Financial Performance - Net revenue for the three months ended December 28, 2024, was $166.1 million, a decrease of 3.0% from $171.2 million for the same period in 2023[155] - Gross profit increased by 9.0% to $87.1 million compared to $79.9 million in the prior year[155] - The company reported a gain of $75.99 million related to the cessation of a business project, which was not present in the previous year[155] - Net revenue for the three months ended December 28, 2024, decreased to $166.1 million, down 3.0% from $171.2 million for the same period in 2023[157] - Ball Bonding Equipment revenue fell by 30.8% to $59.7 million, while Wedge Bonding Equipment revenue increased by 37.4% to $32.2 million[157] - Advanced Solutions revenue surged by 148.8% to $28.2 million, driven by higher customer purchases in the semiconductor and LED markets[157] - Gross profit margin improved to 52.4%, up 570 basis points from 46.7% in the prior year, with Advanced Solutions showing a significant increase to 77.6%[163] - Income from operations rose dramatically to $86.6 million, compared to just $1.7 million in the prior year, reflecting a 5,018.1% increase[176] Cash and Investments - Total cash, cash equivalents, and short-term investments as of December 28, 2024, were $538.3 million, a decrease of $38.8 million from the prior fiscal year end[145] - Cash and cash equivalents increased to $278.3 million as of December 28, 2024, up $51.2 million from $227.1 million at the end of September 2024[181] - Net cash provided by operating activities was $18.9 million, a significant improvement from a cash outflow of $7.3 million in the prior year[181] - Net cash used in investing activities totaled $55.0 million for short-term investments, $4.4 million for capital expenditures, and $1.1 million for private equity fund investments[189] - Fiscal 2025 capital expenditures are expected to range from $13.0 million to $17.0 million, with $2.1 million incurred in the first quarter[190] - As of December 28, 2024, the company held approximately $313.8 million in cash, cash equivalents, and short-term investments in foreign subsidiaries[191] - The company anticipates sufficient liquidity from cash on hand and operating activities to meet future capital requirements for at least the next twelve months[193] Shareholder Returns - During the three months ended December 28, 2024, the company repurchased approximately 657.0 thousand shares at a cost of $30.3 million under the prior share repurchase program[196] - A new share repurchase program was authorized to repurchase up to $300 million of common stock, effective after the completion of the prior program[197] - The company declared a quarterly dividend of $0.205 per share, totaling $10.8 million paid during the three months ended December 28, 2024[202] Tax and Liabilities - The effective tax rate decreased to 12.2% from 19.7% in the prior year, influenced by the reimbursement from Project W cancellation[179] - As of December 28, 2024, the company had deferred tax liabilities of $34.7 million and unrecognized tax benefits of $19.7 million[204] Foreign Exchange and Risk Management - The company has foreign exchange forward contracts with a notional amount of $42.5 million outstanding as of December 28, 2024, to hedge against currency fluctuations[214] - The company has foreign currency exposure that could impact financial position by $5.0 million to $6.0 million due to a 10.0% fluctuation in exchange rates as of December 28, 2024[213] Operational Insights - The company continues to monitor macroeconomic conditions, including inflation and supply chain disruptions, which could impact future operations[148] - The ongoing geopolitical tensions have not materially impacted the company's financial condition and operating results to date[149] - The company anticipates that the semiconductor industry's growth projections will normalize despite current macroeconomic challenges[152] Internal Controls and Compliance - The management evaluated the effectiveness of disclosure controls and procedures, concluding they were effective as of December 28, 2024[216] - No changes were identified during the three months ended December 28, 2024, that materially affected internal control over financial reporting[218] - The company does not expect any currently pending litigation to have a material adverse effect on its business or financial condition[219]

