Pennsylvania | 000-00121 | 23-1498399 | ||||||||||||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) | (I.R.S. Employer Identification No.) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, Without Par Value | KLIC | The Nasdaq Global Market |
Item 9.01 |
Financial Statements and Exhibits. |
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(d) | Exhibits. | |||||||
Exhibit No. | Description | |||||||
99.1 | ||||||||
104 | Inline XBRL for the cover page of this Current Report on Form 8‑K. | |||||||
KULICKE AND SOFFA INDUSTRIES, INC. | |||||||||||
Date: November 16, 2022 | By: | /s/ LESTER WONG | |||||||||
Name: | Lester Wong | ||||||||||
Title: | Executive Vice President and Chief Financial Officer (principal financial officer and principal accounting officer) |
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Kulicke & Soffa Pte. Ltd.
23A Serangoon North Ave 5
Singapore 554369
+65 6880-9600 main
Co. Regn. No. 199902120H
|
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Kulicke and Soffa Industries, Inc.
1005 Virginia Drive
Fort Washington, PA 19034 USA
+1-215-784-6000 main
www.kns.com
|
Fiscal Q4 2022 |
Change vs. Fiscal Q4 2021 |
Change vs. Fiscal Q3 2022 |
|||||||||
Net Revenue | $286.3 million | down 41% | down 23.1% | ||||||||
Gross Profit | $132.7 million | down 42.6% | down 30.4% | ||||||||
Gross Margin | 46.3% | down 140 bps | down 490 bps | ||||||||
Income from Operations | $67.5 million | down 56.4% | down 44.7% | ||||||||
Operating Margin | 23.6% | down 830 bps | down 920 bps | ||||||||
Net Income | $64.9 million | down 51.5% | down 45.5% | ||||||||
Net Margin | 22.7% | down 490 bps | down 930 bps | ||||||||
EPS – Diluted | $1.10 | down 47.6% | down 44.7% |
Fiscal Q4 2022 | Change vs. Fiscal Q4 2021 |
Change vs. Fiscal Q3 2022 |
|||||||||
Income from Operations | $73.6 million | down 54.1% | down 42.9% | ||||||||
Operating Margin | 25.7% | down 730 bps | down 900 bps | ||||||||
Net Income | $70.2 million | down 49.2% | down 43.9% | ||||||||
Net Margin | 24.5% | down 400 bps | down 910 bps | ||||||||
EPS - Diluted | $1.19 | down 45.2% | down 43.1% |
Kulicke and Soffa Industries, Inc. | |||||
Joseph Elgindy | |||||
Finance | |||||
P: +1-215-784-7518 | |||||
F: +1-215-784-6180 | |||||
Three months ended | Twelve months ended | ||||||||||||||||||||||
October 1, 2022 | October 2, 2021 | October 1, 2022 | October 2, 2021 | ||||||||||||||||||||
Net revenue | $ | 286,313 | $ | 485,326 | $ | 1,503,620 | $ | 1,517,664 | |||||||||||||||
Cost of sales | 153,626 | 254,011 | 755,300 | 820,678 | |||||||||||||||||||
Gross profit | 132,687 | 231,315 | 748,320 | 696,986 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Selling, general and administrative | 31,275 | 40,186 | 136,215 | 139,224 | |||||||||||||||||||
Research and development | 32,356 | 34,929 | 136,852 | 137,478 | |||||||||||||||||||
Acquisition-related cost | 118 | — | 118 | 1,730 | |||||||||||||||||||
Amortization of intangible assets | 1,374 | 1,322 | 4,917 | 5,974 | |||||||||||||||||||
Restructuring | 20 | 42 | 146 | 133 | |||||||||||||||||||
Total operating expenses | 65,143 | 76,479 | 278,248 | 284,539 | |||||||||||||||||||
Income from operations | 67,544 | 154,836 | 470,072 | 412,447 | |||||||||||||||||||
Other income / (expense): | |||||||||||||||||||||||
Interest income | 4,025 | 520 | 7,124 | 2,321 | |||||||||||||||||||
Interest expense | (35) | (72) | (208) | (218) | |||||||||||||||||||
Income before income taxes | 71,534 | 155,284 | 476,988 | 414,550 | |||||||||||||||||||
Income tax expense | 6,630 | 21,573 | 43,443 | 47,295 | |||||||||||||||||||
Share of results of equity-method investee, net of tax | — | — | — | 94 | |||||||||||||||||||
Net income | $ | 64,904 | $ | 133,711 | $ | 433,545 | $ | 367,161 | |||||||||||||||
Net income per share: | |||||||||||||||||||||||
Basic | $ | 1.12 | $ | 2.16 | $ | 7.21 | $ | 5.92 | |||||||||||||||
