Kulicke and Soffa Industries (KLIC) 8-K Kulicke & Soffa Reports Second Quarter Fiscal 2012 Results

Exhibit 99.1

	Kulicke & Soffa Pte Ltd 6 Serangoon North Ave 5 #03-16 Singapore 554910
	65.6880.9600 phone 65.6880.9580 fax www.kns.com

Kulicke & Soffa Reports Second Quarter Fiscal 2012 Results

Singapore – May 1, 2012– Kulicke & Soffa Industries, Inc. (NASDAQ: KLIC) (“K&S” or the“Company”) today announced results for its second fiscal quarter ended March 31, 2012.

Quarterly Results
	Fiscal Q2 2012	Change vs. Fiscal Q2 2011	Change vs. Fiscal Q1 2012
Net Revenue	$146.3 million	-29.2%	21.9%
Gross Profit	$66.7 million	-32.6%	20.6%
Gross Margin	45.6%	-230 bps	-50 bps
Income from Operations	$20.2 million	-53.6%	63.6%
Operating Margin	13.8%	-730 bps	350 bps
Net Income	$16.6 million	-58.3%	95.3%
Net Margin	11.4%	-790 bps	430 bps
EPS – Diluted	$0.22	-59.3%	100.0%

Bruno Guilmart, Kulicke & Soffa’s President and Chief Executive Officer, said, “Our quarterly results were above the high end of our guidance, driven by revenue and gross margin strength. Our continued success further validates our leadership position, business strategy and long-term roadmap. We are working to capture all potential opportunities relating to the ongoing transition from gold to copper, as we leverage our broadening line of copper-capable solutions. Importantly, customer and market feedback indicate we are early in the transition based on market demand levels and capacity needs.”

Second Quarter Fiscal 2012 Key Product Trends

· Ball bonder equipment net revenue increased 34% over the December quarter.

· 70.4% of ball bonder equipment was sold as copper capable bonders.

· Wedge bonder equipment net revenue decreased 45% from the December quarter.

Second Quarter Fiscal 2012 Financial Highlights

· Net revenue of $146.3 million.

· Gross margin of 45.6%.

· Net income was $16.6 million or $0.22 per share.

· Cash, cash equivalents and investments increased to $426.1 million up $22.4 million from the prior quarter.

Third Quarter Fiscal 2012 Outlook

The Company expects net revenue for the third quarter of fiscal 2012 to be approximately $220 million to $240 million, reflecting the ongoing transition from gold to copper, strength across all our product lines, combined with an improvement in the broader semiconductor industry led by positive equipment inventory trends, capacity levels and end market growth drivers.

Looking forward, Bruno Guilmart commented, “We are pleased with our financial performance over the past 3 years, our business momentum and improving market trends give us a distinct business advantage and improved level of stability and visibility as we move forward. Our efforts to strengthen the Company’s long-term fundamentals remain focused on new product initiatives, ongoing gross margin improvements, operational efficiency gains and overall cash generation.”

Earnings Conference Call Details

A conference call to discuss these results will be held today, May 1, 2012, beginning at 8:00 am (EDT). To access the conference call, interested parties may call +1-877-407-8037 or internationally +1-201-689-8037. The call will also be available by live webcast atwww.kns.com/investors/events.

A replay will be available from approximately one hour after the completion of the call through May 8, 2012 by calling +1-877-660-6853 or internationally +1-201-612-7415, with account number 5521 and replay ID 392356. A webcast replay will also be available atwww.kns.com/investors/events.

About Kulicke & Soffa

Kulicke & Soffa (NASDAQ: KLIC) is a global leader in the design and manufacture of semiconductor and LED assembly equipment. As a pioneer in this industry, K&S has provided customers with market leading packaging solutions for decades. In recent years, K&S has expanded its product offerings through strategic acquisitions, adding die and wedge bonders and a broader range of expendable tools to its core ball bonding products. Combined with its extensive expertise in process technology, K&S is well positioned to help customers meet the challenges of assembling the next-generation semiconductor and LED devices. (www.kns.com)

Caution Concerning Results and Forward Looking Statements

In 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, and include, but are not limited to, statements that relate to our future revenue, sustained, increasing, continuing or strengthening demand for our products, the continuing transition from gold to copper wirebonding, replacement demand, our research and development efforts, our ability to identify and realize new growth opportunities and our ability to control costs. 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 risk that customer orders already received may be postponed or canceled, generally without charges; the risk that anticipated customer orders may not materialize; the risk that our suppliers may not be able to meet our demands on a timely basis; the volatility in the demand for semiconductors and our products and services; a slowdown of transition from gold to copper wirebonding by our customers and the industry, volatile global economic conditions, which could result in, among other things, sharply lower demand for products containing semiconductors and for the Company’s products, and disruption of capital and credit markets; the risk of failure to successfully manage our operations; acts of terrorism and violence; risks, such as changes in trade regulations, currency fluctuations, political instability and war, which may be associated with a substantial non-U.S. customer and supplier base and substantial non-U.S. manufacturing operations; and the factors listed or discussed in Kulicke and Soffa Industries, Inc. 2011 Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission. Kulicke & 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

