Kulicke & Soffa Reports Results for Its Third Quarter 2008

Kulicke & Soffa Industries, Inc. (NASDAQ:KLIC) ("K&S”) today reports results for its quarter ended June 28, 2008. K&S announced quarterly net revenue of $180.1 million and a net loss of $1.8 million or $0.03 per share. This press release contains both GAAP and non-GAAP financial information. On a non-GAAP basis (excluding Gold metal cost from both revenue and cost of sales, equity-based compensation, and amortization of intangibles) the Company reported third quarter net revenue of $83.2 million and a net loss of $0.7 million or $0.01 per share. Non-GAAP gross margin was 44.2%, a slight increase of 36 basis points from the prior quarter.       GAAP Results:                   Q3 2008   Change vs. Q3 2007   Change vs. Q2 2008 Net Revenue   $180.1 million   +7%   +2% Gross Profit Gross Margin   $36.7 million 20.4%   - 498 basis points   +26 basis points Net Income (Loss) Net Margin   ($1.8 million) (1.0%)   - 427 basis points   +248 basis points EPS- Diluted   ($0.03)   ($0.11)   $0.08   Non-GAAP Measures:                   Q3 2008   Change vs. Q3 2007   Change vs. Q2 2008 Net Revenue   $83.2 million   -12%   +3% Gross Profit Gross Margin   $36.8 million 44.2%   - 109 basis points   + 36 basis points Net Income (Loss) Net Margin   ($0.7 million) (0.8%)   - 832 basis points   - 87 basis points EPS- Diluted   ($0.01)   ($0.12)   ($0.01) Non-GAAP measures exclude: gold metal cost from both net revenue and cost of sales; equity-based compensation from expenses; amortization of intangibles; and U.S. pension plan termination charge and related tax effects (see reconciliations of GAAP results to Non-GAAP measures in the following financial schedules).   Scott Kulicke, Chairman and Chief Executive Officer, commented, "The industry is in about the same place it was a quarter ago. However, we do not believe these soft conditions can last for too long and we are planning on a 2009 upturn. Once this occurs, we are well positioned with the positive steps we’ve taken recently, which will make K&S stronger and more profitable.” Third Quarter Financial Details Foreign currency exchange rates were unfavorable during the quarter, negatively impacting net income by $2.6 million in comparison to last quarter. Total cash and investments increased $11.6 million from last quarter, to $182.8 million, driven by a reduction in accounts receivable. Non-GAAP consolidated gross margin improved slightly to 44.2%, from 43.8% in the prior quarter. Key Product Trends Began production shipments of the new IConnPS ball bonder during the third quarter. The IConnPS replaces the market-leading Maxum Ultra with higher throughput and enhanced technology for advanced packaging requirements, ultra fine pitch, and copper wire packages. Shipped the first next generation ConnXPS wire bonder to an LED customer for evaluation. The new ConnXPS wire bonder replaces the Maxum Elite wire bonder and is engineered to provide optimal manufacturing capabilities for the lower pin count IC market and the rapidly growing LED market. Shipped an alpha version of our next-generation Discovery die bonder in July. The machine meets all our expectations and we remain on track for a formal Discovery product launch this winter. Outlook for Fourth Fiscal Quarter Net revenue is expected to be about $160 million on a GAAP basis, assuming current gold prices. Net revenue is expected to be about $66 million on a non-GAAP basis, which excludes gold metal cost. The fourth quarter outlook does not include any effects of the Orthodyne or wire business transactions announced on July 31, 2008. Earnings Conference Call Details A conference call to discuss these results will be held today, August 6, 2008 beginning at 9:00 AM EDT. Interested participants may call 877-407-8037 for the teleconference or log on to http://www.kns.com/investors/events for listen-only mode. A replay will be available approximately one hour after the completion of the call by calling toll free 877-660-6853 or internationally 