What is Kulicke and Soffa Industries's gross profit margin?

What is the market's earnings forecast for Kulicke and Soffa Industries next quarter?

What is Kulicke and Soffa Industries's latest dividend and current dividend yield?

What were the key takeaways from Kulicke and Soffa Industries’s earnings call?

What does Kulicke and Soffa Industries do and what are its main business segments?

What is the revenue and EPS growth rate for Kulicke and Soffa Industries year over year?

Did Kulicke and Soffa Industries beat or miss consensus estimates last quarter?

What were the key takeaways from Kulicke and Soffa Industries's earnings call?

- **Revenue Growth**: Q4 2025 revenue of $177.6M exceeded guidance, with Q1 2026 guidance of $190M (+7% QoQ). General semi and memory utilization >80%, auto/industrial expected to improve sequentially.
- **Tech Transition Leadership**: FTC thermocompression systems shipping to HBM customers, targeting 4E generation. Vertical wire solutions poised for FY26 revenue of ~$10M, ramping to high-volume in late 2026.
- **Financial Strength**: Non-GAAP EPS of $0.28 in Q4, with FY26 targeting ~$730M-$740M, half from tech transitions (FTC, advanced dispense) and half from cyclical recovery.
- **Strategic Momentum**: Advanced packaging solutions (ACELON dispense, power semi) align with EV and AI edge trends, positioning for long-term growth despite near-term macro challenges.

**【Management Opening Remarks】**
- Joseph Elgindy introduced the call, noting the availability of GAAP to non-GAAP reconciliations and emphasizing forward-looking statements' risks. Lester Wong, Interim CEO and CFO, assumed leadership following Fusen Chen's retirement, with a seamless transition expected.

**【CEO Commentary】**
- **Organizational Transition**: Lester Wong highlighted Fusen Chen's legacy, including market share gains in advanced packaging, and assured continuity under his interim leadership. He emphasized customer engagement and technology readiness for emerging trends like chiplet architectures.
- **Market Performance**: 
  - **General Semiconductor**: Sequential revenue growth of 24%, driven by thermocompression and ball bonder demand, with utilization over 80%.
  - **Memory**: Sequential revenue increase of 60% to $24.4M, supported by NAND capacity additions and anticipation of DRAM advanced packaging adoption.
  - **Automotive/Industrial**: Sequential decline noted, but expected sequential improvement in Q1 2026 due to EV and clean tech transitions.
- **Advanced Technologies**: 
  - **Fluxless Thermocompression (FTC)**: Leading in logic applications, with HBM system shipments beginning in Q4 and targeting 4E generation.
  - **Vertical Wire**: High-volume production expected late 2026, with FY26 revenue contributions of ~$10M.
  - **Advanced Dispense**: ACELON system gaining traction, with recurring orders.

**【CFO Financial Commentary】**
- **Q4 2025 Results**: 
  - Revenue: $177.6M (vs. guidance), GAAP EPS $0.12, Non-GAAP EPS $0.28.
  - Gross Margin: 45.7%, Non-GAAP OpEx $69.7M, share repurchases totaling $96.5M in FY25.
- **Q1 2026 Guidance**: 
  - Revenue: $190M (+7% QoQ), Gross Margin: 47%, Non-GAAP EPS $0.33.
  - FY26 Outlook: Half of growth from tech transitions (FTC, vertical wire, power semi), half from cyclical recovery, targeting ~$730M-$740M.

**【Q&A Highlights】**
- **HBM Market**: First system shipment to U.S. customer for 4E qualification, positioning as best-in-class against competitors.
- **NAND Strength**: China-driven utilization near 90%, with purchase orders increasing.
- **Auto/Industrial Recovery**: Sequential Q1 2026 growth expected, supported by EV and power semi solutions.
- **Vertical Wire Ramp**: Late 2026 high-volume production, with FY26 revenue ~$10M.
- **General Semi Growth**: Driven by smartphone and HPC, with utilization rates signaling cyclical recovery.


Kulicke and Soffa Industries, Inc. (KLIC) Q4 2025 Earnings Call Transcript

- **Q4 Revenue Beat**: Sequential growth to $170 million, driven by semiconductor and memory recovery.
- **Gross Margin Expansion**: 47% expected in Q4, supported by cost control and new product adoption.
- **Long-Term Growth Drivers**: EV infrastructure (20%+ CAGR), low-power HBM, and advanced dispense solutions.
- **TCB Leadership**: FTC shipments to begin in 2025, targeting $1 billion market by 2028.
- **Shareholder Returns**: $270 million returned via buybacks and dividends since Q1 2024.

