Kulicke & Soffa Reports Third Quarter 2025 Results

, /PRNewswire/ -- Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) ("Kulicke & Soffa," "K&S," "our," or the "Company"), today announced financial results of its third fiscal quarter ended June 28, 2025. The Company reported third quarter net revenue of $148.4 million, net loss of $3.3 million, representing EPS of $(0.06) per fully diluted share, and non-GAAP net income of $3.8 million, representing non-GAAP EPS of $0.07 per fully diluted share. Quarterly Results - U.S. GAAP Fiscal Q3 2025 Change vs. Fiscal Q3 2024 Change vs. Fiscal Q2 2025 Net Revenue $148.4 million down 18.3% down 8.4% Gross Margin 46.7 % up 10 bps up 2180 bps Loss from Operations $(6.1) million down 173.6% up 92.8% Operating Margin (4.1) % down 870 bps up 4820 bps Net Loss $(3.3) million down 126.8% up 96.1% Net Margin (2.2) % down 900 bps up 5000 bps EPS – Diluted $(0.06) down 127.3% up 96.2% Quarterly Results - Non-GAAP Fiscal Q3 2025 Change vs. Fiscal Q3 2024 Change vs. Fiscal Q2 2025 Income from Operations $1.6 million down 90.0% up 105.8% Operating Margin 1.1 % down 760 bps up 1800 bps Net Income $3.8 million down 80.5% up 113.5% Net Margin 2.5 % down 810 bps up 1970 bps EPS – Diluted $0.07 down 80.0% up 113.5% 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, "We continue to execute on multiple technology transitions supported by parallel customer engagements. As we expand our portfolio, we are unlocking new opportunities across general semiconductor, memory, automotive, and industrial markets. Additionally, we are encouraged by positive market feedback of our latest solutions and also by recent order momentum within our highest-volume regions." Third Quarter Fiscal 2025 Financial Highlights Net revenue of $148.4 million. Gross margin of 46.7%. Net loss of $3.3 million or $(0.06) per share; non-GAAP net income of $3.8 million or $0.07 per fully diluted share. GAAP cash flow from operations of $7.4 million; Adjusted free cash flow of $5.4 million. Cash, cash equivalents, and short-term investments were $556.5 million as of June 28, 2025. The Company repurchased a total of $0.7 million shares of common stock at a cost of $21.6 million. Fourth Quarter Fiscal 2025 Outlook K&S currently expects net revenue in the fourth quarter of fiscal 2025 ending October 4, 2025 to be approximately $170 million +/- $10 million, GAAP diluted EPS to be approximately $0.08 +/- 10%, and non-GAAP diluted EPS to be approximately $0.22 +/- 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 August 6, 2025, beginning at 4:30 pm ET. 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 13750875. 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 Kulicke & Soffa is a global leader in semiconductor assembly technology, advancing device performance across automotive, compute, industrial, memory and communications markets. Founded on innovation in 1951, K&S is uniquely positioned to overcome increasingly dynamic process challenges – creating and delivering long-term value by aligning technology with opportunity. 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, failures, delays or other problems arising from the negotiations with the applicable works council or trade unions; failures, delays or other problems arising from regulatory or judicial review of the activities concerning the Company's intended cessation of its Electronics Assembly equipment business, 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 ElgindyFinanceP: +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 Nine months ended June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Net revenue $ 148,413 $ 181,650 $ 476,523 $ 524,913 Cost of sales 79,170 96,920 279,812 343,816 