201-612-7415 and using the following replay access codes 5521 (account number) and 291300 (replay ID number). A replay will also be available on the K&S web site at http://www.kns.com/investors/events. The replay will be available via phone and web site through September 30, 2008. Discussion of Non-GAAP Financials This press release contains non-GAAP financial measures as a supplement to the consolidated financial results presented in accordance with GAAP. The Company believes certain non-GAAP measures provide investors with an additional, useful perspective on the Company’s performance as seen through the eyes of management. Management uses non-GAAP financial measures along with GAAP financial results for: analyzing the performance of the Company’s businesses; strategic and tactical decision making; and determining compensation. The Company does not consider non-GAAP financial measures to be a substitute for, or superior to, financial results presented in accordance with GAAP. All of the non-GAAP financial measures included herein are reconciled to the most directly comparable GAAP results in the following financial statements. These non-GAAP measures may be calculated differently from non-GAAP measures used by other companies. In addition, these non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles and some of the adjustments reflect the exclusion of items that are recurring and will be reflected in the Company’s GAAP financial results for the foreseeable future. Exclusions from GAAP Results The Company excludes the following from its GAAP results in presenting non-GAAP financial measures: -- Gold metal cost. The Company’s GAAP net revenue and cost of sales include the value of the gold metal content of wire. The cost of gold metal that is passed-through to customers is excluded from non-GAAP net revenue and cost of sales. Fabrication charges and profit on gold metal are not excluded. The Company believes that excluding the large impact of passed-through gold cost can provide investors with greater visibility into the Company’s profit margin percentages. -- Equity-based compensation expenses. In accordance with Statement of Financial Accounting Standards ("SFAS”) No. 123R, Share Based Payments, the Company recognizes the fair value of its equity-based compensation in expenses. Equity-based compensation consists of common stock, stock options and performance-based restricted stock granted under the Company’s equity compensation plans. Equity-based compensation is a non-cash expense that can vary significantly in amount from period to period. -- Other. The exclusion of certain other non-GAAP amounts allows for improved comparisons of the Company’s results to both prior periods and other companies. The Company excludes the following other items from non-GAAP measures as these items are not reflective of the performance of the Company’s ongoing businesses: U.S. pension plan termination, and; Amortization of intangibles. -- Tax Adjustment. Non-GAAP measures are tax adjusted using the GAAP tax rate associated with each quarterly period. The tax rate is calculated by dividing each quarter’s GAAP tax expense by the GAAP net income for that quarter. Non-GAAP year-to-date measures are calculated by summing the associated quarterly non-GAAP measures, without further tax adjustments. Non-GAAP Measures The specific non-GAAP measures included herein are net revenue, gross profit, gross margin, net income, net margin, and EPS. The Company calculates these measures as follows: -- Net Revenue. K&S non-GAAP net revenue excludes gold metal cost that is passed-through to customers. -- Gross Profit. K&S non-GAAP gross profit excludes the effects of equity-based compensation expense recorded within cost of sales. K&S non-GAAP gross profit is not affected by the exclusion of its gold metal cost from its net revenue since the same gold metal cost is also excluded from cost of sales. -- Gross Margin. K&S non-GAAP gross margin excludes the impact of gold metal cost and equity-based compensation