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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Kulicke and Soffa Industries Inc | NASDAQ:KLIC | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 47.00 | 46.00 | 51.00 | 0 | 13:39:01 |
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
PENNSYLVANIA
|
23-1498399
|
(State or other jurisdiction of incorporation)
|
(IRS Employer
|
|
Identification No.)
|
Large accelerated filer
x
|
Accelerated filer
[ ]
|
Non-accelerated filer
[ ]
|
(Do not check if a smaller reporting company)
|
|
Smaller reporting company
[ ]
|
|
Emerging growth company
[ ]
|
|
|
Page Number
|
|
|
|
PART I - FINANCIAL INFORMATION
|
||
|
|
|
Item 1.
|
FINANCIAL STATEMENTS (Unaudited)
|
|
|
|
|
|
Consolidated Condensed Balance Sheets as of April 1, 2017 and October 1, 2016
|
|
|
|
|
|
Consolidated Condensed Statements of Operations for the three and six months ended April 1, 2017 and April 2, 2016
|
|
|
|
|
|
Consolidated Condensed Statements of Comprehensive Income for the three and six months ended April 1, 2017 and April 2, 2016
|
|
|
|
|
|
Consolidated Condensed Statements of Cash Flows for the six months ended April 1, 2017 and April 2, 2016
|
|
|
|
|
|
Notes to Consolidated Condensed Financial Statements
|
|
|
|
|
Item 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
|
|
|
Item 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
|
|
|
|
Item 4.
|
CONTROLS AND PROCEDURES
|
|
|
|
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PART II - OTHER INFORMATION
|
||
|
|
|
Item 1A.
|
RISK FACTORS
|
|
|
|
|
Item 6.
|
EXHIBITS
|
|
|
|
|
|
SIGNATURES
|
|
|
As of
|
||||||
|
|
April 1, 2017
|
|
October 1, 2016
|
||||
ASSETS
|
|
|
|
|
||||
Current assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
435,203
|
|
|
$
|
423,907
|
|
Short-term investments
|
|
139,000
|
|
|
124,000
|
|
||
Accounts and other receivable, net of allowance for doubtful accounts of $25 and $506 respectively
|
|
169,748
|
|
|
130,455
|
|
||
Inventories, net
|
|
98,685
|
|
|
87,295
|
|
||
Prepaid expenses and other current assets
|
|
16,672
|
|
|
15,285
|
|
||
Total current assets
|
|
859,308
|
|
|
780,942
|
|
||
|
|
|
|
|
|
|||
Property, plant and equipment, net
|
|
65,725
|
|
|
50,342
|
|
||
Goodwill
|
|
81,272
|
|
|
81,272
|
|
||
Intangible assets
|
|
47,766
|
|
|
50,810
|
|
||
Deferred income taxes
|
|
16,681
|
|
|
16,822
|
|
||
Equity investments
|
|
1,312
|
|
|
—
|
|
||
Other assets
|
|
2,010
|
|
|
2,256
|
|
||
TOTAL ASSETS
|
|
$
|
1,074,074
|
|
|
$
|
982,444
|
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
|
||
Accounts payable
|
|
$
|
80,570
|
|
|
$
|
41,813
|
|
Accrued expenses and other current liabilities
|
|
66,850
|
|
|
63,954
|
|
||
Income taxes payable
|
|
9,006
|
|
|
12,830
|
|
||
Total current liabilities
|
|
156,426
|
|
|
118,597
|
|
||
|
|
|
|
|
||||
Financing obligation
|
|
15,965
|
|
|
16,701
|
|
||
Deferred income taxes
|
|
32,936
|
|
|
27,697
|
|
||
Other liabilities
|
|
14,102
|
|
|
12,931
|
|
||
TOTAL LIABILITIES
|
|
$
|
219,429
|
|
|
$
|
175,926
|
|
|
|
|
|
|
||||
Commitments and contingent liabilities (Note 14)
|
|
|
|
|
|
|
||
|
|
|
|
|
||||
SHAREHOLDERS' EQUITY:
|
|
|
|
|
|
|
||
Preferred stock, without par value:
|
|
|
|
|
|
|
||
Authorized 5,000 shares; issued - none
|
|
$
|
—
|
|
|
$
|
—
|
|
Common stock, no par value:
|
|
|
|
|
|
|
||
Authorized 200,000 shares; issued 83,785 and 83,231, respectively; outstanding 70,974 and 70,420 shares, respectively
|
|
505,003
|
|
|
498,676
|
|
||
Treasury stock, at cost, 12,811 and 12,811 shares, respectively
|
|
(139,407
|
)
|
|
(139,407
|
)
|
||
Retained earnings
|
|
494,599
|
|
|
449,975
|
|
||
Accumulated other comprehensive loss
|
|
(5,550
|
)
|
|
(2,726
|
)
|
||
TOTAL SHAREHOLDERS' EQUITY
|
|
$
|
854,645
|
|
|
$
|
806,518
|
|
|
|
|
|
|
||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
$
|
1,074,074
|
|
|
$
|
982,444
|
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
|
April 1, 2017
|
|
April 2, 2016
|
|
April 1, 2017
|
|
April 2, 2016
|
||||||||
Net revenue
|
|
$
|
199,613
|
|
|
$
|
156,400
|
|
|
$
|
349,252
|
|
|
$
|
264,934
|
|
Cost of sales
|
|
109,322
|
|
|
86,753
|
|
|
190,643
|
|
|
144,866
|
|
||||
Gross profit
|
|
90,291
|
|
|
69,647
|
|
|
158,609
|
|
|
120,068
|
|
||||
Selling, general and administrative
|
|
32,666
|
|
|
35,499
|
|
|
62,198
|
|
|
63,431
|
|
||||
Research and development
|
|
25,020
|
|
|
22,439
|
|
|
46,525
|
|
|
46,633
|
|
||||
Operating expenses
|
|
57,686
|
|
|
57,938
|
|
|
108,723
|
|
|
110,064
|
|
||||
Income from operations
|
|
32,605
|
|
|
11,709
|
|
|
49,886
|
|
|
10,004
|
|
||||
Interest income
|
|
1,579
|
|
|
701
|
|
|
2,751
|
|
|
1,323
|
|
||||
Interest expense
|
|
(261
|
)
|
|
(276
|
)
|
|
(523
|
)
|
|
(549
|
)
|
||||
Income before income taxes
|
|
33,923
|
|
|
12,134
|
|
|
52,114
|
|
|
10,778
|
|
||||
Income tax expense
|
|
4,882
|
|
|
7,045
|
|
|
7,490
|
|
|
5,780
|
|
||||
Net income
|
|
$
|
29,041
|
|
|
$
|
5,089
|
|
|
$
|
44,624
|
|
|
$
|
4,998
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
|
$
|
0.41
|
|
|
$
|
0.07
|
|
|
$
|
0.63
|
|
|
$
|
0.07
|
|
Diluted
|
|
$
|
0.40
|
|
|
$
|
0.07
|
|
|
$
|
0.62
|
|
|
$
|
0.07
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
|
70,964
|
|
|
70,389
|
|
|
70,909
|
|
|
70,563
|
|
||||
Diluted
|
|
72,270
|
|
|
70,634
|
|
|
72,039
|
|
|
70,801
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
April 1, 2017
|
|
April 2, 2016
|
|
April 1, 2017
|
|
April 2, 2016
|
||||||||
Net income
|
$
|
29,041
|
|
|
$
|
5,089
|
|
|
$
|
44,624
|
|
|
$
|
4,998
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment
|
1,138
|
|
|
2,670
|
|
|
(3,443
|
)
|
|
1,540
|
|
||||
Unrecognized actuarial (loss)/gain, Switzerland pension plan, net of tax
|
(42
|
)
|
|
(42
|
)
|
|
85
|
|
|
(14
|
)
|
||||
|
1,096
|
|
|
2,628
|
|
|
(3,358
|
)
|
|
1,526
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||||
Unrealized gain/(loss) on derivative instruments, net of tax
|
1,120
|
|
|
54
|
|
|
(472
|
)
|
|
(133
|
)
|
||||
Reclassification adjustment for loss on derivative instruments recognized, net of tax
|
477
|
|
|
44
|
|
|
1,006
|
|
|
133
|
|
||||
Net decrease from derivatives designated as hedging instruments, net of tax
|
1,597
|
|
|
98
|
|
|
534