Gross profit 69,243 84,730 196,711 181,097 Selling, general and administrative 39,596 38,516 126,224 119,359 Research and development 35,741 37,937 110,769 112,451 Gain relating to cessation of business — — (75,987) — Impairment charges — — 39,817 44,472 Operating expenses 75,337 76,453 200,823 276,282 (Loss) / Income from operations (6,094) 8,277 (4,112) (95,185) Interest income 6,008 8,060 17,982 26,807 Interest expense (32) (20) (95) (60) (Loss) / Income before income taxes (118) 16,317 13,775 (68,438) Provision for income taxes 3,171 4,053 19,941 12,685 Net (loss) / income $ (3,289) $ 12,264 $ (6,166) $ (81,123) Net (loss) / income per share: Basic $ (0.06) $ 0.22 $ (0.12) $ (1.45) Diluted $ (0.06) $ 0.22 $ (0.12) $ (1.45) Cash dividends declared per share $ 0.205 $ 0.20 $ 0.615 $ 0.60 Weighted average shares outstanding: Basic 52,692 55,280 53,265 56,028 Diluted 52,692 55,724 53,265 56,028 Three months ended Nine months ended Supplemental financial data: June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Depreciation and amortization $ 3,917 $ 4,944 $ 13,941 $ 19,896 Capital expenditures 2,733 3,266 $ 7,560 $ 10,645 Equity-based compensation expense: Cost of sales 376 315 1,146 1,037 Selling, general and administrative 4,527 4,300 13,186 14,083 Research and development 2,189 1,748 6,394 5,332 Total equity-based compensation expense $ 7,092 $ 6,363 $ 20,726 $ 20,452 As of June 28, 2025 June 29, 2024 Number of employees 2,625 2,790 KULICKE AND SOFFA INDUSTRIES, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (In thousands) (Unaudited) As of June 28, 2025 September 28, 2024 ASSETS Current assets Cash and cash equivalents $ 246,481 $ 227,147 Short-term investments 310,000 350,000 Accounts and other receivable, net of allowance for doubtful accounts of $49 and $49, respectively 173,839 193,909 Inventories, net 158,330 177,736 Prepaid expenses and other current assets 41,551 46,161 Total current assets 930,201 994,953 Property, plant and equipment, net 59,534 64,823 Operating right-of-use assets 29,266 35,923 Goodwill 69,522 89,748 Intangible assets, net 5,908 25,239 Deferred tax assets 17,827 17,900 Equity investments 6,107 3,143 Other assets 6,531 8,433 TOTAL ASSETS $ 1,124,896 $ 1,240,162 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 52,735 $ 58,847 Operating lease liabilities 6,566 7,718 Accrued expenses and other current liabilities 98,928 90,802 Income taxes payable 30,235 26,427 Total current liabilities 188,464 183,794 Deferred tax liabilities 35,812 34,594 Income taxes payable 20,042 31,352 Operating lease liabilities 29,783 33,245 Other liabilities 13,269 13,168 TOTAL LIABILITIES $ 287,370 $ 296,153 SHAREHOLDERS' EQUITY Preferred stock, without par value: Authorized 5,000 shares; issued - none $ — $ — Common stock, without par value: Authorized 200,000 shares; issued 85,364 and 85,364, respectively; outstanding 52,374 and 53,854 shares, respectively 612,332 596,703 Treasury stock, at cost, 32,990 and 31,510 shares, respectively (957,392) (881,830) Retained earnings 1,203,768 1,242,558 Accumulated other comprehensive loss (21,182) (13,422) TOTAL SHAREHOLDERS' EQUITY $ 837,526 $ 944,009 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,124,896 $ 1,240,162 KULICKE AND SOFFA INDUSTRIES, INC. CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Three months ended Nine months ended (in thousands) June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Net cash provided by / (used in) operating activities $ 7,380 $ 26,897 $ 106,159 $ (582) Net cash provided by / (used in) investing activities (17,463) 36,594 26,161 (20,518) Net cash used in financing activities (32,606) (55,933) (114,564) (141,729) Effect of exchange rate changes on cash and