Singapore – February 4, 2025 – Kulicke and Soffa Industries, Inc. (NASDAQ: KLIC) (“Kulicke & Soffa,” “K&S,” “our,” or the “Company”), today announced financial results of its first fiscal quarter ended December 28, 2024. The Company reported first quarter net revenue of $166.1 million, net income of $81.6 million, representing EPS of $1.51 per fully diluted share, and non-GAAP net income of $20.2 million, representing non-GAAP EPS of $0.37 per fully diluted share.

Fusen Chen, Kulicke & Soffa’s President and Chief Executive Officer, stated, “As we anticipate core-market demand to gradually improve, we remain focused on delivering new systems and features within the Ball, Wedge, and Advanced Solutions segments. Over the coming quarters, we also expect ongoing market adoption of our unique Fluxless Thermo-Compression (FTC), Vertical Fan-Out (VFO), and emerging battery assembly solutions."

Next-generation memory and logic applications, driven by artificial intelligence, cloud computing and connected devices, are demanding new forms of semiconductor packaging. The Company's leading advanced packaging solutions - including FTC and VFO - are well positioned to directly support these emerging industry requirements over the long-term.

•Net revenue of $166.1 million.

•Gross margin of 52.4%.

•Net income of $81.6 million or $1.51 per share; non-GAAP net income of $20.2 million or $0.37 per fully diluted share.

•GAAP cash flow from operations of $18.9 million; Adjusted free cash flow of $8.7 million.

•Cash, cash equivalents, and short-term investments were $538.3 million as of December 28, 2024.

•The Company repurchased a total of 0.8 million shares of common stock at a cost of $36.9 million.

K&S currently expects net revenue in the second quarter of fiscal 2025 ending March 29, 2025 to be approximately $165 million +/- $10 million, GAAP diluted EPS to be approximately $0.03 +/- 10%, and non-GAAP diluted EPS to be approximately $0.19 +/- 10%.

A webcast to discuss these results will be held on February 5, 2025, beginning at 8:00 am EST. The live webcast link, supplemental earnings presentation, and archived webcast will be available at investor.kns.com. To access the audio-only portion of the live webcast, parties may call +1-877-407-8037, or internationally, +1-201-689-8037.

An audio-only replay of the webcast will also be available approximately one hour after the completion of the live call by calling +1-877-660-6853, or internationally, +1-201-612-7415 and referencing access code 13750873.

In addition to U.S. GAAP ("GAAP") results, this press release also contains the following non-GAAP financial results: income from operations, operating margin, net income, net margin, net income per fully diluted share and adjusted free cash flow. The Company's non-GAAP results exclude amortization related to intangible assets acquired through business combinations, costs associated with restructuring and severance, equity-based compensation, acquisition and integration costs, impairment relating to assets acquired through business combinations, long-lived asset impairment relating to business cessation or disposal, impairment relating to equity investments, income tax expense/benefit arising from discrete tax items triggered by acquisition, disposal of business (both via a sale or an abandonment), restructuring and significant changes in tax laws, gain/loss on disposal of business, as well as tax benefits or expenses associated with the foregoing non-GAAP items. The non-GAAP adjustments may or may not be infrequent or nonrecurring in nature, but are a result of periodic or non-core operating activities. These non-GAAP measures are consistent with the way management analyzes and assesses the Company’s operating results. The Company believes these non-GAAP measures enhance investors’ understanding of the Company’s underlying operational performance, as well as their ability to compare the Company’s period-to-period financial results and the Company’s overall performance to that of its competitors.

Management uses both GAAP metrics as well as these non-GAAP metrics to evaluate the Company's operating and financial results. Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in the Company’s industry, as other companies in the industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on the Company’s reported financial results. The presentation of non-GAAP items is meant to supplement, but not substitute for, GAAP financial measures or information. The Company believes the presentation of non-GAAP results in combination with GAAP results provides better transparency to the investment community when analyzing business trends, providing meaningful comparisons with prior period performance and enhancing investors' ability to view the Company's results from management's perspective. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP measure discussed in this press release is contained in the financial tables at the end of this press release.

Founded in 1951, Kulicke & Soffa specializes in developing cutting-edge semiconductor and electronics assembly solutions enabling a smart and more sustainable future. Our ever-growing range of products and services supports growth and facilitates technology transitions across large-scale markets, such as advanced display, automotive, communications, compute, consumer, data storage, energy storage and industrial.

			As of
			December 28, 2024						September 28, 2024
ASSETS
CURRENT ASSETS
Cash and cash equivalents			$	278,325					$	227,147
Short-term investments			260,000						350,000
Accounts and other receivable, net of allowance for doubtful accounts of $49 and $49, respectively			247,858						193,909
Inventories, net			185,060						177,736
Prepaid expenses and other current assets			42,646						46,161
TOTAL CURRENT ASSETS			1,013,889						994,953
Property, plant and equipment, net			62,467						64,823
Operating right-of-use assets			34,967						35,923
Goodwill			88,411						89,748
Intangible assets, net			22,802						25,239
Deferred tax assets			17,953						17,900
Equity investments			3,385						3,143
Other assets			7,571						8,433
TOTAL ASSETS			$	1,251,445					$	1,240,162
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable			48,974						58,847
Operating lease liabilities			7,048						7,718
Accrued expenses and other current liabilities			77,073						90,802
Income taxes payable			36,056						26,427
TOTAL CURRENT LIABILITIES			169,151						183,794
Deferred tax liabilities			34,657						34,594
Income taxes payable			31,546						31,352
Operating lease liabilities			30,526						33,245
Other liabilities			12,821						13,168
TOTAL LIABILITIES			278,701						296,153
SHAREHOLDERS' EQUITY
Common stock, no par value			597,901						596,703
Treasury stock, at cost			(914,241)						(881,830)
Retained earnings			1,313,213						1,242,558
Accumulated other comprehensive loss			(24,129)						(13,422)
TOTAL SHAREHOLDERS' EQUITY			$	972,744					$	944,009
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY			$	1,251,445					$	1,240,162

(a)GAAP diluted net earnings per share reflects any dilutive effect of outstanding restricted stock, but that effect is excluded when calculating GAAP diluted net loss per share because it would be anti-dilutive.

(b)Non-GAAP adjustments per share include amortization related to intangible assets acquired through business combinations, costs associated with restructuring and severance, equity-based compensation expenses, gain relating to disposal or cessation of business, income tax benefit arising from discrete tax items, and income tax effects associated with the foregoing non-GAAP items.

(c)Non-GAAP diluted net earnings per share reflects any dilutive effect of outstanding restricted stock.

(1) GAAP and non-GAAP diluted EPS based on approximately 53.7 million diluted weighted average shares outstanding.

The tables above reconcile our GAAP to non-GAAP guidance based on the current outlook. The guidance does not incorporate the impact of any potential business combinations, divestitures, restructuring activities, strategic investments and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our control.