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 15, 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
|
Fiscal Q4 2023 |
Change vs. Fiscal Q4 2022 |
Change vs. Fiscal Q3 2023 |
|||||||||
Net Revenue | $202.3 million | down 29.3% | up 6% | ||||||||
Gross Margin | 47.4% | up 110 bps | up 20 bps | ||||||||
Operating Margin | 9.6% | down 1400 bps | up 1200 bps | ||||||||
Net Income | $23.4 million | down 64% | up 461.3% | ||||||||
Net Margin | 11.5% | down 1120 bps | up 930 bps | ||||||||
EPS – Diluted | $0.41 | down 62.7% | up 485.7% |
Fiscal Q4 2023 | Change vs. Fiscal Q4 2022 |
Change vs. Fiscal Q3 2023 |
|||||||||
Income from Operations | $26.3 million | down 64.3% | up 8.2% | ||||||||
Operating Margin | 13.0% | down 1270 bps | up 30 bps | ||||||||
Net Income | $29.4 million | down 58.1% | down 7.8% | ||||||||
Net Margin | 14.5% | down 1000 bps | down 220 bps | ||||||||
EPS - Diluted | $0.51 | down 57.1% | down 7.3% |
Kulicke and Soffa Industries, Inc. | |||||
Joseph Elgindy | |||||
Finance | |||||
P: +1-215-784-7518 | |||||
Three months ended | Twelve months ended | ||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | ||||||||||||||||||||
Net revenue | $ | 202,320 | $ | 286,313 | $ | 742,491 | $ | 1,503,620 | |||||||||||||||
Cost of sales | 106,481 | 153,626 | 383,836 | 755,300 | |||||||||||||||||||
Gross profit | 95,839 | 132,687 | 358,655 | 748,320 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Selling, general and administrative | 37,380 | 31,275 | 145,493 | 134,869 | |||||||||||||||||||
Research and development | 37,616 | 32,356 | 144,701 | 136,852 | |||||||||||||||||||
Impairment charges | — | — | 21,535 | 1,346 | |||||||||||||||||||
Acquisition-related cost | 13 | 118 | 511 | 118 | |||||||||||||||||||
Amortization of intangible assets | 1,356 | 1,374 | 6,099 | 4,917 | |||||||||||||||||||
Restructuring | — | 20 | 879 | 146 | |||||||||||||||||||
Total operating expenses | 76,365 | 65,143 | 319,218 | 278,248 | |||||||||||||||||||
Income from operations | 19,474 | 67,544 | 39,437 | 470,072 | |||||||||||||||||||
Other income / (expense): | |||||||||||||||||||||||
Interest income | 9,500 | 4,025 | 32,906 | 7,124 | |||||||||||||||||||
Interest expense | (26) | (35) | (142) | (208) | |||||||||||||||||||
Income before income taxes | 28,948 | 71,534 | 72,201 | 476,988 | |||||||||||||||||||
Income tax expense | 5,591 | 6,630 | 15,053 | 43,443 | |||||||||||||||||||
Net income | $ | 23,357 | $ | 64,904 | $ | 57,148 | $ | 433,545 | |||||||||||||||
Net income per share: | |||||||||||||||||||||||
Basic | $ | 0.41 | $ | 1.12 | $ | 1.01 | $ | 7.21 | |||||||||||||||
Diluted | $ | 0.41 | $ | 1.10 | $ | 0.99 | $ | 7.09 | |||||||||||||||
Cash dividends declared per share | $ | 0.19 | $ | 0.17 | $ | 0.76 | $ | 0.68 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 56,442 | 57,804 | 56,682 | 60,164 | |||||||||||||||||||
Diluted | 57,408 | 58,816 | 57,548 | 61,182 |
Three months ended | Twelve months ended | ||||||||||||||||||||||
Supplemental financial data: | September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | |||||||||||||||||||
Depreciation and amortization | $ | 8,111 | $ | 5,520 | $ | 28,857 | $ | 21,293 | |||||||||||||||
Capital expenditures | 4,217 | 21,020 | 47,702 | 32,233 | |||||||||||||||||||
Equity-based compensation expense: | |||||||||||||||||||||||
Cost of sales | 289 | 233 | 1,192 | 960 | |||||||||||||||||||
Selling, general and administrative | 3,841 | 3,426 | 16,239 | 13,911 | |||||||||||||||||||