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total other comprehensive income/(loss)
|
2,693
|
|
|
2,726
|
|
|
(2,824
|
)
|
|
1,526
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive income
|
$
|
31,734
|
|
|
$
|
7,815
|
|
|
$
|
41,800
|
|
|
$
|
6,524
|
|
|
|
Six months ended
|
||||||
|
|
April 1, 2017
|
|
April 2, 2016
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
||
Net income
|
|
$
|
44,624
|
|
|
$
|
4,998
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||
Depreciation and amortization
|
|
7,775
|
|
|
8,202
|
|
||
Equity-based compensation and employee benefits
|
|
6,680
|
|
|
2,035
|
|
||
Reversal of excess tax benefits / (Excess tax benefits) from stock-based compensation
|
|
742
|
|
|
(540
|
)
|
||
Adjustment for doubtful accounts
|
|
(191
|
)
|
|
(255
|
)
|
||
Adjustment for inventory valuation
|
|
3,445
|
|
|
3,366
|
|
||
Deferred income taxes
|
|
4,638
|
|
|
(4,071
|
)
|
||
Gain on disposal of property, plant and equipment
|
|
(1,050
|
)
|
|
(57
|
)
|
||
Unrealized foreign currency translation
|
|
(4,789
|
)
|
|
1,294
|
|
||
Changes in operating assets and liabilities, net of assets and liabilities assumed in business combinations:
|
|
|
|
|
|
|
||
Accounts and other receivable
|
|
(39,094
|
)
|
|
(52,431
|
)
|
||
Inventory
|
|
(17,556
|
)
|
|
(4,834
|
)
|
||
Prepaid expenses and other current assets
|
|
(1,141
|
)
|
|
418
|
|
||
Accounts payable, accrued expenses and other current liabilities
|
|
41,007
|
|
|
33,358
|
|
||
Income taxes payable
|
|
(3,821
|
)
|
|
7,858
|
|
||
Other, net
|
|
1,709
|
|
|
(320
|
)
|
||
Net cash provided by / (used in) operating activities
|
|
42,978
|
|
|
(979
|
)
|
||
|
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
||
Purchases of property, plant and equipment
|
|
(17,439
|
)
|
|
(2,845
|
)
|
||
Proceeds from sales of property, plant and equipment
|
|
1,352
|
|
|
1,053
|
|
||
Purchase of equity investments
|
|
(1,312
|
)
|
|
—
|
|
||
Purchase of short-term investments
|
|
(139,000
|
)
|
|
—
|
|
||
Maturity of short-term investments
|
|
124,000
|
|
|
—
|
|
||
Net cash used in investing activities
|
|
(32,399
|
)
|
|
(1,792
|
)
|
||
|
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
||
Payment on debts
|
|
(290
|
)
|
|
(259
|
)
|
||
Proceeds from exercise of common stock options
|
|
389
|
|
|
177
|
|
||
Repurchase of common stock
|
|
—
|
|
|
(14,551
|
)
|
||
(Reversal of excess tax benefits) / Excess tax benefits from stock-based compensation
|
|
(742
|
)
|
|
540
|
|
||
Net cash used in financing activities
|
|
(643
|
)
|
|
(14,093
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
|
1,360
|
|
|
243
|
|
||
Changes in cash and cash equivalents
|
|
11,296
|
|
|
(16,621
|
)
|
||
Cash and cash equivalents at beginning of period
|
|
423,907
|
|
|
498,614
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
435,203
|
|
|
$
|
481,993
|
|
|
|
|
|
|
||||
CASH PAID FOR:
|
|
|
|
|
|
|
||
Interest
|
|
$
|
523
|
|
|
$
|
549
|
|
Income taxes
|
|
$
|
5,454
|
|
|
$
|
2,580
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||||||||||||||||||
|
April 1, 2017
|
|
April 1, 2017
|
||||||||||||||||||||||||||||
(in thousands)
|
Beginning of period
(1)
|
|
Expenses
(2)
|
|
Payments
|
|
End of period
(1)
|
|
Beginning of period
(1)
|
|
Expenses
(2)
|
|
Payments
|
|
End of period
(1)
|
||||||||||||||||
Severance and benefits
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
(37
|
)
|
|
$
|
—
|
|
Other exit costs
|
3,633
|
|
|
—
|
|
|
(1,575
|
)
|
|
2,058
|
|
|
6,525
|
|
|
—
|
|
|
(4,467
|
)
|
|
2,058
|
|
||||||||
|
$
|
3,633
|
|
|
$
|
—
|
|
|
$
|
(1,575
|
)
|
|
$
|
2,058
|
|
|
$
|
6,562
|
|
|
$
|
—
|
|
|
$
|
(4,504
|
)
|
|
$
|
2,058
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||||||||||||||||||
|
April 2, 2016
|
|
April 2, 2016
|
||||||||||||||||||||||||||||
(in thousands)
|
Beginning of period
(1)
|
|
Expenses
(2)
|
|
Payments
|
|
End of period
(1)
|
|
Beginning of period
(1)
|
|
Expenses
(2)
|
|
Payments
|
|
End of period
(1)
|
||||||||||||||||
Severance and benefits
|
$
|
665
|
|
|
$
|
46
|
|
|
$
|
(545
|
)
|
|
$
|
166
|
|
|
$
|
1,538
|
|
|
$
|
661
|
|
|
$
|
(2,033
|
)
|
|
$
|
166
|
|
(1)
|
Included within accrued expenses and other current liabilities on the Consolidated Condensed Balance Sheets.
|
(2)
|
Provision for severance and benefits and other exit costs are included within selling, general and administrative expenses on the Consolidated Condensed Statements of Operations.
|
|
|
As of
|
||||||
(in thousands)
|
|
April 1, 2017
|
|
October 1, 2016
|
||||
|
|
|
|
|
||||
Short term investments, available-for-sale
(1)
|
|
$
|
139,000
|
|
|
$
|
124,000
|
|
|
|
|
|
|
||||
Inventories, net:
|
|
|
|
|
|
|
||
Raw materials and supplies
(2)
|
|
$
|
32,261
|
|
|
$
|
26,876
|
|
Work in process
(2)
|
|
36,788
|
|
|
24,333
|
|
||
Finished goods
(2)
|
|
50,164
|
|
|
57,166
|
|
||
|
|
119,213
|
|
|
108,375
|
|
||
Inventory reserves
|
|
(20,528
|
)
|
|
(21,080
|
)
|
||
|
|
$
|
98,685
|
|
|
$
|
87,295
|
|
Property, plant and equipment, net:
|
|
|
|
|
|
|
||
Land
|
|
$
|
2,182
|
|
|
$
|
—
|
|
Buildings and building improvements
|
|
50,107
|
|
|
34,472
|
|
||
Leasehold improvements
|
|
9,685
|
|
|
19,963
|
|
||
Data processing equipment and software
(2)
|
|
34,323
|
|
|
32,975
|
|
||
Machinery, equipment, furniture and fixtures
|
|
63,124
|
|
|
54,730
|
|
||
|
|
159,421
|
|
|
142,140
|
|
||
Accumulated depreciation
(2)
|
|
(93,696
|
)
|
|
(91,798
|
)
|
||
|
|
$
|
65,725
|
|
|
$
|
50,342
|
|
Accrued expenses and other current liabilities:
|
|
|
|
|
|
|
||
Wages and benefits
|
|
$
|
26,427
|
|
|
$
|
24,248
|
|
Accrued customer obligations
(3)
|
|
16,930
|
|
|
13,077
|
|
||
Commissions and professional fees
|
|
8,064
|
|
|
10,908
|
|
||
Deferred rent
|
|
1,940
|
|
|
2,920
|
|
||
Severance
(4)
|
|
878
|
|
|
1,296
|
|
||
Other
|
|
12,611
|
|
|
11,505
|
|
||
|
|
$
|
66,850
|
|
|
$
|
63,954
|
|
(1)
|
All short-term investments were classified as available-for-sale and were measured at fair value based on level one measurement, or quoted market prices, as defined by ASC 820. As of
April 1, 2017
, fair value approximated the cost basis for short-term investments. The Company did not recognize any realized gains or losses on the sale of investments during the three and six months ended
April 1, 2017
and
April 2, 2016
.