Financial Data and Key Metrics Changes - For the December quarter, the company reported revenue of $166.1 million, a gross margin of 52.4%, and a non-GAAP EPS of $0.37, while GAAP EPS was $1.51, supported by customer reimbursements related to a prior impairment charge [18][32][34] - The company anticipates revenue for the March quarter to be approximately $165 million, with gross margins of 47% and non-GAAP operating expenses expected to be around $70.5 million [35] Business Line Data and Key Metrics Changes - The ball bonder revenue was sequentially lower from September, indicating a late recovery stage in the general semiconductor market, while automotive and industrial sectors showed improved demand compared to the same quarter last year [20][21] - The company shipped several battery assembly systems to customers, including a leading EV company, and anticipates further recovery in the power semiconductor market [22][23] Market Data and Key Metrics Changes - The general semiconductor market is in a state of capacity digestion, but the company expects broader industry growth and demand for its core solutions in fiscal 2025 [20] - The TCP market is projected to exceed $300 million in revenue for calendar year 2024, with a compound annual growth rate of 20% to 25% anticipated for the overall TCP market [13][15] Company Strategy and Development Direction - The company is focused on technology leadership in thermal compression and advanced dispense visibility, with ongoing development and customer qualification of new systems [8][9] - The transition to advanced packaging solutions is seen as a long-term opportunity, driven by AI, cloud computing, and edge-device requirements [16][17] Management's Comments on Operating Environment and Future Outlook - Management believes the company is in the late stage of a market downturn, with expectations for a gradual improvement in fiscal 2025 [7][40] - The company remains focused on maintaining an aggressive cadence of development across all core markets while driving customer acceptance for new products and services [28] Other Important Information - The company completed a $300 million share repurchase program, with $36.9 million repurchased in the first quarter, reducing shares outstanding by nearly 800,000 [34] - The company is working with leading memory customers in Korea, the U.S., and China on vertical wire-connected memory applications, with expectations for higher volume production in the coming years [26][70] Q&A Session Summary Question: Will ball bonder revenue grow sequentially into June and September? - Management anticipates that even with a revised semiconductor forecast, a 13% growth in CY 2025 should benefit all businesses, and they believe they are in the late stage of the downturn [39][40] Question: What is the normalized core demand for fiscal 2025? - Management expects the normalized level to reach around $500 to $600 million, with the second half of fiscal 2025 potentially being 20% to 30% higher than the first half [41][44] Question: Can you quantify the value of AI-related opportunities? - The company forecasts advanced packaging revenue to grow from $220 million in 2024 to $275 to $300 million in 2025, with potential for further increases based on customer forecasts [59] Question: How many customers are using thermal compression bonding tools? - Approximately 8 to 10 customers are engaged in volume production or qualifying for TCP bonders [65] Question: What is the expected revenue from vertical wire solutions in 2025? - Initial production revenue from vertical wire bonding is expected to be below $20 million in 2025, with significant growth anticipated in 2026 [70] Question: What is the market share in VFO for DRAM customers? - The company holds close to 75% to 80% market share in the overall market, with expectations to maintain a strong position among leading DRAM customers [82] Question: What is the expected margin structure as core markets recover? - Management aims for gross margins to remain around 50%, with improvements expected due to new product introductions and better factory utilization [93]

Company Performance - Kulicke and Soffa (KLIC) reported quarterly earnings of $0.37 per share, exceeding the Zacks Consensus Estimate of $0.28 per share, and up from $0.30 per share a year ago, representing an earnings surprise of 32.14% [1] - The company posted revenues of $166.12 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.68%, although this is a decline from year-ago revenues of $171.19 million [2] - Over the last four quarters, Kulicke and Soffa has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance and Outlook - Kulicke and Soffa shares have declined approximately 7.2% since the beginning of the year, contrasting with the S&P 500's gain of 1.9% [3] - The company's current consensus EPS estimate for the coming quarter is $0.35 on revenues of $176.8 million, and for the current fiscal year, it is $1.77 on revenues of $770.6 million [7] - The estimate revisions trend for Kulicke and Soffa is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Industry Context - The Electronics - Manufacturing Machinery industry, to which Kulicke and Soffa belongs, is currently ranked 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]

