Kulicke & Soffa Reports First Quarter 2025 Results

About this update from Kulicke And Soffa Industries, Inc.

SINGAPORE , Feb. 4, 2025 /PRNewswire/ -- Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) ("Kulicke & Soffa," "K&S," "our," or the "Company"), today announced financial results of its first fiscal quarter ended December 28, 2024 . The Company reported first quarter net revenue of $166.1 million , net income of $81.6 million , representing EPS of $1.51 per fully diluted share, and non-GAAP net income of $20.2 million , representing non-GAAP EPS of $0.37 per fully diluted share. Quarterly Results - U.S. GAAP Fiscal Q1 2025 Change vs. Fiscal Q1 2024 Change vs. Fiscal Q4 2024 Net Revenue $166.1 million down 3% down 8.4% Gross Margin 52.4 % up 570 bps up 410 bps Income from Operations $86.6 million up 5018.1% up 3122.4% Operating Margin 52.2 % up 5120 bps up 5070 bps Net Income $81.6 million up 778.5% up 573.8% Net Margin 49.1 % up 4370 bps up 4240 bps EPS – Diluted $1.51 up 843.8% up 586.4% Quarterly Results - Non-GAAP Fiscal Q1 2025 Change vs. Fiscal Q1 2024 Change vs. Fiscal Q4 2024 Income from Operations $18.9 million up 73.2% up 48.8% Operating Margin 11.4 % up 500 bps up 440 bps Net Income $20.2 million up 19.1% up 9.2% Net Margin 12.2 % up 230 bps up 200 bps EPS – Diluted $0.37 up 23.3% up 8.8% A reconciliation between the GAAP and non-GAAP adjusted results is provided in the financial tables included at the end of this press release. See also the "Use of non-GAAP Financial Results" section of this press release. Fusen Chen , Kulicke & Soffa's President and Chief Executive Officer, stated, "As we anticipate core-market demand to gradually improve, we remain focused on delivering new systems and features within the Ball, Wedge, and Advanced Solutions segments. Over the coming quarters, we also expect ongoing market adoption of our unique Fluxless Thermo-Compression (FTC), Vertical Fan-Out (VFO), and emerging battery assembly solutions." Next-generation memory and logic applications, driven by artificial intelligence, cloud computing and connected devices, are demanding new forms of semiconductor packaging. The Company's leading advanced packaging solutions - including FTC and VFO - are well positioned to directly support these emerging industry requirements over the long-term. First Quarter Fiscal 2025 Financial Highlights Net revenue of $166.1 million . Gross margin of 52.4%. Net income of $81.6 million or $1.51 per share; non-GAAP net income of $20.2 million or $0.37 per fully diluted share. GAAP cash flow from operations of $18.9 million ; Adjusted free cash flow of $8.7 million . Cash, cash equivalents, and short-term investments were $538.3 million as of December 28, 2024 . The Company repurchased a total of 0.8 million shares of common stock at a cost of $36.9 million . Second Quarter Fiscal 2025 Outlook K&S currently expects net revenue in the second quarter of fiscal 2025 ending March 29, 2025 to be approximately $165 million +/- $10 million , GAAP diluted EPS to be approximately $0.03 +/- 10%, and non-GAAP diluted EPS to be approximately $0.19 +/- 10%. A reconciliation between the GAAP and non-GAAP financial outlook is provided in the financial tables included at the end of this press release. Earnings Conference Webcast A webcast to discuss these results will be held on February 5, 2025 , beginning at 8:00 am EST. The live webcast link, supplemental earnings presentation, and archived webcast will be available at investor.kns.com . To access the audio-only portion of the live webcast, parties may call +1-877-407-8037, or internationally, +1-201-689-8037. An audio-only replay of the webcast will also be available approximately one hour after the completion of the live call by calling +1-877-660-6853, or internationally, +1-201-612-7415 and referencing access code 13750873. Use of Non-GAAP Financial Results In addition to U.S. GAAP ("GAAP") results, this press release also contains the following non-GAAP financial results: income from operations, operating