**【CEO Summary Section】**
- Q3 2025 revenue of $148.4 million, with non-GAAP EPS of $0.07, driven by core market improvements despite automotive/industrial headwinds.
- Sequential revenue increase to $170 million in Q4, with gross margin expected at 47%.
- Long-term growth opportunities in EV infrastructure (20%+ CAGR for charging systems) and power semiconductors.
- New product momentum: Advanced Dispense (initial POs from automotive OEMs), vertical wire (HBM applications), and TCB (Fluxless Thermo-Compression solutions).
- Automotive market softness expected to persist through Q4, but technology transitions (e.g., low-power HBM) provide long-term share gain potential.

**【CFO Financial Commentary】**
- Q3 GAAP net income of $0.07, non-GAAP EPS of $0.07, with gross margin of 46.7%.
- Sequential revenue growth to $170 million in Q4, supported by general semiconductor and memory market recovery.
- Operating expenses controlled at $68 million (non-GAAP), with $270 million returned to shareholders via buybacks and dividends since Q1 2024.
- Effective tax rate expected above 20% near-term, with evaluation of U.S. tax law changes.

**【Q&A Key Highlights】**
- **Revenue Outlook**: Q4 guidance of $170 million, with cautious optimism for flat Q1 2026 due to automotive headwinds, followed by potential recovery in Q2/Q3.
- **TCB/HBM**: Initial FTC system shipments expected by end-2025, targeting $60-70 million in 2025 and $100 million+ in 2026.
- **Market Share**: Gaining share in DRAM (vertical wire), automotive (clip-attach), and advanced dispense (precision micro-dispensing solutions).
- **Utilization Rates**: General semiconductor at 83%, memory at 80%, automotive below 70%.
- **Intel Impact**: Engagements remain healthy, but revenue impact from Intel's CapEx cuts unclear.


Kulicke and Soffa Industries, Inc. (KLIC) Q3 2025 Earnings Call Transcript

- **Q3 Guidance**: $145 million (±$10M) with TCB/VerticalWire solutions nearing production ramp in 2026.
- **Market Volatility**: Southeast Asia automotive/industrial orders down 30% YoY due to tariff uncertainty, offset by China/Taiwan utilization rates >80%.
- **TCB Growth**: Fully booked for FY25, with $70 million in orders; targeting $100+ million in FY26.
- **Strategic Shift**: Exited EA business with $86.6 million Q2 charges, positioning for through-cycle margin improvement.
- **Tariff Resilience**: No direct impact on shipments, but indirect costs via supply chain hesitation.

**【CEO Summary Section】**
- Announced discontinuation of the electronics assembly (EA) equipment business, with restructuring charges of $86.6 million in Q2 and expected residual costs below $15 million in FY26.
- Focused on core technologies: VerticalWire for high-volume memory, Thermal Compression Bonding (TCB) for leading-edge logic, and advanced dispense solutions for power semiconductors.
- Q3 revenue guidance of $145 million (±$10M), driven by weakness in Southeast Asia automotive/industrial market due to tariff uncertainty, offset by strength in China/Taiwan utilization rates.
- Anticipated Q4 recovery if trade clarity improves, with TCB and VerticalWire solutions nearing production ramp in 2026.

**【CFO Financial Commentary】**
- Q2 GAAP revenue: $162 million; non-GAAP gross margin: 46.5% (excluding EA charges).
- Q3 non-GAAP EPS guidance: $0.05, with operating expenses of $68 million (±2%).
- $300 million share buyback program initiated, with $21.3 million executed in Q2.
- Effective tax rate expected above 20% for FY25 due to global profit/loss mix.

**【Q&A Key Highlights】**
- **Market Dynamics**: China/Taiwan utilization rates >80%, but customers hesitant to add capacity amid trade uncertainty. Southeast Asia Q3 revenue down 30% YoY due to auto/industrial tariff concerns.
- **TCB Progress**: Fully booked for FY25, with $70 million in orders; expects $100+ million in FY26 as foundry and IDM customers transition to chip-on-wafer.
- **VerticalWire**: DDR form factor reduction >30%, with first production ramp in H1 2026 for mobile applications.
- **Tariff Impact**: No direct impact on K&S shipments (manufactured in Singapore), but indirect costs via supply chain hesitation.
- **EA Business Exit**: Annualized EA revenue ~$25-30 million, with operating expenses of $20-25 million; final wind-down by H1 2026.

Kulicke and Soffa Industries (KLIC)-7 May 25-2025 Q2 Earnings call transcript

- **Revenue resilience**: Q1 2025 revenue $166.1M, 52.4% gross margin despite general semiconductor weakness.
- **TCB leadership**: 2024 TCB revenue surpasses $300M, targeting 20-25% CAGR. New dual-head FTC system doubles throughput.
- **Emerging tech growth**: Vertical wire bonding in DRAM/NAND, copper-to-copper TSV, and HBM alternatives drive long-term opportunities.
- **Auto momentum**: Ball and wedge bonding demand up in EV and power semiconductor markets.
- **Margin expansion**: 50%+ gross margin target as new wedge attach and clip attach systems gain adoption.


**【CEO Business Overview】**
- Q1 2025 revenue: $166.1M, driven by general semiconductor and automotive markets. 52.4% gross margin and non-GAAP EPS of $0.37.
- FTC (trackless thermo-compression) systems: New dual-head system shipped to key foundry customer, offering 2x throughput. 2024 TCB revenue exceeded $300M, targeting 20-25% CAGR for TCB market.
- Automotive & industrial: Ball and wedge bonding demand improving, with shipments to EV and solid-state battery manufacturers.
- Emerging technologies: Vertical wire bonding for DRAM/NAND, copper-to-copper TSV, and HBM alternatives in development. Multiple leading memory customers engaged for vertical wire applications.

**【CFO Financial Update】**
- Q1 2025 GAAP net income: $420M (includes $71M customer settlement gain). Non-GAAP operating expenses: $68.6M (down 5% YoY due to FX gains and cost control).
- Q2 2025 outlook: Revenue $165M ±$10M, gross margin 47%, non-GAAP EPS $0.19. Effective tax rate ~20%.
- Share buybacks: $36.9M in Q1, reducing shares outstanding by 800K. New $300M program launched.

**【Q&A Key Takeaways】**
- Market recovery: Late-stage of downturn, expecting normalization in H2 2025. Ball bonder revenue could grow 20-30% YoY in H2, targeting $500-600M annualized run rate.
- Advanced packaging: TCB revenue guidance $75-100M in 2025, aiming for 30%+ market share. Vertical wire revenue <$20M in 2025, scaling to $50M+ in 2026.
- HBM opportunities: Dual-head FTC system for HBM4 expected to ship late 2025, with high-volume production in 2026-2027.
- Automotive: Copper wire bonding adoption accelerating, supporting EV power semiconductor demand.
- Margins: Targeting 50%+ gross margin as new products (wedge attach, clip attach) gain traction and factory utilization improves.


Kulicke and Soffa Industries (KLIC)-5 Feb 25-2025 Q1 Earnings call transcript

Kulicke and Soffa Industries (KLIC)-14 Nov 24-2024 Q4 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-7 Aug 24-2024 Q3 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-2 May 24-2024 Q2 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-1 Feb 24-2024 Q1 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-16 Nov 23-2023 Q4 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-9 Aug 23-2023 Q3 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-4 May 23-2023 Q2 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-2 Feb 23-2023 Q1 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-17 Nov 22-2022 Q4 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-4 Aug 22-2022 Q3 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-5 May 22-2022 Q2 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-3 Feb 22-2022 Q1 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-18 Nov 21-2021 Q4 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-5 Aug 21-2021 Q3 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-8 May 21-2021 Q2 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-4 Feb 21-2021 Q1 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-19 Nov 20-2020 Q4 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-31 Jul 20-2020 Q3 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-30 Apr 20-2020 Q2 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-30 Jan 20-2020 Q1 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-14 Nov 19-2019 Q4 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-2 May 19-2019 Q2 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-31 Jan 19-2019 Q1 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-20 Nov 18-2018 Q4 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-1 Aug 18-2018 Q3 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-10 May 18-2018 Q2 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-31 Jan 18-2018 Q1 Earnings call transcript

Kulicke & Soffa Industries (KLIC)-14 Nov 17-2017 Q4 Earnings call transcript

KLIC

KLIC fundamentals

Earnings Call

You can ask Aime