Kulicke and Soffa Industries (KLIC) 8-K Completion of Acquisition or Disposition of Assets

Exhibit 99.1

KULICKE AND SOFFA INDUSTRIES, INC.

UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET

(in thousands)

	December 31, 2005
	Company Historical (1)			Pro Forma Wafer Test Business (2)			Company Pro Forma for Wafer Test Sale(2)			Sale of Package Test Business (3)			Pro Forma Adjustments			Company Pro Forma Combined
ASSETS
Current assets:
Cash and cash equivalents	$	84,320		$	9,000		$	93,320		$	—		$	14,300	(5)(a)	$	107,620
Restricted cash		10,255			—			10,255			—			1,700	(5)(a)		11,955
Short-term investments		7,222			—			7,222			—			—			7,222
Accounts and notes receivable, net		179,520			(6,000	)		173,520			(5,849	)		—			167,671
Inventories, net		62,926			(6,002	)		56,924			(2,265	)		—			54,659
Prepaid expenses and other current assets		14,117			—			14,117			—			—			14,117
Deferred income taxes		1,567			—			1,567			—			—			1,567
Total current assets		359,927			(3,002	)		356,925			(8,114	)		16,000			364,811
Property, plant and equipment, net		44,372			(10,512	)		33,860			(2,456	)		—			31,404
Goodwill		29,684			—			29,684			—			—			29,684
Other assets		5,835			—			5,835			—			—			5,835
TOTAL ASSETS	$	439,818		$	(13,514	)	$	426,304		$	(10,570	)	$	16,000		$	431,734
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Current portion of long-term debt	$	9,970		$	—		$	9,970		$	—		$	—		$	9,970
Accounts payable		80,523			(2,445	)		78,078			(3,713	)		—			74,365
Accrued expenses		32,017			—			32,017			—			—			32,017
Income taxes payable		20,615			—			20,615			—			—			20,615
Total current liabilities		143,125			(2,445	)		140,680			(3,713	)		—			136,967
Long-term debt		270,000			—			270,000			—			—			270,000
Other liabilities		6,610			—			6,610			—			—			6,610
Deferred income taxes		23,207			—			23,207			—			—			23,207
Total liabilities		442,942			(2,445	)		440,497			(3,713	)		—			436,784
Commitments and contingencies		—			—			—			—			—			—
Shareholders’ equity (deficit):
Common stock, no par value		221,305			—			221,305			—			—			221,305
Accumulated deficit		(218,692	)		(11,069	)		(229,761	)		—			9,143	(5)(b)		(220,618	)
Accumulated other comprehensive loss		(5,737	)		—			(5,737	)		—			—			(5,737	)
Total shareholders’ equity (deficit)		(3,124	)		(11,069	)		(14,193	)		—			9,143			(5,050	)
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)	$	439,818		$	(13,514	)	$	426,304		$	(3,713	)	$	9,143		$	431,734

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KULICKE AND SOFFA INDUSTRIES, INC.

UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS

(in thousands, except per share amounts)

	For the Three Months Ended December 31, 2005
	Company Historical (1)			Pro Forma Wafer Test Business (2)			Company Pro Forma for Wafer Test Sale(2)			Sale of Package Test Business (3)			Pro Forma Adjustments			Company Pro Forma Combined
Net revenue	$	228,100		$	(14,790	)	$	213,310		$	(8,678	)	$	—		$	204,632
Cost of sales		157,223			(11,912	)		145,311			(6,142	)		—			139,169
Gross profit		70,877			(2,878	)		67,999			(2,536	)		—			65,463
Selling, general and administrative		27,933			(4,224	)		23,709			(3,831	)		704	(5)(c)		20,582
Research and development, net		12,179			(2,266	)		9,913			(1,245	)		—			8,668
Total operating expenses		40,112			(6,490	)		33,622			(5,076	)		704			29,250
Income from operations		30,765			3,612			34,377			2,540			(704	)		36,213
Interest income		712			—			712			—			—			712
Interest expense		(958	)		—			(958	)		—			—			(958	)
Income from operations before income taxes		30,519			3,612			34,131			2,540			(704	)		35,967
Provision for income taxes		5,218			32			5,250			99			—			5,349
Net income	$	25,301		$	3,580		$	28,881		$	2,441		$	(704	)	$	30,618
Net income per share:
Basic	$	0.49														$	0.59
Diluted	$	0.38														$	0.45
Weighted average shares outstanding:
Basic		52,044															52,044
Diluted		68,239															68,239

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KULICKE AND SOFFA INDUSTRIES, INC.

UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS

(in thousands, except per share amounts)

	For the Three Months Ended December 31, 2004
	Company Historical (1)			Sale of Wafer Test Business (2)			Company Pro Forma for Wafer Test Sale (2)			Sale of Package Test Business (3)			Pro Forma Adjustments			Company Pro Forma Combined
Net revenue	$	116,321		$	(14,017	)	$	102,304		$	(8,937	)	$	—		$	93,367
Cost of sales		89,943			(14,574	)		75,369			(6,868	)		—			68,501
Gross profit		26,378			557			26,935			(2,069	)		—			24,866
Selling, general and administrative		22,073			(3,902	)		18,171			(2,429	)		770	(5)(c)		16,512
Research and development, net		8,878			(1,171	)		7,707			(1,120	)		—			6,587
Gain on sale of assets		(1,875	)		1,497			(378	)		—			—			(378	)
Amortization of intangible assets		2,194			(1,340	)		854			(854	)		—			—
Total operating expenses		31,270			(4,916	)		26,354			(4,403	)		770			22,721
Income (loss) from operations		(4,892	)		5,473			581			2,334			(770	)		2,145
Interest income		449			—			449			—			—			449
Interest expense		(846	)		—			(846	)		—			—			(846	)
Income (loss) from operations before income taxes		(5,289	)		5,473			184			2,334			(770	)		1,748
Provision for income taxes		1,902			64			1,966			—			—			1,966
Net loss	$	(7,191	)	$	5,409		$	(1,782	)	$	2,334		$	(770	)	$	(218	)
Net loss per share:
Basic	$	(0.14	)													$	(0.00	)
Diluted	$	(0.14	)													$	(0.00	)
Weighted average shares outstanding:
Basic		51,237															51,237
Diluted		51,237															51,237

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KULICKE AND SOFFA INDUSTRIES, INC.

UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS

(in thousands, except per share amounts)

	For the Fiscal Year Ended September 30, 2005
				Sale of			Company			Sale of						Company
	Company			Wafer Test			Pro Forma for Wafer			Package Test			Pro Forma			Pro Forma
	Historical (4)			Business (2)			Test Sale (2)			Business (3)			Adjustments			Combined
Net revenue	$	561,274		$	(53,854	)	$	507,420		$	(31,878	)	$	—		$	475,542
Cost of sales		419,695			(55,267	)		364,428			(24,967	)		—			339,461
Gross profit		141,579			1,413			142,992			(6,911	)		—			136,081
Selling, general and administrative		94,473			(16,396	)		78,077			(11,384	)		2,833	(5)(c)		69,526
Research and development		41,025			(6,351	)		34,674			(6,179	)		—			28,495
Asset impairment		48,820			(29,322	)		19,498			(19,498	)		—			—
Goodwill impairment		51,756			(31,623	)		20,133			(20,133	)		—			—
Amortization of intangible assets		6,225			(3,707	)		2,518			(2,518	)		—			—
Gain on sale of assets		(2,173	)		818			(1,355	)		(335	)		—			(1,690	)
Total operating expenses		240,126			(86,581	)		153,545			(60,047	)		2,833			96,331
Loss from operations		(98,547	)		87,994			(10,553	)		53,136			(2,833	)		39,750
Interest income		2,228			—			2,228			—			—			2,228
Interest expense		(3,806	)		—			(3,806	)		—			—			(3,806	)
Loss from operations before income taxes		(100,125	)		87,994			(12,131	)		53,136			(2,833	)		38,172
Provision for income taxes		3,957			555			4,512			324			—			4,836
Net loss	$	(104,082	)	$	87,439		$	(16,643	)	$	52,812		$	(2,833	)	$	33,336
Net loss per share:
Basic	$	(2.02	)													$	0.65
Diluted	$	(2.02	)													$	0.52
Weighted average shares outstanding:
Basic		51,619															51,619
Diluted		51,619															66,764

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KULICKE AND SOFFA INDUSTRIES, INC.

UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS

(in thousands, except per share amounts)

