Kulicke & Soffa(KLIC)2024-11-14 13:57Financial Performance - The company's net revenue for fiscal 2024 was 742.5 million in fiscal 2023[268]. - Gross profit for fiscal 2024 was 358.7 million in the previous year[156]. - Operating expenses increased to 319.2 million in fiscal 2023, reflecting a rise of 13.2%[156]. - The company reported a net loss of 57.1 million in fiscal 2023[156]. - Basic net loss per share for fiscal 2024 was 1.01 per share in fiscal 2023[156]. - Total current assets decreased to 1,189.1 million as of September 30, 2023, representing a decline of 16.3%[155]. - The consolidated net inventory balance was 217.3 million in the previous year, indicating a reduction of 18.2%[155]. - The company’s total shareholders' equity was 1,174.6 million in the previous year, reflecting a decline of 19.5%[155]. - The company recognized impairment charges of 21.5 million in fiscal 2023, indicating a significant increase in impairment[156]. - Total comprehensive income for fiscal year 2024 was a loss of 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 182.3 million from the prior fiscal year end[19]. - Cash and cash equivalents at the end of fiscal year 2024 were 529,402 thousand at the end of fiscal year 2023[162]. - The company repurchased common stock amounting to 69,210 thousand in fiscal year 2023[162]. - Cash dividends declared were 44,246 thousand, compared to 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 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 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 153.9 million and state net operating loss carryforwards of 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].