Research and development | 1,311 | 854 | 5,313 | 4,115 | |||||||||||||||||||
Total equity-based compensation expense | $ | 5,441 | $ | 4,513 | $ | 22,744 | $ | 18,986 |
As of | |||||||||||
September 30, 2023 | October 1, 2022 | ||||||||||
Number of employees | 3,025 | 3,167 |
As of | |||||||||||
September 30, 2023 | October 1, 2022 | ||||||||||
ASSETS | |||||||||||
CURRENT ASSETS | |||||||||||
Cash and cash equivalents | $ | 529,402 | $ | 555,537 | |||||||
Short-term investments | 230,000 | 220,000 | |||||||||
Accounts and notes receivable, net of allowance for doubtful accounts of $49 and $0 respectively | 158,601 | 309,323 | |||||||||
Inventories, net | 217,304 | 184,986 | |||||||||
Prepaid expenses and other current assets | 53,751 | 62,200 | |||||||||
TOTAL CURRENT ASSETS | 1,189,058 | 1,332,046 | |||||||||
Property, plant and equipment, net | 110,051 | 80,908 | |||||||||
Operating right-of-use assets | 47,148 | 41,767 | |||||||||
Goodwill | 88,673 | 68,096 | |||||||||
Intangible assets, net | 29,357 | 31,939 | |||||||||
Deferred tax assets | 31,551 | 25,572 | |||||||||
Equity investments | 716 | 5,397 | |||||||||
Other assets | 3,223 | 2,874 | |||||||||
TOTAL ASSETS | $ | 1,499,777 | $ | 1,588,599 | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
CURRENT LIABILITIES | |||||||||||
Accounts payable | 49,302 | 67,311 | |||||||||
Operating lease liabilities | 6,574 | 6,766 | |||||||||
Accrued expenses and other current liabilities | 103,005 | 134,541 | |||||||||
Income taxes payable | 22,670 | 40,063 | |||||||||
TOTAL CURRENT LIABILITIES | 181,551 | 248,681 | |||||||||
Deferred tax liabilities | 37,264 | 34,037 | |||||||||
Income taxes payable | 52,793 | 64,634 | |||||||||
Operating lease liabilities | 41,839 | 34,927 | |||||||||
Other liabilities | 11,769 | 11,670 | |||||||||
TOTAL LIABILITIES | $ | 325,216 | $ | 393,949 | |||||||
SHAREHOLDERS' EQUITY | |||||||||||
Common stock, no par value | 577,727 | 561,684 | |||||||||
Treasury stock, at cost | (737,214) | (675,800) | |||||||||
Retained earnings | 1,355,810 | 1,341,666 | |||||||||
Accumulated other comprehensive loss | (21,762) | (32,900) | |||||||||
TOTAL SHAREHOLDERS' EQUITY | $ | 1,174,561 | $ | 1,194,650 | |||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,499,777 | $ | 1,588,599 |
Three months ended | Twelve months ended | ||||||||||||||||||||||
September 30, 2023 | October 1, 2022 | September 30, 2023 | October 1, 2022 | ||||||||||||||||||||
Net cash provided by operating activities | $ | 77,492 | $ | 116,563 | $ | 173,404 | $ | 390,188 | |||||||||||||||
Net cash provided by / (used in) investing activities, continuing operations | 70,386 | 67,457 | (91,338) | 133,799 | |||||||||||||||||||
Net cash used in financing activities, continuing operations | (19,518) | (70,286) | (111,876) | (321,191) | |||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (764) | (3,978) | 3,675 | (10,047) | |||||||||||||||||||
Changes in cash and cash equivalents | 127,596 | 109,756 | (26,135) | 192,749 | |||||||||||||||||||
Cash and cash equivalents, beginning of period | 401,806 | 445,781 | 555,537 | 362,788 | |||||||||||||||||||
Cash and cash equivalents, end of period | $ | 529,402 | $ | 555,537 | $ | 529,402 | $ | 555,537 | |||||||||||||||
Short-term investments | 230,000 | 220,000 | 230,000 | 220,000 | |||||||||||||||||||
Total cash, cash equivalents, and short-term investments | $ | 759,402 | $ | 775,537 | $ | 759,402 | $ | 775,537 | |||||||||||||||
