On June 28, 2017, Kulicke and Soffa Industries, Inc. (the “Company”) concluded that the current carrying value of its goodwill, which the Company had recorded as a result of its January 2015 acquisition of Assembléon B.V. (“Assembléon”), was impaired in accordance with Accounting Standards Codification (ASC) 350 “Intangibles Goodwill and Other”. Under ASC 350, the Company is required to test its goodwill and other intangible assets for impairment annually or when a triggering event has occurred that would indicate it is more likely than not that the fair value of the reporting unit is less than the carrying value including goodwill and other intangible assets. This conclusion was reached based on the results of an updated long-term financial outlook for the businesses of the former Assembléon, developed as part of the Company’s strategic review conducted during the Company’s third quarter. This updated outlook projects that the near-term cash flows from the Assembléon business are expected to be lower than previously forecasted due to softer near-term demand.

As a result, the Company determined that it would need to record a goodwill impairment charge of approximately $35.2 million. The goodwill impairment charge, which is a non-cash charge, will be reflected in the Company’s financial statements as of and for the fiscal quarter ending July 1, 2017.

About KULICKE AND SOFFA INDUSTRIES, INC. (NASDAQ:KLIC)

Kulicke and Soffa Industries, Inc. designs, manufactures and sells capital equipment and expendable tools, as well as services, maintains, repairs and upgrades equipment, all used to assemble semiconductor devices. The Company supplies a range of bonding equipment. The Company operates through two segments: Equipment and Expendable Tools. The Equipment segment manufactures and sells a line of ball bonders, wedge bonders, advanced packaging and surface mount technology solutions. The Expendable Tools segment manufactures and sells expendable tools for a range of semiconductor packaging applications. It offers capital equipment and expendable tools used to assemble semiconductor devices, including integrated circuits, high and low powered discrete devices, light-emitting diodes and power modules. Its customers primarily consist of semiconductor device manufacturers, outsourced semiconductor assembly and test providers, other electronics manufacturers and automotive electronics suppliers.