SINGAPORE, Nov. 17, 2021 /PRNewswire/ — Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) (“Kulicke & Soffa”, “K&S” or the “Company”), today announced financial results of its fourth fiscal quarter ended October 2, 2021. The Company reported fourth quarter net revenue of $485.3 million, net income of $133.7 million and non-GAAP net income of $138.3 million.
During the fiscal fourth quarter the Company was able to exceed revenue expectations by temporarily extending production capacity and also by delivering additional advanced display systems and services.
Quarterly Results – U.S. GAAP
Fiscal Q4 2021
Change vs.
Fiscal Q4 2020
Fiscal Q3 2021
Net Revenue
$485.3 million
up 173.1%
up 14.4%
Gross Profit
$231.3 million
up 160.2%
up 18.2%
Gross Margin
47.7%
down 230 bps
up 160 bps
Income from Operations
$154.8 million
up 573%
up 28.5%
Operating Margin
31.9%
up 1900 bps
up 350 bps
Net Income
$133.7 million
up 746.2%
up 17.5%
Net Margin
27.6%
up 1870 bps
up 80 bps
EPS – Diluted
$2.10
up 740%
up 17.3%
Quarterly Results – Non-GAAP
Fiscal Q4 2020
Fiscal Q3 2021
$160.2 million
up 448.7%
up 27.2%
33.0%
up 1660 bps
up 330 bps
$138.3 million
up 535.7%
up 16.4%
28.5%
up 1630 bps
up 50 bps
$2.17
up 520%
up 16%
A reconciliation of the GAAP and non-GAAP adjusted results is provided in the financial tables included in this release. See also “Use of non-GAAP Financial Results” section.
Fusen Chen, Kulicke & Soffa’s President and Chief Executive Officer, stated, “Throughout fiscal 2021 we continued to support an ongoing period of industry expansion, while carefully navigating global supply-chain challenges. Additionally, we continued our aggressive development efforts, released several new market-ready solutions and also received customer acceptance with several others. These efforts expand our access to favorable long-term trends within the automotive, electronics assembly and advanced display end-markets.”
Fiscal Year 2021 Financial Highlights
- Net revenue of $1,517.7 million.
- Gross margin of 45.9%.
- Net income of $367.2 million or $5.78 per share; non-GAAP net income of $390.2 million or $6.14 per share.
- The Company repurchased a total of approximately 215.0 thousand shares of common stock at a cost of approximately $10.2 million.
Fourth Quarter Fiscal 2021 Financial Highlights
- Net revenue of $485.3 million.
- Gross margin of 47.7%.
- Net income of $133.7 million or $2.10 per share; non-GAAP net income of $138.3 million or $2.17 per share.
- Cash, cash equivalents, and short-term investments were $739.8 million as of October 2, 2021.
First Quarter Fiscal 2022 OutlookThe Company currently expects net revenue in the first fiscal quarter of 2022, ending January 1, 2022, to be approximately $460 million, +/- $20 million, and expects non-GAAP EPS to be approximately $1.88, +/- 10%.
This revenue outlook is very similar to the fourth fiscal quarter expectations provided on August 4, 2021.
Looking forward, Fusen Chen commented, “We continue to efficiently support strong, ongoing and broad demand across our served end-markets. Throughout fiscal 2022, we anticipate ongoing industry expansion and also rapid growth of our emerging portfolio of solutions which directly addresses semiconductor, electric vehicle, and advanced LED assembly challenges.”
Earnings Conference Call DetailsA conference call to discuss these results will be held tomorrow, November 18, 2021, beginning at 8:00am EST. To access the conference call, interested parties may call +1-877-407-8037 or internationally +1-201-689-8037. A live webcast will also be available at investor.kns.com.
A replay will be available from approximately one hour after the completion of the call through November 25th by calling toll-free +1-877-660-6853 or internationally +1-201-612-7415 and using the replay ID number of 13723617. A webcast replay will also be available at investor.kns.com.
Use of Non-GAAP Financial ResultsIn addition to U.S. GAAP results, this press release also contains non-GAAP financial results. The Company’s non-GAAP results exclude amortization related to intangible assets acquired through business combinations, costs associated with restructuring, equity-based compensation, acquisition and integration cost, impairment relating to assets acquired through business combinations, income tax expense arising from discrete tax items triggered by significant changes in tax laws, gain/loss on disposal of business, as well as tax benefits or expense associated with the foregoing non-GAAP items. The non-GAAP adjustments may or may not be infrequent or nonrecurring in nature, but are a result of periodic or non-core operating activities. These non-GAAP measures are consistent with the way management analyzes and assesses the Company’s operating results. The Company believes these non-GAAP measures enhance investors’ understanding of the Company’s underlying operational performance, as well as their ability to compare the Company’s period-to-period financial results and the Company’s overall performance to that of its competitors.
