N E W S For Immediate Release
Company Contact: Jim Chiafery 215-784-6436
Kulicke & Soffa Reports First Quarter 1999 Results
Willow Grove, PA, January 26, 1999 - Kulicke & Soffa Industries, Inc. (NASDAQ: KLIC) announced Tuesday the results of the first quarter of fiscal 1999, ended December 31, 1998.
Sales for the quarter were $61,175,000, with a net loss of ($8,863,000) or thirty-eight cents per share, compared to sales of $123,111,000 and net income of $6,824,000 or twenty-nine cents per share in the comparable period of fiscal 1998. Q1 FY 99 bookings were $51,000,000, net of approximately $9,000,000 in cancellations and debookings, compared to bookings of $136,000,000 in Q1 FY 98. Ending backlog was $44,000,000, compared to backlog of $131,000,000 at the end of Q1 FY 98 and $54,000,000 at the beginning of the December quarter.
"The semiconductor industry has ended a difficult year, but signs of it bottoming out are becoming evident," said C. Scott Kulicke, chairman and chief executive officer of K&S. "We believe our order rate can improve modestly over the next few quarters, as customers move from technology upgrades that predominate today to capacity additions that signal the upside of an equipment cycle. While sufficient assembly capacity exists today to accommodate any near term increases in semiconductor units, an anticipated return to historic industry growth should give our customers confidence to increase orders for more assembly equipment, beginning later this year."
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.
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)
Three months ended
December 31,
-------------------------------------
1998 1997
--------------- -----------------
Net sales $61,175,000 $123,111,000
Cost of goods
sold 44,999,000 77,766,000
--------------- ----------------
Gross profit 16,176,000 45,345,000
Selling, general
and
administrative 17,247,000 22,447,000
Research and
development,
net 8,814,000 12,268,000
Resizing costs 397,000 --
--------------- ----------------
Income(loss)
from
operations (10,282,000) 10,630,000
Interest income 1,157,000 1,394,000
Interest expense (37,000) (47,000)
Equity in loss of
joint venture (3,501,000) (2,229,000)
--------------- --------------
Income(loss)
before taxes (12,663,000) 9,748,000
Provision(benefit)
for income
taxes (3,800,000) 2,924,000
--------------- ----------------
Net
income(loss) $(8,863,000) $6,824,000
======== ========
Net income(loss) per share:
Basic ($0.38) $0.29
======== ========
Diluted ($0.38) $0.29
======== ========
Weighted average shares outstanding:
Basic 23,372,818 23,247,303
Diluted 23,372,818 23,719,407
December 31, December 31,
---------------------------------------
Additional financial data:
1998 1997
---------------- -----------------
Backlog
of orders $44,000,000 $131,000,000
Number of
employees 1,927 2,314
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