Kulicke and Soffa Industries (KLIC) 8-K Kulicke & Soffa Reports Results for its Third Fiscal Quarter 2007

Exhibit 99.1

Kulicke & Soffa Reports Results for its Third Fiscal Quarter 2007

• Fourth Quarter Revenue Guidance: $212 Million (26% Q-Q Increase)

• Q3 Equipment Gross Margins Improved to 41.5%

Fort Washington, PA – July 26, 2007—Kulicke & Soffa Industries, Inc. (Nasdaq: KLIC) today announced financial results for its quarter ended June 30, 2007 (third quarter).

Net revenue from continuing operations for the third quarter was $168.6 million compared to $142.7 million for the previous quarter and $169.9 million for the comparable year-ago quarter.

Income from continuing operations was $5.5 million or $0.08 per diluted share, versus a loss from continuing operations of $2.2 million or $0.04 per diluted share for the previous quarter, and income from continuing operations of $16.3 million or $0.24 per diluted share for the year-ago quarter. Income for the year-ago quarter included a $4.5 million gain on the sale of the Company’s building in Willow Grove.

Included in net revenue from continuing operations for the third quarter is $74.0 million of gold metal content compared to $71.6 million for the previous quarter and $75.3 million for the year-ago quarter. These amounts are included in both our net revenue and cost of sales.

Scott Kulicke, chairman and chief executive officer, commented, “Order activity increased rapidly during the third quarter. Once again, we responded to meet our customers’ rising demand for fast delivery of assembly equipment. We are now increasing our production to meet the higher demand for our ball bonders in the September quarter.” He added, “Our ability to rapidly ramp our products up, or down, is one of the core competencies behind K&S’s leading market position.”

Third Quarter Review:

Key Product Highlights

• We received the prestigious “Supplier Excellence Award” from Texas Instruments for dedication and commitment in supplying leading technology products and services in calendar 2006.

• We received a “Best in Class” award from Spansion, which recognized only two suppliers for product excellence and outstanding support to meet its technology goals in 2006.

• Our new CupraPlus capillary won Advanced Packaging Magazine’s award for Wire Bonding. The award recognizes the CupraPlus’s innovative technology in advancing copper wire bonding in the semiconductor industry.

• We sampled our new Fortus capillary to customers. This capillary will improve their gold wire bond strength and quality on a variety of plated lead-frame packages. Compared to a conventional capillary, the new product provides improved life-span, greater process robustness, longer uptime and yield throughout the capillary’s life.

Financial Review

• Our equipment gross margins improved to 41.5% from 40.0% in the second quarter. The higher gross margin was partially due to a higher portion of equipment sales to customers producing logic and analog IC’s.

• We issued $110 million of new debt with an interest rate of 0.875%, due 2012.

• Approximately $40 million of the proceeds was used to buy back K&S stock, which will reduce share count by 4.2 million shares.

• We intend to use the remaining proceeds to retire 0.5% notes, due in 2008.

Guidance for Fourth Fiscal Quarter:

Mr. Kulicke provided the following revenue guidance, “Demand for our products continues to be high. We expect revenue for the September quarter to be about $212 million, assuming current gold prices.”

Earnings Conference Call Details

A conference call to discuss these results will be held today, July 26, 2007 beginning at 9:00 AM EDT. Interested participants may call 877-407-8037 for the teleconference or log on tohttp://www.kns.com/investors/events for listen-only mode. A replay will be available approximately one hour after the completion of the call by calling toll free 877-660-6853 or internationally 201-612-7415 and using the following replay access codes 5521 (account number) and 248994 (conference number). A replay will also be available on the K&S web site athttp://www.kns.com/investors. The replay will be available via phone and web site through September 28, 2007.

About Kulicke & Soffa

Kulicke & Soffa (NASDAQ: KLIC) is the world’s leading supplier of semiconductor assembly equipment, materials, and technology. K&S provides wire bonders, capillaries, wire, die bonders, and die collets for all types of semiconductor packages using wire as the internal electrical interconnections. K&S is the only major supplier to the semiconductor assembly industry that provides customers with semiconductor assembly equipment along with the complementing packaging materials and process technology that enable our customers to achieve the highest possible yields and throughput. The ability to provide these assembly related products is unique to K&S, and allows us to develop system solutions to the new technology challenges inherent in assembling and packaging next-generation 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, revenue growth, sales, customer demand, customer sentiment, business conditions, profitability, financial results, unit volumes, product development, release of products, industry forecasts, the semiconductor business cycle, and projected continued 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 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. 2006 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

# # #

KULICKE & SOFFA INDUSTRIES, INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except per share and employee data)

(Unaudited)