margin, net income, net margin, net income per fully diluted share and adjusted free cash flow. The Company's non-GAAP results exclude amortization related to intangible assets acquired through business combinations, costs associated with restructuring and severance, equity-based compensation, acquisition and integration costs, impairment relating to assets acquired through business combinations, long-lived asset impairment relating to business cessation or disposal, impairment relating to equity investments, income tax expense/benefit arising from discrete tax items triggered by acquisition, disposal of business (both via a sale or an abandonment), restructuring and significant changes in tax laws, gain/loss on disposal of business, as well as tax benefits or expenses associated with the foregoing non-GAAP items. The non-GAAP adjustments may or may not be infrequent or nonrecurring in nature, but are a result of periodic or non-core operating activities. These non-GAAP measures are consistent with the way management analyzes and assesses the Company's operating results. The Company believes these non-GAAP measures enhance investors' understanding of the Company's underlying operational performance, as well as their ability to compare the Company's period-to-period financial results and the Company's overall performance to that of its competitors. Management uses both GAAP metrics as well as these non-GAAP metrics to evaluate the Company's operating and financial results. Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies in the industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on the Company's reported financial results. The presentation of non-GAAP items is meant to supplement, but not substitute for, GAAP financial measures or information. The Company believes the presentation of non-GAAP results in combination with GAAP results provides better transparency to the investment community when analyzing business trends, providing meaningful comparisons with prior period performance and enhancing investors' ability to view the Company's results from management's perspective. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP measure discussed in this press release is contained in the financial tables at the end of this press release. About Kulicke & Soffa Founded in 1951, Kulicke & Soffa specializes in developing cutting-edge semiconductor and electronics assembly solutions enabling a smart and more sustainable future. Our ever-growing range of products and services supports growth and facilitates technology transitions across large-scale markets, such as advanced display, automotive, communications, compute, consumer, data storage, energy storage and industrial. Caution Concerning Results, Forward-Looking Statements and Certain Risks Related to our Business In addition to historical statements, this press release contains statements relating to future events and our future results. These statements are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our judgments and future expectations concerning our business, including the importance and competitiveness of our advanced display products and other emerging technology transitions, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, the persistent macroeconomic headwinds on our business, actual or potential inflationary pressures, interest rate and risk premium adjustments, falling customer sentiment, or economic recession caused directly or indirectly by geopolitical tensions, our ability to develop, manufacture and gain market acceptance of new products, our ability to operate our business in accordance with our business plan and the other factors listed or discussed in our Annual Report on Form 10-K for the fiscal year ended September 28, 2024 , filed on November 14, 2024 , and our other filings with the Securities and Exchange Commission . Kulicke and Soffa Industries, Inc. is under no obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. Contact: Kulicke and Soffa Industries, Inc. Joseph Elgindy