Diluted | $ | 1.10 | $ | 2.10 | $ | 7.09 | $ | 5.78 | |||||||||||||||
Cash dividends declared per share | $ | 0.17 | $ | 0.14 | $ | 0.68 | $ | 0.56 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 57,804 | 61,966 | 60,164 | 62,009 | |||||||||||||||||||
Diluted | 58,816 | 63,611 | 61,182 | 63,515 |
Three months ended | Twelve months ended | ||||||||||||||||||||||
Supplemental financial data: | October 1, 2022 | October 2, 2021 | October 1, 2022 | October 2, 2021 | |||||||||||||||||||
Depreciation and amortization | $ | 5,520 | $ | 5,258 | $ | 21,293 | $ | 19,810 | |||||||||||||||
Capital expenditures | 21,020 | 5,792 | 32,233 | 22,555 | |||||||||||||||||||
Equity-based compensation expense: | |||||||||||||||||||||||
Cost of sales | 233 | 202 | 960 | 828 | |||||||||||||||||||
Selling, general and administrative | 3,426 | 2,887 | 13,911 | 10,998 | |||||||||||||||||||
Research and development | 854 | 909 | 4,115 | 3,676 | |||||||||||||||||||
Total equity-based compensation expense | $ | 4,513 | $ | 3,998 | $ | 18,986 | $ | 15,502 |
As of | |||||||||||
October 1, 2022 | October 2, 2021 | ||||||||||
Number of employees | 3,167 | 3,586 |
As of | |||||||||||
October 1, 2022 | October 2, 2021 | ||||||||||
ASSETS | |||||||||||
CURRENT ASSETS | |||||||||||
Cash and cash equivalents | $ | 555,537 | $ | 362,788 | |||||||
Short-term investments | 220,000 | 377,000 | |||||||||
Accounts and notes receivable, net of allowance for doubtful accounts of $0 and $687 respectively | 309,323 | 421,193 | |||||||||
Inventories, net | 184,986 | 167,323 | |||||||||
Prepaid expenses and other current assets | 62,200 | 23,586 | |||||||||
TOTAL CURRENT ASSETS | 1,332,046 | 1,351,890 | |||||||||
Property, plant and equipment, net | 80,908 | 67,982 | |||||||||
Operating right-of-use assets | 41,767 | 41,592 | |||||||||
Goodwill | 68,096 | 72,949 | |||||||||
Intangible assets, net | 31,939 | 42,752 | |||||||||
Deferred tax assets | 25,572 | 15,715 | |||||||||
Equity investments | 5,397 | 6,388 | |||||||||
Other assets | 2,874 | 2,363 | |||||||||
TOTAL ASSETS | $ | 1,588,599 | $ | 1,601,631 | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
CURRENT LIABILITIES | |||||||||||
Accounts payable | 67,311 | 154,636 | |||||||||
Operating lease liabilities | 6,766 | 4,903 | |||||||||
Accrued expenses and other current liabilities | 134,541 | 161,570 | |||||||||
Income taxes payable | 40,063 | 30,766 | |||||||||
TOTAL CURRENT LIABILITIES | 248,681 | 351,875 | |||||||||
Deferred tax liabilities | 34,037 | 32,828 | |||||||||
Income taxes payable | 64,634 | 69,422 | |||||||||
Operating lease liabilities | 34,927 | 38,084 | |||||||||
Other liabilities | 11,670 | 14,185 | |||||||||
TOTAL LIABILITIES | $ | 393,949 | $ | 506,394 | |||||||
SHAREHOLDERS' EQUITY | |||||||||||
Common stock, no par value | 561,684 | 550,117 | |||||||||
Treasury stock, at cost | (675,800) | (400,412) | |||||||||
Retained earnings | 1,341,666 | 948,554 | |||||||||
Accumulated other comprehensive loss | (32,900) | (3,022) | |||||||||
TOTAL SHAREHOLDERS' EQUITY | $ | 1,194,650 | $ | 1,095,237 | |||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,588,599 | $ | 1,601,631 |
Three months ended | Twelve months ended | ||||||||||||||||||||||
October 1, 2022 | October 2, 2021 | October 1, 2022 | October 2, 2021 | ||||||||||||||||||||
Net cash provided by operating activities | $ | 116,563 | $ | 123,376 | $ | 390,188 | $ | 300,032 | |||||||||||||||
Net cash provided by / (used in) investing activities, continuing operations | 67,457 | (135,928) | 133,799 | (81,707) | |||||||||||||||||||
Net cash used in financing activities, continuing operations | (70,286) | (12,276) | (321,191) | (44,258) | |||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (3,978) | (383) | (10,047) | 594 | |||||||||||||||||||
Changes in cash and cash equivalents | 109,756 | (25,211) | 192,749 | 174,661 | |||||||||||||||||||
Cash and cash equivalents, beginning of period | 445,781 | 387,999 | 362,788 | 188,127 | |||||||||||||||||||
