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: May 3, 2023 | 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
|
Quarterly Results - U.S. GAAP | |||||||||||
Fiscal Q2 2023 |
Change vs. Fiscal Q2 2022 |
Change vs. Fiscal Q1 2023 |
|||||||||
Net Revenue | $173.0 million | down 55% | down 1.8% | ||||||||
Gross Profit | $84.1 million | down 58.3% | down 5.2% | ||||||||
Gross Margin | 48.6% | down 390 bps | down 170 bps | ||||||||
Income from Operations | $12.6 million | down 90.3% | up 6.8% | ||||||||
Operating Margin | 7.3% | down 2640 bps | up 60 bps | ||||||||
Net Income | $15.0 million | down 87.1% | up 2.7% | ||||||||
Net Margin | 8.7% | down 2150 bps | up 40 bps | ||||||||
EPS – Diluted | $0.26 | down 86% | up 4% |
Quarterly Results - Non-GAAP | |||||||||||
Fiscal Q2 2023 |
Change vs. Fiscal Q2 2022 |
Change vs. Fiscal Q1 2023 |
|||||||||
Income from Operations | $20.4 million | down 84.9% | up 1% | ||||||||
Operating Margin | 11.8% | down 2340 bps | up 30 bps | ||||||||
Net Income | $21.9 million | down 82% | up 0.5% | ||||||||
Net Margin | 12.7% | down 1890 bps | up 30 bps | ||||||||
EPS – Diluted | $0.38 | down 80.5% | up 2.7% |
Kulicke and Soffa Industries, Inc. | |||||
Joseph Elgindy | |||||
Finance | |||||
P: +1-215-784-7518 | |||||
Three months ended | Six months ended | ||||||||||||||||||||||
April 1, 2023 | April 2, 2022 | April 1, 2023 | April 2, 2022 | ||||||||||||||||||||
Net revenue | $ | 173,021 | $ | 384,282 | $ | 349,254 | $ | 845,170 | |||||||||||||||
Cost of sales | 88,929 | 182,572 | 176,456 | 420,222 | |||||||||||||||||||
Gross profit | 84,092 | 201,710 | 172,798 | 424,948 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Selling, general and administrative | 33,063 | 33,937 | 73,563 | 71,487 | |||||||||||||||||||
Research and development | 35,999 | 37,281 | 70,507 | 70,450 | |||||||||||||||||||
Amortization of intangible assets | 1,563 | 1,151 | 2,957 | 2,434 | |||||||||||||||||||
Acquisition-related costs | 334 | — | 441 | — | |||||||||||||||||||
Restructuring | 504 | — | 879 | 126 | |||||||||||||||||||
Total operating expenses | 71,463 | 72,369 | 148,347 | 144,497 | |||||||||||||||||||
Income from operations | 12,629 | 129,341 | 24,451 | 280,451 | |||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest income | 8,000 | 470 | 14,559 | 941 | |||||||||||||||||||
Interest expense | (32) | (97) | (66) | (137) | |||||||||||||||||||
Income before income taxes | 20,597 | 129,714 | 38,944 | 281,255 | |||||||||||||||||||
Income tax expense | 5,556 | 13,713 | 9,314 | 31,648 | |||||||||||||||||||
Net income | $ | 15,041 | $ | 116,001 | $ | 29,630 | $ | 249,607 | |||||||||||||||
Net income per share: | |||||||||||||||||||||||
Basic | $ | 0.27 | $ | 1.89 | $ | 0.52 | $ | 4.03 | |||||||||||||||
Diluted | $ | 0.26 | $ | 1.86 | $ | 0.51 | $ | 3.97 | |||||||||||||||
Cash dividends declared per share | $ | 0.19 | $ | 0.17 | $ | 0.38 | $ | 0.34 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 56,684 | 61,482 | 56,868 | 61,934 | |||||||||||||||||||
Diluted | 57,577 | 62,435 | 57,739 | 62,907 |
Three months ended | Six months ended | ||||||||||||||||||||||
Supplemental financial data: | April 1, 2023 | April 2, 2022 | April 1, 2023 | April 2, 2022 | |||||||||||||||||||
Depreciation and amortization | $ | 6,542 | $ | 5,224 | $ | 12,155 | $ | 10,563 | |||||||||||||||
