SINGAPORE, Jan. 21, 2025 /PRNewswire/ -- Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) ("Kulicke & Soffa", "K&S" or the "Company"), a global leader in the design and manufacture of semiconductor, LED and electronic assembly equipment, today announced that a conference call is scheduled to discuss the Company's first fiscal quarter 2025 financial results and its business outlook, on Wednesday, February 5, 2025, at 8:00 am EST.The Company will issue its first fiscal quarter 2025 financial results in the ev ...

$900 Million Cumulatively Deployed in Share Repurchase ProgramsInitiates New $300 Million Share Repurchase ProgramSINGAPORE, Dec. 2, 2024 /PRNewswire/ -- Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) ("Kulicke & Soffa," "K&S" or the "Company"), announced today that it has completed its $800 million share repurchase program, originally initiated during its fiscal fourth quarter of 2017. Under this program, K&S repurchased approximately 22.7 million shares at an average price of approximately $35.25 per s ...

Financial Performance - Kulicke and Soffa Industries (KLIC) reported fourth-quarter fiscal 2024 non-GAAP earnings of 34 cents per share, missing the Zacks Consensus Estimate by 5.56%, and a year-over-year decline of 33.3% [1] - Revenues decreased by 10.4% year over year to $181.3 million but exceeded the consensus estimate by 0.73% [2] - The gross margin expanded by 100 basis points year over year to $87.7 million, representing 48.3% of net revenues [6] Segment Performance - Revenues from the General Semiconductor segment grew 11% sequentially to $84 million [3] - The Automotive and Industrial segment saw a year-over-year increase of 42.3% to $37 million [3] - LED revenues were weak, achieving only $2 million due to market challenges, while the Memory segment grew significantly to $19 million from $2 million year over year [4] Operating Details - Operating expenses rose 11.3% year over year to $85 million, driven by a 14.1% increase in selling, general and administrative expenses [6] - Non-GAAP operating income declined 51.7% year over year to $12.7 million, with the operating margin contracting by 600 basis points to 7% [6] Balance Sheet & Cash Flow - As of September 28, 2023, cash, cash equivalents, and short-term investments totaled $577.1 million [7] - Cash flow from operating activities was $31.6 million, up from $26.9 million in the previous quarter, with adjusted free cash flow at $29.2 million [7] Guidance - For the first quarter of fiscal 2025, net revenues are expected to be $165 million (+/- $10 million), with non-GAAP earnings anticipated at 28 cents per share (+/-10%) [8]

Financial Data and Key Metrics Changes - The company reported revenue of $181.3 million for Q4 2024, with a non-GAAP EPS of $0.34, reflecting a strong performance despite some core markets being in a state of digestion [12][25] - Gross margin for the quarter was 48.3%, attributed to an improving mix of higher performance ball and wedge systems [25] - For the upcoming December quarter, the company expects revenue of approximately $165 million, with gross margins of 47% [28] Business Line Data and Key Metrics Changes - General Semiconductor revenue decreased sequentially, primarily due to strong TCB revenue in the previous quarter, but excluding TCB, it increased by 11% sequentially [13] - Automotive and Industrial markets are showing demand improvements after a challenging year, with expectations of coordinated recovery in fiscal 2025 [14] - LED demand remained soft, with ongoing digestion in the traditional wire-bonded high-bright lighting market [16] Market Data and Key Metrics Changes - Utilization rates for OSAT customers are improving, with China exceeding 80% and the rest of the world in the mid-70% range [32][48] - The International Energy Agency reported a 25% year-over-year increase in global EV sales in the first half of 2024, indicating strong growth in the automotive sector [15] - The semiconductor revenue is projected to grow by approximately 14% in fiscal 2025, driven by AI and automotive sectors [39] Company Strategy and Development Direction - The company anticipates a return to capacity growth in core segments throughout fiscal 2025, focusing on technology transitions in advanced packaging and dispense [5][22] - The leadership in Fluxless Thermo-Compression (FTC) is expected to drive market adoption and enhance competitiveness in advanced packaging applications [6][21] - The company is committed to expanding market access through organic and inorganic activities, with a focus on technology transitions [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for fiscal 2025 due to recent technology wins and improving market conditions, particularly in general semiconductor and automotive sectors [23][24] - The company expects ongoing improvements and cyclical recovery across key end-markets, with a focus on supporting customer engagements and new technology requirements [22][24] - Broader macroeconomic improvements are anticipated to stimulate global semiconductor unit growth through fiscal 2025 [24] Other Important Information - The company announced a fifth consecutive dividend raise and a new share repurchase program, reflecting confidence in long-term growth [26][27] - A significant portion of prior impairment charges related to Project W will be reimbursed, positively impacting financial results [25][42] Q&A Session Summary Question: Utilization rates at OSAT customers - The utilization rate for OSAT customers in China is over 80%, while the rest of the world is in the mid-70% range, with expectations that 80% is the threshold for capacity addition [32] Question: Foundry customer win for TCB - The recent win involves multiple systems for near-term production, with potential for significant future sales, although no long-term forecast has been provided yet [33] Question: Recovery in general semiconductor business - The general semiconductor market is expected to see growth driven by IoT and AI-edge devices, with a projected revenue growth of about 14% [39] Question: Recovery from Project W - The company reached an agreement for reimbursement of a significant portion of impairment charges related to Project W, which will be recognized in the current quarter [42] Question: Gross margin expectations - The company aims for gross margins to approach 50% as higher margin products become a larger percentage of overall sales [51]