cash equivalents 2,651 (389) 1,578 344 Changes in cash and cash equivalents (40,038) 7,169 19,334 (162,485) Cash and cash equivalents, beginning of period 286,519 359,748 227,147 529,402 Cash and cash equivalents, end of period $ 246,481 $ 366,917 $ 246,481 $ 366,917 Short-term investments 310,000 235,000 310,000 235,000 Total cash, cash equivalents and short-term investments $ 556,481 $ 601,917 $ 556,481 $ 601,917 Reconciliation of U.S. GAAP to Non-GAAP Income from Operations and Operating Margin (In thousands, except percentages) (Unaudited) Three months ended June 28, 2025 June 29, 2024 March 29, 2025 Net revenue $ 148,413 $ 181,650 $ 161,986 U.S. GAAP (loss) / income from operations (6,094) 8,277 (84,667) U.S. GAAP operating margin (4.1) % 4.6 % (52.3) % Pre-tax non-GAAP items: Amortization related to intangible assets 308 1,250 1,171 Restructuring 287 — 8,806 Equity-based compensation 7,092 6,363 7,493 Impairment charges — — 39,817 Non-GAAP income / (loss) from operations $ 1,593 $ 15,890 $ (27,380) Non-GAAP operating margin 1.1 % 8.7 % (16.9) % 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 June 28, 2025 June 29, 2024 March 29, 2025 Net revenue $ 148,413 $ 181,650 $ 161,986 U.S. GAAP net (loss) / income (3,289) 12,264 (84,519) U.S. GAAP net margin (2.2) % 6.8 % (52.2) % Non-GAAP adjustments: Amortization related to intangible assets 308 1,250 1,171 Restructuring 287 — 8,806 Equity-based compensation 7,092 6,363 7,493 Impairment charges — — 39,817 Net income tax benefit on non-GAAP items (626) (568) (639) Total non-GAAP adjustments $ 7,061 $ 7,045 $ 56,648 Non-GAAP net income / (loss) $ 3,772 $ 19,309 $ (27,871) Non-GAAP net margin 2.5 % 10.6 % (17.2) % U.S. GAAP net (loss) / income per share: Basic $ (0.06) $ 0.22 $ (1.59) Diluted(a) $ (0.06) $ 0.22 $ (1.59) Non-GAAP adjustments per share:(b) Basic $ 0.13 $ 0.13 $ 1.07 Diluted $ 0.13 $ 0.13 $ 1.07 Non-GAAP net income / (loss) per share: Basic $ 0.07 $ 0.35 $ (0.52) Diluted(c) $ 0.07 $ 0.35 $ (0.52) Weighted average shares outstanding: Basic 52,692 55,280 53,311 Diluted 52,866 55,724 53,311 (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, impairment relating to assets acquired through business combinations, long-lived asset impairment relating to business cessation or disposal, gain relating to disposal or cessation of business, 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, but that effect is excluded when calculating Non-GAAP diluted net loss per share because it would be anti-dilutive. 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 June 28, 2025 June 29, 2024 March 29, 2025 U.S. GAAP net cash provided by operating activities $ 7,380 $ 26,897 $ 79,877 Purchases of property, plant and equipment (2,090) (2,683) (1,954) Proceeds from sales of property, plant and equipment 147 — 60 Non-GAAP adjusted free cash flow $ 5,437 $ 24,214 $ 77,983 Reconciliation of U.S. GAAP to Non-GAAP Outlook (In millions, except per share data) (Unaudited) Fourth quarter of fiscal 2025 ending October 4, 2025 GAAP Outlook Adjustments Non-GAAP Outlook Net revenue $170 million +/- $10 million — $170 million +/- $10 million Operating expenses $75.5 million +/- 2% $7.5 million B,C $68.0 million +/- 2% Diluted EPS(1) $0.08 +/- 10%% $0.14 A, B, C, D $0.22 +/- 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 7.2 C. Amortization related to intangible assets 0.3 D. Net income tax effect of the above items (0.6) (1) GAAP and non-GAAP diluted EPS based on approximately 52.0 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. SOURCE Kulicke & Soffa Industries, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Kulicke & Soffa Reports Third Quarter 2025 Results

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