	For the Fiscal Year Ended September 30, 2004
	Company Historical (4)			Sale of Wafer Test Business (2)			Company Pro Forma for Wafer Test Sale (2)			Sale of Package Test Business (3)			Pro Forma Adjustments			Company Pro Forma Combined
Net revenue	$	717,811		$	(78,283	)	$	639,528		$	(43,594	)	$	—		$	595,934
Cost of sales		486,806			(64,947	)		421,859			(30,650	)		—			391,209
Gross profit		231,005			(13,336	)		217,669			(12,944	)		—			204,725
Selling, general and administrative		101,225			(18,039	)		83,186			(10,802	)		2,753	(5)(c)		75,137
Research and development		34,611			(3,954	)		30,657			(2,230	)		—			28,427
Resizing		(68	)		—			(68	)		—			—			(68	)
Asset impairment		3,293			(110	)		3,183			(3,183	)		—			—
Amortization of intangible assets		9,022			(5,911	)		3,111			(3,111	)		—			—
Gain on sale of assets		(1,023	)		—			(1,023	)		85			—			(938	)
Total operating expenses		147,060			(28,014	)		119,046			(19,241	)		2,753			102,558
Income from operations		83,945			14,678			98,623			6,297			(2,753	)		102,167
Interest income		1,109			—			1,109			—			—			1,109
Interest expense		(10,466	)		—			(10,466	)		—			—			(10,466	)
Charge on extinguishment of debt		(10,510	)		—			(10,510	)		—			—			(10,510	)
Income from continuing operations before income taxes		64,078			14,678			78,756			6,297			(2,753	)		82,300
Provision for income taxes		7,386			(291	)		7,095			365			—			7,460
Net income from continuing operations	$	56,692		$	14,969		$	71,661		$	5,932		$	(2,753	)	$	74,840
Net income per share from continuing operations:
Basic	$	1.12														$	1.47
Diluted	$	0.90														$	1.17
Weighted average shares outstanding:
Basic		50,746															50,746
Diluted		68,582															68,582

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KULICKE AND SOFFA INDUSTRIES, INC.

UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS

(in thousands, except per share amounts)

	For the Fiscal Year Ended September 30, 2003
	Company Historical (4)			Sale of Wafer Test Business (2)			Company Pro Forma for Wafer Test Sale (2)			Sale of Package Test Business (3)			Pro Forma Adjustments			Company Pro Forma Combined
Net revenue	$	477,935		$	(62,720	)	$	415,215		$	(42,162	)	$	—		$	373,053
Cost of sales		349,727			(55,060	)		294,667			(32,796	)		—			261,871
Gross profit		128,208			(7,660	)		120,548			(9,366	)		—			111,182
Selling, general and administrative		102,327			(14,469	)		87,858			(10,408	)		1,326	(5)(c)		78,776
Research and development		38,121			(3,188	)		34,933			(1,620	)		—			33,313
Resizing		(475	)		103			(372	)		—			—			(372	)
Asset impairment		3,629			(1,691	)		1,938			(1,407	)		—			531
Amortization of intangible assets		9,260			(5,723	)		3,537			(3,537	)		—			—
Loss on sale of product lines		5,257			—			5,257			—			—			5,257
Total operating expenses		158,119			(24,968	)		133,151			(16,972	)		1,326			117,505
Loss from operations		(29,911	)		17,308			(12,603	)		7,606			(1,326	)		(6,323	)
Interest income		940			—			940			—			—			940
Interest expense		(17,431	)		—			(17,431	)		—			—			(17,431	)
Loss from continuing operations before income taxes		(46,402	)		17,308			(29,094	)		7,606			(1,326	)		(22,814	)
Provision for income taxes for continuing operations		7,594			(90	)		7,504			43			—			7,547
Net loss from continuing operations	$	(53,996	)	$	17,398		$	(36,598	)	$	7,563		$	(1,326	)	$	(30,361	)
Net loss per share:
Basic	$	(1.09	)													$	(0.61	)
Diluted	$	(1.09	)													$	(0.61	)
Weighted average shares outstanding:
Basic		49,695															49,695
Diluted		49,695															49,695

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NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS

(1) As reported in K&S’s unaudited financial statements included in Form 10-Q for the period ended December 31, 2005.

(2) These amounts represent the pro forma effects of the disposition of the wafer test business (which occurred on March 3, 2006). These amounts are presented net of adjustments. Please refer to the 8-K filed on March 9, 2006 for unaudited pro forma financial information that reflects the disposition of our wafer business only.

(3) Prepared by the Company from its accounting records. The package test business had not historically been managed or reported as a separate business and this financial information is prepared on a “carve-out” basis and reflects an allocation of certain corporate costs (see footnote (5(c)). These allocations have been prepared on a basis considered reasonable by management.

(4) As reported in K&S’s audited financial statements included in the Company’s annual report on Form 10-K for the year ended September 30, 2005.

(5) Pro forma adjustments reflect only those adjustments which are directly attributable to the transaction and do not include the impact of contingencies. Pro forma adjustments include the following ($ in thousands):

(a) To record gross cash proceeds of $17,000, less estimated transaction costs of $1,000 from the sale of the package test business. Amount of $1,700 represents portion of purchase price held in escrow to fund indemnity claims Antares may have under the Purchase Agreement for a period of one year following the March 31, 2006 closing.

(b) Represents the estimated gain on sale of net assets of $9,143.

(c) To add back allocated corporate general and administrative expenses, incentive compensation, and stock-based compensation expense that are included in the package test business carve-out amounts that will not be eliminated with the disposal of the business and will continue to be incurred by K&S.

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