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Kulicke and Soffa Industries Inc. Reports Operating Results (10-Q)

August 03, 2012 | About:
10qk

10qk

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Kulicke and Soffa Industries Inc. (KLIC) filed Quarterly Report for the period ended 2012-06-30.

Kulicke And Soffa Industries Inc. has a market cap of $711.6 million; its shares were traded at around $10.73 with a P/E ratio of 5.9 and P/S ratio of 0.9.

Highlight of Business Operations:

Approximately 98.2% and 98.5% of our net revenue for the three months ended June 30, 2012 and July 2, 2011, respectively, was for shipments to customer locations outside of the U.S., primarily in the Asia/Pacific region. Likewise, approximately 98.0% and 98.1% of our net revenue for the nine months ended June 30, 2012 and July 2, 2011, respectively, was for shipments to customer locations outside of the U.S. We expect sales outside of the U.S. to continue to represent a substantial majority of our future revenue.

Net revenue decreased 8.4% for the nine months ended June 30, 2012 compared to the nine months ended July 2, 2011. The decrease was primarily due to volume decreases in all our Expendable Tools businesses.

For the three months ended June 30, 2012, the lower Equipment gross profit as compared to the prior year period was primarily due to the lower volume from our wedge bonders and ball bonders. The volume reduction in wedge bonders was attributable mainly to decrease demand in the power discrete semiconductor packaging portion of the market. Slowing demand from the end users of our customers’ devices resulted in our customers cutting back their production reducing their need for new equipment. Sales to the automotive and industrial segments remained fairly flat. The volume reduction in ball bonders was mainly due to variations in the timing of our customer orders within the seasonal cycle. This reduction was partially offset by higher AT Premier volume driven by a change of attachment technology for component(s) used in smartphones and tablet applications. In addition, pricing on our ball bonders and wedge bonders was less favorable due to a change in customer and product mix, respectively. Costs were lower for both ball bonders and wedge bonders due to more favorable cost variance from operational efficiency.

Expendable Tools gross profit increased 0.5% for the three months ended June 30, 2012 compared to the three months ended July 2, 2011 primarily due to more favorable pricing from a change in product mix partially offset by a volume decrease in our bonding wedges business.

Expendable Tools gross profit decreased 9.1% for the nine months ended June 30, 2012 compared to the nine months ended July 2, 2011. The decrease was primarily due to volume decreases in all our Expendable Tools businesses, which was partially offset by more favorable pricing from a change in product mix. There were also increased costs due to higher manufacturing labor costs in China and under absorption of costs due to the lower volumes.

Read the The complete Report

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