Financial Performance - The company's net revenue for fiscal 2024 was $706.2 million, a decrease of 4.9% from $742.5 million in fiscal 2023[268]. - Gross profit for fiscal 2024 was $268.8 million, down 25.1% from $358.7 million in the previous year[156]. - Operating expenses increased to $361.3 million in fiscal 2024, compared to $319.2 million in fiscal 2023, reflecting a rise of 13.2%[156]. - The company reported a net loss of $69.0 million for fiscal 2024, compared to a net income of $57.1 million in fiscal 2023[156]. - Basic net loss per share for fiscal 2024 was $(1.24), a significant decline from earnings of $1.01 per share in fiscal 2023[156]. - Total current assets decreased to $995.0 million as of September 28, 2024, from $1,189.1 million as of September 30, 2023, representing a decline of 16.3%[155]. - The consolidated net inventory balance was $177.7 million, down from $217.3 million in the previous year, indicating a reduction of 18.2%[155]. - The company’s total shareholders' equity was $944.0 million, down from $1,174.6 million in the previous year, reflecting a decline of 19.5%[155]. - The company recognized impairment charges of $44.5 million in fiscal 2024, compared to $21.5 million in fiscal 2023, indicating a significant increase in impairment[156]. - Total comprehensive income for fiscal year 2024 was a loss of $60,666 thousand, while it was $68,286 thousand in fiscal 2023[162]. Cash and Investments - As of September 28, 2024, the company's total cash, cash equivalents, and short-term investments were $577.1 million, a decrease of $182.3 million from the prior fiscal year end[19]. - Cash and cash equivalents at the end of fiscal year 2024 were $227,147 thousand, down from $529,402 thousand at the end of fiscal year 2023[162]. - The company repurchased common stock amounting to $150,791 thousand in fiscal year 2024, compared to $69,210 thousand in fiscal year 2023[162]. - Cash dividends declared were $0.20 per share in fiscal year 2024, totaling $44,246 thousand, compared to $0.19 per share in fiscal year 2023, totaling $43,004 thousand[162]. Operational Highlights - The company continues to invest in product development to enhance existing products and deliver next-generation solutions, focusing on semiconductor interconnect and device assembly needs[20]. - The RAPID Pro, part of the smart bonder series, introduces advanced functionalities including real-time process monitoring and predictive maintenance capabilities[20]. - The company is expanding its technology partnerships with key customers and institutions to enhance its product offerings and market reach[21]. - The launch of LUMINEX supports high-speed die placement and mass die transfer for applications in integrated circuits and advanced displays[21]. - The company maintains a strong focus on operational excellence and efficient management throughout business cycles to mitigate volatility and improve profitability[19]. - The company has developed advanced packaging solutions for 2.5D and 3D integrated circuits, expected to enhance performance and power efficiency[21]. Market and Industry Conditions - The semiconductor industry is characterized by volatility, with periodic downturns adversely affecting business performance[47]. - The company relies on sole source suppliers for key technology parts, exposing it to significant risks related to supply chain disruptions[48]. - The company faces continuous price pressure, resulting in a decline in average selling prices, particularly in the Chinese market[52]. - The semiconductor industry is characterized by high competition, with significant factors including price, innovation, and customer support[54]. - The company must continuously develop and manufacture new products to maintain competitiveness, which requires significant capital expenditures[53]. - The ongoing U.S.