SINGAPORE, July 22, 2025 /PRNewswire/ -- Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) ("Kulicke & Soffa", "K&S" or the "Company"), a global leader in semiconductor assembly technology, today announced that a conference call is scheduled to discuss the Company's third fiscal quarter 2025 financial results and its business outlook, on Wednesday, August 6, 2025, at 4:30 pm ET.The Company will issue its third fiscal quarter 2025 financial results Wednesday, August 6, 2025, at approximately 4:00 pm ET.To acc ...

Core Insights - Kulicke and Soffa Industries, Inc. has formed a strategic partnership with Lavorro Inc. to enhance smart manufacturing solutions in the semiconductor industry, focusing on actionable insights and scalable knowledge reuse [1][2][3] Group 1: Partnership Details - The collaboration aims to integrate Kulicke and Soffa's existing solutions, such as APTURA™ equipment and KNeXt™ connectivity, with Lavorro's generative AI platform to improve factory performance and reduce operational costs [2] - Lavorro's platform includes tools like FabAssist.ai™ and ToolAssist.ai™, which utilize natural language processing and machine learning to provide virtual assistants that enhance diagnostics, recipe optimization, and maintenance workflows [2][3] Group 2: Benefits and Implementation - The partnership is expected to deliver significant value by improving mean-time-to-repair (MTTR) and mean-time-between-failures (MTBF), while also formalizing expert knowledge to accelerate onboarding and decision-making [2][3] - Solutions from this collaboration are available for early adoption, supporting both on-premise and cloud-based environments, with anticipated rapid return on investment through improved tool uptime and enhanced yield [3] Group 3: Company Backgrounds - Kulicke and Soffa is recognized as a global leader in semiconductor assembly technology, serving various markets including automotive and communications, and has a history of innovation since its founding in 1951 [4] - Lavorro specializes in Generative AI for semiconductor manufacturing, providing knowledge-driven decision support and automation solutions that are trusted by fabs and equipment manufacturers globally [5]

Core Viewpoint - Kulicke and Soffa Industries (NASDAQ: KLIC) has experienced a rebound in stock performance due to the recent easing of trade and tariff disputes, following a period where the stock reached a multi-year low [1] Group 1: Company Overview - Kulicke and Soffa Industries is a supplier of equipment and solutions for the semiconductor and LED industries [1] Group 2: Market Context - The easing of trade and tariff disputes has positively impacted the company's stock performance, which had previously fallen to a new multi-year low [1]

Core Viewpoint - Kulicke & Soffa Industries, Inc. is conducting its Q2 2025 earnings conference call, highlighting the participation of key executives including the CEO and CFO [1][2]. Financial Information - The company emphasizes the importance of non-GAAP financial measures, which should be considered alongside GAAP financial information [3]. Future Outlook - The remarks during the call will include forward-looking statements that are subject to risks and uncertainties, potentially affecting actual results and financial conditions [4].

Kulicke and Soffa Industries (KLIC) Q2 2025 Earnings Call May 07, 2025 08:00 AM ET Company Participants Joseph Elgindy - Senior Director of Investor Relations & Strategic PlanningFusen Chen - President & CEOLester Wong - EVP of Finance & IT and CFOKrish Sankar - Managing DirectorTom Diffely - Director Of Institutional ResearchCraig Ellis - Director of ResearchDavid Duley - Managing Principal Conference Call Participants Charles Shi - Senior Analyst Operator Greetings, and welcome to the CULIC and Sulfa twen ...

