Kulicke and Soffa (KLIC) came out with a quarterly loss of $0.95 per share versus the Zacks Consensus Estimate of $0.24. This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -495.83%. A quarter ago, it was expected that this semiconductor equipment maker would post earnings of $0.26 per share when it actually produced earnings of $0.30, delivering a surprise of 15.38%.Over the last four quarters, ...

Exhibit 99.1 Kulicke & Soffa Pte. Ltd. 23A Serangoon North Ave 5 Singapore 554369 +65 6880-9600 main Co. Regn. No. 199902120H Kulicke and Soffa Industries, Inc. 1005 Virginia Drive Fort Washington, PA 19034 USA +1-215-784-6000 main www.kns.com Kulicke & Soffa Reports Second Quarter 2024 Results Focuses on Operational Efficiency; Increases Repurchase Activity Singapore – May 1, 2024 – Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) ("Kulicke & Soffa," "K&S," "our," or the "Company"), today announced financ ...

SINGAPORE, April 18, 2024 /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 second fiscal quarter 2024 financial results and its business outlook, on Thursday, May 2, 2024, at 8:00 am EDT. The Company will issue its second fiscal quarter 2024 financial results in the even ...

Financial Performance - Net revenue for the three months ended December 30, 2023, was $171,189 thousand, a decrease of $5,044 thousand or 2.9% compared to $176,233 thousand for the same period in 2022[149]. - Ball Bonding Equipment net revenue increased to $86,270 thousand, representing 50.4% of total net revenue, a significant increase of $32,621 thousand or 60.8% from $53,649 thousand in the prior year[151]. - Wedge Bonding Equipment net revenue decreased to $23,459 thousand, a decline of $31,197 thousand or 57.1% compared to $54,656 thousand in the previous year[151]. - Gross profit margin for the total decreased to 46.7% from 50.3%, a decline of 360 basis points year-over-year[156]. - Operating expenses increased to $78,203 thousand, up $1,319 thousand or 1.7% from $76,884 thousand in the prior year[161]. - Income from operations fell to $1,693 thousand, a decrease of $10,129 thousand or 85.7% compared to $11,822 thousand in the same period last year[164]. - Interest income increased to $9,899 thousand, up $3,340 thousand or 50.9% from $6,559 thousand in the prior year[168]. Cash and Investments - As of December 30, 2023, the total cash, cash equivalents, and short-term investments were $709.7 million, a decrease of $49.7 million from the prior fiscal year end[135]. - Cash and cash equivalents decreased to $424,660 thousand from $529,402 thousand, a decline of $104,742 thousand[171]. - Net cash used in operating activities was $(7,331) thousand, a significant decrease from $85,116 thousand in the prior year[172]. - Net cash used in investing activities was $(60,541) thousand, compared to $(38,914) thousand in the same period last year[172]. - The company expects fiscal 2024 capital expenditures to be between $23.0 million and $27.0 million, with $3.5 million incurred in the first quarter[179]. - As of December 30, 2023, the company held approximately $558.7 million in cash, cash equivalents, and short-term investments in foreign subsidiaries, with a significant portion available for use in the U.S.[180]. - The company anticipates funding operations and capital requirements primarily through cash on hand and cash generated from operating activities, which are deemed sufficient for the foreseeable future[181]. Market and Industry Conditions - Approximately 89.9% of net revenue for the three months ended December 30, 2023, was from shipments to customer locations outside of the U.S., primarily in the Asia/Pacific region[131]. - Shipments to customers headquartered in China accounted for approximately 46.2% of net revenue for the three months ended December 30, 2023[131]. - The semiconductor industry is experiencing significant inventory buildup due to declining consumer sentiment and inventory adjustments, leading to reduced order rates[144]. - The ongoing geopolitical tensions, including the Israel-Hamas war and the Ukraine/Russia conflict, have not materially impacted the company's financial condition in fiscal 2024 to date[146]. - The company anticipates that the semiconductor industry's long-term growth projections will normalize despite current short-term volatility[145]. - The semiconductor business environment remains highly volatile, influenced by both cyclical and seasonal dynamics as well as macroeconomic factors[128]. Operational Strategy - The APS reportable segment has historically been less volatile and is more directly tied to semiconductor unit consumption rather than production capability improvements[130]. - The company continues to focus on operational excellence and expanding product offerings through research and development and acquisitions[134]. - The company has maintained a strong balance sheet to mitigate potential adverse cyclical and macroeconomic effects on its financial position[135]. Shareholder Returns - The company repurchased approximately 555.6 thousand shares of common stock for about $26.8 million during the three months ended December 30, 2023[185]. - A quarterly dividend of $0.20 per share was declared on November 15, 2023, with total dividends paid during the three months amounting to $10.7 million[187]. Tax and Foreign Exchange - As of December 30, 2023, the company had deferred tax liabilities of $37.2 million and unrecognized tax benefits of $18.1 million related to uncertain tax positions[189]. - The company has foreign exchange forward contracts with a notional amount of $42.7 million outstanding as of December 30, 2023, to hedge against foreign currency risks[198].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File No. 000-00121 KULICKE AND SOFFA INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Pennsylvania 23-1498399 (State or oth ...

