Kulicke & Soffa Industries, Inc. engages in the design, manufacture, and sale of tools used to assemble semiconductor devices. It operates through the Capital Equipment and APS segments. The Capital Equipment segment consists of ball bonders, wedge bonders, advanced packaging, and electronic assembly solutions. The APS segment offers a variety of expandable tools for a broad range of semiconductor packaging applications. The company was founded by Frederick W. Kulicke and Albert Soffa in 1951 and is headquartered in Singapore.
Our operating results and financial condition are adversely impacted by volatile worldwide economic conditions.
Unpredictable spending by our customers due to uncertainties in the macroeconomic environment could adversely affect our net revenue and profitability.
The semiconductor industry is volatile with sharp periodic downturns and slowdowns. Cyclical industry downturns are made worse by volatile global economic conditions.
We may experience increasing price pressure.
Our quarterly operating results fluctuate significantly and may continue to do so in the future.
We may not be able to rapidly develop, manufacture and gain market acceptance of new and enhanced products required to maintain or expand our business.
Substantially all of our sales and manufacturing operations are located outside of the U.S., and we rely on independent foreign distribution channels for certain product lines, all of which subject us to risks, including risks from changes in trade regulations, currency fluctuations, political instability and conflicts.
Increased labor costs and competition for qualified personnel may reduce the efficiency of our flexible manufacturing model and adversely impact our operating results.
We are exposed to fluctuations in currency exchange rates that could negatively impact our financial results and cash flows.
We may not be able to continue to consolidate manufacturing and other facilities or entities without incurring unanticipated costs and disruptions to our business.
Our business depends on attracting and retaining management, marketing and technical employees as well as on the succession of senior management.
Difficulties in forecasting demand for our product lines may lead to periodic inventory shortages or excesses.
Alternative packaging technologies may render some of our products obsolete and materially and adversely affect our overall business and financial results.
Because a small number of customers account for most of our sales, our net revenue could decline if we lose a significant customer.
We maintain a backlog of customer orders that is subject to cancellation, reduction or delay in delivery schedules, which may result in lower than expected revenues.
We send products and equipment to customers or potential customers for trial, evaluation or other purposes which may result in retrofit charges, impairments or write-down of inventory value if the products and equipment are not subsequently purchased by the customers.
We depend on our suppliers, including sole source suppliers, for critical raw materials, components and subassemblies. If our suppliers do not deliver their products to us, we would be unable to deliver our products to our customers.
Regulations related to “conflict minerals” may force us to incur additional expenses, may make our supply chain more complex and may result in damage to our reputation with customers.
We may acquire or divest businesses or enter into joint ventures or strategic alliances, which may materially affect our business, financial condition and operating results.
The market price of our common shares and our earnings per share may decline as a result of any acquisitions or divestitures.
We may be unable to continue to compete successfully in the highly competitive semiconductor equipment and packaging materials industries.
Our success depends in part on our intellectual property, which we may be unable to protect.
Third parties may claim we are infringing on their intellectual property, which could cause us to incur significant litigation costs or other expenses, or prevent us from selling some of our products.
We may be materially and adversely affected by environmental and safety laws and regulations.
We have the ability to issue additional equity securities, which would lead to dilution of our issued and outstanding common shares.
Weaknesses in our internal controls and procedures could result in material misstatements in our financial statements.
Management investigations and restatement of financial statements may require significant management time and attention, result in significant legal expenses or damages and cause our business, financial condition, results of operations and cash flows to suffer.
We may be subject to disruptions or failures in our information technology systems and network infrastructures that could have a material adverse effect on us.
Changes to our existing tax incentive in Singapore may materially reduce our reported results of operations in future periods.
The phase-out of the London Interbank Offered Rate (“LIBOR”) could affect interest rates under our existing overdraft credit facility agreement.
Our ability to recognize tax benefits on our existing U.S. tax attributes may be limited.
Changes in tax legislation could adversely impact our future profitability.
Other changes in taxation which could materially impact our future effective tax rate.
Anti-takeover provisions in our articles of incorporation and bylaws and under Pennsylvania law may discourage other companies from attempting to acquire us.
Terrorist attacks, or other acts of violence or war, may affect the markets in which we operate and our profitability.