Kulicke & Soffa(KLIC)2024-02-01 13:57Financial 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].