Financial Data and Key Metrics Changes - The company generated $190.9 million in revenue for the June quarter, with a gross margin of 47.2% and non-GAAP EPS of $0.55, which was above prior expectations due to stringent cost control and discrete tax items [36][61] - Non-GAAP operating expenses were $66 million, lower than anticipated due to shifts in discretionary spending and ongoing cost controls [19][20] - Working capital days decreased from 517 to 465 days, primarily due to sequential improvement in revenue and relatively flat working capital [62] Business Line Data and Key Metrics Changes - Ball bonder equipment sales increased sequentially by 45%, largely due to increased utilization rates and stronger demand for the Rapid series [14] - The wedge bonder segment has seen strong demand, particularly driven by the semiconductor and electric vehicle markets, with wedge-related revenue more than doubling since 2020 [9][67] - The company shipped a record number of fluxless TCB systems and achieved record TCB revenue for the quarter [71] Market Data and Key Metrics Changes - 79% of total revenue stemmed from capital equipment, which improved by 13% sequentially, supported by utilization improvements in general semiconductor, LED, and memory end markets [14] - Utilization rates improved to around 70% from approximately 60% in previous quarters, with expectations for further increases [93] - The company anticipates nearly 10% semiconductor unit growth in calendar year 2024, with unit growth expected to remain above average in 2025 [6][39] Company Strategy and Development Direction - The company is focused on delivering new innovations that address long-term, technology-driven growth opportunities in both core and emerging equipment businesses [28] - Investments in development, engineering capabilities, and new market opportunities have enhanced the company's fundamental strength and solidified key pillars for long-term growth [16] - The company is actively engaged with multiple customers enabling technology transitions in automotive, semiconductor, and display opportunities [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about ongoing near and long-term improvements within core markets and execution across various end-market applications [18] - The company expects fiscal 2024 to be a better year than fiscal 2023, with the first half potentially not as strong as the second half [69][110] - Management noted that the macro environment remains dynamic, impacting visibility into future performance [66][69] Other Important Information - The company identified a material weakness over internal controls related to segment reporting, leading to the filing of an amended 10-K for fiscal year 2022, but noted no impact on reported amounts [3] - The company has a sizeable order backlog, roughly four times the size of the third quarter fiscal 2019 backlog, which is expected to reduce over the coming quarters [41] Q&A Session Summary Question: What is the expected performance of K&S given the 10% industry growth forecast for 2024? - Management believes that 2024 will be a better year than 2023, with growth initiatives and improved positioning in larger end markets contributing to performance [22][66] Question: What segments are showing improvement in revenue? - The ball bonder segment is showing significant improvement, with wedge bonder demand remaining strong [71] Question: Can you elaborate on the thermo-compression bonding market and the company's position? - The company has a strong TCB product portfolio and is focusing on high volume semiconductor applications, with expectations for significant growth by 2025 [72][77] Question: What are the current utilization rates? - Utilization rates are currently around 70%, up from approximately 60% in previous quarters, with expectations for further increases [93] Question: What is the company's strategy regarding share repurchases? - The company maintains an opportunistic approach to share repurchases, adjusting levels based on market conditions [115]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☒ For the quarterly period ended July 1, 2023 Pennsylvania 23-1498399 (State or other jurisdiction of incorporation) (IRS Employer Identification No.) 23A Serangoon North Avenue 5, #01-01, Singapore 554369 1005 Virginia Dr., Fort Washington, PA 19034 (Address of principal executive offices and Zip Code) OR TRANSITION REPORT PURSUANT TO SECT ...

Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) Q2 2023 Earnings Conference Call May 4, 2023 8:00 AM ET Company Participants Joe Elgindy - Senior Director, Investor Relations Fusen Chen - President and Chief Executive Officer Lester Wong - Chief Financial Officer Conference Call Participants Tom Diffely - D.A. Davidson Dave Duley - Steelhead Securities Krish Sankar - Cowen and Company Charles Shi - Needham and Company Tyler Burmeister - Craig-Hallum Operator Hello and welcome to the Kulicke & Soffa 2023 Se ...

PART I - FINANCIAL INFORMATION This section presents the company's unaudited financial information, including statements, management's analysis, and market risks [Item 1. FINANCIAL STATEMENTS (Unaudited)](index=4&type=section&id=Item%201.%20FINANCIAL%20STATEMENTS%20(Unaudited)) Presents the company's unaudited consolidated condensed financial statements and detailed notes on accounting policies and key financial components - The interim financial statements are unaudited and include normal recurring adjustments, but not all disclosures typically found in annual GAAP statements[25](index=25&type=chunk) - The company's business involves designing, manufacturing, and selling capital equipment and tools for semiconductor device assembly, with operating results highly dependent on the volatile semiconductor industry[27](index=27&type=chunk) - Management evaluates estimates for various financial items, acknowledging potential impacts from the COVID-19 pandemic and macroeconomic headwinds, though no material impact was noted for the quarter ended April 1, 2023[28](index=28&type=chunk)[29](index=29&type=chunk) [Consolidated Condensed Balance Sheets](index=4&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) Provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific dates | Metric | April 1, 2023 (in thousands) | October 1, 2022 (in thousands) | Change (in thousands) | | :--------------------------------- | :----------------------------- | :----------------------------- | :-------------------- | | Total Assets | $1,524,042 | $1,588,599 | $(64,557) | | Cash and cash equivalents | $389,102 | $555,537 | $(166,435) | | Short-term investments | $345,000 | $220,000 | $125,000 | | Accounts and other receivable, net | $169,140 | $309,323 | $(140,183) | | Inventories, net | $224,159 | $184,986 | $39,173 | | Total Liabilities | $340,345 | $393,949 | $(53,604) | | Total Shareholders' Equity | $1,183,697 | $1,194,650 | $(10,953) | [Consolidated Condensed Statements of Operations](index=5&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) Details the company's