-China trade tensions may impact the company's ability to sell products and could reduce competitiveness due to tariffs and trade restrictions[58]. Employee and Organizational Structure - As of September 28, 2024, the company had 2,681 full-time employees and 65 temporary workers worldwide[37]. - The company maintains an open-door policy for employees to voice concerns and suggestions, ensuring a supportive work environment[45]. - The company emphasizes long-term customer relationships and utilizes a direct sales force and distribution channels to support its customers globally[25]. Environmental, Social, and Governance (ESG) Initiatives - The company established an ESG council to oversee its ESG efforts, providing quarterly updates to executive leadership[36]. - In fiscal 2023, the company performed independent assurance of its Scope 1 and Scope 2 greenhouse gas emissions data for eight global operational sites[36]. - The company incorporated its Diversity & Inclusion program into its ESG structure in fiscal 2022, aiming to enrich employee experiences[38]. - The company has implemented a learning and development series titled "Inclusive Leader Mindset Change Training" for people managers[38]. - The company is committed to enhancing its ESG initiatives, which may result in increased costs and compliance obligations[67]. Risks and Compliance - The company is subject to risks from changes in trade regulations, currency fluctuations, and political instability, particularly in the Asia/Pacific region[57]. - Catastrophic events, such as natural disasters and pandemics, can adversely affect operations and financial results[58]. - The company is subject to various environmental and safety laws, which may result in significant compliance costs and operational restrictions[66]. - The company faces risks related to attracting and retaining qualified personnel, which is critical for its operational success[62]. - The company is currently investigating a potential unlawful reverse engineering incident involving ex-employees in China who may have shared proprietary information with a competitor[68]. Acquisitions and Goodwill - Kulicke and Soffa completed the acquisition of Advanced Jet Automation Co., Ltd. for a total purchase price of $38.1 million, which includes $4.0 million held in escrow[198]. - The acquisition is expected to enhance the company's portfolio in semiconductor and advanced display markets, particularly in mini and micro-LED technologies[198]. - Goodwill from the acquisition amounted to $27.975 million, reflecting expected future cash flows and synergies[200]. - The company recorded a goodwill impairment charge of $9.8 million for the Lithography reporting unit due to lower projected cash flows[205]. - The company performed its annual impairment test in the fourth quarter of fiscal 2024 and found no impairment on recorded goodwill[205]. Tax and Regulatory Matters - The effective tax rate for fiscal 2024 was (18.3)%, compared to 20.8% in fiscal 2023[261]. - The company recorded a tax benefit of $6.5 million related to the U.S. TCJA one-time transition tax in fiscal 2024[262]. - As of September 28, 2024, the company has foreign net operating loss carryforwards of $153.9 million and state net operating loss carryforwards of $40.2 million[263]. - The company has approximately $19.7 million of unrecognized tax benefit that could impact the effective tax rate if recognized[265]. Cybersecurity and Data Protection - The company has experienced unauthorized access attempts to its network, resulting in the acquisition of some data, including source code and business partner information, but does not expect a material impact on its operations[70]. - The company has a cybersecurity risk management program informed by industry standards, including the NIST Cybersecurity Framework[82]. - The company has not identified any cybersecurity incidents that have materially affected its operations, but it continues to face various cybersecurity threats[83].

