Kulicke and Soffa Industries, Inc. Q4 FY2025 earnings call

Organizational Changes

• Lester Wong took over as Interim CEO due to Fusen Chen's retirement, while continuing as EVP and CFO. Fusen is recovering well and will provide advisory support.

Business Results

• Fourth quarter revenue was $177.6 million, GAAP EPS $0.12, non-GAAP EPS $0.28. Focus on operational efficiency in thermocompression, vertical wire, etc.

Market Improvements

• General semiconductor and memory end markets show improved utilization (over 80% for general semi), automotive and industrial showing early improvement. December quarter revenue expected up 7% sequentially to $190M.

Product Initiatives

• Advanced packaging: Supporting FTC for advanced logic, preparing to ship first HBM system for qualification. Advanced dispense: Released ACELON system at Semiconductor Taiwan. Power semiconductor: Developing solutions for EV and clean tech.

In the fourth fiscal quarter, Kulicke and Soffa generated revenue of $177.6 million. General semiconductor revenue increased by 24% sequentially, driven by technology and capacity needs, with utilization rates over 80%. Memory-related revenue increased by nearly 60% sequentially to $24.4 million, driven by NAND-related capacity additions. APS increased by 17% sequentially. For the December quarter, revenue is expected to increase by approximately 7% sequentially to $190 million with gross margins at 47%.

Q4 Guidance

• December quarter revenue expected at $190M, gross margins 47%, non-GAAP operating expenses $71M, GAAP EPS $0.18, non-GAAP EPS $0.33.

FY 2026 Guidance

• Half of incremental growth expected from technology transitions (FTC, vertical wire, advanced dispense, power semiconductor) and half from cyclical recovery, with FY '26 revenue around $730M-$740M.

Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially. Refer to latest Form 10-K and SEC filings for complete risk discussion.

Q: It looks like based on guidance, sequentially all 3 segments (general semi, memory, auto industrial) should grow. How to think about March quarter and seasonality?

A: General semi and memory have strong utilization over 80%, auto industrial expected to improve sequentially into December quarter, March quarter likely flat to Q1 with no major seasonality Q: Talked about shipping HBM system, nature of shipment and next milestone?

A: Shipping system to a U.S. customer for qualification, next milestone is customer running wafers through it and seeking qualification, hoping to share news a few months after installation Q: Growth for FY '26, half from tech transitions, half from cyclical recovery. Can you be more quantitative?

A: FY '26 consensus revenue around $730M-$740M, half incremental growth from tech transitions (FTC, vertical wire, advanced dispense, power semiconductor) and half from cyclical recovery due to 80% utilization rate Q: Comment on NAND market and trajectory of memory recovery?

A: Memory utilization over 80%, orders increasing in market (especially China) with utilization close to 90% in China, memory ramp continuing into FY '26 Q: Dynamics in auto and industrial market, potential upturn in first half of 2026?

A: Customers show optimism, auto industrial revenue expected to increase sequentially in Q1 from Q4, with improvement expected in FY '26 due to cleantech and EV related power semi solutions