Financial Data and Key Metrics Changes - The company reported revenue of $162 million for Q2 2025, with gross margins at 24.9% which included $38.6 million in EA-related inventory and supply chain charges [21] - Total operating expenses were $125.1 million, including restructuring charges of $8.8 million and impairment charges of $39.8 million [21] - The company anticipates a revenue outlook of $145 million for Q3 2025, with gross margins projected at 46.5% [23] Business Line Data and Key Metrics Changes - The decision to discontinue the electronics assembly (EA) equipment business was announced, which accounted for charges of $86.6 million primarily related to inventory write-downs and restructuring [21] - The automotive and industrial sectors saw a sequential decline of approximately 7% in Q2, but were up nearly 14% year-over-year due to ongoing demand improvements [10] - The APS business continues to provide stable revenue, with expectations for overall installed base and utilization trends to improve [11] Market Data and Key Metrics Changes - Southeast Asia experienced a significant slowdown, accounting for the majority of the company's Q2 to Q3 weakness, while order activity increased in China and Taiwan [22][28] - Utilization rates in China are over 80%, while Taiwan's utilization is just touching 80% [70] - The ongoing trade situation has created uncertainty in global markets, particularly affecting the automotive and industrial sectors [8] Company Strategy and Development Direction - The company intends to focus on vertical wire, power semiconductor, advanced dispense, and thermal compression technologies to enhance growth prospects [9] - The restructuring effort aims to improve long-term financial performance and gross margins [7] - The company is well-positioned to leverage its technology leadership in high-volume semiconductor markets [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the semiconductor industry's resilience despite macroeconomic uncertainties [8] - The company anticipates continued capacity digestion supported by improving utilization rates, with expectations for a return to incremental capacity growth in core markets [23] - Management noted that customer hesitation is primarily due to uncertainties surrounding tariffs and trade dynamics [60] Other Important Information - The company has nearly 120 systems installed across 10 different customers, demonstrating a strong market presence [19] - The vertical wire technology is expected to drive significant interest and potential production ramp by 2026 [12] Q&A Session Summary Question: Can you provide insights on June's dynamics and expectations beyond? - Management indicated a Q3 slowdown, particularly in Southeast Asia, with Q2 revenue at $162 million and Q3 guidance at $145 million, attributing the decline to tariff concerns in the automotive and industrial sectors [28][32] Question: What is the revenue run rate of the EA business being exited? - The EA business generated approximately $25 million to $30 million annually, with gross profits around $7 million to $11 million [38] Question: What are the dynamics on the power semiconductor front? - The power semiconductor market is expected to grow rapidly, with new products being introduced to enhance market share [41] Question: Can you elaborate on the utilization rates in Taiwan and China? - Utilization rates in China are over 80%, while Taiwan's are just touching 80%, with expectations for continued high utilization [70] Question: How is the company addressing customer hesitation due to trade policies? - The company manufactures in Singapore, avoiding direct tariff impacts, but acknowledges indirect costs and customer caution due to trade uncertainties [74]

Revenue and Financial Performance - For the three months ended March 29, 2025, approximately 86.3% of net revenue was from shipments to customer locations outside of the U.S., primarily in the Asia/Pacific region [150]. - Approximately 45.8% of net revenue for the three months ended March 29, 2025, was from customers headquartered in China [150]. - Net revenue for the three months ended March 29, 2025, decreased by $10,088 thousand (5.9%) to $161,986 thousand compared to $172,074 thousand for the same period in 2024 [167]. - For the six months ended March 29, 2025, net revenue decreased by $15,153 thousand (4.4%) to $328,110 thousand compared to $343,263 thousand for the same period in 2024 [170]. - Gross profit for the three months ended March 29, 2025, increased by $23,913 thousand (145.2%) to $40,384 thousand compared to $16,471 thousand for the same period in 2024 [167]. - The gross profit margin for the three months ended March 29, 2025, improved to 24.9%, up from 9.6% in the same period in 2024, representing a 1,530 basis point increase [176]. - Ball Bonding Equipment net revenue decreased by $15,627 thousand (19.1%) for the three months ended March 29, 2025, while Wedge Bonding Equipment increased by $13,436 thousand (59.0%) during the same period [169]. - The company reported a loss from operations of $84,667 thousand for the three months ended March 29, 2025, which is an improvement of $20,488 thousand (19.5%) compared to a loss of $105,155 thousand