|
(2)
|
Certain balances as at October 1, 2016 relating to Inventories and Property, plant and equipment have been reclassified for comparative purposes. These reclassifications have no impact to the Consolidated Condensed Balance Sheet as at October 1, 2016.
|
(3)
|
Represents customer advance payments, customer credit program, accrued warranty expense and accrued retrofit obligations.
|
(4)
|
Includes the restructuring plan discussed in Note 2, severance payable in connection with the October 2015 retirement of the Company's CEO of
$0.5 million
(as of October 1, 2016:
$0.8 million
), and other severance payments.
|
|
|
As of
|
||||||
(in thousands)
|
|
April 1, 2017
|
|
October 1, 2016
|
||||
Goodwill
|
|
$
|
81,272
|
|
|
$
|
81,272
|
|
|
|
As of
|
|
Average estimated
|
||||||
(dollar amounts in thousands)
|
|
April 1, 2017
|
|
October 1, 2016
|
|
useful lives
(in years)
|
||||
Technology
|
|
$
|
74,080
|
|
|
$
|
74,080
|
|
|
7.0 to 15.0
|
Accumulated amortization
|
|
(39,332
|
)
|
|
(37,969
|
)
|
|
|
||
Net technology
|
|
$
|
34,748
|
|
|
$
|
36,111
|
|
|
|
|
|
|
|
|
|
|
||||
Customer relationships
|
|
$
|
36,968
|
|
|
$
|
36,968
|
|
|
5.0 to 6.0
|
Accumulated amortization
|
|
(25,925
|
)
|
|
(24,455
|
)
|
|
|
||
Net customer relationships
|
|
$
|
11,043
|
|
|
$
|
12,513
|
|
|
|
|
|
|
|
|
|
|
||||
Trade and brand names
|
|
$
|
7,515
|
|
|
$
|
7,515
|
|
|
7.0 to 8.0
|
Accumulated amortization
|
|
(5,540
|
)
|
|
(5,329
|
)
|
|
|
||
Net trade and brand name
|
|
$
|
1,975
|
|
|
$
|
2,186
|
|
|
|
|
|
|
|
|
|
|
||||
Other intangible assets
|
|
$
|
2,500
|
|
|
$
|
2,500
|
|
|
1.9
|
Accumulated amortization
|
|
(2,500
|
)
|
|
(2,500
|
)
|
|
|
||
Net other intangible assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
||||
Net intangible assets
|
|
$
|
47,766
|
|
|
$
|
50,810
|
|
|
|
|
As of
|
||
(in thousands)
|
April 1, 2017
|
||
Remaining fiscal 2017
|
$
|
3,044
|
|
Fiscal 2018
|
6,086
|
|
|
Fiscal 2019
|
6,086
|
|
|
Fiscal 2020
|
6,086
|
|
|
Fiscal 2021 and onwards
|
26,464
|
|
|
Total amortization expense
|
$
|
47,766
|
|
(in thousands)
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Estimated
Fair Value
|
||||||||
Current assets:
|
|
|
|
|
|
|
|
||||||||
Cash
|
$
|
68,652
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
68,652
|
|
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
174,848
|
|
|
—
|
|
|
—
|
|
|
174,848
|
|
||||
Time deposits
|
166,703
|
|
|
—
|
|
|
—
|
|
|
166,703
|
|
||||
Commercial paper
|
25,000
|
|
|
—
|
|
|
—
|
|
|
25,000
|
|
||||
Total cash and cash equivalents
|
$
|
435,203
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
435,203
|
|
Short-term investments:
|
|
|
|
|
|
|
|
||||||||
Time deposits
|
89,000
|
|
|
—
|
|
|
—
|
|
|
89,000
|
|
||||
Deposits
(1)
|
50,000
|
|
|
—
|
|
|
—
|
|
|
50,000
|
|
||||
Total short-term investments
|
139,000
|
|
|
—
|
|
|
—
|
|
|
139,000
|
|
||||
Total cash, cash equivalents and short-term investments
|
$
|
574,203
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
574,203
|
|
(1)
|
Represents deposits that require a notice period of three months for withdrawal.
|
(in thousands)
|
Amortized
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Estimated
Fair Value
|
||||||||
Current assets:
|
|
|
|
|
|
|
|
||||||||
Cash
|
$
|
118,335
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
118,335
|
|
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Money market funds
|
152,961
|
|
|
—
|
|
|
—
|
|
|
152,961
|
|
||||
Time deposits
(1)
|
133,611
|
|
|
—
|
|
|
—
|
|
|
133,611
|
|
||||
Commercial paper
|
19,000
|
|
|
—
|
|
|
—
|
|
|
19,000
|
|
||||
Total cash and cash equivalents
|
$
|
423,907
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
423,907
|
|
Short-term investments
|
|
|
|
|
|
|
|
||||||||
Time deposits
(1)
|
124,000
|
|
|
—
|
|
|
—
|
|
|
124,000
|
|
||||
Total short-term investments
|
124,000
|
|
|
—
|
|
|
—
|
|
|
124,000
|
|
||||
Total cash, cash equivalents and short-term investments
|
$
|
547,907
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
547,907
|
|
(1)
|
Certain time deposits as at October 1, 2016 have been corrected from cash equivalents to short-term investments for comparative purposes.
|
|
|
As of
|
||||||
(in thousands)
|
|
April 1, 2017
|
|
October 1, 2016
|
||||
Equity method investment
|
|
$
|
1,312
|
|
|
$
|
—
|
|
(1)
|
The fair value of derivative assets is measured using level 2 fair value inputs and is included in prepaid expenses and other current assets on our Consolidated Condensed Balance Sheet.
|
(2)
|
The fair value of derivative liabilities is measured using level 2 fair value inputs and is included in accrued expenses and other current liabilities on our Consolidated Condensed Balance Sheet.
|
(3)
|
Hedged amounts expected to be recognized to income within the next
twelve
months.
|
(in thousands)
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
|
April 1, 2017
|
|
April 2, 2016
|
|
April 1, 2017
|
|
April 2, 2016
|
||||||||
Foreign exchange forward contract in cash flow hedging relationships:
|
|
|
|
|
|
|
|
|
||||||||
Net gain/(loss) recognized in OCI, net of tax
(1)
|
|
$
|
1,120
|
|
|
$
|
54
|
|
|
$
|
(472
|
)
|
|
$
|
(133
|
)
|
Net loss reclassified from accumulated OCI into income, net of tax
(2)
|
|
$
|
(477
|
)
|
|
$
|
(44
|
)
|
|
$
|
(1,006
|
)
|
|
$
|
(133
|
)
|
Net gain recognized in income
(3)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
Net change in the fair value of the effective portion classified in other comprehensive income (“OCI”).
|
(2)
|
Effective portion classified as selling, general and administrative expense.
|
(3)
|
Ineffective portion and amount excluded from effectiveness testing classified in selling, general and administrative expense.
