Financial Performance - Fourth quarter net revenue was $177.6 million, a decrease of 2.1% from $181.3 million in Q4 2024[2][3]. - GAAP net income for the fourth quarter was $6.4 million, resulting in an EPS of $0.12, compared to $12.1 million and $0.22 EPS in Q4 2024[2][3][6]. - Non-GAAP net income for Q4 was $14.9 million, with a non-GAAP EPS of $0.28, down from $0.34 in the same quarter last year[2][3][6]. - Net revenue for the three months ended October 4, 2025, was $177.6 million, a decrease from $181.3 million in the previous quarter[22]. - U.S. GAAP net income for the twelve months ended October 4, 2025, was $213, compared to a net loss of $3.3 million for the three months ended September 28, 2024[23]. - Non-GAAP net income for the twelve months ended October 4, 2025, was $10.99 million, with a non-GAAP net margin of 1.7%[23]. Cash and Investments - Cash, cash equivalents, and short-term investments totaled $510.7 million as of October 4, 2025[6]. - Cash and cash equivalents at the end of the period were $215.7 million, down from $366.9 million at the beginning of the period[20]. - Total cash, cash equivalents, and short-term investments at the end of the period were $510.7 million[20]. Future Projections - The company expects first quarter fiscal 2026 net revenue to be approximately $190 million, with GAAP diluted EPS around $0.18[7]. - The company expects net revenue for the first quarter of fiscal 2026 to be approximately $190 million, with a potential variance of +/- $10 million[28]. - Operating expenses for the first quarter of fiscal 2026 are projected to be $79.8 million, with adjustments leading to a non-GAAP outlook of $71.0 million[28]. - The diluted EPS for the first quarter of fiscal 2026 is expected to be $0.18 under GAAP and $0.33 under non-GAAP[28]. Shareholder Actions - The company repurchased 0.5 million shares of common stock at a cost of $16.7 million during the fourth quarter[6]. Assets and Liabilities - Total assets decreased to $1.1 billion from $1.24 billion as of September 28, 2024[18]. - Total liabilities were $282.9 million, down from $296.2 million in the previous year[18]. Margins and Cash Flow - Gross margin for Q4 was 45.7%, compared to 42.5% for the full fiscal year 2025[6][3]. - The company reported adjusted free cash flow of $4.4 million for the fourth quarter[6]. - Non-GAAP adjusted free cash flow for the twelve months ended October 4, 2025, was $96.6 million[26]. - The company reported a U.S. GAAP operating margin of 0.5% for the three months ended October 4, 2025[22].

Core Insights - Kulicke and Soffa Industries, Inc. reported fourth quarter fiscal 2025 net revenue of $177.6 million, a decrease from $181.3 million in the same quarter of fiscal 2024, and net income of $6.4 million, down from $12.1 million year-over-year [1][9] - The company anticipates first quarter fiscal 2026 net revenue to be approximately $190 million, with GAAP diluted EPS expected around $0.18 and non-GAAP diluted EPS around $0.33 [2][17] Financial Highlights - **Fourth Quarter Fiscal 2025 Results**: - Net revenue: $177.6 million, down from $181.3 million in Q4 2024 [1] - GAAP diluted EPS: $0.12, compared to $0.22 in Q4 2024 [1] - Non-GAAP diluted EPS: $0.28, down from $0.34 in Q4 2024 [1] - **Fiscal Year 2025 Overview**: - Total net revenue for the fiscal year was $654.1 million, with a gross margin of 42.5% [9] - Net income for the fiscal year was $0.2 million, or $0.004 per fully diluted share [9] Operational Insights - The company is focusing on multiple technology engagements and is optimistic about improving end market dynamics and order activity [2] - Global operations and supply chain teams are preparing for increased customer demand in the upcoming quarters [2] Cash Flow and Share Repurchase - GAAP cash flow from operations for Q4 2025 was $7.4 million, with adjusted free cash flow of $4.4 million [9] - The company repurchased 0.5 million shares of common stock at a cost of $16.7 million during the quarter [9] Future Outlook - The company expects first quarter fiscal 2026 net revenue to be approximately $190 million, with a variance of +/- $10 million [2][17] - GAAP diluted EPS is projected to be around $0.18, while non-GAAP diluted EPS is expected to be approximately $0.33 [2][17]