Management uses both U.S. GAAP metrics as well as non-GAAP metrics to evaluate the Company’s operating and financial results. Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in the Company’s industry, as other companies in the industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on the Company’s reported financial results. The presentation of non-GAAP items is meant to supplement, but not substitute for, GAAP financial measures or information. The Company believes the presentation of non-GAAP results in combination with GAAP results provides better transparency to the investment community when analyzing business trends, providing meaningful comparisons with prior period performance and enhancing investors’ ability to view the Company’s results from management’s perspective. A reconciliation of each available GAAP to non-GAAP financial measure discussed in this press release is contained in the financial tables at the end of this press release.
Management has not reconciled its outlook for non-GAAP Diluted EPS to Diluted EPS for Q1F22 as it does not provide guidance on the reconciling items between Diluted EPS and non-GAAP Diluted EPS, as a result of the uncertainty regarding, and the potential variability of, these items. The actual amount of such reconciling items could have a significant impact on our non-GAAP Diluted EPS and, accordingly, a reconciliation of Diluted EPS to non-GAAP Diluted EPS for Q1F22 is not available without unreasonable effort.
About Kulicke & SoffaKulicke & Soffa (NASDAQ: KLIC) is a leading provider of semiconductor, LED and electronic assembly solutions serving the global automotive, consumer, communications, computing and industrial markets. Founded in 1951, K&S prides itself on establishing foundations for technological advancement – creating pioneering interconnect solutions that enable performance improvements, power efficiency, form-factor reductions and assembly excellence of current and next-generation semiconductor devices.
Leveraging decades of development proficiency and extensive process technology expertise, Kulicke & Soffa’s expanding portfolio provides equipment solutions, aftermarket products and services supporting a comprehensive set of interconnect technologies including wire bonding, advanced packaging, lithography, and electronics assembly. Dedicated to empowering technological discovery, always, K&S collaborates with customers and technology partners to push the boundaries of possibility, enabling a smarter future (kns.com).
Caution Concerning Results and Forward Looking StatementsIn addition to historical statements, this press release contains statements relating to future events and our future results. These statements are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our judgments and future expectations concerning our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, the effects of the COVID-19 pandemic on our business, the effects of supply chain constraints on our business, and the other factors listed or discussed in our Annual Report on Form 10-K for the fiscal year ended October 3, 2020, filed on November 20, 2020, and our other filings with the Securities and Exchange Commission. Kulicke and Soffa Industries, Inc. is under no obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
Contacts:
Kulicke & Soffa Industries, Inc. Joseph Elgindy Investor Relations & Strategic Initiatives P: +1-215-784-7518 F: +1-215-784-6180
KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share and employee data)
(Unaudited)
Three months ended
Twelve months ended
October 2, 2021
October 3, 2020
Net revenue
$
485,326
177,688
1,517,664
623,176
Cost of sales
254,011
88,803
820,678
325,201
Gross profit
231,315
88,885
696,986
297,975
Operating expenses:
Selling, general and administrative
40,186
28,101
139,224
107,947
Research and development
34,929
35,553
137,478
123,459
Acquisition-related cost
—
1,730
Amortization of intangible assets
1,322
1,920
5,974
7,371
Restructuring
42
263
133
689
Total operating expenses
76,479
65,837
284,539
239,466
Income from operations
154,836
23,048
412,447
58,509
Other income / (expense):
Interest income
520
653
2,321
7,541
Interest expense
(72)
(26)
(218)
(1,716)
Income before income taxes
155,284
23,675
414,550
64,334
Income tax expense / (benefit)
21,573
8,013
47,295
11,998
Share of results of equity-method investee, net of tax
(122)
94
36
Net income
133,711
15,784
367,161
52,300
Net income per share:
Basic
2.16
0.26
5.92
0.83
Diluted
2.10
0.25
5.78
Cash dividends declared per share
0.14
0.12
0.56
0.48
Weighted average shares outstanding:
61,966
61,791
62,009
62,828
63,611
62,411
63,515
63,359
Supplemental financial data:
Depreciation and amortization
5,258
5,142
19,810
19,739
Capital expenditures
5,792
5,964
22,555
14,514
Equity-based compensation expense:
202
147
828
744
2,887
2,965
10,998
11,071
909
851
3,676
3,204
Total equity-based compensation expense
3,998
3,963
15,502
15,019
As of
Backlog of orders 1
787,241
127,924
Number of employees
3,586
2,836
1.
