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viewKulicke and Soffa Industries Inc.

Kulicke & Soffa Q1 sales fall nearly 20%

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Kulicke & Soffa Industries (NASDAQ:KLIC) said Tuesday fiscal first-quarter 2012 revenues fell nearly 20 percent hurt by weaker demand for its products.

Kulicke makes and sells assembly equipment and tools used in the production of semiconductors.

For the fiscal first quarter ended December 31, the company said revenues fell 19.4 percent to $120 million from $148.9 million.

Net income tanked 43.7 percent to $8.5 million, or 11 cents per share, compared with a year-earlier profit of $15 million, or 21 cents per share.

Analysts polled by MarketWatch expected earnings of four cents a share.

Kulicke & Soffa chief executive Bruno Guilmart said: "Revenue in the December quarter came in at the high end of our guidance but declined sequentially due to the overall macroeconomic market environment combined with weaker demand from our OSAT customers."

Backlog orders for the quarter came in at $88 million compared to $193 million a year ago. K&S also beefed up its work force as the number of workers rose to 2,735 from 2,628 employees.

Gross margin fell 230 basis points to 46.1 percent from 48.4 percent.

Looking ahead, the company expects second-quarter revenue to be between $125 million and $135 million. The forecast reflects the uncertain economic environment and ongoing conservative spending by its customers.

Guilmart added: "We believe we are well positioned both competitively and financially and continue to work towards our goals and objectives of strengthening our technology leadership, broadening our product offering in an effort to maximize
shareholder value."

Shares fell 1.43 percent to $11.05 apiece on the Nasdaq Tuesday morning.

Quick facts: Kulicke and Soffa Industries Inc.

Price: 31.28 USD

NASDAQ:KLIC
Market: NASDAQ
Market Cap: $1.94 billion
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