Looks like this may well explain the sudden cancellation of KLIC's Investor Day....
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K&S sells wedge bonder technology to Orthodyne
Silicon Strategies
03/11/2005, 4:30 PM ET
SAN JOSE, Calif. — Continuing to shed its non-core businesses, backend assembly equipment specialist Kulicke & Soffa Industries Inc. (K&S) on Friday (March 11) announced the sale of its wedge bonder technology to Orthodyne Electronics Inc.
The sale includes both the design of wedge bonding machines and the licensing of intellectual property to chip-equipment maker Orthodyne (Irvine, Calif.), said Jack Belani, senior vice president of the Wire Bonding Division for K&S (Willow Grove, Pa.).
"Since wedge bonders represented less than 1 percent of our sales last year, it makes more sense for us to focus our R&D resources on our major product lines including ball bonders and test products," he said in a statement.
"We will, however, continue to sell refurbished machines and support our installed base with spare parts and service," he said. "Additionally, we will also sell our existing wedge bonder models for a period of approximately two years, during which time Orthodyne will continue to develop and enhance their product portfolio with K&S's technology."
Gregg Kelly, president of Orthodyne, said the deal makes sense for his company. "Wedge bonding equipment is our company's primary focus," he said in a statement. "The new technology and designs purchased from K&S will enhance our product offerings and allow our engineers to create new, best-in-class machines that have their roots in both K&S and Orthodyne designs."
The move appears to be the latest cost-cutting measure for K&S. The company made a net loss of $7.2 million on sales revenue of $116.3 million in the first fiscal quarter. K&S made a net income of $3.3 million on sales revenue of $147.5 million in its fourth fiscal quarter and reduced sales were at the bottom end of guidance given at that time.
Over time, the company has shed several of its non-core businesses. In 2003, K&S sold its sawing equipment and hard material blades operations to Advanced Dicing Technologies Ltd. Last year, it sold the assets of its flip-chip business to FlipChip International LLC for approximately $3.4 million in cash and the assumption of certain liabilities. |