Capital expenditures | 17,383 | 3,384 | 33,034 | 6,260 | |||||||||||||||||||
Equity-based compensation expense: | |||||||||||||||||||||||
Cost of sales | 323 | 308 | 631 | 534 | |||||||||||||||||||
Selling, general and administrative | 3,731 | 3,296 | 8,598 | 7,252 | |||||||||||||||||||
Research and development | 1,325 | 1,092 | 2,671 | 2,222 | |||||||||||||||||||
Total equity-based compensation expense | $ | 5,379 | $ | 4,696 | $ | 11,900 | $ | 10,008 |
As of | |||||||||||
April 1, 2023 | April 2, 2022 | ||||||||||
Number of employees | 3,089 | 3,445 |
As of | |||||||||||
April 1, 2023 | October 1, 2022 | ||||||||||
ASSETS | |||||||||||
CURRENT ASSETS | |||||||||||
Cash and cash equivalents | $ | 389,102 | $ | 555,537 | |||||||
Short-term investments | 345,000 | 220,000 | |||||||||
Accounts and other receivable, net of allowance for doubtful accounts of $0 and $0, respectively | 169,140 | 309,323 | |||||||||
Inventories, net | 224,159 | 184,986 | |||||||||
Prepaid expenses and other current assets | 61,472 | 62,200 | |||||||||
TOTAL CURRENT ASSETS | 1,188,873 | 1,332,046 | |||||||||
Property, plant and equipment, net | 110,680 | 80,908 | |||||||||
Operating right-of-use assets | 44,908 | 41,767 | |||||||||
Goodwill | 98,893 | 68,096 | |||||||||
Intangible assets, net | 39,892 | 31,939 | |||||||||
Deferred tax assets | 32,157 | 25,572 | |||||||||
Equity investments | 5,433 | 5,397 | |||||||||
Other assets | 3,206 | 2,874 | |||||||||
TOTAL ASSETS | $ | 1,524,042 | $ | 1,588,599 | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
CURRENT LIABILITIES | |||||||||||
Accounts payable | 54,851 | 67,311 | |||||||||
Operating lease liabilities | 7,271 | 6,766 | |||||||||
Accrued expenses and other current liabilities | 112,301 | 134,541 | |||||||||
Income taxes payable | 21,328 | 40,063 | |||||||||
TOTAL CURRENT LIABILITIES | 195,751 | 248,681 | |||||||||
Deferred tax liabilities | 36,180 | 34,037 | |||||||||
Income taxes payable | 52,537 | 64,634 | |||||||||
Operating lease liabilities | 39,557 | 34,927 | |||||||||
Other liabilities | 16,320 | 11,670 | |||||||||
TOTAL LIABILITIES | 340,345 | 393,949 | |||||||||
SHAREHOLDERS' EQUITY | |||||||||||
Common stock, no par value | 567,031 | 561,684 | |||||||||
Treasury stock, at cost | (719,619) | (675,800) | |||||||||
Retained earnings | 1,349,736 | 1,341,666 | |||||||||
Accumulated other comprehensive loss | (13,451) | (32,900) | |||||||||
TOTAL SHAREHOLDERS' EQUITY | $ | 1,183,697 | $ | 1,194,650 | |||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,524,042 | $ | 1,588,599 |
Three months ended | Six months ended | ||||||||||||||||||||||
April 1, 2023 | April 2, 2022 | April 1, 2023 | April 2, 2022 | ||||||||||||||||||||
Net cash provided by operating activities | $ | 1,820 | $ | 73,135 | $ | 86,936 | $ | 169,009 | |||||||||||||||
Net cash (used in) / provided by investing activities | (147,283) | 134,172 | (186,197) | 141,461 | |||||||||||||||||||
Net cash used in financing activities | (16,681) | (186,987) | (72,911) | (211,064) | |||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 633 | (1,357) | 5,737 | (1,741) | |||||||||||||||||||
Changes in cash and cash equivalents | (161,511) | 18,963 | (166,435) | 97,665 | |||||||||||||||||||
Cash and cash equivalents, beginning of period | 550,613 | 441,490 | 555,537 | 362,788 | |||||||||||||||||||
