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Kulicke & Soffa Industries, Inc. Reports Results for Its First Quarter Fiscal 2011

^{Published on 2011-02-01 03:20:29 - Market Wire}
 

SINGAPORE--([ BUSINESS WIRE ])--Kulicke & Soffa Industries, Inc. (NASDAQ: KLIC) (aK&Sa or the aCompanya)today announced results for its first fiscal quarter ended January 1, 2011. All information included in this press release relates to GAAP results.

"We continue to see strong momentum in the gold to copper transition and have shipped initial volume orders of our newly introduced IConnPS ProCuTM machine. Given the proven productivity advantage of our ProCu machine we expect to see increased demand as we gain market share and benefit from replacement orders."

For its first quarter of fiscal 2011, the Company reported net revenue of $148.9 million and net income of $15.1 million, or $0.21 per diluted share.

Commenting on the results, Bruno Guilmart, President and Chief Executive Officer, said, aRevenue in the December quarter came in better than expected, with the sequential decline in ball bonder shipments significantly less than anticipated.

aWe continue to see strong momentum in the gold to copper transition and have shipped initial volume orders of our newly introduced IConn^PS ProCu^TM machine. Given the proven productivity advantage of our ProCu machine we expect to see increased demand as we gain market share and benefit from replacement orders.

aOur wedge bonder equipment line continued to perform very well, with revenue increasing 66% in the December quarter compared to the September quarter. The increase was driven primarily by higher sales from the power semiconductor market but also continued demand in the automotive and renewable energy markets. The higher volume shipments of wedge bonder equipment during the December quarter contributed to the higher overall gross margin for the company.a

Key Product Trends

• Ball bonder net revenue decreased 58.1% over the September quarter. This sequential decrease was predominantly driven by reduced OSAT customer demand.
• The first volume orders of the newly released IConn^PS ProCu wire bonder have been recognized in the December quarter.
• Sustained volumes of wedge bonder shipments are anticipated to continue through the March quarter.

Financial Highlights

• Net revenue decreased sequentially although less than anticipated, exceeding the high end of guidance.
• Gross margin increased 5.1% from the prior quarter to 48.4%.
• Operating margin was 14.8%.
• Net income was $15.1 million.
• Diluted EPS was $0.21.
• Operations generated $25.3 million of net cash.

Second Quarter Fiscal 2011 Outlook

The Company expects net revenue for the second quarter fiscal 2011 to be approximately $175 million to $195 million.

Looking forward, Bruno Guilmart, President and Chief Executive Officer, commented, aWe expect our ball bonder business to benefit from our technology leadership as customers continue to transition from gold to copper wire bonding, replacement demand and improving OSAT volumes as well as continued strength in our wedge bonder business.a

Earnings Conference Call Details

A conference call to discuss these results will be held today, February 1, 2011 beginning at 8:00 am (ET). To access the conference call, interested parties may call (877) 407-8037 or (201) 689-8037, or can access the live webcast at [ www.kns.com/investors/events ].

A replay will be available from approximately one hour after the completion of the call through February 8, 2011 by calling toll-free (877) 660-6853 or internationally (201) 612-7415 and using the following replay access codes: 5521 (account number) and 364696 (replay ID number). A webcast replay will also be available [ www.kns.com/investors/events ].

About Kulicke & Soffa

Kulicke & Soffa (NASDAQ: KLIC) is a global leader in the design and manufacture of semiconductor and LED 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, adding die and wedge bonders 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 ])

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 aforward-lookinga 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, increasing market share, the continuing transition from gold to copper wire bonding, replacement demand and improving OSAT volumes. 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; volatile global economic conditions, which could result in, among other things, sharply lower demand for products containing semiconductors and for the Companya™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. 2010 Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission. Kulicke & 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.