|
|
|
|
|
Property, plant and
equipment, net
|
110,051
|
|
80,908
|
Operating right-of-use
assets
|
47,148
|
|
41,767
|
Goodwill
|
88,673
|
|
68,096
|
Intangible assets,
net
|
29,357
|
|
31,939
|
Deferred tax
assets
|
31,551
|
|
25,572
|
Equity
investments
|
716
|
|
5,397
|
Other assets
|
3,223
|
|
2,874
|
TOTAL
ASSETS
|
$
1,499,777
|
|
$
1,588,599
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
CURRENT
LIABILITIES
|
|
|
|
Accounts
payable
|
49,302
|
|
67,311
|
Operating lease
liabilities
|
6,574
|
|
6,766
|
Accrued expenses and
other current liabilities
|
103,005
|
|
134,541
|
Income taxes
payable
|
22,670
|
|
40,063
|
TOTAL CURRENT
LIABILITIES
|
181,551
|
|
248,681
|
|
|
|
|
Deferred tax
liabilities
|
37,264
|
|
34,037
|
Income taxes
payable
|
52,793
|
|
64,634
|
Operating lease
liabilities
|
41,839
|
|
34,927
|
Other
liabilities
|
11,769
|
|
11,670
|
TOTAL
LIABILITIES
|
$
325,216
|
|
$
393,949
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
Common stock, no par
value
|
577,727
|
|
561,684
|
Treasury stock, at
cost
|
(737,214)
|
|
(675,800)
|
Retained
earnings
|
1,355,810
|
|
1,341,666
|
Accumulated other
comprehensive loss
|
(21,762)
|
|
(32,900)
|
TOTAL SHAREHOLDERS'
EQUITY
|
$
1,174,561
|
|
$
1,194,650
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
$
1,499,777
|
|
$
1,588,599
|
KULICKE AND SOFFA
INDUSTRIES, INC.
CONSOLIDATED
CONDENSED STATEMENTS OF CASH FLOWS
(In
thousands)
(Unaudited)
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
September 30,
2023
|
|
October 1,
2022
|
|
September 30,
2023
|
|
October 1,
2022
|
Net cash provided by
operating activities
|
$
77,492
|
|
$
116,563
|
|
$
173,404
|
|
$
390,188
|
Net cash provided by /
(used in) investing activities,
continuing operations
|
70,386
|
|
67,457
|
|
(91,338)
|
|
133,799
|
Net cash used in
financing activities, continuing
operations
|
(19,518)
|
|
(70,286)
|
|
(111,876)
|
|
(321,191)
|
Effect of exchange rate
changes on cash and cash
equivalents
|
(764)
|
|
(3,978)
|
|
3,675
|
|
(10,047)
|
Changes in cash and
cash equivalents
|
127,596
|
|
109,756
|
|
(26,135)
|
|
192,749
|
Cash and cash
equivalents, beginning of period
|
401,806
|
|
445,781
|
|
555,537
|
|
362,788
|
Cash and cash
equivalents, end of period
|
$
529,402
|
|
$
555,537
|
|
$
529,402
|
|
$
555,537
|
|
|
|
|
|
|
|
|
Short-term
investments
|
230,000
|
|
220,000
|
|
230,000
|
|
220,000
|
Total cash, cash
equivalents, and short-term
investments
|
$
759,402
|
|
$
775,537
|
|
$
759,402
|
|
$
775,537
|
Reconciliation of
U.S. GAAP Income from Operating
to Non-GAAP Income
from Operation and Operating Margin
(In thousands,
except percentages)
(unaudited)
|
|
|
|
Three months
ended
|
|
|
September 30,
2023
|
|
October 1,
2022
|
|
July 1,
2023
|
Net revenue
|
|
$
202,320
|
|
$
286,313
|
|
$
190,917
|
U.S. GAAP income from
operations
|
|
19,474
|
|
67,544
|
|
(4,488)
|
U.S. GAAP operating
margin
|
|
9.6 %
|
|
23.6 %
|
|
(2.4) %
|
|
|
|
|
|
|
|
Pre-tax non-GAAP
items:
|
|
|
|
|
|
|
Amortization related to
intangible assets
|
|
$
1,356
|
|
$
1,374
|
|
1,786
|
Acquisition-related
costs
|
|
13
|
|
118
|
|
57
|
Equity-based
compensation
|
|
5,441
|
|
4,513
|
|
5,403
|
Restructuring
|
|
—
|
|
20
|
|
—
|
Impairment
charges
|
|
—
|
|
—
|
|
21,535
|
Non-GAAP income from
operations
|
|
$
26,284
|
|
$
73,569
|
|
$
24,293
|
Non-GAAP operating
margin
|
|
13.0 %
|
|
25.7 %
|