Cash and cash equivalents, end of period | $ | 389,102 | $ | 460,453 | $ | 389,102 | $ | 460,453 | |||||||||||||||
Short-term investments | 345,000 | 230,000 | 345,000 | 230,000 | |||||||||||||||||||
Total cash, cash equivalents and short-term investments | $ | 734,102 | $ | 690,453 | $ | 734,102 | $ | 690,453 | |||||||||||||||
Three months ended | ||||||||||||||||||||
April 1, 2023 | April 2, 2022 | December 31, 2022 | ||||||||||||||||||
Net revenue | $ | 173,021 | $ | 384,282 | $ | 176,233 | ||||||||||||||
U.S. GAAP income from operations | 12,629 | 129,341 | 11,822 | |||||||||||||||||
U.S. GAAP operating margin | 7.3 | % | 33.7 | % | 6.7 | % | ||||||||||||||
Pre-tax non-GAAP items: | ||||||||||||||||||||
Amortization related to intangible assets acquired through business combination- selling, general and administrative | 1,563 | 1,151 | 1,394 | |||||||||||||||||
Restructuring | 504 | — | 375 | |||||||||||||||||
Equity-based compensation | 5,379 | 4,696 | 6,521 | |||||||||||||||||
Acquisition-related costs |
334 | — | 107 | |||||||||||||||||
Non-GAAP income from operations | $ | 20,409 | $ | 135,188 | $ | 20,219 | ||||||||||||||
Non-GAAP operating margin | 11.8 | % | 35.2 | % | 11.5 | % | ||||||||||||||
Three months ended | ||||||||||||||||||||
April 1, 2023 | April 2, 2022 | December 31, 2022 | ||||||||||||||||||
Net revenue | $ | 173,021 | $ | 384,282 | $ | 176,233 | ||||||||||||||
U.S. GAAP net income | 15,041 | 116,001 | 14,589 | |||||||||||||||||
U.S. GAAP net margin | 8.7 | % | 30.2 | % | 8.3 | % | ||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||
Amortization related to intangible assets acquired through business combination- selling, general and administrative | 1,563 | 1,151 | 1,394 | |||||||||||||||||
Restructuring | 504 | — | 375 | |||||||||||||||||
Equity-based compensation | 5,379 | 4,696 | 6,521 | |||||||||||||||||
Acquisition-related costs | 334 | — | 107 | |||||||||||||||||
Net income tax benefit on non-GAAP items | (892) | (385) | (1,218) | |||||||||||||||||
Total non-GAAP adjustments | $ | 6,888 | $ | 5,462 | $ | 7,179 | ||||||||||||||
Non-GAAP net income | $ | 21,929 | $ | 121,463 | $ | 21,768 | ||||||||||||||
Non-GAAP net margin | 12.7 | % | 31.6 | % | 12.4 | % | ||||||||||||||
U.S. GAAP net income per share: | ||||||||||||||||||||
Basic | 0.27 | 1.89 | 0.26 | |||||||||||||||||
Diluted(a) |
0.26 | 1.86 | 0.25 | |||||||||||||||||
Non-GAAP adjustments per share:(b) |
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Basic | 0.12 | 0.09 | 0.13 | |||||||||||||||||
Diluted | 0.12 | 0.09 | 0.12 | |||||||||||||||||
Non-GAAP net income per share: | ||||||||||||||||||||
Basic | $ | 0.39 | $ | 1.98 | $ | 0.39 | ||||||||||||||
Diluted(c) |
$ | 0.38 | $ | 1.95 | $ | 0.37 | ||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 56,684 | 61,482 | 57,051 | |||||||||||||||||
Diluted | 57,577 | 62,435 | 57,729 | |||||||||||||||||
Three months ended | ||||||||||||||||||||
April 1, 2023 |
April 2, 2022 |
December 31, 2022 |
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U.S. GAAP net cash provided by operating activities | $ | 86,936 | $ | 73,135 | $ | 85,116 | ||||||||||||||
Expenditures for property, plant and equipment | (24,515) | (5,658) | (13,878) | |||||||||||||||||
Proceeds from sales of property, plant and equipment | 235 | 119 | — | |||||||||||||||||
Non-GAAP adjusted free cash flow | 62,656 | 67,596 | 71,238 | |||||||||||||||||