expenses recorded within cost of sales. -- Net Income and Earnings per Share. K&S non-GAAP net income and EPS exclude equity-based compensation expenses, amortization of intangibles, U.S. pension plan termination charge, gains on debt extinguishment, and related tax effects. -- Net Margin. Non-GAAP net margin reflects the Company’s net margin excluding gold metal cost, equity-based compensation, amortization of intangibles, U.S. pension plan termination charge, gains on debt extinguishment, and related tax effects. About Kulicke & Soffa Kulicke & Soffa (NASDAQ:KLIC) is the world's leading supplier of semiconductor assembly equipment, materials, and technology. K&S provides wire bonders, capillaries, wire, die bonders, and die collets for all types of semiconductor packages using wire as the internal electrical interconnections. K&S is the only major supplier to the semiconductor assembly industry that provides customers with semiconductor assembly equipment along with the complementing packaging materials and process technology that enable our customers to achieve the highest possible yields and throughput. The ability to provide these assembly related products is unique to Kulicke & Soffa, and allows us to develop system solutions to the new technology challenges inherent in assembling and packaging next-generation semiconductor devices. Kulicke & Soffa's web site address is http://www.kns.com. Caution Concerning Forward Looking Statements In addition to historical statements, this press release contains statements relating to future events and our future results. These statements are "forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, and include, but are not limited to, statements that relate to a future cyclical industry upturn, our future revenue, sales, profitability, financial results, strength of our balance sheet, and product development. While these forward-looking statements represent our judgments and future expectations concerning 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: 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 volatility in the demand for semiconductors and our products and services; the risk that we may not be able to develop and manufacture new products and product enhancements on a timely and cost effective basis; 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 the factors listed or discussed in Kulicke and Soffa Industries, Inc. 2007 Annual Report on Form 10-K and our other filings with the Securities and Exchange Commission. 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.         KULICKE & SOFFA INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share and employee data) (Unaudited) Three months ended Nine months ended June 30,   June 28, June 30,   June 28, 2007 2008 2007 2008   Net revenue $ 168,625 $ 180,119 $ 463,647 $ 582,709   Cost of sales   125,832     143,380     350,454     451,722     Gross profit   42,793     36,739     113,193     130,987     Selling, general and administrative 25,106 23,099 69,667 70,326 Research and development 12,711 15,440 37,066 46,483 U.S. pension plan termination   -     -     -     9,152     Total operating expenses   37,817     38,539     106,733     125,961     Income (loss) from operations 4,976 (1,800 ) 6,460 5,026   Interest income 1,827 968 4,793 3,728 Interest expense (712 ) (850 ) (1,952 ) (2,607 ) Gain on extinguishment of debt   -     -     -     170     Income (loss) from operations before income taxes 6,091 (1,682 ) 9,301 6,317   Provision (benefit) for income taxes 571 115 1,822 (2,114 )         Net income (loss) $ 5,520   $ (1,797 ) $ 7,479   $ 8,431       Net income (loss) per share: Basic $ 0.10   $ (0.03 ) $ 0.13   $ 0.16   Diluted $ 0.08   $ (0.03 ) $ 0.12   $ 0.15     Weighted average shares outstanding: Basic 56,456 53,528 57,112 53,392 Diluted 68,951 53,528 69,460 62,297   Equity-based compensation expense: Cost of sales $ 58 $ 58 $ 191 $ 187 Selling, general and administrative 1,488 884 3,316 3,198 Research and development   348     234     1,246     