Kulicke and Soffa Reports 18.3% Revenue Decline and Net Loss in Q3 Fiscal 2025

Kulicke and Soffa Industries, Inc. reported a decline in financial performance for the third quarter of fiscal 2025, with net revenue of $148.4 million, down 18.3% from $181.7 million in the same period last year. For the nine months ended June 28, 2025, revenue decreased by 9.2% to $476.5 million compared to $524.9 million in the prior year. The company experienced a net loss of $3.3 million for the quarter, translating to a loss per share of $0.06, compared to a profit of $12.3 million, or $0.22 per share, in the previous year. The nine-month results also reflected a loss of $6.2 million, an improvement from a loss of $81.1 million in the same period last year.

The decline in revenue was attributed to lower sales volumes in key segments, particularly Ball Bonding Equipment and Advanced Solutions, which were partially offset by increased sales in Wedge Bonding Equipment. The company’s gross profit for the quarter was $69.2 million, down from $84.7 million a year earlier, while gross profit for the nine months increased to $196.7 million from $181.1 million, primarily due to reduced costs of sales. Operating expenses decreased by 1.5% for the quarter, but the company still reported a loss from operations of $6.1 million, a significant drop from the $8.3 million profit recorded in the same quarter last year.

Strategically, Kulicke and Soffa is in the process of winding down its Electronics Assembly (EA) equipment business, a decision approved by the Board of Directors in March 2025. This move aims to refocus on core semiconductor assembly opportunities and is expected to be completed by the first half of fiscal 2026. The company has incurred significant impairment charges related to this cessation, totaling $39.8 million for the nine months ended June 28, 2025. Additionally, the company recorded a gain of $75.9 million related to the reimbursement from the cancellation of Project W, which has positively impacted its financials.

Operationally, Kulicke and Soffa's total assets decreased to $1.1 billion as of June 28, 2025, down from $1.2 billion at the end of the previous fiscal year. The company’s cash and cash equivalents increased to $246.5 million, while short-term investments decreased to $310 million. The company’s workforce remains stable, with no significant changes in employee headcount reported. The company continues to focus on maintaining a strong balance sheet to support future growth and operational needs.

Looking ahead, Kulicke and Soffa anticipates ongoing challenges due to macroeconomic conditions, including inflation and geopolitical tensions, which may impact demand for its products. However, the company remains committed to leveraging its cash reserves for product development and potential acquisitions. The management expressed cautious optimism about the long-term growth prospects of the semiconductor industry, despite current volatility.