Second-quarter net revenues tumbled about 65 percent and the net loss increased by more than 400 percent at Kulicke & Soffa Industries Inc., the Fort Washington-based manufacturer of equipment used to produce semiconductors.
"The second quarter was one of the most difficult ever for both K&S and our industry," said Scott Kulicke, chairman and chief executive officer. "Weakness in the global economy continued to depress demand throughout the semiconductor industry."
The company, which had already announced 240 layoffs (in a workforce of about 2,500) in November, said it had reduced its staff by 250 more during the quarter, which ended March 28.
The company said it will have $4 million in severance costs, and expects about $21.7 million in annualized savings.
Net revenues were $25.2 million, over $70.9 million in the comparable quarter a year ago. Net loss was $33.1 million (54 cents a share), over a loss a $6.1 million (11 cents a share) a year ago period.
The company had previously announced wage cuts, including for Kulicke himself (20 percent), with lesser cuts for other top executives and reduced hours for workers including factory employees.
"During the quarter, we took the actions required to reduce our cost structure," Scott Kulicke said in a release today.
The company also said that, since November, it had retired $13 million in notes due in 2010, for a net gain of $2.8 million.
Kulicke & Soffa also said it would move some manufacturing operations from Israel to China, at a cost of about $5.7 million over the next three years; the annual savings from that move are projected at $4.6 million a year.
The company projects third-quarter net revenues of $32 million to $37 million.
- Roslyn Rudolph
Source Semiconductor packaging News