Kulicke & Soffa Reports Preliminary Results for Fiscal Year 2002
A conference call to discuss these results will be held today beginning at 9:00 AM EST. Interested participants may call 416-695-5259 for the teleconference or log on to www.kns.com for the audio feed.
Willow Grove, PA—November 15, 2002—Kulicke & Soffa Industries, Inc. (Nasdaq: KLIC) today announced preliminary financial results for its fourth quarter and fiscal year ended September 30, 2002.
During the fourth quarter the Company performed its annual goodwill impairment test required under the provisions of SFAS Statement 142 “Goodwill and Other Intangible Assets.” The results of this annual test indicated that goodwill related to its Test and Hub Blade reporting units was impaired. The Company estimates that this non-cash impairment charge will be approximately $74.3 million. The amount could be subject to adjustment pending finalization of the calculation.
Revenue for the fourth quarter ended September 30, 2002 was $122.2 million. The fourth quarter 2002 net loss of $195.0 million or $3.95 per fully diluted share included charges for resizing of $6.3 million, other severance charges of $5.0 million recorded in SG&A, and non-cash asset impairment charges of $101.0 million including $74.3 million of estimated goodwill impairment. Additionally, in the fourth quarter the Company recorded a non-cash valuation allowance on U.S. net operating loss carry forwards and other tax credits of $65.3 million.
For the full year ended September 30, 2002, revenue was $464.7 million. The net loss for the year ended September 30, 2002 of $274.1 million or $5.57 per fully diluted share included charges for resizing of $19.7 million, other severance charges of $5.0 million recorded in SG&A, and non-cash asset impairment charges of $105.9 million, including $74.3 million of estimated goodwill impairment. Additionally, in the fourth quarter the Company recorded a non-cash valuation allowance on U.S. net operating loss carry forwards and other tax credits of $65.3 million.
In the fourth quarter ended September 30, 2002, as part of the income tax provision for the period, the Company recorded a non-cash charge of $65.3 million, or $1.32 per fully diluted share, through the establishment of a valuation allowance against its deferred tax asset consisting primarily of U.S. net operating loss carry forwards. The valuation allowance is in accordance with generally accepted accounting principles which require the assessment of the Company’s performance and other relevant factors when determining the need for a valuation allowance. Factors such as recent losses are given substantially more weight than forecasts of future profitability. Until the Company utilizes these U.S. operating loss carry forwards, the income tax provision will reflect modest levels of foreign taxation.
The Company completed the year with $111.3 million in cash, cash equivalents and short term maturities.
Net bookings for fiscal year 2002 were $470.0 million including $110.0 million in the September quarter. Backlog at September 30, 2002 was $54.0 million compared to $49.0 million as of September 30, 2001 and $66.0 million at the end of the third fiscal quarter of 2002.
C. Scott Kulicke, chairman and chief executive officer, stated, “The non-cash charges that we recorded this quarter are reflective of nearly two years of progressively weakening industry conditions and will not have an impact on future operations. Our near term priorities are to focus on cash flow and to return K&S to profitability, while continuing to provide our customers with leading edge products and services.”
He continued, “Our guidance for the first fiscal quarter of 2003 ending December 31, 2002 is for revenue of $95.0 million to $105.0 million.”
Kulicke & Soffa is the world’s leading supplier of semiconductor assembly and test interconnect equipment, materials and technology. Assembly solutions combine wire bonding equipment with bonding wire and capillaries. Test interconnect solutions include standard and vertical probe cards; ATE interface assemblies and ATE boards for wafer testing; and test sockets and contactors for all types of packages. Kulicke & Soffa’s web site address is www.kns.com.
Caution Concerning Forward Looking Statements
This press release contains forward-looking statements which are found in various places throughout the press release. While these forward-looking statements represent our judgments and future expectations concerning the development of 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, those listed or discussed in Kulicke & Soffa Industries' 2001 Annual Report on Form 10-K and: 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 risk that anticipated cost savings will not be achieved; the volatility in the demand for semiconductors and our products and services; 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 other key factors that could adversely affect our businesses and financial performance contained in past and future filings and reports, including those with the SEC. Kulicke & Soffa Industries is under no obligation to (and expressly disclaims any such obligations to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
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Company Contact: Nancy R. Kyle, 215-784-6436, 215-784-6167 fax, nkyle@kns.com |