1,250   Total $ 1,894   $ 1,176   $ 4,753   $ 4,635     Three months ended Nine months ended June 30,   June 28, June 30,   June 28, Additional financial data: 2007 2008 2007 2008   Depreciation and amortization $ 2,674 $ 2,410 $ 7,440 $ 7,471   Capital expenditures $ 1,430 $ 1,620 $ 3,737 $ 6,425   June 30,   June 28, 2007 2008   Backlog of orders 107,000 84,000   Number of employees 2,778 2,743       KULICKE & SOFFA INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) September 29, June 28, 2007 2008 ASSETS   CURRENT ASSETS Cash and cash equivalents $ 150,571 $ 164,196 Restricted cash - 10,000 Short-term investments 19,339 8,560 Accounts and notes receivable, net of allowance for doubtful accounts of $1,713 and $1,581 respectively 177,512 146,138 Inventories, net 68,955 71,326 Prepaid expenses and other current assets 14,201 16,438 Deferred income taxes   3,631     3,533     TOTAL CURRENT ASSETS 434,209 420,191   Property, plant and equipment, net 37,953 40,763 Goodwill 33,212 32,393 Intangible assets 500 469 Other assets   6,726     6,663     TOTAL ASSETS $ 512,600   $ 500,479     LIABILITIES AND SHAREHOLDERS' EQUITY   CURRENT LIABILITIES Current portion of long term debt $ - $ 72,412 Accounts payable 82,615 54,176 Accrued expenses 37,170 29,383 Income taxes payable   22,665     278     TOTAL CURRENT LIABILITIES 142,450 156,249   Long term debt 251,412 175,000 Other liabilities 12,335 40,260 Deferred income taxes   23,148     22,860     TOTAL LIABILITIES   429,345     394,369       SHAREHOLDERS' EQUITY Common stock, no par value 288,714 294,802 Treasury stock, at cost (46,118 ) (46,118 ) Accumulated deficit (154,094 ) (144,856 ) Accumulated other comprehensive income (loss)   (5,247 )   2,282     TOTAL SHAREHOLDERS' EQUITY   83,255     106,110     TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 512,600   $ 500,479             KULICKE & SOFFA INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)   Three months ended Nine months ended June 30, 2007 June 28, 2008 June 30, 2007 June 28, 2008   Net cash provided by (used in) continuing operations $ 4,353 $ 13,396 $ 6,324 $ 24,247 Net cash used in discontinued operations   (519 )   (471 )   (2,730 )   (1,204 ) Net cash provided by (used in) operating activities 3,834 12,925 3,594 23,043 Net cash used in investing activities (876 ) (790 ) (32,891 ) (5,600 ) Net cash provided by (used in) financing activities 67,940 225 70,523 (3,287 ) Effect of exchange rate changes on cash and cash equivalents   (80 )   89     155     (531 ) Changes in cash and cash equivalents 70,818 12,449 41,381 13,625 Cash and cash equivalents, beginning of period   104,530     151,747     133,967     150,571   Cash and cash equivalents, end of period $ 175,348 $ 164,196 $ 175,348 $ 164,196 Short-term investments 24,210 8,560 24,210 8,560 Restricted cash   -     10,000     -     10,000   Total Cash, cash equivalents, restricted cash and short-term investments $ 199,558   $ 182,756   $ 199,558   $ 182,756       KULICKE & SOFFA INDUSTRIES, INC. OPERATING RESULTS BY BUSINESS SEGMENT (In thousands) (Unaudited)   Fiscal 2008:       Three months ended June 28, 2008: EquipmentSegment PackagingMaterialsSegment Consolidated   Net revenue $ 59,043 $ 121,076 $ 180,119 Cost of sales   35,949     107,431   143,380   Gross profit 23,094 13,645 36,739 Operating expenses   28,961     9,578   38,539   Income (loss) from operations $ (5,867 ) $ 4,067 $ (1,800 )   Nine months ended June 28, 2008:   Net revenue $ 224,061 $ 358,648 $ 582,709 Cost of sales   136,529     315,193   451,722   Gross profit 87,532 43,455 130,987 Operating expenses 86,908 29,901 116,809 U.S. pension plan termination   9,152     -   9,152   Income (loss) from operations $ (8,528 ) $ 13,554 $ 5,026       Fiscal 2007:       Three months ended June 30, 2007: EquipmentSegment PackagingMaterialsSegment Consolidated   Net revenue $ 72,858 $ 95,767 $ 168,625 Cost of sales   42,605     83,227   125,832 Gross profit 30,253 12,540 42,793 Operating expenses   28,715     9,102   37,817 Income from operations $ 1,538   $ 3,438 $ 4,976   Nine months ended June 30, 2007:   Net revenue $ 180,073 $ 283,574 $ 463,647 Cost of sales   105,203     245,251   350,454 Gross profit 74,870 38,323 113,193 Operating expenses   79,974     26,759   106,733 Income (loss) from operations $ (5,104 ) $ 11,564 $ 6,460     KULICKE & SOFFA INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS - SUMMARY COMPARISON OF GAAP RESULTS TO NON-GAAP MEASURES (In thousands, except share amounts) (Unaudited)   Three months endedJune 30,   Three months endedJune 28,   Nine months endedJune 30,   Nine months endedJune 28, 2007 2008 2007 2008   (GAAP results)   Net revenue $ 168,625 $ 180,119 $ 463,647 $ 582,709 Gross profit 42,793 36,739 113,193 130,987 Income (loss) from operations 4,976 (1,800 ) 6,460 5,026 Net income (loss) 5,520 (1,797 ) 7,479 8,431   Weighted average shares outstanding: Basic 56,456 53,528 57,112 53,392 Diluted 68,951 53,528 69,460 62,297   Net income (loss) per share Basic $ 0.10 $ (0.03 ) 0.13 0.16 Diluted $ 0.08 $ (0.03 ) 0.12 0.15   (Non-GAAP measures)   Net revenue $ 94,601 $ 83,233 $ 246,996 $ 299,240 Gross profit 42,851 36,797 113,384 131,174 Income (loss) from operations 6,733 (585 ) 11,149 18,958 Net income (loss) 7,112 (665 ) 11,471 17,645   Weighted average shares outstanding: Basic 56,456 53,528 57,112 53,392 Diluted 68,951 53,528 69,460 62,297   Net income (loss) per share Basic $ 0.13 $ (0.01 ) 0.20 0.33 Diluted $ 0.11 $ (0.01 ) 0.18 0.29     KULICKE & SOFFA INDUSTRIES, INC.OPERATING RESULTS BY BUSINESS SEGMENT - SUMMARYCOMPARISON OF GAAP RESULTS TO NON-GAAP MEASURES(In thousands)(Unaudited)   Equipment Segment   Packaging Materials Segment   Consolidated   Fiscal 2008:   Three months ended June 28, 2008: (GAAP results)   Net revenue $ 59,043 $ 121,076 $ 180,119 Gross profit 23,094 13,645 36,739 Income (loss) from operations (5,867 ) 4,067 (1,800 )   (Non-GAAP measures)   Net revenue $ 59,043 $ 24,190 $ 83,233 Gross profit 23,126 13,671 36,797 Income (loss) from operations (4,955 ) 4,370 (585 )   Nine months ended June 28, 2008:   (GAAP results)   Net revenue $ 224,061 $ 358,648 $ 582,709 Gross profit 87,532 43,455 130,987 Income (loss) from operations (8,528 ) 13,554 5,026   (Non-GAAP measures)   Net revenue $ 224,061 $ 75,179 $ 299,240 Gross profit 87,635 43,539 131,174 Income from operations 4,338 14,620 18,958   Fiscal 2007:   Three months ended June 30, 2007: (GAAP results)   Net revenue $ 72,858 $ 95,767 $ 168,625 Gross profit 30,253 12,540 42,793 Income from operations 1,538 3,438 4,976   (Non-GAAP measures)   Net revenue $ 72,858 $ 21,743 $ 94,601 Gross profit 30,283 12,568 42,851 Income from operations 2,910 3,823 6,733   Nine months ended June 30, 2007: (GAAP results)   Net revenue $ 180,073 $ 283,574 $ 463,647 Gross profit 74,870 38,323 113,193 Income (loss) from operations (5,104 ) 11,564 6,460   (Non-GAAP measures)   Net revenue $ 180,073 $ 66,923 $ 246,996 Gross profit 74,958 38,426 113,384 Income (loss) from operations (1,543 ) 12,692 11,149     KULICKE & SOFFA INDUSTRIES, INC.CONSOLIDATED STATEMENTS OF OPERATIONSRECONCILIATION OF GAAP RESULTS TO NON-GAAP MEASURES(In thousands, except share amounts)(Unaudited)   Three months ended     Three months ended     Nine months ended     Nine months ended   June 30, % of June 28, % of June 30, % of June 28, % of   2007   Revenue   2008   Revenue   2007   Revenue   2008   Revenue   Net revenue (GAAP results) $ 168,625 $ 180,119 $ 463,647 $ 582,709 - Gold Metal adjustment   (74,024 )   (96,886 )   (216,651 )   (283,469 ) Net revenue (Non-GAAP measures) 94,601 83,233 246,996 299,240   Gross profit (GAAP results) 42,793 25.4 % 36,739 20.4 % 113,193 24.4 % 130,987 22.5 % - Equity-based compensation expense   58     58     191     187   Gross profit (Non-GAAP measures) 42,851 45.3 % 36,797 44.2 % 113,384 45.9 % 131,174 43.8 %   Income (loss) from operations (GAAP results) 4,976 3.0 % (1,800 ) -1.0 % 6,460 1.4 % 5,026 0.9 % - Equity-based compensation expense 1,714 1,176 4,573 4,635 - U.S. pension plan termination - - - 9,152 - Amortization of intangibles   43     39     116     145   Income (loss) from operations (Non-GAAP measures) 6,733 7.1 % (585 ) -0.7 % 11,149 4.5 % 18,958 6.3 %   Net income (loss) (GAAP results) 5,520 3.3 % (1,797 ) -1.0 % 7,479 1.6 % 8,431 1.4 % - Equity-based compensation expense 1,714 1,176 4,573 4,635 - U.S. pension plan termination - - - 9,152 - Amortization of intangibles 43 39 116 145 - Gain on extinguishment of debt - - - (170 ) - Tax effect of non-GAAP adjustments   (165 )   (83 )   (697 )   (4,548 ) Net income (loss) (Non-GAAP measures) 7,112 7.5 % (665 ) -0.8 % 11,471 4.6 % 17,645 5.9 %     Weighted average shares outstanding (GAAP & Non-GAAP) Basic 56,456 53,528 57,112 53,392 Diluted 68,951 53,528 69,460 62,297   Net income (loss) per share (GAAP results) Basic $ 0.10 $ (0.03 ) $ 0.13 $ 0.16 Diluted $ 0.08 $ (0.03 ) $ 0.12 $ 0.15   Adjustments to net income per share Basic $ 0.03 $ 0.02 $ 0.07 $ 0.17 Diluted $ 0.03 $ 0.02 $ 0.06 $ 0.14   Net income (loss) per share (Non-GAAP measures) Basic $ 0.13 $ (0.01 ) $ 0.20 $ 0.33 Diluted $ 0.11 $ (0.01 ) $ 0.18 $ 0.29             KULICKE & SOFFA INDUSTRIES, INC.OPERATING RESULTS BY BUSINESS SEGMENTRECONCILIATION OF GAAP RESULTS TO NON-GAAP MEASURES(In thousands)(Unaudited) Equipment Segment % of Revenue Packaging Materials Segment % of Revenue Consolidated   Fiscal 2008:   Three months ended June 28, 2008:   Net revenue (GAAP results) $ 59,043 $ 121,076 $ 180,119 - Gold metal adjustment   -     (96,886 )   (96,886 ) Net revenue (Non-GAAP measures) 59,043 24,190 83,233   Gross profit (GAAP results) 23,094 39.1 % 13,645 11.3 % 36,739 - Equity-based compensation expense   32     26     58   Gross profit (Non-GAAP measures) 23,126 39.2 % 13,671 56.5 % 36,797   Income (loss) from operations (GAAP results) (5,867 ) -9.9 % 4,067 3.4 % (1,800 ) - Equity-based compensation expense 873 303 1,176 - Amortization of intangibles   39     -     39   Income (loss) from operations (Non-GAAP measures) (4,955 ) -8.4 % 4,370 18.1 % (585 )   Fiscal 2007:   Three months ended June 30, 2007:   Net revenue (GAAP results) $ 72,858 $ 95,767 $ 168,625 - Gold metal adjustment   -     (74,024 )   (74,024 ) Net revenue (Non-GAAP measures) 72,858 21,743 94,601   Gross profit (GAAP results) 30,253 41.5 % 12,540 13.1 % 42,793 - Equity-based compensation expense   30     28     58   Gross profit (Non-GAAP measures) 30,283 41.6 % 12,568 57.8 % 42,851   Income from operations (GAAP results) 1,538 2.1 % 3,438 3.6 % 4,976 - Equity-based compensation expense 1,329 385 1,714 - Amortization of intangibles   43     -     43   Income from operations (Non-GAAP measures) 2,910 4.0 % 3,823 17.6 % 6,733   Fiscal 2008:   Nine months ended June 28, 2008:   Net revenue (GAAP results) 224,061 358,648 582,709 - Gold metal adjustment   -     (283,469 )   (283,469 ) Net revenue (Non-GAAP measures) 224,061 75,179 299,240   Gross profit (GAAP results) 87,532 39.1 % 43,455 12.1 % 130,987 - Equity-based compensation expense   103     84     187   Gross profit (Non-GAAP measures) 87,635 39.1 % 43,539 57.9 % 131,174   Income (loss) from operations (GAAP results) (8,528 ) -3.8 % 13,554 3.8 % 5,026 - Equity-based compensation expense 3,569 1,066 4,635 - U.S. pension plan termination 9,152 - 9,152 - Amortization of intangibles   145     -     145   Income from operations (Non-GAAP measures) 4,338 1.9 % 14,620 19.4 % 18,958   Fiscal 2007:   Nine months ended June 30, 2007:   Net revenue (GAAP results) 180,073 283,574 463,647 - Gold metal adjustment   -     (216,651 )   (216,651 ) Net revenue (Non-GAAP measures) 180,073 66,923 246,996   Gross profit (GAAP results) 74,870 41.6 % 38,323 13.5 % 113,193 - Equity-based compensation expense   88     103     191   Gross profit (Non-GAAP measures) 74,958 41.6 % 38,426 57.4 % 113,384   Income (loss) from operations (GAAP results) (5,104 ) -2.8 % 11,564 4.1 % 6,460 - Equity-based compensation expense 3,445 1,128 4,573 - Amortization of intangibles   116     -     116   Income (loss) from operations (Non-GAAP measures) (1,543 ) -0.9 % 12,692 19.0 % 11,149