Three months ended | ||||||||||||||||||||
September 30, 2023 | October 1, 2022 |
July 1, 2023 |
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Net revenue | $ | 202,320 | $ | 286,313 | $ | 190,917 | ||||||||||||||
U.S. GAAP income from operations | 19,474 | 67,544 | (4,488) | |||||||||||||||||
U.S. GAAP operating margin | 9.6 | % | 23.6 | % | (2.4) | % | ||||||||||||||
Pre-tax non-GAAP items: | ||||||||||||||||||||
Amortization related to intangible assets |
$ | 1,356 | $ | 1,374 | 1,786 | |||||||||||||||
Acquisition-related costs | 13 | 118 | 57 | |||||||||||||||||
Equity-based compensation | 5,441 | 4,513 | 5,403 | |||||||||||||||||
Restructuring | — | 20 | — | |||||||||||||||||
Impairment charges | — | — | 21,535 | |||||||||||||||||
Non-GAAP income from operations | $ | 26,284 | $ | 73,569 | $ | 24,293 | ||||||||||||||
Non-GAAP operating margin | 13.0 | % | 25.7 | % | 12.7 | % | ||||||||||||||
Twelve months ended | Three months ended | ||||||||||||||||||||||
September 30, 2023 | September 30, 2023 | October 1, 2022 | July 1, 2023 |
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Net revenue | $ | 742,491 | $ | 202,320 | $ | 286,313 | $ | 190,917 | |||||||||||||||
U.S. GAAP net income | 57,148 | 23,357 | 64,904 | 4,161 | |||||||||||||||||||
U.S. GAAP net margin | 7.7 | % | 11.5 | % | 22.7 | % | 2.2 | % | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Amortization related to intangible assets |
$ | 6,099 | $ | 1,356 | $ | 1,374 | 1,786 | ||||||||||||||||
Restructuring | 879 | — | 20 | — | |||||||||||||||||||
Acquisition-related costs | 511 | 13 | 118 | 57 | |||||||||||||||||||
Equity-based compensation | 22,744 | 5,441 | 4,513 | 5,403 | |||||||||||||||||||
Impairment charges | 21,535 | — | — | 21,535 | |||||||||||||||||||
Net income tax benefit on non-GAAP items | (3,928) | (758) | (689) | (1,060) | |||||||||||||||||||
Total non-GAAP adjustments | 47,840 | 6,052 | 5,336 | 27,721 | |||||||||||||||||||
Non-GAAP net income | 104,988 | 29,409 | 70,240 | 31,882 | |||||||||||||||||||
Non-GAAP net margin | 14.1 | % | 14.5 | % | 24.5 | % | 16.7 | % | |||||||||||||||
U.S. GAAP net income per share: | |||||||||||||||||||||||
Basic | 1.01 | 0.41 | 1.12 | 0.07 | |||||||||||||||||||
Diluted(a) |
0.99 | 0.41 | 1.10 | 0.07 | |||||||||||||||||||
Non-GAAP adjustments per share:(b) |
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Basic | 0.84 | 0.11 | 0.10 | 0.49 | |||||||||||||||||||
Diluted | 0.83 | 0.10 | 0.09 | 0.48 | |||||||||||||||||||
Non-GAAP net income per share: | |||||||||||||||||||||||
Basic | $ | 1.85 | $ | 0.52 | $ | 1.22 | $ | 0.56 | |||||||||||||||
Diluted(c) |
$ | 1.82 | $ | 0.51 | $ | 1.19 | $ | 0.55 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 56,682 | 56,442 | 57,804 | 56,553 | |||||||||||||||||||
Diluted | 57,548 | 57,408 | 58,816 | 57,519 | |||||||||||||||||||
Twelve months ended | Three months ended | ||||||||||||||||||||||
September 30, 2023 | September 30, 2023 | October 1, 2022 | July 1, 2023 |
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U.S. GAAP net cash provided by operating activities | $ | 173,404 | $ | 77,492 | $ | 116,563 | $ | 8,976 | |||||||||||||||
Expenditures for property, plant and equipment | (44,406) | (9,281) | (12,605) | (10,610) | |||||||||||||||||||
Proceeds from sales of property, plant and equipment | 591 | 273 | 62 | 83 | |||||||||||||||||||
Non-GAAP adjusted free cash flow | 129,589 | 68,484 | 104,020 | (1,551) | |||||||||||||||||||