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
(in thousands)
|
|
April 1, 2017
|
|
April 2, 2016
|
|
April 1, 2017
|
|
April 2, 2016
|
||||||||
Cash
|
|
$
|
504
|
|
|
$
|
425
|
|
|
$
|
917
|
|
|
$
|
818
|
|
|
|
As of
|
||||||
(in thousands)
|
|
April 1, 2017
|
|
October 1, 2016
|
||||
(Loss) / Gain from foreign currency translation adjustments
|
|
$
|
(2,981
|
)
|
|
$
|
462
|
|
Unrecognized actuarial loss Switzerland pension plan, net of tax
|
|
(2,641
|
)
|
|
(2,726
|
)
|
||
Unrealized gain / (loss) on hedging
|
|
72
|
|
|
(462
|
)
|
||
Accumulated other comprehensive loss
|
|
$
|
(5,550
|
)
|
|
$
|
(2,726
|
)
|
•
|
Market-based restricted stock entitles the employee to receive common shares of the Company on the award vesting date, if market performance objectives that measure relative total shareholder return (“TSR”) are attained. Relative TSR is calculated based upon the
90
-calendar day average price of the Company's stock as compared to specific peer companies that comprise the GICS (45301020) Semiconductor Index. TSR is measured for the Company and each peer company over a performance period, which is generally
three years
. Vesting percentages range from
0%
to
200%
of awards granted. The provisions of the market-based restricted stock are reflected in the grant date fair value of the award; therefore, compensation expense is recognized regardless of whether the market condition is ultimately satisfied. Compensation expense is reversed if the award is forfeited prior to the vesting date.
|
•
|
In general, stock options and time-based restricted stock awarded to employees vest annually over a three-year period provided the employee remains employed by the Company. The Company follows the non-substantive vesting method for stock options and recognizes compensation expense immediately for awards granted to retirement eligible employees, or over the period from the grant date to the date retirement eligibility is achieved.
|
•
|
In general, performance-based restricted stock (“PSU”) entitles the employee to receive common shares of the Company on the three-year anniversary of the grant date (if employed by the Company) if return on invested capital and revenue growth targets set by the Management Development and Compensation Committee (“MDCC”) of the Board of Directors on the date of grant are met. If return on invested capital and revenue growth targets are not met, performance-based restricted stock does not vest. Certain PSUs vest based on achievement of strategic goals over a certain time period or periods set by the MDCC. If the strategic goals are not achieved, the PSUs do not vest.
|
|
|
Three months ended
|
|
Six months ended
|
||||||||
(shares in thousands)
|
|
April 1, 2017
|
|
April 2, 2016
|
|
April 1, 2017
|
|
April 2, 2016
|
||||
Market-based restricted stock
|
|
8
|
|
|
—
|
|
|
381
|
|
|
166
|
|
Time-based restricted stock
|
|
8
|
|
|
10
|
|
|
704
|
|
|
581
|
|
Common stock
|
|
11
|
|
|
32
|
|
|
25
|
|
|
32
|
|
Equity-based compensation in shares
|
|
27
|
|
|
42
|
|
|
1,110
|
|
|
779
|
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
(in thousands)
|
|
April 1, 2017
|
|
April 2, 2016
|
|
April 1, 2017
|
|
April 2, 2016
|
||||||||
Cost of sales
|
|
$
|
106
|
|
|
$
|
97
|
|
|
$
|
247
|
|
|
$
|
225
|
|
Selling, general and administrative
(1)
|
|
2,450
|
|
|
1,460
|
|
|
5,184
|
|
|
690
|
|
||||
Research and development
|
|
522
|
|
|
416
|
|
|
1,249
|
|
|
1,120
|
|
||||
Total equity-based compensation expense
|
|
$
|
3,078
|
|
|
$
|
1,973
|
|
|
$
|
6,680
|
|
|
$
|
2,035
|
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
(in thousands)
|
|
April 1, 2017
|
|
April 2, 2016
|
|
April 1, 2017
|
|
April 2, 2016
|
||||||||
Market-based restricted stock
|
|
$
|
855
|
|
|
$
|
388
|
|
|
$
|
1,788
|
|
|
$
|
(993
|
)
|
Time-based restricted stock
|
|
2,044
|
|
|
1,226
|
|
|
4,533
|
|
|
2,712
|
|
||||
Performance-based restricted stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(43
|
)
|
||||
Common stock
|
|
179
|
|
|
359
|
|
|
359
|
|
|
359
|
|
||||
Total equity-based compensation expense
(1)
|
|
$
|
3,078
|
|
|
$
|
1,973
|
|
|
$
|
6,680
|
|
|
$
|
2,035
|
|
|
|
Three months ended
|
||||||||||||||
(in thousands, except per share data)
|
|
April 1, 2017
|
|
April 2, 2016
|
||||||||||||
|
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
||||||||
NUMERATOR:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income
|
|
$
|
29,041
|
|
|
$
|
29,041
|
|
|
$
|
5,089
|
|
|
$
|
5,089
|
|
DENOMINATOR:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares outstanding - Basic
|
|
70,964
|
|
|
70,964
|
|
|
70,389
|
|
|
70,389
|
|
||||
Stock options
|
|
|
|
|
19
|
|
|
|
|
|
27
|
|
||||
Time-based restricted stock
|
|
|
|
|
612
|
|
|
|
|
|
172
|
|
||||
Market-based restricted stock
|
|
|
|
|
675
|
|
|
|
|
|
46
|
|
||||
Weighted average shares outstanding - Diluted
|
|
|
|
|
72,270
|
|
|
|
|
|
70,634
|
|
||||
EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income per share - Basic
|
|
$
|
0.41
|
|
|
$
|
0.41
|
|
|
$
|
0.07
|
|
|
$
|
0.07
|
|
Effect of dilutive shares
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
—
|
|
||||
Net income per share - Diluted
|
|
|
|
|
$
|
0.40
|
|
|
|
|
|
$
|
0.07
|
|
|
|
Six months ended
|
||||||||||||||
(in thousands, except per share data)
|
|
April 1, 2017
|
|
April 2, 2016
|
||||||||||||
|
|
Basic
|
|
Diluted
|
|
Basic
|
|
Diluted
|
||||||||
NUMERATOR:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income
|
|
