Kulicke and Soffa Reports $654.1 Million Revenue, Implements Strategic Shift in Operations

Kulicke and Soffa Industries, Inc. reported a net revenue of $654.1 million for the fiscal year ending October 4, 2025, a decrease of 7.4% from $706.2 million in the previous fiscal year. The company's gross profit increased slightly to $277.9 million, up 3.4% from $268.8 million, resulting in a gross profit margin of 42.5%, compared to 38.1% in fiscal 2024. The company recorded a loss from operations of $3.2 million, a significant improvement from a loss of $92.5 million in the prior year, primarily due to reduced operating expenses and a gain related to the cessation of its Electronics Assembly (EA) equipment business.

The fiscal year saw a notable shift in the company's operational strategy, particularly with the decision to wind down its EA equipment business, which was approved by the Board of Directors on March 25, 2025. This strategic move aims to focus on core semiconductor assembly opportunities and is expected to be completed by fiscal 2026. The cessation has led to impairment charges totaling $39.8 million, primarily related to goodwill and intangible assets. Additionally, the company received an $86.2 million reimbursement from a customer for costs associated with the cancellation of Project W, which contributed to the financial results.

Operationally, Kulicke and Soffa experienced a backlog increase to $245.3 million as of October 4, 2025, compared to $148.6 million a year earlier, indicating a positive trend in customer orders. The company reported a total of 2,551 full-time employees as of the end of the fiscal year, reflecting a stable workforce despite the ongoing restructuring efforts. The geographic distribution of revenue remains heavily concentrated, with approximately 90.5% of net revenue derived from customers outside the U.S., primarily in the Asia/Pacific region.

Looking ahead, Kulicke and Soffa anticipates continued challenges due to macroeconomic headwinds, including inflationary pressures and geopolitical tensions, particularly in the Middle East and Ukraine. However, the company remains optimistic about long-term growth in the semiconductor industry, expecting normalization in demand and operational performance. The management believes that existing cash reserves, along with anticipated cash flows, will be sufficient to meet liquidity and capital requirements for the foreseeable future, including ongoing investments in research and development and potential share repurchase programs.