Kulicke and Soffa Industries (KLIC) 8-K Kulicke & Soffa Reports Second Quarter 2004 Results

Exhibit 99.1

Kulicke & Soffa Reports Second Quarter 2004 Results

Willow Grove, PA — April 21, 2004 — Kulicke & Soffa Industries, Inc. (Nasdaq: KLIC) today announced financial results for its second quarter of fiscal year 2004 ended March 31, 2004.

Net revenue for the second fiscal quarter ended March 31, 2004 was $221.8 million compared to $153.9 million in the prior quarter and $122.3 million in the comparable year-ago quarter. Net income was $29.1 million or $0.44 per fully diluted share versus income in the prior quarter of $0.7 million or $0.01 per fully diluted share, and a loss for the year-ago quarter of $19.3 million or $0.39 per fully diluted share. Revenue from the Company’s discontinued flip chip business has been excluded from the current quarter and previous quarters’ financial statements.

Included in the results for the second fiscal quarter ended March 31, 2004 was a charge of $3.2 million for exiting the PC board fabrication business and a charge of $3 million for closing a probe card production facility in France.

C. Scott Kulicke, chairman and chief executive officer, commented on the quarter just ended, “The quarter’s results demonstrate the increasing financial strength of the Company as we were able to fund the working capital requirements of a 44% increase in quarterly revenue and retire $21 million of our 5 ¼% convertible subordinated notes, while maintaining our cash balance.”

Net bookings for the fiscal quarter ended March 31, 2004 were $219.8 million, an increase of $13.8 million, compared to $206.0 million recorded in the quarter ended December 31, 2003. Backlog at March 31, 2004 was $112.0 million compared to backlog at December 31, 2003 of $114.0 million.

Mr. Kulicke continued, “Our guidance for the third quarter ending June 30, 2004 represents a forecast that is normalized for a more stable order rate of equipment, materials, and test. We continue to feel positive about the June quarter which we forecast to be in the range of $180 to $200 million.”

A conference call to discuss these results will be held today beginning at 9:00 AM EST. Interested participants may call 877-407-8037 for the teleconference or log on tohttp://www.kns.com/investors/webcast.asp to listen to the live audio or access the audio replay of this call, which will remain available on the company’s website.

About K&S

Kulicke & Soffa (Nasdaq: KLIC) is the world’s leading supplier of semiconductor wire bonding assembly equipment. K&S is the only major supplier to the semiconductor assembly industry that provides customers with semiconductor wire bonding equipment along with the complementing packaging materials and test interconnect products that actually contact the surface of the customer’s semiconductor devices. The ability to control all of these assembly related products is unique to Kulicke & Soffa, and allows us to develop system solutions to the new technology challenges inherent in assembling and packaging next-generation

semiconductor devices. Test interconnect products include a variety of wafer probe cards, ATE interface assemblies, and ATE boards for wafer testing, as well as test sockets for all types of packaged semiconductor devices. Kulicke & Soffa’s web site address ishttp://www.kns.com.

Caution Concerning Forward Looking Statements

This press release contains forward-looking statements which are found in various places throughout the press release. While these forward-looking statements represent our judgments and future expectations concerning the development of 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, those listed or discussed in Kulicke & Soffa Industries’ 2003 Annual Report on Form 10-K and: the risk of failure to successfully manage our operations; the risk that anticipated orders may not materialize or that orders received may be postponed or canceled, generally without charges; the risk that anticipated cost savings will not be achieved; the volatility in the demand for semiconductors and our products and services; acts of terrorism and violence; overall global economic conditions; risks, such as changes in trade regulations, currency fluctuations, political instability and war, associated with a substantial foreign customer and supplier base and substantial foreign manufacturing operations; potential instability in foreign capital markets; and other key factors that could adversely affect our businesses and financial performance contained in past and future filings and reports, including those with the SEC. Kulicke & Soffa Industries 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.

Company Contact: Michael Sheaffer, 215-784-6411, 215-784-6167 fax, msheaffer@kns.com

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KULICKE & SOFFA INDUSTRIES, INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except per share and employee data)

(Unaudited)

	Three months ended March 31,						Six months ended March 31,
	2003(1)			2004			2003(1)			2004(1)
Net revenue	$	122,280		$	221,771		$	229,539		$	375,640
Cost of sales		88,049			145,237			166,671			251,744
Gross profit		34,231			76,534			62,868			123,896
Selling, general and administrative		28,024			28,651			54,955			53,367
Research and development, net		10,257			8,728			19,677			16,904
Resizing		—			(68	)		(205	)		(68	)
Asset impairment		1,708			3,293			1,587			3,293
Amortization of intangibles		2,321			2,315			4,629			4,630
Operating expense		42,310			42,919			80,643			78,126
Gain (loss) from operations		(8,079	)		33,615			(17,775	)		45,770
Interest, net		(4,235	)		(2,130	)		(8,244	)		(6,355	)
Charge on early extinguishment of debt		—			(617	)		—			(6,769	)
Gain on sale of assets		—			794			—			794
Income (loss) from continuing operations before income tax		(12,314	)		31,662			(26,019	)		33,440
Income taxes		3,318			1,410			4,344			2,760
Net income (loss) from continuing operations		(15,632	)		30,252			(30,363	)		30,680
Loss from discontinued operations net of tax		(3,659	)		(751	)		(6,583	)		(432	)
Loss on sale of FCT Division net of tax		—			(380	)		—			(380	)
Net income (loss)	$	(19,291	)	$	29,121		$	(36,946	)	$	29,868
Net income (loss) per share from continued operations:
Basic	$	(0.31	)	$	0.60		$	(0.61	)	$	0.61
Diluted	$	(0.31	)	$	0.46		$	(0.61	)	$	0.50
Loss per share from discontinued operations:
Basic	$	(0.08	)	$	(0.02	)	$	(0.14	)	$	(0.02	)
Diluted	$	(0.08	)	$	(0.02	)	$	(0.14	)	$	(0.02	)
Net income (loss) per share:
Basic	$	(0.39	)	$	0.58		$	(0.75	)	$	0.59
Diluted	$	(0.39	)	$	0.44		$	(0.75	)	$	0.48
Weighted average shares outstanding:
Basic		49,629			50,588			49,575			50,501
Diluted		49,629			68,699			49,575			69,299
	Three months ended March 31,						Six months ended March 31,
	2003			2004			2003			2004
Additional financial data:
Depreciation and amortization	$	9,705		$	7,567		$	19,506		$	15,918
Capital expenditures	$	1,850		$	3,094		$	4,199		$	6,022
							March 31,
							2003			2004
Backlog of orders
Core Business							$	38,000		$	112,000
Discontinued Operations							$	6,000		$	—
Number of employees
Core Business								3,055			3,326
Discontinued Operations								113			—

