N E W S For Immediate Release
Company Contact:
Jim Chiafery
215-784-6436
email jchiafery@kns.com
Kulicke & Soffa Reports Fiscal Year 1998 Results
Willow Grove, PA, November 13, 1998 - Kulicke & Soffa Industries, Inc. (NASDAQ: KLIC) announced Friday the results of its fiscal year ended September 30, 1998.
Sales for the year were $411,040,000, compared to sales of $501, 907,000 in fiscal 1997. The net loss for FY 98, which included the effects of resizing actions described below, was ($5,440,000) or ($0.23) per share compared to net income of $38,319,000 or $1.79 per share (diluted) for FY 1997.
Bookings for fiscal 1998 were $347,000,000 including $63,000,000 in the September quarter. Ending backlog was $54,000,000, compared to $118,000,000 at the end of FY 1997, and compared to $67,000,000 at the beginning of the quarter.
Sales for the fourth fiscal quarter of 1998 were $76,176,000, compared to $152,192,000 in the September quarter of fiscal 1997. The net loss for the September 1998 quarter was ($18,331,000) or ($0.79) per share, including resizing actions, compared to net income of $15,069,000 or $0.63 per share in the comparable quarter of 1997. This loss includes pretax charges of $8,420,000, primarily related to severance for laid off employees and asset write-offs. In addition, approximately $4,000,000 of inventory write-downs were taken, all related to the Company's efforts to match capacity with anticipated demand.
"We have taken the difficult but necessary steps to resize our operations in response to reduced demand in the near term," said C. Scott Kulicke, chairman and chief executive officer of K&S. "We continue to believe that the fundamental factors affecting demand for semiconductors and semiconductor assembly equipment remain positive over the long term. Our plan is to reduce our infrastructure and production capacity in the short term, but remain focused on core product development and strategic initiatives for long term growth. When the semiconductor market recovers, Kulicke & Soffa will be well-positioned to benefit."
Certain matters discussed in this news release, including forecasts of future demand, 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; competitive pricing pressures; 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.
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