Kulicke & Soffa(KLIC) - 2024 Q2 - Quarterly Results

Financial Performance - Second quarter net revenue was $172.1 million, a decrease of 0.5% compared to the same period last year[4] - The company reported a net loss of $102.7 million, resulting in a diluted EPS of $(1.83), down 803.8% year-over-year[4] - Non-GAAP net loss was $53.2 million, with a non-GAAP diluted EPS of $(0.95), reflecting a 350% decrease compared to the previous year[6] - Net revenue for the three months ended March 30, 2024, was $172,074 thousand, a slight decrease of 0.5% compared to $173,021 thousand for the same period in the previous year[26] - U.S. GAAP net loss for the three months ended March 30, 2024, was $(102,680) thousand, compared to a net income of $15,041 thousand for the same period in the previous year, indicating a significant decline[27] - Non-GAAP net loss for the three months ended March 30, 2024, was $(53,245) thousand, compared to a net income of $21,929 thousand for the same period in the previous year, reflecting a substantial decrease[27] Revenue and Growth - Ball Bonder revenue grew by over 50% year-over-year, indicating strong demand recovery in the Advanced Display market[7] - The company expects third quarter net revenue to be approximately $180 million, with GAAP diluted EPS projected at $0.17[9] - The company projects net revenue of approximately $180 million for the third quarter of fiscal 2024, with a potential variance of +/- $10 million[31] Cash and Investments - Total cash, cash equivalents, and short-term investments were $634.7 million as of March 30, 2024[11] - Cash and cash equivalents decreased from $529,402 thousand as of September 30, 2023, to $359,748 thousand as of March 30, 2024, a decline of approximately 32.1%[23] - Non-GAAP adjusted free cash flow for the three months ended March 30, 2024, was $(26,719) thousand, compared to $(8,582) thousand for the same period in the previous year, indicating a worsening cash flow situation[29] Operating Expenses and Projections - Operating expenses are expected to be $79.6 million, with adjustments leading to a non-GAAP outlook of $72.0 million[31] - The diluted EPS outlook for the third quarter of fiscal 2024 is projected at $0.17 under GAAP, with a non-GAAP outlook of $0.30[31] Asset and Employee Changes - Total assets decreased from $1,499,777 thousand as of September 30, 2023, to $1,298,707 thousand as of March 30, 2024, representing a decline of approximately 13.4%[21] - The number of employees decreased to 2,925 from 3,089 year-over-year[19] Special Charges - Pre-tax charges related to the cancellation of Project W were $105.5 million, which was below the anticipated range[2] Gross Margin - Gross margin decreased to 9.6%, down 3900 basis points year-over-year, impacted by a one-time charge of $57.3 million related to inventory write-downs[11] Operating Margin - The company reported a U.S. GAAP operating margin of (61.1)% for the three months ended March 30, 2024, compared to 7.3% for the same period in the previous year[26]