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- **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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

KLIC

KLIC fundamentals

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