Core Viewpoint - Kulicke and Soffa Industries, Inc. is set to announce its fourth fiscal quarter 2025 financial results on November 19, 2025, followed by a conference call on November 20, 2025, to discuss the results and business outlook [1]. Group 1 - The conference call will take place at 8:00 am ET on November 20, 2025 [1]. - Financial results for the fourth fiscal quarter 2025 will be released on November 19, 2025, at approximately 4:00 pm ET [1]. - Interested parties can access the conference call via a toll-free number or through a live webcast available at investor.kns.com [2]. Group 2 - Kulicke and Soffa is recognized as a global leader in semiconductor assembly technology, serving various markets including automotive, compute, industrial, memory, and communications [3]. - The company was founded in 1951 and focuses on innovation to address dynamic process challenges, aiming to create long-term value by aligning technology with market opportunities [3].

Core Points - Dr. Fusen Chen will retire as President and CEO of Kulicke and Soffa Industries, effective December 1, 2025, due to health reasons, and will serve as an advisor for 12 months post-retirement [1][3] - Lester Wong has been appointed as Interim CEO while continuing his roles as Executive Vice President, Finance and IT, and Chief Financial Officer [2][3] - The Board of Directors has initiated a search for a permanent CEO, considering both internal and external candidates [1][3] Company Leadership Transition - Dr. Chen's leadership over nine years has been marked by innovation and operational excellence, contributing to the company's growth and shareholder value [3] - Lester Wong's experience as CFO and his instrumental role in the company's success position him well to lead during this transitional period [3][5] - The Board emphasizes a collaborative approach to ensure continuity and strategic focus during this leadership change [3] Financial Outlook - Kulicke and Soffa reaffirmed its fourth quarter fiscal 2025 outlook, with financial results to be announced on November 19, 2025 [4] Company Background - Kulicke and Soffa is a leader in semiconductor assembly technology, focusing on automotive, compute, industrial, memory, and communications markets [7] - The company has a history of innovation since its founding in 1951, positioning itself to address dynamic process challenges and create long-term value [7]

Core Insights - Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) has launched ACELON, a new precision dispensing solution aimed at semiconductor, surface-mount technology (SMT), and automotive assembly applications [1][3] - ACELON enhances process stability and is suitable for demanding advanced dispensing tasks in critical production environments [2][3] - The solution features an expanded working area for larger substrates and complex assembly setups, achieving sub-20µm wet accuracy for consistent material placement [4] Company Overview - Kulicke and Soffa Industries, Inc. specializes in semiconductor assembly technology, supporting device performance across various markets including automotive, compute, industrial, memory, and communications [5]

Group 1 - Kulicke and Soffa Industries (NASDAQ: KLIC) has experienced a significant stock rally after reaching a multi-year low [1] Group 2 - The company supplies equipment and solutions for the semiconductor and LED industries [1]

Group 1: Company Performance - TimesSquare Capital Management's "U.S. Small Cap Growth Strategy" reported a gross return of 11.28% and a net return of 11.02% for Q2 2025, underperforming the Russell 2000 Growth Index which returned 11.97% [1] - Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) had a one-month return of 5.52% but experienced a 52-week decline of 4.33%, with a closing stock price of $38.62 and a market capitalization of $2.014 billion as of September 12, 2025 [2] Group 2: Investment Strategy - TimesSquare Capital's U.S. Focus Growth Strategy expressed a preference for critical system providers and specialized component designers within the Information Technology sector, indicating a strategic exit from Kulicke and Soffa Industries, Inc. due to disappointing performance and lowered guidance [3] - Kulicke and Soffa Industries, Inc. was held by 28 hedge fund portfolios at the end of Q2 2025, an increase from 23 in the previous quarter, although it is not among the 30 most popular stocks among hedge funds [4]