|
12.7 %
|
Reconciliation of
U.S. GAAP Net Income to Non-GAAP Net Income and
U.S. GAAP net income
per share to Non-GAAP net income per share
(in thousands,
except per share data)
(unaudited)
|
|
|
Twelve
months ended
|
|
Three months
ended
|
|
September 30,
2023
|
|
September 30,
2023
|
|
October 1,
2022
|
|
July
1, 2023
|
Net revenue
|
$ 742,491
|
|
$ 202,320
|
|
$ 286,313
|
|
$ 190,917
|
U.S. GAAP net
income
|
57,148
|
|
23,357
|
|
64,904
|
|
4,161
|
U.S. GAAP net
margin
|
7.7 %
|
|
11.5 %
|
|
22.7 %
|
|
2.2 %
|
|
|
|
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
Amortization related to
intangible assets
|
$
6,099
|
|
$
1,356
|
|
$
1,374
|
|
1,786
|
Restructuring
|
879
|
|
—
|
|
20
|
|
—
|
Acquisition-related
costs
|
511
|
|
13
|
|
118
|
|
57
|
Equity-based
compensation
|
22,744
|
|
5,441
|
|
4,513
|
|
5,403
|
Impairment
charges
|
21,535
|
|
—
|
|
—
|
|
21,535
|
Net income tax benefit
on non-GAAP items
|
(3,928)
|
|
(758)
|
|
(689)
|
|
(1,060)
|
Total non-GAAP
adjustments
|
47,840
|
|
6,052
|
|
5,336
|
|
27,721
|
Non-GAAP net
income
|
104,988
|
|
29,409
|
|
70,240
|
|
31,882
|
Non-GAAP net
margin
|
14.1 %
|
|
14.5 %
|
|
24.5 %
|
|
16.7 %
|
|
|
|
|
|
|
|
|
U.S. GAAP net income
per share:
|
|
|
|
|
|
|
|
Basic
|
1.01
|
|
0.41
|
|
1.12
|
|
0.07
|
Diluted(a)
|
0.99
|
|
0.41
|
|
1.10
|
|
0.07
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments
per share:(b)
|
|
|
|
|
|
|
|
Basic
|
0.84
|
|
0.11
|
|
0.10
|
|
0.49
|
Diluted
|
0.83
|
|
0.10
|
|
0.09
|
|
0.48
|
|
|
|
|
|
|
|
|
Non-GAAP net income per
share:
|
|
|
|
|
|
|
|
Basic
|
$
1.85
|
|
$
0.52
|
|
$
1.22
|
|
$
0.56
|
Diluted(c)
|
$
1.82
|
|
$
0.51
|
|
$
1.19
|
|
$
0.55
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
56,682
|
|
56,442
|
|
57,804
|
|
56,553
|
Diluted
|
57,548
|
|
57,408
|
|
58,816
|
|
57,519
|
|
|
|
|
|
|
|
|
(a)
|
GAAP diluted net
earnings per share reflects any dilutive effect of outstanding
restricted stock, but that effect is excluded when calculating GAAP
diluted net loss per share because it would be
anti-dilutive.
|
(b)
|
Non-GAAP adjustments
per share includes amortization related to intangible assets
acquired through business combinations, costs associated with
restructuring and severance, acquisition and integration cost,
equity-based compensation expenses, impairment relating to assets
acquired through business combinations, impairment relating to
equity investments, and income tax effects associated with the
foregoing non-GAAP items.
|
(c)
|
Non-GAAP diluted net
earnings per share reflects any dilutive effect of outstanding
restricted stock.
|
Reconciliation of
U.S. GAAP Cash provided by Operating Activities
to Non-GAAP Adjusted
Free Cash Flow
(In thousands,
except percentages)
(unaudited)
|
|
|
Twelve
months ended
|
|
Three months
ended
|
|
September 30,
2023
|
|
September 30,
2023
|
|
October 1,
2022
|
|
July 1,
2023
|
U.S. GAAP net cash
provided by operating activities
|
$
173,404
|
|
$
77,492
|
|
$
116,563
|
|
$
8,976
|
Expenditures for
property, plant and equipment
|
(44,406)
|
|
(9,281)
|
|
(12,605)
|
|
(10,610)
|
Proceeds from sales of
property, plant and equipment
|
591
|
|
273
|
|
62
|
|
83
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted free
cash flow
|
129,589
|
|
68,484
|
|
104,020
|
|
(1,551)
|
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SOURCE Kulicke & Soffa Industries, Inc.