Finance P: +1-215-784-7518 KULICKE AND SOFFA INDUSTRIES, INC. CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (In thousands, except per share and employee data) (Unaudited) Three months ended December 28 ,2024 December 30 ,2023 Net revenue $ 166,124 $ 171,189 Cost of sales 79,040 91,293 Gross profit 87,084 79,896 Operating expenses (income): Selling, general and administrative 36,539 40,046 Research and development 37,808 36,810 Amortization of intangible assets 1,246 1,347 Gain relating to cessation of business (75,987) — Restructuring 829 — Total operating expenses 435 78,203 Income from operations 86,649 1,693 Other income (expense): Interest income 6,352 9,899 Interest expense (27) (22) Income before income taxes 92,974 11,570 Income tax expense 11,332 2,277 Net income $ 81,642 $ 9,293 Net income per share: Basic $ 1.52 $ 0.16 Diluted $ 1.51 $ 0.16 Cash dividends declared per share $ 0.205 $ 0.20 Weighted average shares outstanding: Basic 53,791 56,650 Diluted 54,212 57,023 Three months ended Supplemental financial data: December 28 , 2024 December 30 ,2023 Depreciation and amortization $ 5,013 $ 7,985 Capital expenditures 2,111 3,533 Equity-based compensation expense: Cost of sales 383 359 Selling, general and administrative 3,739 5,680 Research and development 2,019 1,818 Total equity-based compensation expense $ 6,141 $ 7,857 As of December 28, 2024 December 30, 2023 Number of employees 2,702 2,981 KULICKE AND SOFFA INDUSTRIES, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (In thousands) (Unaudited) As of December 28, 2024 September 28, 2024 ASSETS CURRENT ASSETS Cash and cash equivalents $ 278,325 $ 227,147 Short-term investments 260,000 350,000 Accounts and other receivable, net of allowance for doubtfulaccounts of $49 and $49 , respectively 247,858 193,909 Inventories, net 185,060 177,736 Prepaid expenses and other current assets 42,646 46,161 TOTAL CURRENT ASSETS 1,013,889 994,953 Property, plant and equipment, net 62,467 64,823 Operating right-of-use assets 34,967 35,923 Goodwill 88,411 89,748 Intangible assets, net 22,802 25,239 Deferred tax assets 17,953 17,900 Equity investments 3,385 3,143 Other assets 7,571 8,433 TOTAL ASSETS $ 1,251,445 $ 1,240,162 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable 48,974 58,847 Operating lease liabilities 7,048 7,718 Accrued expenses and other current liabilities 77,073 90,802 Income taxes payable 36,056 26,427 TOTAL CURRENT LIABILITIES 169,151 183,794 Deferred tax liabilities 34,657 34,594 Income taxes payable 31,546 31,352 Operating lease liabilities 30,526 33,245 Other liabilities 12,821 13,168 TOTAL LIABILITIES 278,701 296,153 SHAREHOLDERS' EQUITY Common stock, no par value 597,901 596,703 Treasury stock, at cost (914,241) (881,830) Retained earnings 1,313,213 1,242,558 Accumulated other comprehensive loss (24,129) (13,422) TOTAL SHAREHOLDERS' EQUITY $ 972,744 $ 944,009 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,251,445 $ 1,240,162 KULICKE AND SOFFA INDUSTRIES, INC. CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Three months ended December 28 ,2024 December 30 , 2023 Net cash provided by / (used in) operating activities $ 18,902 $ (7,331) Net cash provided by / (used in) investing activities 82,039 (60,541) Net cash used in financing activities (48,452) (38,124) Effect of exchange rate changes on cash and cash equivalents (1,311) 1,254 Changes in cash and cash equivalents 51,178 (104,742) Cash and cash equivalents, beginning of period 227,147 529,402 Cash and cash equivalents, end of period $ 278,325 $ 424,660 Short-term investments 260,000 285,000 Total cash, cash equivalents and short-term investments $ 538,325 $ 709,660 Reconciliation of U.S. GAAP to Non-GAAP Income from Operations and Operating Margin (In thousands, except percentages) (Unaudited) Three months ended December 28 ,2024 December 30 ,2023 September 28 ,2024 Net revenue $ 166,124 $ 171,189 181,319 U.S. GAAP income from operations 86,649 1,693 2,689 U.S. GAAP operating margin 52.2 % 1.0 % 1.5 % Pre-tax non-GAAP items: Amortization related to intangible assets 1,246 1,347 1,266 Restructuring 829 — 2,294 Equity-based compensation 6,141 7,857 6,439 Gain relating to cessation of business (75,987) — — Non-GAAP income from operations $ 18,878 $ 10,897 $ 12,688 Non-GAAP operating margin 11.4 % 6.4 % 7.0 % Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income and Non-GAAP Net Margin and U.S. GAAP net income per share to Non-GAAP net income per share (In thousands, except percentages and per share data) (Unaudited) Three months ended December 28 ,2024 December 30 ,2023 September 28 ,2024 Net revenue $ 166,124 $ 171,189 $ 181,319 U.S. GAAP net income 81,642 9,293 12,117 U.S. GAAP net margin 49.1 % 5.4 % 6.7 % Non-GAAP adjustments: Amortization related to intangible assets 1,246 1,347 1,266 Restructuring 829 — 2,294 Equity-based compensation 6,141 7,857 6,439 Gain relating to cessation of business (75,987) — — Income tax benefit - US one-time transition tax — — (6,461) Net income tax expense/(benefit) on non-GAAP items 6,349 (1,516) 2,866 Total non-GAAP adjustments $ (61,422) $ 7,688 $ 6,404 Non-GAAP net income $ 20,220 $ 16,981 $ 18,521 Non-GAAP net margin 12.2 % 9.9 % 10.2 % U.S. GAAP net income per share: Basic 1.52 0.16 0.22 Diluted(a) 1.51 0.16 0.22 Non-GAAP adjustments per share:(b) Basic (1.14) 0.14 0.12 Diluted (1.14) 0.14 0.12 Non-GAAP net income per share: Basic 0.38 0.30 0.34 Diluted(c) 0.37 0.30 0.34 Weighted average shares outstanding: Basic 53,791 56,650 54,368 Diluted 54,212 57,023 54,871 (a) GAAP diluted net earnings per share reflects any dilutive effect of outstanding restricted stock, but that effect is excluded when calculating GAAP diluted net loss per share because it would be anti-dilutive. (b) Non-GAAP adjustments per share include amortization related to intangible assets acquired through business combinations, costs associated with restructuring and severance, equity-based compensation expenses, gain relating to disposal or cessation of business, income tax benefit arising from discrete tax items, and income tax effects associated with the foregoing non-GAAP items. (c) Non-GAAP diluted net earnings per share reflects any dilutive effect of outstanding restricted stock. Reconciliation of U.S. GAAP Cash provided by Operating Activities to Non-GAAP Adjusted Free Cash Flow (In thousands, except percentages) (unaudited) Three months ended December 28 ,2024 December 30 ,2023 September 28 ,2024 U.S. GAAP net cash provided by / (used in) byoperating activities $ 18,902 $ (7,331) $ 31,619 Purchases of property, plant and equipment (10,202) (4,426) (2,468) Proceeds from sales of property, plant andequipment — — 27 Non-GAAP adjusted free cash flow 8,700 (11,757) 29,178 Reconciliation of U.S. GAAP to Non-GAAP Outlook (In millions, except per share data) (Unaudited) Second quarter of fiscal 2025 ending March 29, 2025 GAAP Outlook Adjustments Non-GAAP Outlook Net revenue $165 million +/- $10 million — $165 million +/- $10 million Operating expenses $79.3 million +/- 2% $8.8 million B,C,D $70.5 million +/- 2% Diluted EPS(1) $0.03 +/- 10% $0.16 A, B, C, D, E $0.19 +/- 10% Non-GAAP Adjustments A. Equity-based compensation - Cost of sales 0.4 B. Equity-based compensation - Selling, general and administrative and Research and development 6.9 C. Amortization related to intangible assets 1.4 D. Restructuring expenses 0.5 E. Net income tax effect of the above items (0.6) (1) GAAP and non-GAAP diluted EPS based on approximately 53.7 million diluted weighted average shares outstanding. The tables above reconcile our GAAP to non-GAAP guidance based on the current outlook. The guidance does not incorporate the impact of any potential business combinations, divestitures, restructuring activities, strategic investments and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our control. View original content: https://www.prnewswire.com/news-releases/kulicke--soffa-reports-first-quarter-2025-results-302367707.html SOURCE Kulicke & Soffa Industries, Inc.

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