for the same period in 2024 [167]. - For the three months ended March 29, 2025, total loss from operations was $84,667,000, a decrease of 19.5% compared to the loss of $105,155,000 for the same period in 2024 [192]. - Advanced Solutions segment reported a significant improvement with a loss of $6,129,000 for the three months ended March 29, 2025, compared to a loss of $116,981,000 in the same period last year, reflecting a 94.8% change [192]. Expenses and Charges - Selling, general and administrative expenses for the three months ended March 29, 2025, increased by $8,564 thousand (21.7%) to $48,014 thousand compared to $39,450 thousand for the same period in 2024 [183]. - Research and development expenses for the three months ended March 29, 2025, decreased by $484 thousand (1.3%) to $37,220 thousand compared to $37,704 thousand for the same period in 2024 [183]. - Impairment charges for the three months ended March 29, 2025, were $39,817 thousand, a decrease of $4,655 thousand (10.5%) compared to $44,472 thousand for the same period in 2024 [183]. Cash and Investments - The total cash, cash equivalents, and short-term investments as of March 29, 2025, were $581.5 million, reflecting a $4.4 million increase from the prior fiscal year end [157]. - As of March 29, 2025, total cash, cash equivalents, and short-term investments amounted to $581,519,000, a slight increase of 0.8% from $577,147,000 as of September 28, 2024 [200]. - Net cash provided by operating activities for the six months ended March 29, 2025, was $98,779,000, a significant increase from a cash used of $27,479,000 in the same period last year [200]. - The company expects fiscal 2025 capital expenditures to be between $12,000,000 and $16,000,000, with approximately $4,800,000 incurred through the second quarter [207]. Shareholder Actions - The Company declared a quarterly dividend of $0.205 per share, totaling $11.0 million for the three months and $21.8 million for the six months ended March 29, 2025 [218]. - The Company authorized a new share repurchase program to buy back up to $300 million of its common stock, with approximately $272.1 million remaining under this authorization as of March 29, 2025 [214][217]. - During the three months ended March 29, 2025, the Company repurchased approximately 518.0 thousand shares at a cost of $21.3 million, and for the six months, it repurchased 654.0 thousand shares at a cost of $27.9 million [215]. - The company repurchased approximately 657,000 shares of common stock at a cost of $30,300,000 during the three months ended December 28, 2024 [213]. Business Operations and Strategy - The intended cessation of the Electronics Assembly equipment business is expected to be substantially completed by the first half of fiscal 2026 [158]. - The Company received $86.2 million from a customer as reimbursement for costs related to a canceled project, with $15.1 million recognized in net revenue and $71.1 million in gain relating to cessation of business [160]. - The Company is focused on operational excellence and expanding product offerings through continuous research and development or acquisitions [156]. - The semiconductor industry is experiencing volatility and disruption due to inflationary pressures, existing and future tariffs, and declining consumer sentiment [165]. - The Company anticipates that the semiconductor industry's growth projections will normalize despite current macroeconomic conditions [165]. - The APS reportable segment has historically been less volatile and is more directly tied to semiconductor unit consumption rather than capacity requirements [155]. - The ongoing geopolitical tensions and macroeconomic factors have not materially impacted the Company's financial condition and operating results in fiscal 2025 to date [162]. Tax and Liabilities - The effective tax rate for the six months ended March 29, 2025, was 120.7%, compared to 10.2% for the same period in 2024, primarily due to discrete items related to business cessation and project cancellations [197]. - As of March 29, 2025, the Company had deferred tax liabilities of $35.2 million and unrecognized tax benefits of $20.2 million related to uncertain tax positions [220]. Inventory and Obligations - The Company has inventory purchase obligations totaling $102.5 million, with $60.7 million due within one year [222]. - The Company entered into an overdraft facility of up to $150.0 million for general corporate purposes, with no outstanding amounts as of March 29, 2025 [224]. Foreign Exchange and Interest Rate Exposure - The Company has foreign exchange forward contracts with a notional amount of $47.3 million outstanding as of March 29, 2025, to hedge against foreign currency risks [229]. - A 10.0% fluctuation in foreign currency exchange rates could impact the Company's financial position by $4.0 million to $5.0 million [228]. - The Company monitors its exposure to interest rate changes and targets an average life to maturity of less than 18 months for its available-for-sale securities [226]. - The Company’s stock repurchases are recorded as treasury stock using the FIFO method, with any excess amounts upon re-issuance credited to additional paid-in capital [216].

