KULICKE & SOFFA INDUSTRIES INC Q1 FY2025 earnings call

• Shipped the latest Flexlex thermal compression system in dual head configuration to a key foundry customer, providing nearly twice the throughput of existing FTC system. • Extended FTC customer engagement to include a leading memory customer, supporting HBM applications. • Copper-to-copper PCB process picked up momentum, reviewed by leading IDM customers. • Automotive and industrial demand improved, with shipment of battery assembly systems to customers. • Memory segment focused on vertical integration and development engagements with leading memory customers.

For the December quarter, Kulicke & Soffa delivered $166.1 million of revenue, 52.4% gross margin, and a non-GAAP EPS of $0.37. From an end market standpoint, the general semiconductor market was in a state of capacity digestion, but automotive and industrial demand showed improvement. In the memory segment, vertical wire-based assembly and FTC were key areas. The absolute revenue was $166.1 million, with gross margin at 52.4%, and non-GAAP EPS at $0.37.

• Anticipated Q2 revenue of approximately $165 million, plus or minus $10 million, with gross margins of 47%. • Non-GAAP operating expenses anticipated to be $70.5 million, plus or minus 2%. • Expected GAAP EPS of $0.03 per share and non-GAAP EPS of $0.19 per share. • Anticipated normalized revenue level around $500 to $600 million by the end of fiscal 2025, with 2026 likely being a normalized year.

• Actual results may differ from forward-looking statements due to risks and uncertainties outlined in recent and upcoming SEC filings, specifically the latest Form 10-K and 8-K filed today.

Q: Krish Sankar asked about semiconductor growth, normalized core demand, and TCP.

A: Fusen Chen discussed semiconductor growth expectations, normalized revenue levels around $500 to $600 million, and Lester Wong explained margin strength related to Project W tools.

Q: Craig Ellis inquired about AI-related opportunities and vertical wire revenue.

A: Fusen Chen mentioned advanced packaging revenue targets and vertical wire revenue expectations.

Q: David Duley asked about thermal compression customers and vertical wire revenue.

A: Fusen Chen and Lester Wong provided details on thermal compression customers and vertical wire revenue projections.

Q: Charles Shi questioned about dual head tool, VFO market share.

A: Fusen Chen answered on dual head tool timeline and VFO market share expectations.

Q: Tom Diffely asked about market recovery, NAND strength, and margin structure.

A: Fusen Chen discussed market recovery drivers and Lester Wong talked about margin improvement expectations.