Cash and cash equivalents, end of period | $ | 555,537 | $ | 362,788 | $ | 555,537 | $ | 362,788 | |||||||||||||||
Short-term investments | 220,000 | 377,000 | 220,000 | 377,000 | |||||||||||||||||||
Total cash, cash equivalents, and short-term investments | $ | 775,537 | $ | 739,788 | $ | 775,537 | $ | 739,788 | |||||||||||||||
Three months ended | ||||||||||||||||||||
October 1, 2022 | October 2, 2021 | July 2, 2022 | ||||||||||||||||||
Net revenue | $ | 286,313 | $ | 485,326 | $ | 372,137 | ||||||||||||||
U.S. GAAP income from operations | 67,544 | 154,836 | 122,077 | |||||||||||||||||
U.S. GAAP operating margin | 23.6 | % | 31.9 | % | 32.8 | % | ||||||||||||||
Pre-tax non-GAAP items: | ||||||||||||||||||||
Amortization related to intangible assets acquired through business combination- selling, general and administrative | $ | 1,374 | $ | 1,322 | 1,109 | |||||||||||||||
Acquisition-related costs | 118 | — | — | |||||||||||||||||
Equity-based compensation | 4,513 | 3,998 | 4,465 | |||||||||||||||||
Restructuring | 20 | 42 | — | |||||||||||||||||
Impairment charges | — | — | 1,346 | |||||||||||||||||
Non-GAAP income from operations | $ | 73,569 | $ | 160,198 | $ | 128,997 | ||||||||||||||
Non-GAAP operating margin | 25.7 | % | 33.0 | % | 34.7 | % | ||||||||||||||
Twelve months ended | Three months ended | ||||||||||||||||||||||
October 1, 2022 | October 1, 2022 | October 2, 2021 | July 2, 2022 |
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Net revenue | $ | 1,503,620 | $ | 286,313 | $ | 485,326 | $ | 372,137 | |||||||||||||||
U.S. GAAP net income | 433,545 | 64,904 | 133,711 | 119,034 | |||||||||||||||||||
U.S. GAAP net margin | 28.8 | % | 22.7 | % | 27.6 | % | 32.0 | % | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Amortization related to intangible assets acquired through business combination- selling, general and administrative | $ | 4,917 | $ | 1,374 | $ | 1,322 | 1,109 | ||||||||||||||||
Restructuring | 146 | 20 | 42 | — | |||||||||||||||||||
Acquisition-related costs | 118 | 118 | — | — | |||||||||||||||||||
Equity-based compensation | 18,986 | 4,513 | 3,998 | 4,465 | |||||||||||||||||||
Impairment charges | 1,346 | — | — | 1,346 | |||||||||||||||||||
Net income tax benefit on non-GAAP items | (3,447) | (689) | (807) | (865) | |||||||||||||||||||
Total non-GAAP adjustments | 22,066 | 5,336 | 4,555 | 6,055 | |||||||||||||||||||
Non-GAAP net income | 455,611 | 70,240 | 138,266 | 125,089 | |||||||||||||||||||
Non-GAAP net margin | 30.3 | % | 24.5 | % | 28.5 | % | 33.6 | % | |||||||||||||||
U.S. GAAP net income per share: | |||||||||||||||||||||||
Basic | 7.21 | 1.12 | 2.16 | 2.02 | |||||||||||||||||||
Diluted(a) |
7.09 | 1.10 | 2.10 | 1.99 | |||||||||||||||||||
Non-GAAP adjustments per share:(b) |
|||||||||||||||||||||||
Basic | 0.36 | 0.10 | 0.07 | 0.10 | |||||||||||||||||||
Diluted | 0.36 | 0.09 | 0.07 | 0.10 | |||||||||||||||||||
Non-GAAP net income per share: | |||||||||||||||||||||||
Basic | $ | 7.57 | $ | 1.22 | $ | 2.23 | $ | 2.12 | |||||||||||||||
Diluted(c) |
$ | 7.45 | $ | 1.19 | $ | 2.17 | $ | 2.09 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 60,164 | 57,804 | 61,966 | 58,985 | |||||||||||||||||||
Diluted | 61,182 | 58,816 | 63,611 | 59,955 | |||||||||||||||||||
Twelve months ended | Three months ended | ||||||||||||||||||||||
October 1, 2022 | October 1, 2022 | October 2, 2021 | July 2, 2022 |
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U.S. GAAP net cash provided by operating activities | $ | 390,188 | $ | 116,563 | $ | 123,376 | $ | 104,616 | |||||||||||||||
Expenditures for property, plant and equipment | (22,985) | (12,605) | (6,028) | (4,722) | |||||||||||||||||||
Proceeds from sales of property, plant and equipment | 181 | 62 | 100 | — | |||||||||||||||||||
Non-GAAP adjusted free cash flow | 367,384 | 104,020 | 117,448 | 99,894 | |||||||||||||||||||