NEWS For Immediate Release Company Contact:
Jim Chiafery 215-784-6436
Kulicke & Soffa Reports
Second Quarter FY 1998 Results
Willow Grove, PA, April 17, 1998-Kulicke & Soffa Industries Inc. (NASDAQ: KLIC) announced Friday the results of its second quarter of fiscal 1998, which ended March 31, 1998.
Sales for the quarter were $120,060,000 with net income of $9,191,000 or thirty-nine cents per share, compared to sales of $121,491,000 and net income of $9,302,000 or forty-six cents per share for the comparable period of fiscal 1997. Bookings were $93,000,000, after removing $28,317,000 to reflect a previously announced order cancellation, compared to $138,000,000 in the March quarter of fiscal 1997. Ending backlog was $104,000,000, compared to $110,000,000 at the end of the second quarter of FY97.
"The March quarter earnings exceeded our expectations," said C. Scott Kulicke, chairman and chief executive officer of K&S. "The combination of lower operating expenses and the revision to the expected FY98 effective tax rate produced net income better than our previous plans. However, we anticipate near term demand to be below that of recent quarters, and are taking the necessary actions to bring expenses in line with this expected reduction in shipments."
Certain matters discussed in this news release, including operating and financial results in fiscal 1998, are forward-looking statements that are subject to risks and uncertainties that could cause actual results to materially differ, either better or worse, from those projected. Such risks and uncertainties include, but are not limited to, the following: the risk of order postponements or cancellations; the risks associated with a substantial foreign customer base; the risks associated with instability in foreign capital markets and foreign currency fluctuations; the upward and downward volatility in the demand for semiconductors and for the Company's products and services; the risk of delays in introduction and customer qualification of new products and services; and the Company's ability to manufacture and ship its products on a timely basis. Further discussions of risk factors are also available in the Company's most recent SEC filings.
Kulicke & Soffa is the world's largest supplier of semiconductor assembly equipment. The Company serves the integrated circuit assembly market with a product line that includes wire bonding, die bonding, wafer dicing and factory automation equipment, as well as expendable tools and materials, including bonding wire, capillaries, wedges, die collets and saw blades, and has sales and service facilities worldwide. The Company's website address is www.kns.com.
KULICKE & SOFFA INDUSTRIES, INC
CONSOLIDATED STATEMENT OF OPERATIONS (unaudited)
Three months ended Six months ended
March 31, March 31, --------------------------------------------------------------- 1998 1997 1998 1997
Net sales $120,060,000 $121,491,000 $243,171,000 $203,335,000
Cost of goods
sold 74,073,000 76,256,000 151,839,000 129,319,000
---------------- ------------- ------------ --------------
Gross profit 45,987,000 45,235,000 91,332,000 74,016,000
Selling, general
and
administrative 20,315,000 18,736,000 42,762,000 34,963,000
Research and
development,
net 12,685,000 11,772,000 24,953,000 22,465,000
---------------- ------------ ----------- ------------
Income from
operations 12,987,000 14,727,000 23,617,000 16,588,000
Interest income 1,266,000 588,000 2,660,000 1,262,000
Interest expense (47,000) (865,000) (94,000) (1,719,000)
Equity in loss of
joint venture(2,312,000) (1,546,000) (4,541,000) (2,629,000)
------------ ------------- ------------ ----------
Income before
income taxes 11,894,000 12,904,000 21,642,000 13,502,000
Income tax
provision 2,703,000 3,602,000 5,627,000 3,781,000
---------- ----------- ------------ -------------
Net income $9,191,000 $9,302,000 $16,015,000 $9,721,000
========== ============ ========== ========
Net income per share:
Basic $0.39 $0.47 $0.69 $0.50
======== ======== ======== ========
Diluted $0.39 $0.46 $0.68 $0.49
======== ======== ======= ========
Weighted average shares outstanding:
Basic 23,288,403 19,586,446 23,268,349 19,519,199
Diluted 23,675,914 20,127,282 23,692,111 20,013,778
March 31,
Additional financial data: 1998 1997
---------------- -----------------
Backlog of orders $104,000,000 $110,000,000
Number of employees 2,291 2,043 |