Core Viewpoint - Kulicke and Soffa Industries, Inc. has launched ACELON™, a next-generation precision dispensing solution aimed at semiconductor, SMT, and automotive assembly applications, leveraging its established machine architecture in wire bonding [1][4]. Group 1: Product Features - ACELON™ addresses advanced dispense challenges with enhanced process stability, suitable for critical production environments [2]. - The system features a significantly expanded working area, allowing for flexibility in handling larger substrates and complex assembly configurations [2]. - It offers industry-leading precision with sub-20µm wet accuracy, ensuring consistent material placement for applications with strict dimensional tolerances [2][3]. Group 2: Technological Advancements - Key advancements include automatic calibration functions that streamline setup and reduce operator intervention [8]. - An optional Twin Valve/Dual Valve capability enhances throughput and configuration flexibility in high-volume production settings [8]. - AI-powered Auto Parameter Tuning (APT) optimizes system parameters based on process results and historical data, improving quality and throughput [8]. Group 3: Market Positioning - The company emphasizes that ACELON™ combines the reliability of its wire bonding architecture with ultra-precision dispensing capabilities and AI-driven optimization, setting a new benchmark for performance and reliability [4]. - ACELON™ will debut at the SEMICON Taiwan Trade Show from September 10 to September 12, 2025, with general availability expected by March 2026 [5].

Company Performance - Kulicke and Soffa (KLIC) reported quarterly earnings of $0.07 per share, exceeding the Zacks Consensus Estimate of $0.06 per share, but down from $0.35 per share a year ago, representing an earnings surprise of +16.67% [1] - The company posted revenues of $148.41 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.35%, but down from $181.65 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 three times [2] Stock Performance - Kulicke and Soffa shares have declined approximately 30.7% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.12 on revenues of $155.6 million, and for the current fiscal year, it is $0.09 on revenues of $628.6 million [7] Industry Outlook - The Electronics - Manufacturing Machinery industry, to which Kulicke and Soffa belongs, is currently ranked in the bottom 9% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Kulicke and Soffa's stock performance [5]

Financial Data and Key Metrics Changes - The company reported revenue of $148.4 million for the quarter, with a GAAP loss per share of $0.06 and non-GAAP earnings per share of $0.07 [5][16] - Gross margin was reported at 46.7%, with total operating expenses at $75.3 million on a GAAP basis and $68 million on a non-GAAP basis [16] - The company anticipates a sequential revenue increase of approximately 15% to $170 million for the next quarter, with gross margins expected to be around 47% [18] Business Line Data and Key Metrics Changes - The automotive and industrial markets experienced order hesitation, impacting revenue, but the company remains optimistic about long-term growth opportunities in these sectors [6][7] - There was strong sequential demand increase in the memory sector, driven by improving conditions and emerging packaging formats [9] - The company is focusing on advanced dispense, vertical wire, and thermal compression bonding technologies to capture market share in high-power semiconductor applications [10][11][12] Market Data and Key Metrics Changes - Overall utilization rates are reported at approximately 81%, with general semiconductor utilization at around 83% and memory at about 80% [33] - The automotive sector's utilization remains below 70%, indicating ongoing challenges in that market [33] - The company expects the EV charging infrastructure market to exceed a 20% CAGR over the next five years, indicating strong growth potential [7] Company Strategy and Development Direction - The company is focused on extending market access through technology transitions and is cautiously optimistic about gradual core market improvements [4][5] - There is an emphasis on driving share gain and expanding reach into DRAM applications with new packaging capabilities [9] - The company plans to introduce new advanced dispense capabilities at Semicon Taiwan, indicating a commitment to innovation and product development [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges uncertainty in global trade affecting near-term visibility but remains confident in the long-term growth potential driven by technology transitions [5][6] - The company expects automotive headwinds to persist but anticipates a gradual recovery in the semiconductor market overall [19] - Management is optimistic about the upcoming quarters, citing improvements in regional utilization and pricing dynamics [18][19] Other Important Information - The company has repurchased approximately 668,000 shares, representing 1.3% of diluted shares, as part of its strategy to enhance shareholder value [17] - The company has deployed over $270 million in dividend payments and share repurchases over the past seven quarters [17] Q&A Session Summary Question: Revenue guidance for December - Management indicated that December revenues are expected to be flattish, based on high utilization rates and increased order intake [42][45] Question: Impact of Intel's CapEx cuts - Management acknowledged that while revenue compared to the previous year may be down, engagements with customers remain healthy [26][28] Question: Utilization rates and growth drivers - Overall utilization rates are about 81%, with general semiconductor and memory markets showing the highest growth [33][34] Question: Thermal compression business potential - The company targets significant growth in the thermal compression market, projecting a market size of $1 billion by 2028 [35][36] Question: Market share gain strategies - The company plans to gain market share through products like clip attach and pin welder, focusing on high-power semiconductor applications [56][57]