financial performance over specific periods, including revenue, gross profit, and net income | Metric (in thousands) | 3 Months Ended April 1, 2023 | 3 Months Ended April 2, 2022 | YoY Change (%) | 6 Months Ended April 1, 2023 | 6 Months Ended April 2, 2022 | YoY Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :------------- | :----------------------------- | :----------------------------- | :------------- | | Net revenue | $173,021 | $384,282 | (55.0)% | $349,254 | $845,170 | (58.7)% | | Gross profit | $84,092 | $201,710 | (58.3)% | $172,798 | $424,948 | (59.3)% | | Income from operations | $12,629 | $129,341 | (90.2)% | $24,451 | $280,451 | (91.3)% | | Net income | $15,041 | $116,001 | (87.0)% | $29,630 | $249,607 | (88.1)% | | Basic EPS | $0.27 | $1.89 | (85.7)% | $0.52 | $4.03 | (87.1)% | | Diluted EPS | $0.26 | $1.86 | (86.0)% | $0.51 | $3.97 | (87.1)% | | Interest income | $8,000 | $470 | 1602.1% | $14,559 | $941 | 1447.2% | [Consolidated Condensed Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Comprehensive%20Income) Presents net income and other comprehensive income items, reflecting changes in equity not from owner transactions | Metric (in thousands) | 3 Months Ended April 1, 2023 | 3 Months Ended April 2, 2022 | 6 Months Ended April 1, 2023 | 6 Months Ended April 2, 2022 | | :------------------------------------ | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Net income | $15,041 | $116,001 | $29,630 | $249,607 | | Foreign currency translation adjustment | $1,654 | $(4,351) | $15,973 | $(6,016) | | Net increase/(decrease) from derivatives | $159 | $(56) | $3,532 | $688 | | Total other comprehensive income/(loss) | $1,804 | $(4,358) | $19,449 | $(5,347) | | Comprehensive income | $16,845 | $111,643 | $49,079 | $244,260 | [Consolidated Condensed Statements of Changes in Shareholders' Equity](index=7&type=section&id=Consolidated%20Condensed%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Outlines changes in shareholders' equity, including net income, stock repurchases, and dividends, over specific periods | Metric (in thousands) | October 1, 2022 | April 1, 2023 | Change | | :------------------------------------ | :-------------- | :------------ | :------- | | Total Shareholders' Equity | $1,194,650 | $1,183,697 | $(10,953) | | Repurchase of common stock (6 months) | N/A | $(50,372) | N/A | | Cash dividend declared (6 months) | N/A | $(21,560) | N/A | | Net income (6 months) | N/A | $29,630 | N/A | | Other comprehensive income (6 months) | N/A | $19,449 | N/A | [Consolidated Condensed Statements of Cash Flows](index=9&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) Summarizes cash inflows and outflows from operating, investing, and financing activities over specific periods | Cash Flow Activity (in thousands) | 6 Months Ended April 1, 2023 | 6 Months Ended April 2, 2022 | YoY Change | | :-------------------------------- | :----------------------------- | :----------------------------- | :--------- | | Net cash provided by operating activities | $86,936 | $169,009 | $(82,073) | | Net cash (used in)/provided by investing activities | $(186,197) | $141,461 | $(327,658) | | Net cash used in financing activities | $(72,911) | $(211,064) | $138,153 | | Changes in cash and cash equivalents | $(166,435) | $97,665 | $(264,100) | | Cash and cash equivalents at end of period | $389,102 | $460,453 | $(71,351) | [Notes to Consolidated Condensed Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Condensed%20Financial%20Statements) Provides detailed explanations and disclosures supporting the consolidated condensed financial statements [NOTE 1. BASIS OF PRESENTATION](index=10&type=section&id=NOTE%201.%20BASIS%20OF%20PRESENTATION) Outlines the basis for preparing unaudited financial statements, fiscal year, business nature, and management estimates - The company adopted ASU 2021-08 on Business Combinations in fiscal year 2023, which did not have a material impact on its financial statements[33](index=33&type=chunk) [NOTE 2. BALANCE SHEET COMPONENTS](index=12&type=section&id=NOTE%202.%20BALANCE%20SHEET%20COMPONENTS) Details the composition and changes of significant balance sheet accounts like investments, inventories, and accrued expenses | Balance Sheet Component (in thousands) | April 1, 2023 | October 1, 2022 | | :------------------------------------- | :------------ | :-------------- | | Short-term investments | $345,000 | $220,000 | | Inventories, net | $224,159 | $184,986 | | Property, plant and equipment, net | $110,680 | $80,908 | | Accrued expenses and other current liabilities | $112,301 | $134,541 | [NOTE 3. BUSINESS COMBINATION](index=13&type=section&id=NOTE%203.%20BUSINESS%20COMBINATION) Details the **$38.1 million** acquisition of AJA, expanding into micro-dispensing equipment, with preliminary fair value allocation - Acquired Advanced Jet Automation Co., Ltd. (AJA) for **$38.1 million** in cash on February 22, 2023, to expand into high-precision micro-dispensing equipment for mini and micro LED markets[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk) Acquired Assets and Liabilities | Acquired Assets and Liabilities (in thousands) | February 22, 2023 | | :--------------------------------------------- | :---------------- | | Cash and cash equivalents | $1,238 | | Goodwill | $27,975 | | Intangible assets | $7,768 | | Total purchase price | $38,119 | - The acquisition contributed a net loss of **$0.4 million** and acquisition-related expenses of **$0.3 million** for the three months ended April 1, 2023, with no material impact on consolidated revenue or net income[50](index=50&type=chunk)[51](index=51&type=chunk) [NOTE 4. GOODWILL AND INTANGIBLE ASSETS](index=14&type=section&id=NOTE%204.%20GOODWILL%20AND%20INTANGIBLE%20ASSETS) Goodwill increased to **$98.89 million** due to the AJA acquisition, with no impairment identified; intangible assets also rose Goodwill | Goodwill (in thousands) | October 1, 2022 | April 1, 2023 | Change | | :---------------------- | :-------------- | :------------ | :------- | | Total Goodwill | $68,096 | $98,893 | $30,797 | | Acquired in business combination | — | $27,975 | $27,975 | Net Intangible Assets | Net Intangible Assets (in thousands) | April 1, 2023 | October 1, 2022 | | :----------------------------------- | :------------ | :-------------- | | Net developed technology | $35,070 | $30,381 | | Net customer relationships | $2,108 | $0 | | Net in-process research and development | $459 | $0 | | Total net intangible assets | $39,892 | $31,939 | Estimated Annual Amortization Expense | Estimated Annual Amortization Expense (in thousands) | | :----------------------------------- | | Remaining fiscal 2023 | $3,567 | | Fiscal 2024 | $6,963 | | Fiscal 2025 | $6,799 | | Fiscal 2026 | $6,799 | | Fiscal 2027 | $6,095 | | Thereafter | $9,669 | | Total amortization expense | $39,892 | [NOTE 5. CASH, CASH EQUIVALENTS, AND SHORT-TERM INVESTMENTS](index=16&type=section&id=NOTE%205.