Group 1 - Kulicke and Soffa Industries (NASDAQ: KLIC) reported mixed results on February 4, beating earnings estimates while expressing optimism about the current downturn in the semiconductor and LED industry [1] - The company continues to provide equipment and solutions for the semiconductor and LED sectors, indicating a focus on maintaining its market position despite challenges [1]

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 ...

Kulicke and Soffa Industries (KLIC) reported fourth-quarter fiscal 2024 non-GAAP earnings of 34 cents per share, which missed the Zacks Consensus Estimate by 5.56%. The bottom line dropped 33.3% year over year.KLIC’s earnings lagged the Zacks Consensus Estimate in two of the trailing four quarters, beating in the remaining two, the average negative earnings surprise being 117.34%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Revenues declined 10.4% year over year to $181.3 million b ...

Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) Q4 2024 Earnings Conference Call November 14, 2024 8:00 AM ET Company Participants Joe Elgindy - Director, Investor Relations Fusen Chen - President and Chief Executive Officer Lester Wong - Chief Financial Officer Conference Call Participants Steven Kinney Chin - TD Cowen Tom Diffely - D.A. Davidson Dave Duley - Steelhead Securities Charles Shi - Needham Operator Greetings, and welcome to Kulicke and Soffa’s 2024 Fourth Quarter Results Earnings Call. At this ...