$
|
44,624
|
|
|
$
|
44,624
|
|
|
$
|
4,998
|
|
|
$
|
4,998
|
|
DENOMINATOR:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares outstanding - Basic
|
|
70,909
|
|
|
70,909
|
|
|
70,563
|
|
|
70,563
|
|
||||
Stock options
|
|
|
|
23
|
|
|
|
|
|
29
|
|
|||||
Time-based restricted stock
|
|
|
|
510
|
|
|
|
|
|
172
|
|
|||||
Market-based restricted stock
|
|
|
|
597
|
|
|
|
|
|
37
|
|
|||||
Weighted average shares outstanding - Diluted
|
|
|
|
|
72,039
|
|
|
|
|
|
70,801
|
|
||||
EPS:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income per share - Basic
|
|
$
|
0.63
|
|
|
$
|
0.63
|
|
|
$
|
0.07
|
|
|
$
|
0.07
|
|
Effect of dilutive shares
|
|
|
|
|
(0.01
|
)
|
|
|
|
|
—
|
|
||||
Net income per share - Diluted
|
|
|
|
|
$
|
0.62
|
|
|
|
|
|
$
|
0.07
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
(dollar amounts in thousands)
|
April 1, 2017
|
|
April 2, 2016
|
|
April 1, 2017
|
|
April 2, 2016
|
||||||||
Income before income taxes
|
$
|
33,923
|
|
|
$
|
12,134
|
|
|
$
|
52,114
|
|
|
$
|
10,778
|
|
Income tax expense
|
4,882
|
|
|
7,045
|
|
|
7,490
|
|
|
5,780
|
|
||||
Net income
|
$
|
29,041
|
|
|
$
|
5,089
|
|
|
$
|
44,624
|
|
|
$
|
4,998
|
|
|
|
|
|
|
|
|
|
||||||||
Effective tax rate
|
14.4
|
%
|
|
58.1
|
%
|
|
14.4
|
%
|
|
53.6
|
%
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
(in thousands)
|
|
April 1, 2017
|
|
April 2, 2016
|
|
April 1, 2017
|
|
April 2, 2016
|
||||||||
Net revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equipment
|
|
$
|
180,979
|
|
|
$
|
141,062
|
|
|
$
|
313,958
|
|
|
$
|
234,036
|
|
Expendable Tools
|
|
18,634
|
|
|
15,338
|
|
|
35,294
|
|
|
30,898
|
|
||||
Net revenue
|
|
199,613
|
|
|
156,400
|
|
|
349,252
|
|
|
264,934
|
|
||||
Income from operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equipment
|
|
28,069
|
|
|
7,716
|
|
|
40,743
|
|
|
1,290
|
|
||||
Expendable Tools
|
|
4,536
|
|
|
3,993
|
|
|
9,143
|
|
|
8,714
|
|
||||
Income from operations
|
|
$
|
32,605
|
|
|
$
|
11,709
|
|
|
$
|
49,886
|
|
|
$
|
10,004
|
|
|
|
As of
|
||||||
(in thousands)
|
|
April 1, 2017
|
|
October 1, 2016
|
||||
Segment assets:
|
|
|
|
|
|
|
||
Equipment
|
|
$
|
987,273
|
|
|
$
|
901,316
|
|
Expendable Tools
|
|
86,801
|
|
|
81,128
|
|
||
Total assets
|
|
$
|
1,074,074
|
|
|
$
|
982,444
|
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
(in thousands)
|
|
April 1, 2017
|
|
April 2, 2016
|
|
April 1, 2017
|
|
April 2, 2016
|
||||||||
Capital expenditures:
|
|
|
|
|
|
|
|
|
|
|
||||||
Equipment
|
|
$
|
13,454
|
|
|
$
|
1,078
|
|
|
$
|
15,058
|
|
|
$
|
2,149
|
|
Expendable Tools
|
|
2,423
|
|
|
444
|
|
|
3,048
|
|
|
767
|
|
||||
Capital expenditures
|
|
$
|
15,877
|
|
|
$
|
1,522
|
|
|
$
|
18,106
|
|
|
$
|
2,916
|
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
(in thousands)
|
|
April 1, 2017
|
|
April 2, 2016
|
|
April 1, 2017
|
|
April 2, 2016
|
||||||||
Depreciation expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equipment
|
|
$
|
1,782
|
|
|
$
|
1,925
|
|
|
$
|
3,672
|
|
|
$
|
3,731
|
|
Expendable Tools
|
|
528
|
|
|
561
|
|
|
1,059
|
|
|
1,140
|
|
||||
Depreciation expense
|
|
$
|
2,310
|
|
|
$
|
2,486
|
|
|
$
|
4,731
|
|
|
$
|
4,871
|
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
(in thousands)
|
|
April 1, 2017
|
|
|
April 2, 2016
|
|
|
April 1, 2017
|
|
April 2, 2016
|
||||||
Reserve for warranty, beginning of period
|
|
$
|
4,102
|
|
|
$
|
1,617
|
|
|
$
|
4,138
|
|
|
$
|
1,856
|
|
Provision for warranty
|
|
3,020
|
|
|
972
|
|
|
3,627
|
|
|
1,358
|
|
||||
Warranty costs paid
|
|
(744
|
)
|
|
(718
|
)
|
|
(1,387
|
)
|
|
(1,343
|
)
|
||||
Reserve for warranty, end of period
|
|
$
|
6,378
|
|
|
$
|
1,871
|
|
|
$
|
6,378
|
|
|
$
|
1,871
|
|
|
|
|
|
|
Payments due by fiscal year
|
|||||||||||||||||||
(in thousands)
|
|
Total
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
thereafter
|
||||||||||||
Inventory purchase obligation (1)
|
|
$
|
178,187
|
|
|
$
|
178,187
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Operating lease obligations (2)
|
|
21,164
|
|
|
2,063
|
|
|
3,274
|
|
|
2,530
|
|
|
2,412
|
|
|
10,885
|
|
||||||
Total
|
|
$
|
199,351
|
|
|
$
|
180,250
|
|
|
$
|
3,274
|
|
|
$
|
2,530
|
|
|
$
|
2,412
|
|
|
$
|
10,885
|
|
(1)
|
The Company orders inventory components in the normal course of its business. A portion of these orders are non-cancelable, however, some orders impose varying penalties and charges in the event of cancellation.
|
(2)
|
The Company has minimum rental commitments under various leases (excluding taxes, insurance, maintenance and repairs, which are also paid by the Company) primarily for various facility and equipment leases, which expire periodically through
2023
(not including lease extension options, if applicable).
|
|
|
Six months ended
|
|||
|
|
April 1, 2017
|
|
April 2, 2016
|
|
Haoseng Industrial Company Limited (1)
|
|
*
|
|
15.8
|
%
|
STATS ChipPAC Ltd
|
|
*
|
|
10.1
|
%
|
|
|
As of
|
||||
|
|
April 1, 2017
|
|
April 2, 2016
|
||
Haoseng Industrial Company Limited (1)
|
|
11.8
|
%
|
|
19.8
|
%
|
Super Power International Ltd (1)
|
|
10.6
|
%
|
|
*
|
|
STATS ChipPAC Ltd
|
|
*
|
|
|
14.0
|
%
|
Siliconware Precision Industries Co. Limited
|
|
*
|
|
|
13.1
|
%
|
•
|
projected growth rates in the overall semiconductor industry, the semiconductor assembly equipment market, and the market for semiconductor packaging materials; and
|
•
|
projected demand for ball, wedge bonder, advanced packaging and electronic assembly equipment and for expendable tools.