%20CASH,%20CASH%20EQUIVALENTS,%20AND%20SHORT-TERM%20INVESTMENTS) Total cash, cash equivalents, and short-term investments decreased to **$734.1 million**, reflecting a shift in asset allocation | Metric (in thousands) | April 1, 2023 | October 1, 2022 | Change | | :------------------------------------ | :------------ | :-------------- | :------- | | Cash and cash equivalents | $389,102 | $555,537 | $(166,435) | | Short-term investments | $345,000 | $220,000 | $125,000 | | Total cash, cash equivalents and short-term investments | $734,102 | $775,537 | $(41,435) | [NOTE 6. EQUITY INVESTMENTS](index=17&type=section&id=NOTE%206.%20EQUITY%20INVESTMENTS) Non-marketable equity securities remained stable, increasing slightly to **$5.433 million** as of April 1, 2023 | Equity Investments (in thousands) | April 1, 2023 | October 1, 2022 | | :-------------------------------- | :------------ | :-------------- | | Non-marketable equity securities | $5,433 | $5,397 | [NOTE 7. FAIR VALUE MEASUREMENTS](index=17&type=section&id=NOTE%207.%20FAIR%20VALUE%20MEASUREMENTS) Describes the company's three-level fair value measurement hierarchy for financial assets and liabilities, with no level transfers - The company uses a three-level hierarchy for fair value measurements (Level 1 for quoted prices, Level 2 for observable inputs, Level 3 for unobservable inputs)[68](index=68&type=chunk) - No transfers between fair value measurement levels occurred during the three and six months ended April 1, 2023[69](index=69&type=chunk) [NOTE 8. DERIVATIVE FINANCIAL INSTRUMENTS](index=17&type=section&id=NOTE%208.%20DERIVATIVE%20FINANCIAL%20INSTRUMENTS) The company uses foreign exchange forward contracts to hedge foreign currency exposure, with derivative assets at **$1.298 million** - The company uses foreign exchange forward contracts to hedge foreign currency exposure from operating expenses, primarily in Singapore, with instruments generally maturing within twelve months[72](index=72&type=chunk)[74](index=74&type=chunk) Derivative Instruments | Derivative Instruments (in thousands) | April 1, 2023 | October 1, 2022 | | :------------------------------------ | :------------ | :-------------- | | Notional Amount | $59,947 | $57,570 | | Fair Value Asset (Liability) | $1,298 | $(2,234) | Net Gain/(Loss) from Derivatives | Net Gain/(Loss) from Derivatives (in thousands) | 3 Months Ended April 1, 2023 | 3 Months Ended April 2, 2022 | 6 Months Ended April 1, 2023 | 6 Months Ended April 2, 2022 | | :---------------------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Recognized in OCI, net of tax | $737 | $(143) | $3,830 | $65 | | Reclassified from OCI into income, net of tax | $578 | $(87) | $298 | $(623) | [NOTE 9. LEASES](index=18&type=section&id=NOTE%209.%20LEASES) Details operating and finance lease agreements, with increased operating lease expense and a weighted-average term of **7.8 years** - The company has non-cancellable operating and finance lease agreements for various assets, with lease terms including extension options from one to 20 years[78](index=78&type=chunk) Lease Expense | Lease Expense (in thousands) | 3 Months Ended April 1, 2023 | 3 Months Ended April 2, 2022 | 6 Months Ended April 1, 2023 | 6 Months Ended April 2, 2022 | | :--------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Operating lease expense | $2,683 | $1,990 | $5,273 | $4,044 | Operating Lease Metrics | Operating Lease Metrics | April 1, 2023 | October 1, 2022 | | :---------------------- | :------------ | :-------------- | | Weighted-average remaining lease term (years) | 7.8 | 8.0 | | Weighted-average discount rate | 5.9% | 5.8% | [NOTE 10. DEBT AND OTHER OBLIGATIONS](index=20&type=section&id=NOTE%2010.%20DEBT%20AND%20OTHER%20OBLIGATIONS) Details a **$5.0 million** Citibank credit facility with **$3.2 million** outstanding and a **$150.0 million** MUFG Bank overdraft facility - The company has a **$5.0 million** credit facility with Citibank (**$3.2 million** outstanding as of April 1, 2023) and an unsecured **$150.0 million** overdraft facility with MUFG Bank (no outstanding amounts as of April 1, 2023)[84](index=84&type=chunk)[85](index=85&type=chunk) [NOTE 11. SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS](index=20&type=section&id=NOTE%2011.%20SHAREHOLDERS'%20EQUITY%20AND%20EMPLOYEE%20BENEFIT%20PLANS) Details 401(k) contributions, **$50.4 million** in share repurchases, **$0.19** quarterly dividends, and changes in accumulated other comprehensive loss 401(k) Contributions | 401(k) Contributions (in thousands) | 3 Months Ended April 1, 2023 | 3 Months Ended April 2, 2022 | 6 Months Ended April 1, 2023 | 6 Months Ended April 2, 2022 | | :---------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Cash | $540 | $496 | $1,014 | $1,004 | - The company repurchased approximately **1.156 million** shares for **$50.4 million** during the six months ended April 1, 2023, under its **$800 million** share repurchase program, with **$198.8 million** remaining authorization[87](index=87&type=chunk)[89](index=89&type=chunk) - Quarterly dividends of **$0.19** per share were declared, totaling **$20.5 million** for the six months ended April 1, 2023[90](index=90&type=chunk) Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss (in thousands) | April 1, 2023 | October 1, 2022 | | :-------------------------------------------------- | :------------ | :-------------- | | Loss from foreign currency translation adjustments | $(13,881) | $(29,854) | | Unrealized gain/(loss) on hedging | $1,298 | $(2,234) | | Total Accumulated other comprehensive loss | $(13,451) | $(32,900) | Equity-Based Compensation Expense | Equity-Based Compensation Expense (in thousands) | 3 Months Ended April 1, 2023 | 3 Months Ended April 2, 2022 | 6 Months Ended April 1, 2023 | 6 Months Ended April 2, 2022 | | :--------------------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Total equity-based compensation expense | $5,379 | $4,696 | $11,900 | $10,008 | [NOTE 12. REVENUE AND CONTRACT BALANCES](index=22&type=section&id=NOTE%2012.%20REVENUE%20AND%20CONTRACT%20BALANCES) Explains revenue recognition from product sales, with contract assets increasing to **$29.21 million** and liabilities decreasing - Revenue is recognized when performance obligations are satisfied, mainly from product sales, with service revenue recognized over time[96](index=96&type=chunk) Contract Balances | Contract Balances (in thousands) | 6 Months Ended April 1, 2023 | 6 Months Ended April 2, 2022 | | :------------------------------- | :----------------------------- | :----------------------------- | | Contract assets, end of period | $29,210 | $26,721 | | Contract liabilities, end of period | $6,556 | $17,300 | [NOTE 13. EARNINGS PER SHARE](index=25&type=section&id=NOTE%2013.