P: +1-215-784-7518

F: +1-215-784-6180

jelgindy@kns.com

Global IR Partners

David Pasquale

P: +1-914-337-8801

klic@globalirpartners.com

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KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share and employee data)
(Unaudited)
	Three months ended						Six months ended
	March 31,			April 2,			March 31,			April 2,
	2012			2011			2012			2011
Net revenue:
Equipment	$	131,053		$	190,010		$	237,202		$	322,708
Expendable Tools		15,255			16,719			29,130			32,884
Total net revenue		146,308			206,729			266,332			355,592
Cost of sales:
Equipment		72,835			100,833			131,839			171,071
Expendable Tools		6,786			6,939			12,530			13,452
Total cost of sales		79,621			107,772			144,369			184,523
Gross profit:
Equipment		58,218			89,177			105,363			151,637
Expendable Tools		8,469			9,780			16,600			19,432
Total gross profit		66,687			98,957			121,963			171,069
Operating expenses:
Selling, general and administrative		27,484			35,415			52,724			66,087
Research and development		15,911			16,524			30,059			31,719
Amortization of intangible assets		2,294			2,386			4,589			4,772
Restructuring		756			983			1,973			2,775
Total operating expenses		46,445			55,308			89,345			105,353
Income from operations:
Equipment		18,016			41,346			27,893			60,530
Expendable Tools		2,226			2,303			4,725			5,186
Total income from operations		20,242			43,649			32,618			65,716
Other income (expense):
Interest income		191			156			451			261
Interest expense		(242	)		(241	)		(484	)		(483	)
Interest expense: non-cash		(1,958	)		(1,780	)		(3,868	)		(3,552	)
Income from operations before income taxes		18,233			41,784			28,717			61,942
Provision for income taxes		1,616			1,899			3,593			6,958
Net income	$	16,617		$	39,885		$	25,124		$	54,984
Net income per share:
Basic	$	0.23		$	0.55		$	0.34		$	0.77
Diluted	$	0.22		$	0.54		$	0.33		$	0.75
Weighted average shares outstanding:
Basic		73,825			71,512			73,683			71,196
Diluted		75,553			73,120			75,160			72,410
		Three months ended						Six months ended
		March 31,			April 2,			March 31,			April 2,
Supplemental financial data:		2012			2011			2012			2011
Depreciation and amortization	$	4,221		$	4,397		$	8,479		$	8,804
Capital expenditures	$	1,383		$	1,884		$	2,881		$	4,589
Equity-based compensation expense:
Cost of sales	$	97		$	56		$	182		$	104
Selling, general and administrative		1,833			2,148			3,444			3,111
Research and development		463			354			866			630
Total equity-based compensation expense	$	2,393		$	2,558		$	4,492		$	3,845
								As of
								March 31,			April 2,
								2012			2011
Backlog of orders							$	164,000		$	217,000
Number of employees								2,802			2,884

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KULICKE & SOFFA INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
	March 31,			October 1,
	2012			2011
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	426,139		$	378,188
Short-term investments		-			6,364
Accounts and notes receivable, net of allowance for doubtful
accounts of $2,805 and $2,194, respectively		134,426			138,649
Inventories, net		63,303			73,092
Prepaid expenses and other current assets		22,675			21,897
Deferred income taxes		1,658			1,651
TOTAL CURRENT ASSETS		648,201			619,841
Property, plant and equipment, net		25,233			26,501
Goodwill		41,546			41,546
Intangible assets		24,976			29,565
Other assets		10,909			10,938
TOTAL ASSETS	$	750,865		$	728,391
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long term debt	$	108,795		$	105,224
Accounts payable		46,913			36,321
Accrued expenses and other current liabilities		36,767			43,528
Earnout agreement payable		-			14,848
Income taxes payable		13,717			14,261
TOTAL CURRENT LIABILITIES		206,192			214,182
Deferred income taxes		32,028			32,065
Other liabilities		10,147			12,267
TOTAL LIABILITIES		248,367			258,514
SHAREHOLDERS' EQUITY
Common stock, no par value		448,866			441,749
Treasury stock, at cost		(46,356	)		(46,356	)
Accumulated income		97,064			71,940
Accumulated other comprehensive income		2,924			2,544
TOTAL SHAREHOLDERS' EQUITY		502,498			469,877
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY	$	750,865		$	728,391

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KULICKE & SOFFA INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Three months ended						Six months ended
	March 31, 2012			April 2, 2011			March 31, 2012			April 2, 2011
Net cash provided by operations	$	23,623		$	76,477		$	57,947		$	101,787
Net cash used in discontinued operations		(559	)		(444	)		(1,045	)		(968	)
Net cash provided by operating activities	$	23,064		$	76,033		$	56,902		$	100,819
Net cash used in investing activities, continuing operations		(1,383	)		(1,989	)		(11,365	)		(7,637	)
Net cash provided by financing activities, continuing operations		967			3,906			2,543			4,031
Effect of exchange rate changes on cash and cash equivalents		(270	)		175			(129	)		351
Changes in cash and cash equivalents	$	22,378		$	78,125		$	47,951		$	97,564
Cash and cash equivalents, beginning of period		403,761			197,551			378,188			178,112
Cash and cash equivalents, end of period	$	426,139		$	275,676		$	426,139		$	275,676
Short-term investments & restricted cash					6,139			-			6,139
Total cash, cash equivalents, restricted cash and short-term investments	$	426,139		$	281,815		$	426,139		$	281,815

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