Kulicke & Soffa Nasdaq: KLIC Quarterly Earnings Review May 7, 2025 Q2F25 Ended March 29, 2025 A reconciliation of non-GAAP items is included in this presentation and available within our most recently filed earnings release. 2 Q2F25 Update Internally Focused & Optimized for Growth Intent to secede EA Equipment announced on March 31, 2025 Near term headwinds not specific to K&S Overview Q2F25 Results 1 Earnings Review Safe Harbor In addition to historical statements, this presentation contains statements rel ...

Financial Performance - Kulicke and Soffa reported a quarterly loss of $0.52 per share, significantly worse than the Zacks Consensus Estimate of $0.19, representing an earnings surprise of -373.68% [1] - The company's revenues for the quarter ended March 2025 were $161.99 million, missing the Zacks Consensus Estimate by 1.83%, and down from $172.07 million a year ago [2] - Over the last four quarters, Kulicke and Soffa has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Kulicke and Soffa shares have declined approximately 29.8% since the beginning of the year, compared to a decline of -3.9% for the S&P 500 [3] - The current Zacks Rank for Kulicke and Soffa is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.30 on revenues of $175.5 million, and for the current fiscal year, it is $1.41 on revenues of $692.8 million [7] - The estimate revisions trend for Kulicke and Soffa is mixed, and changes in earnings expectations may occur following the recent earnings report [6] Industry Context - The Electronics - Manufacturing Machinery industry, to which Kulicke and Soffa belongs, is currently ranked in the bottom 9% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Kulicke and Soffa's stock may be influenced by the overall outlook for the industry [8]

[Q2 2025 Financial Performance Summary](index=1&type=section&id=Kulicke%20%26%20Soffa%20Reports%20Second%20Quarter%202025%20Results) Kulicke & Soffa's Q2 2025 performance shows a revenue decline and significant GAAP net loss, largely due to business cessation charges, despite positive cash flow [Q2 2025 Key Financial Results](index=1&type=section&id=Quarterly%20Results) Q2 2025 saw a 5.9% year-over-year net revenue decline to $162.0 million, a GAAP net loss of $84.5 million, and a non-GAAP net loss of $27.9 million, despite positive cash flow Q2 2025 GAAP Financial Performance | | Fiscal Q2 2025 | Change vs. Fiscal Q2 2024 | Change vs. Fiscal Q1 2025 | | :--- | :--- | :--- | :--- | | Net Revenue | $162.0 million | down 5.9% | down 2.5% | | Gross Margin | 24.9% | up 1530 bps | down 2750 bps | | Loss from Operations | $(84.7) million | up 19.5% | down 197.7% | | Net Loss | $(84.5) million | up 17.7% | down 203.5% | | EPS – Diluted | $(1.59) | up 13.1% | down 205.3% | Q2 2025 Non-GAAP Financial Performance | | Fiscal Q2 2025 | Change vs. Fiscal Q2 2024 | Change vs. Fiscal Q1 2025 | | :--- | :--- | :--- | :--- | | Loss from Operations | $(27.4) million | up 45.4% | down 245% | | Net Loss | $(27.9) million | up 47.7% | down 237.8% | | EPS – Diluted | $(0.52) | up 45.3% | down 240.5% | - The company generated **$79.9 million** in GAAP cash flow from operations and **$78.0 million** in adjusted free cash flow during the quarter[13](index=13&type=chunk) - As of March 29, 2025, cash, cash equivalents, and short-term investments totaled **$581.5 million**[13](index=13&type=chunk) - The company repurchased **0.5 million shares** of common stock for **$21.3 million** in Q2 2025[13](index=13&type=chunk) [Strategic