%20EARNINGS%20PER%20SHARE) Basic EPS was **$0.27** and **$0.52** for the three and six months, significantly lower, with anti-dilutive PSUs excluded EPS | EPS (in thousands, except per share data) | 3 Months Ended April 1, 2023 | 3 Months Ended April 2, 2022 | 6 Months Ended April 1, 2023 | 6 Months Ended April 2, 2022 | | :---------------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Net income | $15,041 | $116,001 | $29,630 | $249,607 | | Basic EPS | $0.27 | $1.89 | $0.52 | $4.03 | | Diluted EPS | $0.26 | $1.86 | $0.51 | $3.97 | | Weighted average shares outstanding - Basic | 56,684 | 61,482 | 56,868 | 61,934 | | Weighted average shares outstanding - Diluted | 57,577 | 62,435 | 57,739 | 62,907 | - Relative TSR PSUs and Growth PSUs were excluded from diluted EPS calculation as their effect would have been anti-dilutive[105](index=105&type=chunk) [NOTE 14. INCOME TAXES](index=26&type=section&id=NOTE%2014.%20INCOME%20TAXES) Provision for income taxes decreased, but the effective tax rate rose to **27.0%** due to R&D capitalization to GILTI Income Taxes | Income Taxes (in thousands) | 3 Months Ended April 1, 2023 | 3 Months Ended April 2, 2022 | 6 Months Ended April 1, 2023 | 6 Months Ended April 2, 2022 | | :-------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Provision for income taxes | $5,556 | $13,713 | $9,314 | $31,648 | | Effective tax rate | 27.0% | 10.6% | 23.9% | 11.3% | - The increase in effective tax rate is primarily due to the impact of mandatory capitalization of R&D expenditures to GILTI[107](index=107&type=chunk) [NOTE 15. SEGMENT INFORMATION](index=26&type=section&id=NOTE%2015.%20SEGMENT%20INFORMATION) Details performance of Capital Equipment and APS segments, both experiencing significant revenue and income declines - The company operates two reportable segments: Capital Equipment and Aftermarket Products and Services (APS)[109](index=109&type=chunk) Segment Performance | Segment Performance (in thousands) | 3 Months Ended April 1, 2023 | 3 Months Ended April 2, 2022 | 6 Months Ended April 1, 2023 | 6 Months Ended April 2, 2022 | | :--------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | **Net Revenue:** | | | | | | Capital Equipment | $133,727 | $333,909 | $269,099 | $742,437 | | APS | $39,294 | $50,373 | $80,155 | $102,733 | | Total Net Revenue | $173,021 | $384,282 | $349,254 | $845,170 | | **Income from Operations:** | | | | | | Capital Equipment | $3,318 | $111,200 | $7,190 | $243,219 | | APS | $9,311 | $18,141 | $17,261 | $37,232 | | Total Income from Operations | $12,629 | $129,341 | $24,451 | $280,451 | Capital Equipment Revenue by End Market | Capital Equipment Revenue by End Market (in thousands) | 3 Months Ended April 1, 2023 | 3 Months Ended April 2, 2022 | 6 Months Ended April 1, 2023 | 6 Months Ended April 2, 2022 | | :----------------------------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | General Semiconductor | $71,064 | $198,694 | $139,436 | $447,217 | | Automotive & Industrial | $51,455 | $58,700 | $104,635 | $109,348 | | LED | $5,894 | $42,036 | $15,087 | $108,191 | | Memory | $5,314 | $34,479 | $9,941 | $77,681 | [NOTE 16. COMMITMENTS, CONTINGENCIES AND CONCENTRATIONS](index=27&type=section&id=NOTE%2016.%20COMMITMENTS,%20CONTINGENCIES%20AND%20CONCENTRATIONS) Details warranty reserve of **$10.468 million**, **$233.697 million** in purchase obligations, and key customer concentrations Warranty Reserve Activity | Warranty Reserve Activity (in thousands) | 3 Months Ended April 1, 2023 | 3 Months Ended April 2, 2022 | 6 Months Ended April 1, 2023 | 6 Months Ended April 2, 2022 | | :------------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Reserve for warranty, beginning of period | $11,421 | $17,110 | $13,443 | $16,961 | | Provision for warranty | $2,882 | $2,191 | $4,982 | $6,159 | | Utilization of reserve | $(3,835) | $(3,783) | $(7,957) | $(7,602) | | Reserve for warranty, end of period | $10,468 | $15,518 | $10,468 | $15,518 | Obligations Not Reflected on Balance Sheet | Obligations Not Reflected on Balance Sheet (in thousands) | Total | 2023 | 2024 | | :---------------------------------------- | :------ | :----- | :----- | | Inventory purchase obligation | $233,697 | $54,215 | $179,482 | - The company has an unfunded capital commitment of approximately **$9.6 million** related to a private equity fund investment[118](index=118&type=chunk) Significant Customer Concentrations | Significant Customer Concentrations | 6 Months Ended April 1, 2023 (Net Revenue) | April 1, 2023 (Accounts Receivable) | | :---------------------------------- | :------------------------------------------- | :---------------------------------- | | First Technology China Ltd. | 11.9% | * (less than 10%) | | Intel Corporation | * (less than 10%) | 14.6% | [Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=29&type=section&id=Item%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management's analysis of financial performance, condition, and outlook, highlighting revenue declines and strategic initiatives - The company specializes in semiconductor and electronics assembly solutions, serving markets like advanced display, automotive, communications, and consumer electronics[125](index=125&type=chunk) - The semiconductor industry is highly volatile, driven by cyclical, seasonal, and macroeconomic factors, with long-term growth expected despite short-term downturns[130](index=130&type=chunk) - Approximately **90.8%** of net revenue for the six months ended April 1, 2023, was from shipments to customer locations outside the U.S., primarily in the Asia/Pacific region, with **32.5%** to customers headquartered in China[132](index=132&type=chunk) - The company maintains a strong balance sheet with **$734.1 million** in cash, cash equivalents, and short-term investments as of April 1, 2023, to support product development and non-organic opportunities[138](index=138&type=chunk) [Forward-Looking Statements](index=29&type=section&id=Forward-Looking%20Statements) Cautionary note on forward-looking statements, emphasizing risks from macroeconomic factors, supply chain, and geopolitical tensions - Forward-looking statements are subject to risks and uncertainties, including inflationary pressures, interest rate adjustments, falling consumer sentiment, the Ukraine/Russia conflict, COVID-19 impacts, and supply chain disruptions[121](index=121&type=chunk)[124](index=124&type=chunk) [OVERVIEW](index=30&type=section&id=OVERVIEW) Overview of the company's business in semiconductor and electronic device assembly, operating through Capital Equipment and APS segments - The company's Capital Equipment segment manufactures and sells ball bonders, wafer level bonders, wedge bonders, advanced packaging tools, high precision dispense systems, mini and micro LED transfer solutions, and hybrid and electronic assembly solutions[129](index=129&type=chunk) - The APS segment manufactures and sells tools for semiconductor packaging, spare parts, equipment repair, maintenance, servicing, training, refurbishment, and upgrades[129](index=129&type=chunk) [Business Environment](index=30&type=section&id=Business%20Environment) Discusses the volatile semiconductor industry, long-term growth drivers, and revenue concentration in Asia/Pacific, especially China - The semiconductor business environment is highly volatile, driven by internal dynamics (cyclical and seasonal) and macroeconomic