|
|
|
Three months ended
|
||||||||||||
|
|
April 1, 2017
|
|
April 2, 2016
|
||||||||||
(dollar amounts in thousands)
|
|
Net revenues
|
|
% of total net
revenue |
|
Net revenues
|
|
% of total net
revenue |
||||||
Equipment
|
|
$
|
180,979
|
|
|
90.7
|
%
|
|
$
|
141,062
|
|
|
90.2
|
%
|
Expendable Tools
|
|
18,634
|
|
|
9.3
|
%
|
|
15,338
|
|
|
9.8
|
%
|
||
|
|
$
|
199,613
|
|
|
100.0
|
%
|
|
$
|
156,400
|
|
|
100.0
|
%
|
|
|
Six months ended
|
||||||||||||
|
|
April 1, 2017
|
|
April 2, 2016
|
||||||||||
(dollar amounts in thousands)
|
|
Net revenues
|
|
% of total net
revenue |
|
Net revenues
|
|
% of total net
revenue |
||||||
Equipment
|
|
$
|
313,958
|
|
|
89.9
|
%
|
|
$
|
234,036
|
|
|
88.3
|
%
|
Expendable Tools
|
|
35,294
|
|
|
10.1
|
%
|
|
30,898
|
|
|
11.7
|
%
|
||
|
|
$
|
349,252
|
|
|
100.0
|
%
|
|
$
|
264,934
|
|
|
100.0
|
%
|
Business Line
|
|
Product Name (1)
|
|
Typical Served Market
|
|
|
|
|
|
Ball bonders
|
|
IConn
PS
PLUS
series (2) (3) (4)
|
|
Advanced and ultra fine pitch applications
|
|
|
|
|
|
|
|
IConn
PS
ProCu
PLUS
series
(2) (3) (4)
|
|
High-end copper wire applications demanding advanced process capability and high productivity
|
|
|
|
|
|
|
|
IConn
PS
MEM
PLUS
series (2) (3) (4)
|
|
Memory applications
|
|
|
|
|
|
|
|
ConnX
PS
PLUS
series (2) (3) (4)
|
|
Bonder for low-to-medium pin count applications
|
|
|
|
|
|
|
|
ConnX
PS
LED
PLUS
|
|
LED applications
|
|
|
|
|
|
Wedge bonders
|
|
3600
PLUS
|
|
Power hybrid and automotive modules using either heavy aluminum wire or PowerRibbon®
|
|
|
|
|
|
|
|
3700
PLUS
|
|
Hybrid and automotive modules using thin aluminum wire
|
|
|
|
|
|
|
|
PowerFusion
PS
TL
|
|
Power semiconductors using either aluminum wire or PowerRibbon®
|
|
|
|
|
|
|
|
PowerFusion
PS
HL
|
|
Smaller power packages using either aluminum wire or PowerRibbon®
|
|
|
|
|
|
|
|
Asterion
TM
|
|
Power hybrid and automotive modules with extended area using heavy and thin aluminum
|
|
|
|
|
|
|
|
Asterion
TM
EV
|
|
Extended area for battery bonding and dual lane hybrid module bonding
|
|
|
|
|
|
Advanced Packaging
|
|
AT Premier
PLUS
|
|
Advanced wafer level bonding application
|
|
|
|
|
|
|
|
APAMA C2S
|
|
Thermo-compression for chip-to-substrate, chip-to-chip and high accuracy flip chip ("HA FC") bonding applications
|
|
|
|
|
|
|
|
APAMA C2W
|
|
Thermo-compression for chip-to-wafer, HA FC and high density fan-out wafer level packaging ("HD FOWLP") bonding applications
|
|
|
|
|
|
|
|
Hybrid Series
|
|
Advanced packages assembly applications requiring high throughput such as flip chip, WLP, FOWLP, embedded die, SiP, package-on-package ("POP"), and modules
|
Business Line
|
|
Product Name (1)
|
|
Typical Served Market
|
|
|
|
|
|
Electronics Assembly
|
|
iX Series
|
|
Advanced Surface Mount Technology ("SMT") applications requiring extremely high output of passive and active components
|
|
|
|
|
|
|
|
iFlex Series
|
|
Advanced SMT applications requiring multi-lane or line balancing solutions for standard or oddform passive and active components
|
•
|
The IConn
PS
PLUS
series: high-performance ball bonders which can be configured for either gold or copper wire.
|
•
|
The IConn
PS
ProCu
PLUS
series: high-performance copper wire ball bonders for advanced wafer nodes at 28 nanometer and below.
|
•
|
The IConn
PS
MEM
PLUS
series: ball bonders designed for the assembly of stacked memory devices.
|
•
|
The ConnX
PS
PLUS
series: cost-performance ball bonders which can be configured for either gold or copper wire.
|
•
|
The ConnX
PS
LED
PLUS
: ball bonders targeted specifically at the fast growing LED market.
|
•
|
The 3600
PLUS
: high speed, high accuracy wire bonders designed for power modules, automotive packages and other heavy wire multi-chip module applications.
|
•
|
The 3700
PLUS
: wire bonders designed for hybrid and automotive modules using thin aluminum wire.
|
•
|
The PowerFusion
PS
Semiconductor Wedge Bonders - Configurable in single, dual and multi-head configurations using aluminum wire and PowerRibbon
TM
:
|
◦
|
The
PowerFusion
PS
TL: d
esigned for single row leadframe and high volume power semiconductor applications.
|
◦
|
The
PowerFusion
PS
HL and
PowerFusion
PS
HL
x
: d
esigned for advanced power semiconductor applications.
|
•
|
The Asterion
TM
and Asterion
TM
EV: latest generation hybrid wedge bonder designed for larger area, higher speed and accuracy wedge bonders for power modules, automotive packages, battery applications and other aluminum wedge interconnect applications.
|
•
|
Capillaries: expendable tools used in ball bonders. Made of ceramic and other elements, a capillary guides the wire during the ball bonding process. Its features help control the bonding process. We design and build capillaries suitable for a broad range of applications, including for use on our competitors' equipment. In addition to capillaries used for gold wire bonding, we have developed capillaries for use with copper wire to achieve optimal performance in copper wire bonding.
|
•
|
Dicing blades: expendable tools used by semiconductor manufacturers to cut silicon wafers into individual semiconductor die or to cut packaged semiconductor units into individual units.
|
•
|
Bonding wedges: expendable tools used in heavy wire wedge bonders. Wedge tools are used for both wire and ribbon applications.