Note:  (1) Prior period income statements have been revised to reflect accounting for the sale of the company’s Flip Chip business as a discontinued operation in accordance with the requirements of FAS 144.

KULICKE & SOFFA INDUSTRIES, INC.

CONSOLIDATED BALANCE SHEET

(In thousands)

	September 30, 2003			(Unaudited) March 31, 2004
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	65,725		$	83,658
Restricted cash		2,836			3,257
Short-term investments		4,490			16,701
Accounts and notes receivable (less allowance for doubtful accounts: 9/30/03—$5,929; 3/31/04—$3,138)		94,144			159,931
Inventories, net		37,906			42,359
Prepaid expenses and other current assets		11,187			13,863
Deferred income taxes		10,700			9,564
TOTAL CURRENT ASSETS		226,988			329,333
Property, plant and equipment, net		61,238			60,315
Intangible assets, (net of accumulated amortization: 9/30/03—$26,187; 3/31/04—$33,999)		66,249			58,437
Goodwill		81,440			81,440
Other assets		6,946			7,758
TOTAL ASSETS	$	442,861		$	537,283
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Debt due within one year	$	36		$	225
Accounts payable		45,844			84,734
Accrued expenses		41,885			46,831
Income taxes payable		13,394			14,424
TOTAL CURRENT LIABILITIES		101,159			146,214
Long term debt		300,338			314,650
Other liabilities		9,865			8,402
Deferred taxes		31,402			30,266
TOTAL LIABILITIES		442,764			499,532
SHAREHOLDERS’ EQUITY
Common stock, without par value		203,607			210,533
Retained deficit		(195,792	)		(165,924	)
Accumulated other comprehensive loss		(7,718	)		(6,858	)
TOTAL SHAREHOLDERS’ EQUITY		97			37,751
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	442,861		$	537,283

KULICKE & SOFFA INDUSTRIES, INC.

OPERATING RESULTS BY BUSINESS SEGMENT

(In thousands)

(Unaudited)

Fiscal 2004:
	Equipment Segment			Packaging Materials Segment		Advanced Packaging Segment (1)			Test Segment			Corporate			Consolidated
Quarter ended March 31, 2004:
Net revenue	$	135,360		$	56,170	$	—		$	30,241		$	—		$	221,771
Cost of sales		76,458			44,082		—			24,697			—			145,237
Gross profit		58,902			12,088		—			5,544			—			76,534
Operating costs		15,861			5,209		—			13,339			5,285			39,694
Resizing		—			—		(68	)		—			—			(68	)
Asset impairment		—			—		—			3,293			—			3,293
Income (loss) from operations	$	43,041		$	6,879	$	68		$	(11,088	)	$	(5,285	)	$	33,615
Six months ended March 31, 2004:
Net revenue	$	216,440		$	105,678	$	—		$	53,522		$	—		$	375,640
Cost of sales		125,582			82,172		—			43,990			—			251,744
Gross profit		90,858			23,506		—			9,532			—			123,896
Operating costs		30,529			10,433		—			24,122			9,817			74,901
Resizing		—			—		(68	)		—			—			(68	)
Asset impairment		—			—		—			3,293			—			3,293
Income (loss) from operations	$	60,329		$	13,073	$	68		$	(17,883	)	$	(9,817	)	$	45,770
Fiscal 2003:
	Equipment Segment			Packaging Materials Segment		Advanced Packaging Segment (1)			Test Segment			Corporate			Consolidated
Quarter ended March 31, 2003:
Net revenue	$	52,569		$	43,602	$	—		$	26,109		$	—		$	122,280
Cost of sales		33,338			33,604		—			21,107			—			88,049
Gross profit		19,231			9,998		—			5,002			—			34,231
Operating costs		18,586			6,518		130			10,727			4,641			40,602
Asset impairment		17			—		—			1,691			—			1,708
Income (loss) from operations	$	628		$	3,480	$	(130	)	$	(7,416	)	$	(4,641	)	$	(8,079	)
Six months ended March 31, 2003:
Net revenue	$	97,464		$	83,159	$	135		$	48,781		$	—		$	229,539
Cost of sales		63,954			62,888		—			39,829			—			166,671
Gross profit		33,510			20,271		135			8,952			—			62,868
Operating costs		36,109			13,809		130			21,191			8,022			79,261
Resizing costs		—			—		(102	)		(103	)		—			(205	)
Asset impairment		17			—		(121	)		1,691			—			1,587
Income (loss) from operations	$	(2,616	)	$	6,462	$	228		$	(13,827	)	$	(8,022	)	$	(17,775	)

Note:  (1) Prior period income statements have been revised to reflect accounting for the sale of the company’s Flip Chip business as a discontinued operation in accordance with the requirements of FAS 144.