Represents customer purchase commitments. While the Company believes these orders are firm, they are generally cancellable by customers without penalty.
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents
362,788
188,127
Short-term investments
377,000
342,000
Accounts and notes receivable, net of allowance for doubtful accounts of $687 and $968 respectively
421,193
198,640
Inventories, net
167,323
111,809
Prepaid expenses and other current assets
23,586
19,620
TOTAL CURRENT ASSETS
1,351,890
860,196
Property, plant and equipment, net
67,982
59,147
Operating right-of-use assets
41,592
22,688
Goodwill
72,949
56,695
Intangible assets, net
42,752
37,972
Deferred tax assets
15,715
8,147
Equity investments
6,388
7,535
Other assets
2,363
2,186
TOTAL ASSETS
1,601,631
1,054,566
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable
154,636
57,688
Operating lease liabilities
4,903
5,903
Accrued expenses and other current liabilities
161,570
76,762
Income taxes payable
30,766
17,540
TOTAL CURRENT LIABILITIES
351,875
157,893
Deferred tax liabilities
32,828
33,005
69,422
74,957
38,084
18,325
Other liabilities
14,185
12,392
TOTAL LIABILITIES
506,394
296,572
SHAREHOLDERS’ EQUITY
Common stock, no par value
550,117
539,213
Treasury stock, at cost
(400,412)
(394,817)
Retained earnings
948,554
616,119
Accumulated other comprehensive loss
(3,022)
(2,521)
TOTAL SHAREHOLDERS’ EQUITY
1,095,237
757,994
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
Net cash provided by operating activities
123,376
31,731
300,032
94,412
Net cash used in investing activities, continuing operations
(135,928)
(151,820)
(81,707)
(125,957)
Net cash used in financing activities, continuing operations
(12,276)
(15,191)
(44,258)
(145,809)
Effect of exchange rate changes on cash and cash equivalents
(383)
1,632
594
1,297
Changes in cash and cash equivalents
(25,211)
(133,648)
174,661
(176,057)
Cash and cash equivalents, beginning of period
387,999
321,775
364,184
Cash and cash equivalents, end of period
Total cash, cash equivalents, and short-term investments
739,788
530,127
Reconciliation of U.S. GAAP Income from Operating
to Non-GAAP Income from Operation and Operating Margin
(In thousands, except percentages)
(unaudited)
July 3, 2021
424,318
U.S. GAAP income from operations
120,455
U.S. GAAP operating margin
31.9
%
13.0
28.4
Pre-tax non-GAAP items:
Amortization related to intangible assets acquired through business combination- selling, general and administrative
1,340
Equity-based compensation (a)
4,140
Non-GAAP income from operations
160,198
29,194
125,935
Non-GAAP operating margin
33.0
16.4
29.7
(a)
This non-GAAP measure is newly included for the three months ended January 2, 2021. Comparatives have been included.
Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income and
U.S. GAAP net income per share to Non-GAAP net income per share
(in thousands, except per share data)
U.S. GAAP net income
113,766
U.S. GAAP net margin
24.2
27.6
8.9
26.8
Non-GAAP adjustments:
Acquisition-related costs
Equity-based compensation
Net income tax (benefit)/expense on non-GAAP items
(311)
(807)
(181)
(460)
Total non-GAAP adjustments
23,028
4,555
5,965
5,020
Non-GAAP net income
390,189
138,266
21,749
118,786
Non-GAAP net margin
25.7
28.5
12.2
28.0
U.S. GAAP net income per share:
1.83
Diluted(a)
1.79
Non-GAAP adjustments per share:(b)
0.37
0.07
0.10
0.08
0.36
Non-GAAP net income per share:
6.29
2.23
0.35
1.91
Diluted(c)
6.14
2.17
1.87
62,023
Diluted(b)
63,485
GAAP diluted net earnings per share reflects any dilutive effect of outstanding restricted stock units and stock options, but that effect is excluded when calculating GAAP diluted net (loss) per share because it would be anti-dilutive.
(b)
Non-GAAP adjustments per share includes amortization related to intangible assets acquired through business combinations, costs associated with restructuring, equity-based compensation expenses, and acquisition-related costs as well as tax benefits or expense associated with the foregoing non-GAAP items.
(c)
Non-GAAP diluted net earnings per share reflects any dilutive effect of outstanding restricted stock units and stock options.
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SOURCE Kulicke & Soffa Industries, Inc.
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