|
|
|
Three months ended
|
|
|
|
|
|||||||||
(dollar amounts in thousands)
|
|
April 1, 2017
|
|
April 2, 2016
|
|
$ Change
|
|
% Change
|
|||||||
Net revenue
|
|
$
|
199,613
|
|
|
$
|
156,400
|
|
|
$
|
43,213
|
|
|
27.6
|
%
|
Cost of sales
|
|
109,322
|
|
|
86,753
|
|
|
22,569
|
|
|
26.0
|
%
|
|||
Gross profit
|
|
90,291
|
|
|
69,647
|
|
|
20,644
|
|
|
29.6
|
%
|
|||
Selling, general and administrative
|
|
32,666
|
|
|
35,499
|
|
|
(2,833
|
)
|
|
(8.0
|
)%
|
|||
Research and development
|
|
25,020
|
|
|
22,439
|
|
|
2,581
|
|
|
11.5
|
%
|
|||
Operating expenses
|
|
57,686
|
|
|
57,938
|
|
|
(252
|
)
|
|
(0.4
|
)%
|
|||
Income from operations
|
|
$
|
32,605
|
|
|
$
|
11,709
|
|
|
$
|
20,896
|
|
|
178.5
|
%
|
|
|
Six months ended
|
|
|
|
|
|||||||||
(dollar amounts in thousands)
|
|
April 1, 2017
|
|
April 2, 2016
|
|
$ Change
|
|
% Change
|
|||||||
Net revenue
|
|
$
|
349,252
|
|
|
$
|
264,934
|
|
|
$
|
84,318
|
|
|
31.8
|
%
|
Cost of sales
|
|
190,643
|
|
|
144,866
|
|
|
45,777
|
|
|
31.6
|
%
|
|||
Gross profit
|
|
158,609
|
|
|
120,068
|
|
|
38,541
|
|
|
32.1
|
%
|
|||
Selling, general and administrative
|
|
62,198
|
|
|
63,431
|
|
|
(1,233
|
)
|
|
(1.9
|
)%
|
|||
Research and development
|
|
46,525
|
|
|
46,633
|
|
|
(108
|
)
|
|
(0.2
|
)%
|
|||
Operating expenses
|
|
108,723
|
|
|
110,064
|
|
|
(1,341
|
)
|
|
(1.2
|
)%
|
|||
Income from operations
|
|
$
|
49,886
|
|
|
$
|
10,004
|
|
|
$
|
39,882
|
|
|
398.7
|
%
|
|
|
Three months ended
|
|
|
|
|
|||||||||
(dollar amounts in thousands)
|
|
April 1, 2017
|
|
April 2, 2016
|
|
$ Change
|
|
% Change
|
|||||||
Equipment
|
|
$
|
180,979
|
|
|
$
|
141,062
|
|
|
$
|
39,917
|
|
|
28.3
|
%
|
Expendable Tools
|
|
18,634
|
|
|
15,338
|
|
|
3,296
|
|
|
21.5
|
%
|
|||
Total net revenue
|
|
$
|
199,613
|
|
|
$
|
156,400
|
|
|
$
|
43,213
|
|
|
27.6
|
%
|
|
|
Six months ended
|
|
|
|
|
|||||||||
(dollar amounts in thousands)
|
|
April 1, 2017
|
|
April 2, 2016
|
|
$ Change
|
|
% Change
|
|||||||
Equipment
|
|
$
|
313,958
|
|
|
$
|
234,036
|
|
|
$
|
79,922
|
|
|
34.1
|
%
|
Expendable Tools
|
|
35,294
|
|
|
30,898
|
|
|
4,396
|
|
|
14.2
|
%
|
|||
Total net revenue
|
|
$
|
349,252
|
|
|
$
|
264,934
|
|
|
$
|
84,318
|
|
|
31.8
|
%
|
|
|
April 1, 2017 vs. April 2, 2016
|
||||||||||||||||||||||
|
|
Three months ended
|
|
Six months ended
|
||||||||||||||||||||
(in thousands)
|
|
Price
|
|
Volume
|
|
$ Change
|
|
Price
|
|
Volume
|
|
$ Change
|
||||||||||||
Equipment
|
|
$
|
3,391
|
|
|
$
|
36,526
|
|
|
$
|
39,917
|
|
|
$
|
3,392
|
|
|
$
|
76,530
|
|
|
$
|
79,922
|
|
|
|
April 1, 2017 vs. April 2, 2016
|
||||||||||||||||||||||
|
|
Three months ended
|
|
Six months ended
|
||||||||||||||||||||
(in thousands)
|
|
Price
|
|
Volume
|
|
$ Change
|
|
Price
|
|
Volume
|
|
$ Change
|
||||||||||||
Expendable Tools
|
|
$
|
(828
|
)
|
|
$
|
4,124
|
|
|
$
|
3,296
|
|
|
$
|
(2,238
|
)
|
|
$
|
6,634
|
|
|
$
|
4,396
|
|
|
|
Three months ended
|
|
|
|
|
|||||||||
(dollar amounts in thousands)
|
|
April 1, 2017
|
|
April 2, 2016
|
|
$ Change
|
|
% Change
|
|||||||
Equipment
|
|
$
|
80,248
|
|
|
$
|
60,797
|
|
|
$
|
19,451
|
|
|
32.0
|
%
|
Expendable Tools
|
|
10,043
|
|
|
8,850
|
|
|
1,193
|
|
|
13.5
|
%
|
|||
Total gross profit
|
|
$
|
90,291
|
|
|
$
|
69,647
|
|
|
$
|
20,644
|
|
|
29.6
|
%
|
|
|
Six months ended
|
|
|
|
|
|||||||||
(dollar amounts in thousands)
|
|
April 1, 2017
|
|
April 2, 2016
|
|
$ Change
|
|
% Change
|
|||||||
Equipment
|
|
$
|
139,384
|
|
|
$
|
102,190
|
|
|
$
|
37,194
|
|
|
36.4
|
%
|
Expendable Tools
|
|
19,225
|
|
|
17,878
|
|
|
1,347
|
|
|
7.5
|
%
|
|||
Total gross profit
|
|
$
|
158,609
|
|
|
$
|
120,068
|
|
|
$
|
38,541
|
|
|
32.1
|
%
|
|
|
Three months ended
|
|
Basis Point
|
|||||
|
|
April 1, 2017
|
|
April 2, 2016
|
|
Change
|
|||
Equipment
|
|
44.3
|
%
|
|
43.1
|
%
|
|
120
|
|
Expendable Tools
|
|
53.9
|
%
|
|
57.7
|
%
|
|
(380
|
)
|
Total gross margin
|
|
45.2
|
%
|
|
44.5
|
%
|
|
70
|
|
|
|
Six months ended
|
|
Basis Point
|
|||||
|
|
April 1, 2017
|
|
April 2, 2016
|
|
Change
|
|||
Equipment
|
|
44.4
|
%
|
|
43.7
|
%
|
|
70
|
|
Expendable Tools
|
|
54.5
|
%
|
|
57.9
|
%
|
|
(340
|
)
|
Total gross margin
|
|
45.4
|
%
|
|
45.3
|
%
|
|
10
|
|
|
|
April 1, 2017 vs. April 2, 2016
|
||||||||||||||||||||||||||||||
|
|
Three months ended
|
|
Six months ended
|
||||||||||||||||||||||||||||
(in thousands)
|
|
Price
|
|
Cost
|
|
Volume
|
|
$ Change
|
|
Price
|
|
Cost
|
|
Volume
|
|
$ Change
|
||||||||||||||||
Equipment
|
|
$
|
3,391
|
|
|
$
|
(63
|
)
|
|
$
|
16,123
|
|
|
$
|
19,451
|
|
|
$
|
3,392
|
|
|
$
|
2,504
|
|
|
$
|
31,298
|
|
|
$
|
37,194
|
|
|
|
April 1, 2017 vs. April 2, 2016
|
||||||||||||||||||||||||||||||
|
|
Three months ended
|
|
Six months ended
|
||||||||||||||||||||||||||||
(in thousands)
|
|
Price
|
|
Cost
|
|
Volume
|
|
$ Change
|
|
Price
|
|
Cost
|
|
Volume
|
|
$ Change
|
||||||||||||||||
Expendable Tools
|
|
$
|
(828
|
)
|
|
$
|
(300
|
)
|
|
$
|
2,321
|
|
|
$
|
1,193
|
|
|
$
|
(2,238
|
)
|
|
$
|
(291
|
)
|
|
$
|
3,876
|
|
|
$
|
1,347
|
|
|
|
Three months ended
|
|
Basis point
|
|||||
|
|
April 1, 2017
|
|
April 2, 2016
|
|
change
|
|||
Selling, general & administrative
|
|
16.4
|
%
|
|
22.7
|
%
|
|
(630
|
)
|
Research & development
|
|
12.5
|
%
|
|
14.3
|
%
|
|
(180
|
)
|
Total
|
|
28.9
|
%
|
|
37.0
|
%
|
|
(810
|
)
|
|
|
Six months ended
|
|
Basis point
|
|||||
|
|
April 1, 2017
|
|
April 2, 2016
|
|
change
|
|||
Selling, general & administrative
|
|
17.8
|
%
|
|
23.9
|
%
|
|
(610
|
)
|
Research & development
|
|
13.3
|
%
|
|
17.6
|
%
|
|
(430
|
)
|
Total
|
|
31.1
|
%
|
|
41.5
|
%
|
|
(1,040
|
)
|
|
|
Three months ended
|
|
|
|
|
|||||||||
(dollar amounts in thousands)
|
|
April 1, 2017
|
|
April 2, 2016
|
|
$ Change
|
|
% Change
|
|||||||
Interest income
|
|
$
|
1,579
|
|
|
$
|
701
|
|
|
$
|
878
|
|
|
125.2
|
%
|
Interest expense
|
|
$
|
(261
|
)
|
|
$
|
(276
|
)
|
|
$
|
15
|
|
|
(5.4
|
)%
|
|
|
Six months ended
|
|
|
|
|
|||||||||
(dollar amounts in thousands)
|
|
April 1, 2017
|
|
April 2, 2016
|
|
$ Change
|
|
% Change
|
|||||||
Interest income
|
|
$
|
2,751
|
|
|
$
|
1,323
|
|
|
$
|
1,428
|
|
|
107.9
|
%
|
Interest expense
|
|
$
|
(523
|
)
|
|
$
|
(549
|
)
|
|
$
|
26
|
|
|
(4.7
|
)%
|
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
(dollar amounts in thousands)
|
|
April 1, 2017