forces, with long-term growth expected[130](index=130&type=chunk) - Approximately **92.5%** of net revenue for the three months ended April 1, 2023, was from shipments to customer locations outside the U.S., primarily in the Asia/Pacific region[131](index=131&type=chunk) - Shipments to customers headquartered in China accounted for **32.1%** and **32.5%** of net revenue for the three and six months ended April 1, 2023, respectively, and are subject to heightened geopolitical risks[131](index=131&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk) [Key Events in Fiscal 2023 to Date](index=31&type=section&id=Key%20Events%20in%20Fiscal%202023%20to%20Date) Highlights the AJA acquisition, macroeconomic headwinds causing inventory buildup, and improving but dynamic COVID-19 impacts - The company completed the acquisition of Advanced Jet Automation Co., Ltd. (AJA) on February 22, 2023, to expand its high-precision micro-dispensing equipment and solutions portfolio[139](index=139&type=chunk) - Macroeconomic conditions, including inflationary pressures and declining consumer sentiment, have led to significant inventory buildup in the semiconductor industry and reduced order rates for the company's products[142](index=142&type=chunk)[143](index=143&type=chunk) - The COVID-19 pandemic's effects are generally improving but remain dynamic, with ongoing uncertainties regarding potential resurgences and new variants[145](index=145&type=chunk) [RESULTS OF OPERATIONS](index=33&type=section&id=RESULTS%20OF%20OPERATIONS) Reports substantial declines in net revenue, gross profit, and income from operations due to lower sales volumes | Metric (in thousands) | 3 Months Ended April 1, 2023 | 3 Months Ended April 2, 2022 | YoY Change (%) | 6 Months Ended April 1, 2023 | 6 Months Ended April 2, 2022 | YoY Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :------------- | :----------------------------- | :----------------------------- | :------------- | | Net revenue | $173,021 | $384,282 | (55.0)% | $349,254 | $845,170 | (58.7)% | | Gross profit | $84,092 | $201,710 | (58.3)% | $172,798 | $424,948 | (59.3)% | | Income from operations | $12,629 | $129,341 | (90.2)% | $24,451 | $280,451 | (91.3)% | [Net Revenue](index=33&type=section&id=Net%20Revenue) Net revenue decreased by **55.0%** and **58.7%** due to lower sales volumes in Capital Equipment and APS segments | Net Revenue (in thousands) | 3 Months Ended April 1, 2023 | 3 Months Ended April 2, 2022 | YoY Change (%) | 6 Months Ended April 1, 2023 | 6 Months Ended April 2, 2022 | YoY Change (%) | | :------------------------- | :----------------------------- | :----------------------------- | :------------- | :----------------------------- | :----------------------------- | :------------- | | Capital Equipment | $133,727 | $333,909 | (60.0)% | $269,099 | $742,437 | (63.8)% | | APS | $39,294 | $50,373 | (22.0)% | $80,155 | $102,733 | (22.0)% | | Total Net Revenue | $173,021 | $384,282 | (55.0)% | $349,254 | $845,170 | (58.7)% | - The decrease in Capital Equipment net revenue was due to lower customer purchases in general semiconductor, LED, and memory markets, exacerbated by high semiconductor supply chain inventories[149](index=149&type=chunk) - The decrease in APS net revenue was due to lower customer purchases in spares and services, and a slight decrease in bonding tools, also impacted by low equipment utilization and high inventories[150](index=150&type=chunk) [Gross Profit Margin](index=34&type=section&id=Gross%20Profit%20Margin) Total gross profit margin decreased to **48.6%** and **49.5%** due to lower sales volumes and unfavorable product mix | Gross Profit Margin | 3 Months Ended April 1, 2023 | 3 Months Ended April 2, 2022 | Basis Point Change | 6 Months Ended April 1, 2023 | 6 Months Ended April 2, 2022 | Basis Point Change | | :------------------ | :----------------------------- | :----------------------------- | :----------------- | :----------------------------- | :----------------------------- | :----------------- | | Capital Equipment | 46.0% | 51.2% | (520) | 47.4% | 48.8% | (140) | | APS | 57.6% | 61.2% | (360) | 56.4% | 60.8% | (440) | | Total gross profit margin | 48.6% | 52.5% | (390) | 49.5% | 50.3% | (80) | - Capital Equipment gross profit margin decreased due to lower sales volume, macroeconomic uncertainties, high semiconductor supply chain inventories, and less favorable product mix[152](index=152&type=chunk) - APS gross profit margin decreased due to less favorable product mix among spares, services, and bonding tools, and lower average selling prices of bonding tools[153](index=153&type=chunk) [Operating Expenses](index=35&type=section&id=Operating%20Expenses) Total operating expenses remained stable for three months but increased by **2.7%** for six months, driven by SG&A | Operating Expenses (in thousands) | 3 Months Ended April 1, 2023 | 3 Months Ended April 2, 2022 | YoY Change (%) | 6 Months Ended April 1, 2023 | 6 Months Ended April 2, 2022 | YoY Change (%) | | :-------------------------------- | :----------------------------- | :----------------------------- | :------------- | :----------------------------- | :----------------------------- | :------------- | | Selling, general & administrative | $35,464 | $35,088 | 1.1% | $77,840 | $74,047 | 5.1% | | Research & development | $35,999 | $37,281 | (3.4)% | $70,507 | $70,450 | 0.1% | | Total Operating Expenses | $71,463 | $72,369 | (1.3)% | $148,347 | $144,497 | 2.7% | - SG&A expenses increased for the three months due to higher staff costs and lower wage incentives, and for six months due to unfavorable foreign exchange variance, professional services, severance, and facilities startup expenses, partially offset by lower sales commissions[156](index=156&type=chunk)[157](index=157&type=chunk) - R&D expenses decreased for the three months due to lower engineering services, prototype materials, toolings, and freight[158](index=158&type=chunk) [Income from Operations](index=35&type=section&id=Income%20from%20Operations) Income from operations plummeted by **90.2%** and **91.3%** due to significant declines in net revenue and gross profit | Income from Operations (in thousands) | 3 Months Ended April 1, 2023 | 3 Months Ended April 2, 2022 | YoY Change (%) | 6 Months Ended April 1, 2023 | 6 Months Ended April 2, 2022 | YoY Change (%) | | :------------------------------------ | :----------------------------- | :----------------------------- | :------------- | :----------------------------- | :----------------------------- | :------------- | | Capital Equipment | $3,318 | $111,200 | (97.0)% | $7,190 | $243,219 | (97.0)% | | APS | $9,311 | $18,141 | (48.7)% | $17,261 | $37,232 | (53.6)% | | Total Income from Operations | $12,629 | $129,341 | (90.2)% | $24,451 | $280,451 | (91.3)% | - The decrease in income from operations for both segments was primarily due to changes in revenue and operating expenses[160](index=160&type=chunk) [Interest Income and Expense](index=36&type=section&id=Interest%20Income%20and%20Expense) Interest