Kulicke & Soffa Reports Fourth Quarter and Fiscal Year 2011 Results
SINGAPORE, Nov 10, 2011 (BUSINESS WIRE) --
Kulicke & Soffa Industries, Inc. (NASDAQ: KLIC) ("K&S" or the "Company")today announced results for its fourth fiscal quarter ended October 1, 2011.
Quarterly Results
Fiscal Q4 2011
Change vs.
Fiscal Q4 2010
Change vs.
Fiscal Q3 2011
Net Revenue $180.4 million -30.4% -38.7%
Gross Profit $82.7 million -26.3% -38.3%
Gross Margin 45.9% 260 bps 40 bps
Income from Operations $22.7 million -60.0% -72.2%
Operating Margin 12.6% -930 bps -1,510 bps
Net Income $1.9 million -96.6% -97.3%
Net Margin 1.1% -2,050 bps -2,290 bps
EPS - Diluted $0.03 -96.2% -96.8%
Bruno Guilmart, Kulicke & Soffa's President and Chief Executive Officer, said, "Our results for the fiscal fourth quarter exceeded the high-end of our prior guidance, with gross margin improving despite the revenue decline. For the full fiscal year, we achieved record Company revenue of $830.4 million and operating income of $170.1 million, and remained very successful at cost control and cash generation. Our technology and market leadership helped lessen the impact of the challenging global economic situation and the more cautious approach to capital spending at our customers. Our performance serves to further validate the long-term opportunities we are pursuing, including but not limited to, the continued copper transition, which enables higher productivity and cost savings for our customers. We continue to focus on research and development, agile operational efficiency and the ability to quickly react to changes in our customers' demand."
Fourth Quarter Fiscal 2011 Key Product Trends
Ball bonder equipment net revenue decreased 44% over the June quarter.
63% of ball bonder equipment was sold as copper capable bonders, compared to 57% in the same period one year ago.
Wedge bonder equipment net revenue decreased 35% over the June quarter.
Fourth Quarter Fiscal 2011 Financial Highlights
Net revenue decreased to $180.4 million.
Gross margin remained strong at 45.9%.
Fiscal 2011 income tax expense was $34.8 million.
Net income was $1.9 million or $0.03 per share. Net income was negatively impacted by the following items:
Approximately $16.0 million due to higher income tax expenses associated with revenue from higher tax jurisdictions and additional tax exposure in Asia;
$2.6 million, net of tax, related to net foreign currency exchange losses; and,
$2.5 million, net of tax, related to the write down in market value of the Company's building in Switzerland.
Without these items net income would have been $23.0 million or $0.31 per diluted share.
Cash, cash equivalents and investments increased to $384.6 million up $49.0 million from the prior quarter.
First Quarter Fiscal 2012 Outlook
The Company expects net revenue for the first quarter of fiscal 2012 to be approximately $100 million to $120 million, reflecting the current uncertain economic environment in addition to typical industry seasonality.
Looking forward, Bruno Guilmart, commented, "We entered the first quarter in one of the best financial and operational positions the Company has ever been in. We will continue to leverage our leadership position in the copper transition and wedge bonding to help mitigate the macro pressure facing the broader market. While continuing to maintain our flexible cost structure, we will work closely with our customers and support their needs through ongoing R&D investments. We also remain committed to pursuing new growth opportunities, as we work to improve our cross-cyclical performance."