|
|
April 2, 2016
|
|
April 1, 2017
|
|
April 2, 2016
|
||||||||
Income before income taxes
|
|
$
|
33,923
|
|
|
$
|
12,134
|
|
|
$
|
52,114
|
|
|
$
|
10,778
|
|
Income tax expense
|
|
4,882
|
|
|
7,045
|
|
|
7,490
|
|
|
5,780
|
|
||||
Net income
|
|
$
|
29,041
|
|
|
$
|
5,089
|
|
|
$
|
44,624
|
|
|
$
|
4,998
|
|
Effective tax rate
|
|
14.4
|
%
|
|
58.1
|
%
|
|
14.4
|
%
|
|
53.6
|
%
|
|
|
As of
|
|
|
||||||||
(dollar amounts in thousands)
|
|
April 1, 2017
|
|
October 1, 2016
|
|
Change
|
||||||
Cash and cash equivalents
|
|
$
|
435,203
|
|
|
$
|
423,907
|
|
|
$
|
11,296
|
|
Short-term investments
|
|
139,000
|
|
|
124,000
|
|
|
$
|
15,000
|
|
||
Total cash, cash equivalents and short-term investments
|
|
$
|
574,203
|
|
|
$
|
547,907
|
|
|
$
|
26,296
|
|
Percentage of total assets
|
|
53.5
|
%
|
|
55.8
|
%
|
|
|
|
|
|
Six months ended
|
||||||
(in thousands)
|
|
April 1, 2017
|
|
April 2, 2016
|
||||
Net cash provided by / (used in) operating activities
|
|
$
|
42,978
|
|
|
$
|
(979
|
)
|
Net cash used in investing activities
|
|
(32,399
|
)
|
|
(1,792
|
)
|
||
Net cash used in financing activities
|
|
(643
|
)
|
|
(14,093
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
|
1,360
|
|
|
243
|
|
||
Changes in cash and cash equivalents
|
|
$
|
11,296
|
|
|
$
|
(16,621
|
)
|
Cash and cash equivalents, beginning of period
|
|
423,907
|
|
|
498,614
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
435,203
|
|
|
$
|
481,993
|
|
|
|
|
|
Payments due by fiscal period
|
||||||||||||||||
(in thousands)
|
|
Total
|
|
Less than 1 year
|
|
1 - 3 years
|
|
3 - 5 years
|
|
More than 5 years
|
||||||||||
Current and long-term liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Pension plan obligations
|
|
$
|
3,352
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,352
|
|
Severance (1)
|
|
3,173
|
|
|
—
|
|
|
819
|
|
|
—
|
|
|
2,354
|
|
|||||
Operating lease retirement obligations (2)
|
|
1,357
|
|
|
347
|
|
|
122
|
|
|
—
|
|
|
888
|
|
|||||
Long-term income taxes payable
|
|
5,553
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,553
|
|
|||||
Total Obligations and Contingent Payments reflected on the Consolidated Condensed Financial Statements
|
|
$
|
13,435
|
|
|
$
|
347
|
|
|
$
|
941
|
|
|
$
|
—
|
|
|
$
|
12,147
|
|
Contractual Obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Inventory purchase obligations (3)
|
|
$
|
178,187
|
|
|
$
|
178,187
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Operating lease obligations (4)
|
|
21,163
|
|
|
3,936
|
|
|
5,150
|
|
|
3,979
|
|
|
8,098
|
|
|||||
Total Obligations and Contingent Payments not reflected on the Consolidated Condensed Financial Statements
|
|
$
|
199,350
|
|
|
$
|
182,123
|
|
|
$
|
5,150
|
|
|
$
|
3,979
|
|
|
$
|
8,098
|
|
(1)
|
In accordance with regulations applicable to some of our foreign subsidiaries, we are required to provide for severance obligations that are payable when an employee leaves the Company.
|
(2)
|
Asset retirement obligations are associated with commitments to return the property to its original condition upon lease termination at various sites.
|
(3)
|
We order inventory components in the normal course of our business. A portion of these orders are non-cancellable and a portion may have varying penalties and charges in the event of cancellation.
|
(4)
|
We have minimum rental commitments under various leases (excluding taxes, insurance, maintenance and repairs, which are also paid by us) primarily for various facility and equipment leases, which expire periodically through 2026 (not including lease extension options, if applicable).
|
Exhibit No.
|
|
Description
|
|
|
|
10.1
|
|
Agreement For Purchase and Sale of Real Property, dated January 11, 2017, between the Company and ARC KSFTWPA001, LLC, incorporated herein by reference to Exhibit 10.1 of the Company's Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2016.
|
|
|
|
10.2
|
|
2017 Equity Plan is incorporated herein by reference to Appendix A to the Company's Proxy Statement on Schedule 14A for the annual meeting of shareholders on March 14, 2017.*
|
|
|
|
31.1
|
|
Certification of Fusen Chen, Chief Executive Officer of Kulicke and Soffa Industries, Inc., pursuant to Rule 13a-14(a) or Rule15d-14(a).
|
|
|
|
31.2
|
|
Certification of Jonathan Chou, Chief Financial Officer of Kulicke and Soffa Industries, Inc., pursuant to Rule 13a-14(a) or Rule 15d-14(a).
|
|
|
|
32.1
|
|
Certification of Fusen Chen, Chief Executive Officer of Kulicke and Soffa Industries, Inc., pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
32.2
|
|
Certification of Jonathan Chou, Chief Financial Officer of Kulicke and Soffa Industries, Inc., pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
101.INS
|
|
XBRL Instance Document.
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
KULICKE AND SOFFA INDUSTRIES, INC.
|
|
|
|
|
Date: May 4, 2017
|
By:
|
/s/ JONATHAN CHOU
|
|
|
Jonathan Chou
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
Exhibit No.
|
|
Description
|
|
|
|
10.1
|
|
Agreement For Purchase and Sale of Real Property, dated January 11, 2017, between the Company and ARC KSFTWPA001, LLC, incorporated herein by reference to Exhibit 10.1 of the Company's Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2016.
|
|
|
|
10.2
|
|
2017 Equity Plan is incorporated herein by reference to Appendix A to the Company's Proxy Statement on Schedule 14A for the annual meeting of shareholders on March 14, 2017.*
|
|
|
|
31.1
|
|
Certification of Fusen Chen, Chief Executive Officer of Kulicke and Soffa Industries, Inc., pursuant to Rule 13a-14(a) or Rule15d-14(a).
|
|
|
|
31.2
|
|
Certification of Jonathan Chou, Chief Financial Officer of Kulicke and Soffa Industries, Inc., pursuant to Rule 13a-14(a) or Rule 15d-14(a).
|
|
|
|
32.1
|
|
Certification of Fusen Chen, Chief Executive Officer of Kulicke and Soffa Industries, Inc., pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
32.2
|
|
Certification of Jonathan Chou, Chief Financial Officer of Kulicke and Soffa Industries, Inc., pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
101.INS
|
|
XBRL Instance Document.
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
1 Year Kulicke and Soffa Indust... Chart |
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