	Three months ended						Nine months ended
	July 1,			June 30,			July 1,			June 30,
	2006			2007			2006			2007
Net revenue	$	169,935		$	168,625		$	534,896		$	463,647
Cost of sales		126,331			125,832			380,889			350,454
Gross profit		43,604			42,793			154,007			113,193
Selling, general and administrative		20,742			25,106			62,076			69,667
Research and development		10,043			12,711			28,105			37,066
Gain on sale of assets		(4,544	)		—			(4,544	)		—
Operating expenses		26,241			37,817			85,637			106,733
Income from operations		17,363			4,976			68,370			6,460
Interest income		1,109			1,827			2,620			4,793
Interest expense		(688	)		(712	)		(2,492	)		(1,952	)
Gain on early extinguishment of debt		—			—			4,040			—
Income from continuing operations before income taxes		17,784			6,091			72,538			9,301
Provision for income taxes		1,438			571			8,454			1,822
Income from continuing operations		16,346			5,520			64,084			7,479
Loss from discontinued operations		(1,581	)		—			(24,741	)		—
Net income	$	14,765		$	5,520		$	39,343		$	7,479
Income per share from continuing operations:
Basic	$	0.29		$	0.10		$	1.18		$	0.13
Diluted	$	0.24		$	0.08		$	0.95		$	0.12
Loss per share from discontinued operations:
Basic	$	(0.03	)	$	—		$	(0.46	)	$	—
Diluted	$	(0.02	)	$	—		$	(0.36	)	$	—
Net income per share:
Basic	$	0.26		$	0.10		$	0.72		$	0.13
Diluted	$	0.22		$	0.08		$	0.59		$	0.12
Weighted average shares outstanding:
Basic		56,735			56,456			54,422			57,112
Diluted		69,018			68,951			68,739			69,460
Stock-based compensation expense included in continuing operations:
Cost of sales	$	88		$	58		$	540		$	191
Selling, general and administrative		757			1,308			2,249			3,136
Research and development		247			348			932			1,246
Total continuing operations	$	1,092		$	1,714		$	3,721		$	4,573
Discontinued operations	$	9		$	—		$	628		$	—
	Three months ended						Nine months ended
	July 1,			June 30,			July 1,			June 30,
	2006			2007			2006			2007
Additional financial data:
Depreciation and amortization
Continuing operations	$	2,148		$	2,674		$	7,445		$	7,440
Discontinued operations	$	—		$	—		$	2,314		$	—
Capital expenditures
Continuing operations	$	1,915		$	1,430		$	8,092		$	3,737
Discontinued operations	$	—		$	—		$	753		$	—
							July 1,			June 30,
							2006			2007
Backlog of orders
Continuing operations								59,000			107,000
Number of employees
Continuing operations								2,477			2,778
Transition personnel								283			—

Note (1) – Prior period statements of operations and additional financial data have been adjusted to reflect accounting for the sale of the company’s Test business as a discontinued operation in accordance with the requirements of FAS 144.

KULICKE & SOFFA INDUSTRIES, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)

				(Unaudited)
	September 30, 2006			June 30, 2007
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	133,967		$	175,348
Restricted cash		1,973			—
Short-term investments		21,343			24,210
Accounts and notes receivable, net of allowance for doubtful accounts of $3,068 and $2,288, respectively		120,651			133,542
Inventories, net		47,866			69,737
Current assets of discontinued operations		3,832			—
Prepaid expenses and other current assets		10,446			17,889
Deferred income taxes		3,990			3,990
TOTAL CURRENT ASSETS		344,068			424,716
Property, plant and equipment, net		28,487			38,341
Intangible assets, net of accumulated amortization of $0 and $116, respectively		—			546
Goodwill		29,684			29,790
Other assets		3,262			7,377
TOTAL ASSETS	$	405,501		$	500,770
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	42,881		$	55,271
Accrued expenses		32,970			30,151
Income taxes payable		19,239			17,529
TOTAL CURRENT LIABILITIES		95,090			102,951
Long term debt		195,000			305,000
Other liabilities		10,640			10,796
Deferred taxes		25,465			25,483
TOTAL LIABILITIES		326,195			444,230
SHAREHOLDERS’ EQUITY
Common stock, without par value		277,194			286,493
Treasury stock		—			(40,118	)
Accumulated deficit		(191,824	)		(184,345	)
Accumulated other comprehensive loss		(6,064	)		(5,490	)
TOTAL SHAREHOLDERS’ EQUITY		79,306			56,540
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	405,501		$	500,770

KULICKE & SOFFA INDUSTRIES, INC.

OPERATING RESULTS BY BUSINESS SEGMENT

(In thousands)

(Unaudited)

Fiscal 2007:

	Equipment Segment			Packaging Materials Segment		Consolidated
Three months ended June 30, 2007:
Net revenue	$	72,858		$	95,767	$	168,625
Cost of sales		42,605			83,227		125,832
Gross profit		30,253			12,540		42,793
Operating expenses		28,715			9,102		37,817
Net income from continuing operations	$	1,538		$	3,438	$	4,976
Nine months ended June 30, 2007:
Net revenue	$	180,073		$	283,574	$	463,647
Cost of sales		105,203			245,251		350,454
Gross profit		74,870			38,323		113,193
Operating expenses		79,974			26,759		106,733
Net (loss) income from continuing operations	$	(5,104	)	$	11,564	$	6,460
Fiscal 2006:
	Equipment Segment			Packaging Materials Segment		Consolidated
Three months ended July 1, 2006:
Net revenue	$	71,054		$	98,881	$	169,935
Cost of sales		40,215			86,116		126,331
Gross profit		30,839			12,765		43,604
Operating expenses		22,016			8,769		30,785
Gain on sale of assets		—			—		(4,544	)
Net income from continuing operations	$	8,823		$	3,996	$	17,363
Nine months ended July 1, 2006:
Net revenue	$	264,888		$	270,008	$	534,896
Cost of sales		150,717			230,172		380,889
Gross profit		114,171			39,836		154,007
Operating expenses		65,633			24,548		90,181
Gain on sale of assets		—			—		(4,544	)
Net income from continuing operations	$	48,538		$	15,288	$	68,370