Business Updates](index=1&type=section&id=Strategic%20Business%20Updates) The Board approved ceasing the Electronics Assembly equipment business, incurring approximately **$86.6 million** in Q2 2025 pre-tax charges, primarily from impairments - On March 31, 2025, the Board of Directors approved a plan to cease the Electronics Assembly (EA) equipment business[3](index=3&type=chunk) - During Q2 2025, the company incurred pre-tax charges of approximately **$86.6 million** related to this intended cessation, primarily from impairments[3](index=3&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) Management noted cautious order activity in Southeast Asia but remains focused on accelerating growth through key technology transitions in core markets - Management noted more cautious order activity specific to certain Southeast Asia markets[8](index=8&type=chunk) - The company remains prepared to accelerate growth through technology transitions in Vertical Wire, Power-Semiconductor, Advanced Dispense, and Thermo-Compression[8](index=8&type=chunk) [Business Outlook](index=2&type=section&id=Third%20Quarter%20Fiscal%202025%20Outlook) The company provides its financial guidance for the third quarter of fiscal 2025, including revenue and earnings per share projections [Q3 2025 Financial Guidance](index=2&type=section&id=Third%20Quarter%20Fiscal%2025%20Outlook) Q3 2025 guidance projects net revenue of approximately **$145 million** (+/- **$10 million**), a GAAP diluted loss per share of **$(0.09)**, and non-GAAP diluted earnings per share of **$0.05** Q3 2025 Outlook | Metric | Guidance | | :--- | :--- | | Net Revenue | $145 million +/- $10 million | | GAAP Diluted EPS | $(0.09) +/- 10% | | Non-GAAP Diluted EPS | $0.05 +/- 10% | - The difference between GAAP and Non-GAAP EPS guidance is primarily due to adjustments for equity-based compensation, amortization, and restructuring expenses, totaling an impact of **$0.14 per share**[32](index=32&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=CONSOLIDATED%20CONDENSED%20STATEMENTS%20OF%20OPERATIONS) This section presents the company's consolidated financial statements, including the income statement, balance sheet, and cash flow statement [Consolidated Condensed Statements of Operations (Income Statement)](index=4&type=section&id=CONSOLIDATED%20CONDENSED%20STATEMENTS%20OF%20OPERATIONS) For Q2 2025, net revenue was **$162.0 million**, with a gross profit of **$40.4 million**, leading to an operating loss of **$84.7 million** and a net loss of **$84.5 million** Statement of Operations Highlights (Three Months Ended, in thousands) | Metric | March 29, 2025 | March 30, 2024 | | :--- | :--- | :--- | | Net revenue | $161,986 | $172,074 | | Gross profit | $40,384 | $16,471 | | (Loss)/income from operations | $(84,667) | $(105,155) | | Net loss | $(84,519) | $(102,680) | | Diluted net loss per share | $(1.59) | $(1.83) | - For the six months ended March 29, 2025, net revenue was **$328.1 million**, and the net loss was **$2.9 million**[19](index=19&type=chunk) [Consolidated Condensed Balance Sheets](index=5&type=section&id=CONSOLIDATED%20CONDENSED%20BALANCE%20SHEETS) As of March 29, 2025, total assets were **$1.15 billion**, a decrease from **$1.24 billion** in fiscal 2024, with total liabilities at **$281.1 million** and equity at **$864.2 million** Balance Sheet Highlights (in thousands) | Metric | March 29, 2025 | September 28, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $286,519 | $227,147 | | Short-term