Kulicke & Soffa Reports Results for Its First Fiscal Quarter; Earnings of $0.08 per Diluted Share

Cash, cash equivalents, and short-term investments decreased approximately $18 million, from $157.3 million to $139.5 million at the end of the first quarter. The Company used $29.4 million in cash for Alphasem (including deal costs), materially offset by cash generated from operations. Guidance for Second Fiscal Quarter:

Mr. Kulicke provided the following revenue guidance, "We expect revenue in the March quarter to be about $140 million. This is primarily the result of lower equipment sales anticipated in the March quarter. In addition, capillary and wire unit volumes are expected to be seasonally lower due to the lunar New Year holidays in February."

Earnings Conference Call Details

A conference call to discuss these results will be held today, January 25, 2007 beginning at 9:00 AM EST. Interested participants may call 877-407-8037 for the teleconference or log on to http://www.kns.com/investors/events for listen-only mode. A replay will be available approximately one hour after the completion of the call by calling toll free 877-660-6853 or internationally 201-612-7415 and using the following replay access codes 5521 (account number) and 226443 (conference number). A replay will also be available on the K&S web site at http://www.kns.com/investors. The replay will be available via phone and web site through March 25, 2007.

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.

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 "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, revenue growth, sales, profitability, financial results, unit volumes, product development, release of products, industry forecasts, the semiconductor business cycle, and projected continued demand for our products. 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 of failure to successfully manage our operations; the risk that anticipated orders may not materialize or that orders received may be postponed or canceled, generally without charges; the volatility in the demand for semiconductors and our products and services; the risk that we may not be able to develop and manufacture new products and product enhancements on a timely and cost effective basis; acts of terrorism and violence; overall global economic conditions; risks, such as changes in trade regulations, currency fluctuations, political instability and war, associated with a substantial foreign customer and supplier base and substantial foreign manufacturing operations; potential instability in foreign capital markets; and the factors listed or discussed in Kulicke and Soffa Industries, Inc. 2006 Annual report on Form 10-K and our other filings with the Securities and Exchange Commission. Kulicke & Soffa Industries 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. 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 22,055 Research and development, net 8,668 11,538 ------------- ------------- Operating expense 29,250 33,593 ------------- ------------- Income from operations 36,213 5,126 Interest income 712 1,457 Interest expense (958) (636) ------------- ------------- Income from continuing operations before income taxes 35,967 5,947 Provision for income taxes 5,349 1,021 ------------- ------------- Income from continuing operations 30,618 4,926 ------------- -------------

Loss from discontinued operations (5,317) -

------------- ------------- Net income $ 25,301 $ 4,926 ============= =============

Income per share from continuing operations: Basic $ 0.59 $ 0.09 ============= ============= Diluted $ 0.45 $ 0.08 ============= =============

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

Net income per share: Basic $ 0.49 $ 0.09 ============= ============= Diluted $ 0.38 $ 0.08 ============= =============

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 815 851 Research and development, net 240 261 ------------- ------------- Total continuing operations $ 1,153 $ 1,179 ============= ============= 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 - $4,181) 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 20,587 ------------- -------------

TOTAL CURRENT LIABILITIES 95,090 90,445

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

TOTAL LIABILITIES 326,195 322,231 ------------- -------------

Commitments and contingencies - -

SHAREHOLDERS' EQUITY Common stock, without par value 277,194 279,631 Accumulated deficit (191,824) (186,898) Accumulated other comprehensive loss (6,064) (4,880) ------------- -------------

TOTAL SHAREHOLDERS' EQUITY 79,306 87,853 ------------- ------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 405,501 $ 410,084 ============= =============

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

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

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 24,518 9,075 33,593 ------------ ------------ ------------ Income from operations $ 472 $ 4,654 $ 5,126 ============ ============ ============

Fiscal 2006: Packaging Equipment Materials Three months ended December 31, Segment Segment Consolidated 2005: ------------ ------------ ------------

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

SOURCE:  Kulicke & Soffa

Author:  

Email:    

Topic:    

Content: