Kulicke and Soffa's Q1 2025: Discrepancies in Revenue Projections and Market Recovery Insights

These are the key contradictions discussed in Kulicke and Soffa Industries' latest 2025Q1 earnings call, specifically including: Revenue Projections for Fiscal 2025, Market Recovery Expectations, Revenue and Margin Expectations for Advanced Packaging, and Capacity and Demand Dynamics:



Sales Performance and Market Recovery:
- Kulicke & Soffa reported a $166.1 million revenue for the December quarter with a 52.4% gross margin and a non-GAAP EPS of $0.37.
- The company emphasized growing demand in automotive and industrial sectors, with several battery assembly system shipments to leading EV companies and promising solid-state battery manufacturers.
- Recovery is anticipated in the power semiconductor market, driven by global demand for efficient power delivery and storage.

Technological Leadership in TCB and FTC:
- Kulicke & Soffa exceeded $300 million in TCB market revenue in calendar year 2024, marking significant market penetration.
- The company’s FTC technology is positioned to enhance HBM processes, providing critical performance improvements for AI and cloud computing workloads.
- The advances in TCB and FTC are expected to contribute to long-term growth with a compound annual growth rate of 20-25%.

Advanced Packaging Capacity and Demand:
- The outlook for advanced packaging, including TCB, is expected to reach $275 million to $300 million in 2025, up from $220 million in 2024.
- Growing demand for high-volume assembly is driving development and qualification of new systems, such as the latest FTC systems for a key foundry customer.
- The company's focus on customer qualification and market adoption is central to capturing market share in emerging applications.

Share Repurchase Program:
- Kulicke & Soffa completed a previous share repurchase program and initiated a new $300 million program, reducing shares outstanding by nearly 800,000 shares.
- The company anticipates improved operating efficiency and development focus, driving strategic growth in key areas.
- The repurchase program reflects confidence in the company's financial health and long-term prospects.