Kulicke and Soffa Industries (KLIC) 8-K Kulicke & Soffa Reports Results for its

Exhibit 99.1

Kulicke & Soffa Industries Inc. 2101 Blair Mill Road Willow Grove, PA 19090

215-784-6000 phone

215-659-7588 fax

www.kns.com

NEWS for Immediate Release

Kulicke & Soffa Reports Results for its

Fourth Quarter and Fiscal Year 2005

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/events for listen-only mode.

Willow Grove, PA—November 17, 2005—Kulicke & Soffa Industries, Inc. (Nasdaq: KLIC) today announced financial results for its fourth quarter and fiscal year ended September 30, 2005.

Net revenue for the fourth quarter ended September 30, 2005 was $182.0 million compared to $147.5 million in the comparable year-ago quarter. Net income was $12.6 million or $0.19 per fully diluted share versus a net income for the year-ago quarter of $3.3 million or $0.05 per fully diluted share.

Scott Kulicke, chairman and chief executive officer, commented on the quarter just ended, “The 32% revenue increase, as compared with our third fiscal quarter, represents the Company’s third sequential revenue increase. We expect this trend to continue into the December quarter as our customers continue to build for the holiday season.”

For the full year ended September 30, 2005, net revenue was $561.3 million compared to net revenue of $717.8 million for the prior year. A non-cash impairment charge for goodwill and intangible assets of $100.6 million during fiscal 2005 resulted in a net loss of $104.1 million or $2.02 per share. This compares to net income of $55.9 million or $0.89 per fully diluted share for the fiscal year ended September 30, 2004.

Fourth Quarter Review and Highlights

Technology & Manufacturing

* K&S ball bonder shipments in the September quarter doubled over the June quarter, reflecting strong demand across all segments of our customer base. Wire bonder utilization, according to our estimates, remained above 80% throughout the quarter.

* Orders for K&S gold bonding wire exceeded one billion feet for the second consecutive quarter.

* K&S received the Advanced Packaging Award from SEMI and Advanced Packaging Magazine for its Quatrix package test technology. The award recognized the new photolithographic processes developed by K&S as key technology advances in the Assembly & Test Services category.

* K&S moved its package test operations from Hayward, California to Suzhou, China as part of ongoing cost reductions.

Key Product Trends

* The new, Maxum Ultra ball bonder accounted for 25% of all bonder shipments in the September quarter. Most of our large customers have now qualified this model, which delivers speed and other features particularly suited for assembly factories with diverse production schedules.

Financial Review

* K&S generated cash from operations of $9.6 million during the September quarter.

* The ramp in wire bonder shipments during the September quarter has naturally affected the balance sheet, increasing accounts receivable from $119.5 million on June 30, 2005 to $143.6 million on September 30, 2005.

Business Summary

Scott Kulicke concluded, “In fiscal 2005, our Equipment and Packaging Materials segments continued to deliver good competitive and financial performance, and we expect further improvements in fiscal 2006. While our Test segment’s performance was disappointing, there was sequential improvement resulting from actions such as the Hayward plant closure. We expect that trend line to continue.” He added, “We’re especially excited about our December quarter, with the Company’s revenue expected to be in the $200 to $220 million range.”

About Kulicke & Soffa

Kulicke & Soffa (NASDAQ: KLIC) is the world’s leading supplier of semiconductor wire bonding assembly equipment. We believe 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 PC 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

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, operating expenses, profitability, cash flows, margins, and projected demand for our products. 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 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; the risk that we may not be able to develop and manufacture new products and

product enhancements on a timely and cost effective basis; 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 the factors listed or discussed in Kulicke and Soffa Industries, Inc. 2004 Annual report on Form 10-K and our other filings with the Securities and Exchange Commission. 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)

	Three months ended September 30,						Fiscal year ended September 30,
	2004			2005			2004			2005
Net revenue	$	147,543		$	181,974		$	717,811		$	561,274
Cost of sales		105,506			130,260			486,806			419,695
Gross profit		42,037			51,714			231,005			141,579
Selling, general and administrative		23,170			24,063			101,225			94,473
Research and development, net		8,820			11,233			34,611			41,025
Resizing (recovery) costs		—			—			(68	)		—
Asset impairment		—			—			3,293			48,820
Goodwill impairment		—			—			—			51,756
(Gain) loss on sale of assets		(229	)		887			(1,023	)		(2,173	)
Amortization of intangible assets		2,194			—			9,022			6,225
Operating expense		33,955			36,183			147,060			240,126
Income (loss) from operations		8,082			15,531			83,945			(98,547	)
Interest income		328			664			1,109			2,228
Interest expense		(1,414	)		(960	)		(10,466	)		(3,806	)
Charge on extinguishment of debt		(1,916	)		—			(10,510	)		—
Income (loss) from continuing operations before income tax		5,080			15,235			64,078			(100,125	)
Provision for income taxes		1,749			2,612			7,386			3,957
Net income (loss) from continuing operations		3,331			12,623			56,692			(104,082	)
Loss from discontinued FCT operations		—			—			(432	)		—
Loss on sale of FCT Division		—			—			(380	)		—
Net income (loss)	$	3,331		$	12,623		$	55,880		$	(104,082	)
Net income (loss) per share from continued operations:
Basic	$	0.07		$	0.24		$	1.12		$	(2.02	)
Diluted	$	0.05		$	0.19		$	0.90		$	(2.02	)
Loss per share from discontinued operations:
Basic	$	—		$	—		$	(0.02	)	$	—
Diluted	$	—		$	—		$	(0.01	)	$	—
Net income (loss) per share:
Basic	$	0.07		$	0.24		$	1.10		$	(2.02	)
Diluted	$	0.05		$	0.19		$	0.89		$	(2.02	)
Weighted average shares outstanding:
Basic		51,074			51,939			50,746			51,619
Diluted		66,947			68,634			68,582			51,619
	Three months ended September 30,						Fiscal year ended September 30,
Additional financial data:	2004			2005			2004			2005
Depreciation and amortization	$	7,396		$	4,538		$	30,678		$	25,411
Capital expenditures	$	5,329		$	3,795		$	13,405		$	12,505
							September 30,
							2004			2005
Backlog of orders							$	60,000		$	99,000
Number of employees								3,294			3,610

