|Kulicke & Soffa Sells Flip Chip Business to FlipChip International, LLC|
Monday February 9, 3:52 pm ET
WILLOW GROVE, PA--(MARKET WIRE)--Feb 9, 2004 -- Kulicke & Soffa Industries, Inc. (NasdaqNM:KLIC - News) today announced that the Company has sold all the assets associated with its advanced packaging technology segment, which consisted solely of the flip chip business. The assets were sold to FlipChip International, LLC, for approximately $3.4 million in cash and the assumption of certain liabilities. The sale included fixed assets, inventories, and intellectual property of the K&S flip chip business located in Phoenix, Arizona. FlipChip International, LLC is a new company located in Phoenix, Arizona.
Maurice Carson, vice president and chief financial officer of K&S stated, "The flip chip bumping services performed by this business unit are no longer a strategic fit with the Company's mission and goals. However, we did take care to find a buyer that would continue operating this business with most of the existing employees in order to provide a smooth transition for our current customers."
He continued, "This business represented 4% of the Company's revenue for the first fiscal quarter ended December 31, 2003. The sale will be cash flow positive for the Company. Going forward, we anticipate the sale of this business will have little impact on the Company financials."
About Kulicke & Soffa
Kulicke & Soffa (NasdaqNM:KLIC - News) is the world's leading supplier of semiconductor wire bonding assembly equipment. K&S is the only major supplier to the semiconductor assembly industry that provides customers with semiconductor wire bonding equipment along with the complementing packaging materials and test interconnect products that actually contact the surface of the customer's semiconductor devices. The ability to control all of these assembly related products is unique to Kulicke and Soffa, and allows us to develop system solutions to the new technology challenges inherent in assembling and packaging next-generation semiconductor devices. Test interconnect products include a variety of wafer probe cards, ATE interface assemblies, and ATE boards for wafer testing, as well as test sockets for all types of packaged semiconductor devices. Kulicke & Soffa's web site address is kns.com.
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements which are found in various places throughout the press release. While these forward-looking statements represent our judgments and future expectations concerning the development of 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, those listed or discussed in Kulicke & Soffa Industries' 2003 Annual Report on Form 10-K and: 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 risk that anticipated cost savings will not be achieved; the volatility in the demand for semiconductors and our products and services; 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 other key factors that could adversely affect our businesses and financial performance contained in past and future filings and reports, including those with the SEC. 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.
For further information, contact:
Kulicke & Soffa Industries, Inc.
Source: Kulicke & Soffa