Q4F24 Financial Performance - Revenue reached $1813 million, a slight decrease of 02% quarter-over-quarter[4, 10] - Non-GAAP net income was $185 million[4] - Non-GAAP EPS was $034[4] - Gross margin improved by 170 bps sequentially to 483%[10, 11] - Operating expenses increased to $850 million due to FX volatility and year-end accruals[10, 11] Market and Technology Updates - Ongoing digestion in the core high-volume (HV) market[4] - Expanding market share through technology transitions[4] - Advanced Packaging (AP) progress demonstrates long-term APTURA TM potential[4] - Strong utilization and normal unit growth are expected to support capacity demand in fiscal year 2025[8] Q1F25 Outlook - Revenue is projected to be $165 million, with a potential variance of +/- $10 million[14] - Gross margin is expected to be 47%, with a potential variance of +/- 100 bps[14] - Non-GAAP diluted EPS is forecasted at $028, with a potential variance of +/- 10%[14] - Operating expenses are estimated to be $705 million, with a potential variance of +/- 2%[14]

Group 1: Earnings Performance - Kulicke and Soffa reported quarterly earnings of $0.34 per share, missing the Zacks Consensus Estimate of $0.36 per share, and down from $0.51 per share a year ago, representing an earnings surprise of -5.56% [1] - The company posted revenues of $181.32 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.73%, but down from $202.32 million year-over-year [2] - Over the last four quarters, Kulicke and Soffa has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - Kulicke and Soffa shares have lost about 12.2% since the beginning of the year, while the S&P 500 has gained 25.5% [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at $0.37 on revenues of $181.7 million, and $1.94 on revenues of $807.8 million for the current fiscal year [7] - The Zacks Rank for Kulicke and Soffa is currently 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Group 3: Industry Context - The Electronics - Manufacturing Machinery industry, to which Kulicke and Soffa belongs, is currently in the bottom 18% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Kulicke and Soffa's stock performance [5]

Core Insights - Kulicke and Soffa Industries, Inc. reported a fourth quarter net revenue of $181.3 million, a decrease of 10.4% compared to the same quarter in the previous year, and a net income of $12.1 million, down 48.1% year-over-year [1][2][5] Financial Performance - **Fourth Quarter Fiscal 2024 Results** - Net revenue: $181.3 million, down 10.4% from $202.3 million in Q4 2023 and down 0.2% from $181.7 million in Q3 2024 [2][5] - Gross margin: 48.3%, up 90 basis points year-over-year and up 170 basis points sequentially [2] - Net income: $12.1 million, down 48.1% from $23.4 million in Q4 2023 [2][5] - EPS (diluted): $0.22, down 46.3% from $0.41 in Q4 2023 [2][5] - **Fiscal Year 2024 Highlights** - Total net revenue: $706.2 million, down from $742.5 million in the previous fiscal year [4] - Gross margin: 38.1% [4] - Net loss: $69.0 million or $(1.24) per diluted share; non-GAAP net income of $1.6 million or $0.03 per diluted share [4] Operational Insights - The company is focusing on advanced packaging and assembly solutions, with expectations for increased demand in the semiconductor and automotive markets through fiscal year 2025 [3] - The transition to emerging chiplet and heterogeneous applications is expected to enhance performance and transistor density, positioning the company for market share gains [3] Cash Flow and Shareholder Actions - Cash from operations for Q4 was $31.6 million, with adjusted free cash flow of $29.2 million [5] - The company repurchased 1.0 million shares of common stock at a cost of $42.7 million during the fourth quarter [5] Outlook - For the first quarter of fiscal 2025, the company expects net revenue to be approximately $165 million, with GAAP diluted EPS projected at approximately $1.45 [6]

SINGAPORE, Nov. 13, 2024 /PRNewswire/ -- Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) ("Kulicke & Soffa", "K&S", "we" or the "Company"), has received an order from a leading foundry customer for multiple APTURA™ Fluxless TCB systems to support the broadening global adoption of advanced packaging capacity for leading-edge semiconductor production.Kulicke & Soffa continues to actively expand its customer base with APTURA™ – the most advanced Fluxless Thermo-Compression (FTC) system available, and the fir ...

Fifth Consecutive Annual Dividend Raise; Quarterly Dividend Increased to $0.205 New $300 Million Share Repurchase ProgramSINGAPORE, Nov. 13, 2024 /PRNewswire/ -- Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) ("Kulicke & Soffa," "K&S" or the "Company"), announced today that its Board of Directors has declared and authorized a quarterly dividend of $0.205 per share of common stock, representing a $0.005 increase over its most recent dividend. This dividend raise highlights the Company's commitment to a co ...