KULICKE & SOFFA INDUSTRIES, INC.

CONSOLIDATED BALANCE SHEET

(In thousands)

	September 30, 2004			September 30, 2005
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	60,333		$	79,455
Restricted cash		3,257			1,381
Short-term investments		32,176			14,533
Accounts and notes receivable (less allowance for doubtful accounts: 9/30/04—$3,646; 9/30/05—$3,257)		110,718			143,575
Inventories, net		58,017			54,744
Prepaid expenses and other current assets		10,601			10,267
Deferred income taxes		992			1,605
TOTAL CURRENT ASSETS		276,094			305,560
Property, plant and equipment, net		57,506			45,132
Intangible assets, (net of accumulated amortization: 9/30/04—$35,209; 9/30/05—$0)		54,045			—
Goodwill		81,440			29,684
Other assets		7,873			6,120
TOTAL ASSETS	$	476,958		$	386,496
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Current portion of long term debt	$	202		$	10,119
Accounts payable		50,002			59,448
Accrued expenses		37,660			32,748
Income taxes payable		12,277			17,196
TOTAL CURRENT LIABILITIES		100,141			119,511
Long term debt		275,725			270,000
Other liabilities		8,112			6,389
Deferred taxes		25,960			22,344
TOTAL LIABILITIES		409,938			418,244
Commitments and contingencies		—			—
SHAREHOLDERS' EQUITY (DEFICIT)
Common stock, without par value		213,847			218,426
Retained earnings (deficit)		(139,912	)		(243,994	)
Accumulated other comprehensive loss		(6,915	)		(6,180	)
TOTAL SHAREHOLDERS' EQUITY (DEFICIT)		67,020			(31,748	)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)	$	476,958		$	386,496

Note: Certain reclassifications have been made to prior year balances in order to conform them to the current year presentation.

KULICKE & SOFFA INDUSTRIES, INC.

OPERATING RESULTS BY BUSINESS SEGMENT

(In thousands)

(Unaudited)

Fiscal 2005:
Quarter ended September 30, 2005:	Equipment Segment			Packaging Materials Segment			Test Segment			Corporate and Other			Consolidated
Net revenue	$	84,892		$	77,081		$	20,001		$	—		$	181,974
Cost of sales		47,693			63,579			18,988			—			130,260
Gross profit		37,199			13,502			1,013			—			51,714
Operating costs		14,657			6,129			9,395			5,115			35,296
(Gain) loss on sale of assets		(127	)		—			1,014			—			887
Income (loss) from operations	$	22,669		$	7,373		$	(9,396	)	$	(5,115	)	$	15,531
Fiscal year ended September 30, 2005:
Net revenue	$	201,608		$	273,934		$	85,732		$	—		$	561,274
Cost of sales		115,771			224,001			79,923			—			419,695
Gross profit		85,837			49,933			5,809			—			141,579
Operating costs		53,117			24,259			47,306			17,041			141,723
Asset impairment		—			—			48,820			—			48,820
Goodwill impairment		—			—			51,756			—			51,756
(Gain) loss on sale of assets		(1,690	)		—			(483	)		—			(2,173	)
Income (loss) from operations	$	34,410		$	25,674		$	(141,590	)	$	(17,041	)	$	(98,547	)
Fiscal 2004:
Quarter ended September 30, 2004:	Equipment Segment			Packaging Materials Segment			Test Segment			Corporate and Other			Consolidated
Net revenue	$	49,072		$	67,272		$	31,199		$	—		$	147,543
Cost of sales		27,340			52,690			25,476			—			105,506
Gross profit		21,732			14,582			5,723			—			42,037
Operating costs		13,653			5,962			10,340			4,229			34,184
(Gain) loss on sale of assets		—			(229	)		—			—			(229	)
Income (loss) from operations	$	8,079		$	8,849		$	(4,617	)	$	(4,229	)	$	8,082
Fiscal year ended September 30, 2004:
Net revenue	$	361,244		$	234,690		$	121,877		$	—		$	717,811
Cost of sales		208,862			182,658			95,286			—			486,806
Gross profit		152,382			52,032			26,591			—			231,005
Operating costs		59,071			22,171			44,899			18,717			144,858
Resizing (recovery) costs		—			—			—			(68	)		(68	)
Asset impairment		—			—			3,293			—			3,293
(Gain) loss on sale of assets		—			(229	)		(85	)		(709	)		(1,023	)
Income (loss) from operations	$	93,311		$	30,090		$	(21,516	)	$	(17,940	)	$	83,945