Financial Performance - First quarter net revenue was $166.1 million, down 3% year-over-year and down 8.4% from the previous quarter[3] - Net income for the first quarter was $81.6 million, representing an increase of 778.5% year-over-year and 573.8% quarter-over-quarter[3] - Diluted EPS for the first quarter was $1.51, up 843.8% compared to the same quarter last year and up 586.4% from the previous quarter[3] - Non-GAAP net income for the first quarter was $20.2 million, up 19.1% year-over-year and 9.2% quarter-over-quarter[5] - U.S. GAAP net income for the same period was $81.642 million, significantly up from $9.293 million year-over-year[24] - Non-GAAP net income for the three months ended December 28, 2024, was $20.220 million, compared to $16.981 million in the prior year[24] Margins - Gross margin improved to 52.4%, up 570 basis points year-over-year and 410 basis points from the previous quarter[3] - The company reported a U.S. GAAP operating margin of 52.2% for the latest quarter, a substantial increase from 1.0% in the same quarter last year[23] - Non-GAAP operating margin improved to 11.4% from 6.4% year-over-year[23] Cash and Investments - Cash, cash equivalents, and short-term investments totaled $538.3 million as of December 28, 2024[11] - Cash and cash equivalents at the end of the period were $278.325 million, down from $424.660 million at the end of the previous year[21] - The company generated $18.902 million in net cash from operating activities, a recovery from a cash outflow of $7.331 million in the same quarter last year[21] - Non-GAAP adjusted free cash flow for the quarter was $8.700 million, compared to a negative $11.757 million in the prior year[26] Share Repurchase - The company repurchased 0.8 million shares of common stock at a cost of $36.9 million during the quarter[11] Future Guidance - The company expects second quarter net revenue to be approximately $165 million, with GAAP diluted EPS around $0.03 and non-GAAP diluted EPS approximately $0.19[8] - The company expects net revenue for the second quarter of fiscal 2025 to be approximately $165 million, with a potential variance of +/- $10 million[28] - Diluted EPS guidance for the second quarter of fiscal 2025 is projected at $0.03, with non-GAAP adjustments leading to a non-GAAP EPS of $0.19[28] Market Outlook - Management anticipates gradual improvement in core-market demand and ongoing market adoption of advanced packaging solutions[6] - The company is focused on developing new systems and features in the Ball, Wedge, and Advanced Solutions segments[6]

Core Viewpoint - Kulicke and Soffa Industries, Inc. reported its financial results for the first fiscal quarter of 2025, showing a decline in net revenue but significant increases in net income and margins, indicating strong operational performance despite market challenges [1][2][3]. Financial Performance - The company reported net revenue of $166.1 million, a decrease of 3% compared to Q1 2024 and down 8.4% from Q4 2024 [2]. - Net income reached $81.6 million, reflecting an increase of 778.5% year-over-year and 573.8% quarter-over-quarter [2]. - Earnings per share (EPS) was $1.51, up 843.8% from the previous year and 586.4% from the previous quarter [2]. - Gross margin improved to 52.4%, up 570 basis points year-over-year and 410 basis points quarter-over-quarter [2]. - Operating income surged to $86.6 million, a dramatic increase of 5018.1% year-over-year and 3122.4% quarter-over-quarter [2]. Non-GAAP Financial Results - Non-GAAP net income was reported at $20.2 million, up 19.1% year-over-year and 9.2% quarter-over-quarter [2]. - Non-GAAP EPS was $0.37, reflecting a 23.3% increase from the previous year and an 8.8% increase from the previous quarter [2][8]. Market Outlook - The company anticipates gradual improvement in core-market demand and plans to focus on delivering new systems and features in its Ball, Wedge, and Advanced Solutions segments [3]. - There is expected ongoing market adoption of advanced packaging solutions, including Fluxless Thermo-Compression (FTC) and Vertical Fan-Out (VFO), driven by next-generation memory and logic applications [3]. Future Guidance - For the second quarter of fiscal 2025, the company expects net revenue to be approximately $165 million, with GAAP diluted EPS projected at approximately $0.03 and non-GAAP diluted EPS at approximately $0.19 [4][22].

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].