income dramatically increased by over **1,600%** due to higher short-term investment balances and interest rates | Interest (in thousands) | 3 Months Ended April 1, 2023 | 3 Months Ended April 2, 2022 | YoY Change (%) | 6 Months Ended April 1, 2023 | 6 Months Ended April 2, 2022 | YoY Change (%) | | :---------------------- | :----------------------------- | :----------------------------- | :------------- | :----------------------------- | :----------------------------- | :------------- | | Interest income | $8,000 | $470 | 1602.1% | $14,559 | $941 | 1447.2% | | Interest expense | $(32) | $(97) | (67.0)% | $(66) | $(137) | (51.8)% | - Interest income increased primarily due to a higher average balance in short-term investments and higher weighted average interest rates[162](index=162&type=chunk) [Provision for Income Taxes](index=36&type=section&id=Provision%20for%20Income%20Taxes) Provision for income taxes decreased, but the effective tax rate rose to **27.0%** due to R&D capitalization to GILTI | Income Taxes (in thousands) | 3 Months Ended April 1, 2023 | 3 Months Ended April 2, 2022 | YoY Change (%) | 6 Months Ended April 1, 2023 | 6 Months Ended April 2, 2022 | YoY Change (%) | | :-------------------------- | :----------------------------- | :----------------------------- | :------------- | :----------------------------- | :----------------------------- | :------------- | | Provision for income taxes | $5,556 | $13,713 | (59.5)% | $9,314 | $31,648 | (70.6)% | | Effective tax rate | 27.0% | 10.6% | 16.4% pts | 23.9% | 11.3% | 12.6% pts | - The increase in effective tax rate is primarily related to the impact of mandatory capitalization of R&D expenditures to GILTI[163](index=163&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=36&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Total cash and investments decreased to **$734.1 million**; operating cash flow declined, with funding from cash and credit facilities Cash, Cash Equivalents, and Short-Term Investments | Cash, Cash Equivalents, and Short-Term Investments (in thousands) | April 1, 2023 | October 1, 2022 | Change | | :---------------------------------------------------------------- | :------------ | :-------------- | :------- | | Cash and cash equivalents | $389,102 | $555,537 | $(166,435) | | Short-term investments | $345,000 | $220,000 | $125,000 | | Total | $734,102 | $775,537 | $(41,435) | | Percentage of total assets | 48.2% | 48.8% | (0.6)% pts | Cash Flow Summary | Cash Flow Summary (in thousands) | 6 Months Ended April 1, 2023 | 6 Months Ended April 2, 2022 | | :------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $86,936 | $169,009 | | Net cash (used in)/provided by investing activities | $(186,197) | $141,461 | | Net cash used in financing activities | $(72,911) | $(211,064) | | Changes in cash and cash equivalents | $(166,435) | $97,665 | [Cash Flow Summary](index=37&type=section&id=Cash%20Flow%20Summary) Operating cash flow decreased to **$86.9 million**, investing activities used **$186.2 million**, and financing used **$72.9 million** - Net cash provided by operating activities was **$86.9 million**, driven by net income and a favorable change in operating assets and liabilities, including a decrease in accounts receivable and an increase in inventories[167](index=167&type=chunk)[168](index=168&type=chunk) - Net cash used in investing activities was **$186.2 million**, primarily due to **$125.0 million** in net short-term investment purchases, **$36.9 million** for the AJA acquisition, and **$24.5 million** in capital expenditures[169](index=169&type=chunk) - Net cash used in financing activities was **$72.9 million**, mainly for **$52.0 million** in common stock repurchases and **$20.5 million** in dividend payments[169](index=169&type=chunk) [Fiscal 2023 Liquidity and Capital Resource Outlook](index=38&type=section&id=Fiscal%202023%20Liquidity%20and%20Capital%20Resource%20Outlook) Projects fiscal 2023 capital expenditures between **$53.0 million** and **$57.0 million**, funded by cash and credit facilities - Fiscal 2023 capital expenditures are projected to be between **$53.0 million** and **$57.0 million**, with **$33.0 million** already incurred by the second quarter[173](index=173&type=chunk) - Approximately **$553.6 million** of cash, cash equivalents, and short-term investments were held by foreign subsidiaries as of April 1, 2023, with a large portion expected to be available for U.S. use without additional income tax[174](index=174&type=chunk) - The company believes its existing cash, investments, and credit facilities will be sufficient to meet liquidity and capital requirements for at least the next twelve months and beyond, despite ongoing macroeconomic and geopolitical uncertainties[176](index=176&type=chunk) [Share Repurchase Program](index=38&type=section&id=Share%20Repurchase%20Program) Details the **$800 million** share repurchase program, with **$50.4 million** repurchased and **$198.8 million** remaining - The company's Board of Directors authorized an **$800 million** share repurchase program, extended through August 1, 2025[178](index=178&type=chunk) - During the six months ended April 1, 2023, the company repurchased approximately **1.156 million** shares for **$50.4 million**[178](index=178&type=chunk) - As of April 1, 2023, approximately **$198.8 million** remained authorized under the share repurchase program[179](index=179&type=chunk) [Dividends](index=39&type=section&id=Dividends) Quarterly dividend of **$0.19** per share declared, totaling **$20.5 million** paid for the six months - A quarterly dividend of **$0.19** per share was declared on November 16, 2022[180](index=180&type=chunk) - Total dividends paid for the six months ended April 1, 2023, were **$20.5 million**[180](index=180&type=chunk) [Other Obligations and Contingent Payments](index=39&type=section&id=Other%20Obligations%20and%20Contingent%20Payments) Details **$36.2 million** in deferred tax liabilities, **$233.7 million** in inventory purchase obligations, and other contractual payments - As of April 1, 2023, the company had deferred tax liabilities of **$36.2 million** and unrecognized tax benefits of **$17.5 million**[182](index=182&type=chunk) Contractual Obligations | Contractual Obligations (in thousands) | Total | Less than 1 year | 1 - 3 years | | :------------------------------------- | :------ | :--------------- | :---------- | | Inventory purchase obligations | $233,697 | $54,215 | $179,482 | | U.S. one-time transition tax payable | $47,686 | $12,606 | $35,080 | | Total | $281,383 | $66,821 | $214,562 | [Credit facilities](index=39&type=section&id=Credit%20facilities) Maintains an unsecured **$150.0 million** overdraft facility with MUFG Bank, with no outstanding amounts - The company has an unsecured overdraft facility of up to **$150.0 million** with MUFG Bank, with no outstanding amounts as of April 1, 2023[185](index=185&type=chunk) - The facility includes customary non-financial covenants, such as restrictions on asset sales, subsidiary