Kulicke & Soffa(US:KLIC)2021-02-05 11:10Revenue and Profitability - For the three months ended January 2, 2021, net revenue increased to $267.9 million, an 85.6% increase from $144.3 million for the same period in 2019[160] - Capital Equipment segment revenue was $223.1 million, representing 83.3% of total net revenue, an increase of 118.0% from $102.3 million in the prior year[161] - Aftermarket Products and Services (APS) segment revenue was $44.8 million, accounting for 16.7% of total net revenue, a 6.7% increase from $42.0 million in the prior year[161] - Gross profit for the three months ended January 2, 2021, was $121.5 million, a 72.7% increase from $70.4 million in the prior year[160] - The total gross profit margin decreased to 45.4% from 48.8% in the prior year, primarily due to a less favorable product mix in the Capital Equipment segment[165] - For the three months ended January 2, 2021, total income from operations increased to $54,042,000, a 302.9% increase from $40,628,000 in the prior year[168] - Capital Equipment segment income from operations rose to $44,895,000, reflecting a significant increase of 1,557.9% compared to $2,708,000 in the prior year[168] Cash and Investments - As of January 2, 2021, total cash, cash equivalents, and short-term investments were $576.7 million, a $46.5 million increase from the prior fiscal year end[152] - As of January 2, 2021, total cash, cash equivalents, and short-term investments amounted to $576,670,000, an increase of $46,543,000 from $530,127,000[179] - Net cash provided by operating activities was $58,635,000, significantly up from $25,028,000 in the prior year[180] Operating Expenses and Taxes - Operating expenses totaled $67,444,000, an increase of 18.4% from $56,950,000 in the prior year, driven by higher selling, general, and administrative expenses[171] - Interest income decreased to $651,000, down 77.1% from $2,839,000 in the prior year, primarily due to lower interest rates on cash and investments[175] - The provision for income taxes was $6,298,000, with an effective tax rate of 11.5%, down from 13.6% in the prior year[178] Shareholder Returns and Capital Expenditures - Dividends paid during the three months totaled $7,400,000, with a declared quarterly dividend of $0.14 per share[193] - The company expects fiscal 2021 capital expenditures to be between $32,000,000 and $36,000,000, with $3,700,000 incurred in the first quarter[187] - During the three months ended January 2, 2021, the company repurchased approximately 48,000 shares at a cost of $1,200,000, with remaining authorization of $140,900,000[192] Obligations and Credit Facilities - As of January 2, 2021, the total contractual obligations amounted to $434.9 million, with $372.5 million due within one year[197] - The company has a credit facility with Citibank of $5.0 million, with an outstanding amount of $3.5 million as of January 2, 2021[198] - The company has an overdraft line of credit facility of up to $150.0 million, with no outstanding amounts as of January 2, 2021[199] Foreign Exchange and Risk Management - A 10.0% fluctuation in foreign currency exchange rates could impact the financial position by $2.0 to $3.0 million[204] - The company has foreign exchange forward contracts with a notional amount of $30.1 million outstanding as of January 2, 2021[205] Management and Internal Controls - The company’s management evaluated the effectiveness of disclosure controls and procedures, concluding they were effective as of January 2, 2021[207] - No changes were identified during the three months ended January 2, 2021, that materially affected internal control over financial reporting[209] Legal Matters - The company is involved in ordinary litigation but does not expect any currently pending matters to materially affect its financial condition or operating results[211] Market Demand and Growth Outlook - Demand for products was consistent with or exceeded expectations for the first quarter of fiscal 2021, despite challenges in the supply chain[155] - The company anticipates long-term growth in semiconductor consumption, although short-term volatility may persist due to macroeconomic factors[147]