Packaging material maker Kulicke & Soffa Industries Inc. (KLIC) Thursday reported a loss for the fourth quarter compared to a profit a year ago, as revenues slipped 60% due to weaker demand amid sluggish economy. Consequently, the company said it is taking steps to manage costs by work force reduction and cancellation of annual salary increases.
Fourth quarter loss for Fort Washington, Pennsylvania-based Kulicke & Soffa was $4.61 million or $0.09 per share, compared to earnings of $30.25 million or $0.47 per share in the year-earlier quarter.
Loss from continuing operations was $11.02 million or $0.21 per share, compared to earnings of $25.36 million or $0.40 per share in the year-ago quarter. Income from discontinuing operations, net of tax, increased to $6.41 million or $0.12 per share from $4.89 million or $0.07 per share in the same quarter a year ago.
Operating results of the company's wire business are reported as discontinued operations for the quarter, following announcement of its divestiture.
On a non-GAAP basis, loss was $10.3 million or $0.19 per share. On average, five analysts polled by First Call/Thomson Financial expected a loss of $0.09 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter declined 60% to $61.23 million from $151.60 million in the prior-year quarter. The Street expected revenue of $160.00 million for the quarter.
Gross margin, however,increased 34 basis points to 40.6% from the same quarter of the prior year.
For fiscal year 2008, earnings dropped to $3.82 million or $0.07 per share from $37.73 million or $0.57 per share a year ago.
Loss from continuing operations was $19.62 million or $0.37 per share, compared to income of $18.86 million or $0.29 per share last year. Income from discontinuing operations, net of tax, was $23.44 million or $0.44 per share, compared to $18.87 million or $0.28 per share in the prior year.
On a non-GAAP basis, the company incurred a loss of $8.4 million or $0.16 per share for the fiscal. The Street expected earnings of $0.02 per share for the year.
Revenue for the year was $328.05 million, down from $370.53 million a year ago.
Scott Kulicke, chief executive officer, said, "We are taking appropriate steps to manage costs. These measures include a headcount reduction of 240 positions and a cancellation of annual salary increases scheduled for January. We expect these measures to cost approximately $3 million, and to result in approximately $12 million in annualized savings."
Going forward, for the first quarter of 2009, the company expects revenues of $40 million.
"We expect demand to remain weak and visibility to be poor through at least the first half of our fiscal 2009," Kulicke said.
KLIC closed Wednesday's regular trading at $2.06, down $0.20, on a volume of 0.54 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.