ownership, and encumbrances, and typical events of default[185](index=185&type=chunk) [Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=40&type=section&id=Item%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Discusses exposure to interest rate risk from investments and foreign currency risk from international operations, using hedging - The company is exposed to interest rate risk from short-term investments in highly rated debt instruments, with an average life to maturity target of less than **18 months**[187](index=187&type=chunk) - International operations expose the company to foreign currency exchange rate changes, particularly for operating expenses denominated in local currencies like Singapore[188](index=188&type=chunk) [Interest Rate Risk](index=40&type=section&id=Interest%20Rate%20Risk) Manages interest rate risk on short-term investments by targeting an average life to maturity of less than **18 months** - The company targets an average life to maturity of less than **18 months** for its short-term investments to limit exposure to interest rate changes[187](index=187&type=chunk) [Foreign Currency Risk](index=40&type=section&id=Foreign%20Currency%20Risk) International operations expose the company to foreign currency risk, with a **10.0%** fluctuation potentially impacting results by **$4.0 million** to **$5.0 million** - A **10.0%** fluctuation in foreign currency could impact the company's financial position, results of operations, or cash flows by **$4.0 million** to **$5.0 million**[189](index=189&type=chunk) - The company uses foreign exchange forward contracts, generally maturing within twelve months, to hedge a portion of its forecasted foreign currency-denominated expenses[190](index=190&type=chunk) [Item 4. CONTROLS AND PROCEDURES](index=41&type=section&id=Item%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls were effective; acquired AJA will be excluded from internal control assessment - Management concluded that disclosure controls and procedures were effective as of April 1, 2023[192](index=192&type=chunk) - The recently acquired AJA will be excluded from the assessment of internal control over financial reporting for the fiscal year ending September 30, 2023, per SEC guidance[194](index=194&type=chunk) [Evaluation of Disclosure Controls and Procedures](index=41&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) CEO and CFO concluded disclosure controls and procedures were effective as of April 1, 2023, for timely reporting - The CEO and CFO concluded that disclosure controls and procedures were effective as of April 1, 2023, ensuring timely and accurate reporting[192](index=192&type=chunk) [Changes in Internal Control Over Financial Reporting](index=41&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) No material changes to internal control over financial reporting; acquired AJA excluded from current fiscal year assessment - No material changes to internal control over financial reporting were identified during the three months ended April 1, 2023[195](index=195&type=chunk) - The acquired AJA business will be excluded from the assessment of internal control over financial reporting for the fiscal year ending September 30, 2023[194](index=194&type=chunk) PART II - OTHER INFORMATION This section includes legal proceedings, risk factors, equity sales, and other required disclosures [Item 1. LEGAL PROCEEDINGS](index=42&type=section&id=Item%201.%20LEGAL%20PROCEEDINGS) The company is involved in routine litigation, not expecting a material adverse effect on its business or financial condition - The company is party to ordinary, routine litigation incidental to its business[197](index=197&type=chunk) - Management does not believe resolution of any currently pending matters will have a material adverse effect on its business, financial condition, or operating results[197](index=197&type=chunk) [Item 1A. RISK FACTORS](index=42&type=section&id=Item%201A.%20RISK%20FACTORS) No material changes to the risk factors previously discussed in the company's 2022 Annual Report on Form 10-K - No material changes to risk factors from the 2022 Annual Report on Form 10-K were identified[198](index=198&type=chunk) [Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=42&type=section&id=Item%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company repurchased **102 thousand** shares under its **$800 million** share repurchase program, with **$198.8 million** remaining | Period | Total Number of Shares Purchased (thousands) | Average Price Paid Per Share | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program (millions) | | :-------------------------------- | :------------------------------------------- | :--------------------------- | :-------------------------------------------------------------------------------------- | | January 1, 2023 to January 28, 2023 | 66 | $47.01 | $200.7 | | January 29, 2023 to March 4, 2023 | 14 | $53.19 | $199.9 | | March 5, 2023 to April 1, 2023 | 22 | $52.14 | $198.8 | | For the three months ended April 1, 2023 | 102 | N/A | N/A | - The share repurchase program has an **$800 million** authorization, extended through August 1, 2025[199](index=199&type=chunk) [Item 3. DEFAULTS UPON SENIOR SECURITIES](index=42&type=section&id=Item%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) No defaults upon senior securities were reported - No defaults upon senior securities were reported[200](index=200&type=chunk) [Item 4. MINE SAFETY DISCLOSURES](index=42&type=section&id=Item%204.%20MINE%20SAFETY%20DISCLOSURES) No mine safety disclosures were reported - No mine safety disclosures were reported[201](index=201&type=chunk) [Item 5. OTHER INFORMATION](index=42&type=section&id=Item%205.%20OTHER%20INFORMATION) No other information was reported - No other information was reported[202](index=202&type=chunk) [Item 6. EXHIBITS](index=43&type=section&id=Item%206.%20EXHIBITS) Lists exhibits filed with Form 10-Q, including corporate documents and certifications from CEO and CFO - Exhibits include the company's Amended and Restated Articles of Incorporation and By-Laws, certifications from the CEO and CFO (pursuant to Sarbanes-Oxley Act), and Inline XBRL documents[203](index=203&type=chunk) [SIGNATURES](index=44&type=section&id=SIGNATURES) The report was signed on May 4, 2023, by Lester Wong, Executive Vice President and Chief Financial Officer - The report was signed by Lester Wong, Executive Vice President and Chief Financial Officer, on May 4, 2023[207](index=207&type=chunk)

Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) Q1 2023 Earnings Conference Call February 2, 2023 8:00 AM ET Company Participants Joe Elgindy - Senior Director, Investor Relations Fusen Chen - President and Chief Executive Officer Lester Wong - Chief Financial Officer Conference Call Participants Krish Sankar - Cowen Craig Ellis - B. Riley Charles Shi - Needham and Company David Duley - Steelhead Securities Hans Chung - D.A. Davidson Operator Hello, and welcome to the Kulicke & Soffa 2023 First Quarter Res ...