investments | $295,000 | $350,000 | | Inventories, net | $155,655 | $177,736 | | TOTAL ASSETS | $1,145,264 | $1,240,162 | | TOTAL LIABILITIES | $281,098 | $296,153 | | TOTAL SHAREHOLDERS' EQUITY | $864,166 | $944,009 | [Consolidated Condensed Statements of Cash Flows](index=6&type=section&id=CONSOLIDATED%20CONDENSED%20STATEMENTS%20OF%20CASH%20FLOWS) Q2 2025 saw **$79.9 million** in net cash from operating activities, a turnaround from the prior year, with total cash and investments ending at **$581.5 million** Cash Flow Highlights (Three Months Ended, in thousands) | Metric | March 29, 2025 | March 30, 2024 | | :--- | :--- | :--- | | Net cash provided by / (used in) operating activities | $79,877 | $(20,148) | | Net cash provided by / (used in) investing activities | $(38,415) | $3,429 | | Net cash used in financing activities | $(33,506) | $(47,672) | | Change in cash and cash equivalents | $8,194 | $(64,912) | - Total cash, cash equivalents, and short-term investments at the end of Q2 2025 was **$581.5 million**, compared to **$634.7 million** at the end of Q2 2024[24](index=24&type=chunk) [Reconciliation of GAAP to Non-GAAP Financial Measures](index=7&type=section&id=Reconciliation%20of%20U.S.%20GAAP%20to%20Non-GAAP) This section provides reconciliations of GAAP financial measures to their non-GAAP counterparts, detailing adjustments for various items [Reconciliation of Income from Operations](index=7&type=section&id=Reconciliation%20of%20U.S.%20GAAP%20to%20Non-GAAP%20Income%20from%20Operations%20and%20Operating%20Margin) Q2 2025 GAAP operating loss of **$84.7 million** was reconciled to a non-GAAP operating loss of **$27.4 million**, primarily by adjusting for impairment and restructuring charges Q2 2025 Reconciliation of Income from Operations (in thousands) | Metric | Amount | | :--- | :--- | | U.S. GAAP loss from operations | $(84,667) | | **Pre-tax non-GAAP items:** | | | Amortization related to intangible assets | $1,171 | | Restructuring | $8,806 | | Equity-based compensation | $7,493 | | Impairment charges | $39,817 | | **Non-GAAP loss from operations** | **$(27,380)** | [Reconciliation of Net Income and EPS](index=8&type=section&id=Reconciliation%20of%20U.S.%20GAAP%20Net%20Income%20to%20Non-GAAP%20Net%20Income) Q2 2025 GAAP net loss of **$84.5 million** (or **$(1.59)** per share) was reconciled to a non-GAAP net loss of **$27.9 million** (or **$(0.52)** per share) Q2 2025 Reconciliation of Net Income (in thousands) | Metric | Amount | | :--- | :--- | | U.S. GAAP net loss | $(84,519) | | **Total non-GAAP adjustments** | **$56,648** | | Non-GAAP net loss | $(27,871) | Q2 2025 Reconciliation of Diluted EPS | Metric | Amount | | :--- | :--- | | U.S. GAAP net loss per share | $(1.59) | | Non-GAAP adjustments per share | $1.07 | | **Non-GAAP net loss per share** | **$(0.52)** | [Reconciliation of Adjusted Free Cash Flow](index=9&type=section&id=Reconciliation%20of%20U.S.%20GAAP%20Cash%20provided%20by%20Operating%20Activities%20to%20Non-GAAP%20Adjusted%20Free%20Cash%20Flow) Q2 2025 adjusted free cash flow totaled **$78.0 million**, derived from GAAP net cash provided by operating activities less net capital expenditures Q2 2025 Reconciliation of Adjusted Free Cash Flow (in thousands) | Metric | Amount | | :--- | :--- | | U.S. GAAP net cash provided by operating activities | $79,877 | | Purchases of property, plant and equipment | $(1,954) | | Proceeds from sales of property, plant and equipment | $60 | | **Non-GAAP adjusted free cash flow** | **$77,983** |