Kulicke and Soffa Reports $166.1M Revenue, Net Income Surge to $81.6M

Kulicke and Soffa Industries, Inc. reported a net revenue of $166.1 million for the three months ended December 28, 2024, a decrease of 3% compared to $171.2 million in the same period last year. The company's gross profit increased to $87.1 million, up 9% from $79.9 million, resulting in a gross profit margin of 52.4%, which is a 570 basis point improvement year-over-year. Net income surged to $81.6 million, or $1.52 per share, compared to $9.3 million, or $0.16 per share, in the prior year, largely due to a $71.1 million gain from the cancellation of a customer project.

The financial performance reflects significant operational changes, particularly in the Ball Bonding Equipment segment, which saw a 30.8% decline in revenue to $59.7 million, attributed to lower customer purchases in the semiconductor and memory markets. Conversely, the Wedge Bonding Equipment segment experienced a 37.4% increase in revenue to $32.2 million, driven by higher demand in the automotive sector, particularly related to electric vehicles. Advanced Solutions also reported a substantial increase in revenue, up 148.8% to $28.2 million, reflecting strong demand in the semiconductor and LED markets.

In terms of strategic developments, Kulicke and Soffa completed the sale of its subsidiary, Kulicke & Soffa Liteq B.V., which did not materially impact the financial results. The company also announced a new share repurchase program, authorizing the repurchase of up to $300 million of its common stock, following the completion of a previous program. During the quarter, the company repurchased approximately 657,000 shares at a cost of $30.3 million under the prior program and an additional 136,000 shares for $6.6 million under the new program.

Operationally, Kulicke and Soffa's total assets increased to $1.25 billion, up from $1.24 billion at the end of the previous quarter. The company reported a cash and cash equivalents balance of $278.3 million, an increase from $227.1 million, while short-term investments decreased to $260 million from $350 million. The company’s total liabilities decreased to $278.7 million, down from $296.2 million, reflecting improved management of current liabilities.

Looking ahead, Kulicke and Soffa remains cautious about the macroeconomic environment, which includes inflationary pressures and geopolitical tensions that could impact demand for semiconductor equipment. The company anticipates that while the semiconductor industry may experience volatility, long-term growth projections remain intact. Kulicke and Soffa plans to continue investing in research and development and maintaining a strong balance sheet to navigate potential challenges in the upcoming fiscal periods.