• Revenue: $166.1 million for the December quarter.
• Gross Margin: 52.4% for the December quarter.
• Non-GAAP EPS: $0.37 for the December quarter.
• GAAP EPS: $1.51 for the December quarter, supported by customer reimbursements.
• Non-GAAP Operating Expenses: $68.6 million for the December quarter.
• GAAP Tax Expenses: $11.3 million for the December quarter.
• Share Repurchase: $36.9 million, reducing shares outstanding by nearly 800,000 shares.
• March Quarter Revenue Outlook: Approximately $165 million, plus or minus $10 million.
• March Quarter Gross Margin Outlook: 47%.
• March Quarter Non-GAAP Operating Expenses Outlook: $70.5 million, plus or minus 2%.
• March Quarter GAAP EPS Outlook: $0.03 per share.
• March Quarter Non-GAAP EPS Outlook: $0.19 per share.

• Warning! GuruFocus has detected 3 Warning Signs with KLIC.

Release Date: February 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Kulicke & Soffa Industries Inc (NASDAQ:KLIC) anticipates a gradual improvement in the General Semiconductor and Automotive end markets in fiscal 2025.
• The company has demonstrated technology leadership in thermo-compression and advanced dispense opportunities.
• Kulicke & Soffa Industries Inc (NASDAQ:KLIC) shipped a new dual-head Fluxless Thermo-Compression system, which offers nearly twice the throughput of the existing system.
• The company is expanding its customer engagements, including a leading memory customer, for future-generation HBM applications.
• Kulicke & Soffa Industries Inc (NASDAQ:KLIC) has secured leadership positions in Fluxless Thermo-Compression, which is expected to play a significant role in future chiplet-based applications.

Negative Points

• Visibility within the higher-volume Ball and Wedge markets is limited, and the core business remains in the late stage of a market downturn.
• The General Semiconductor market is experiencing capacity digestion, with Ball Bonder revenue sequentially lower.
• The company anticipates a broader cyclical recovery but acknowledges delays in customer investment decisions due to global political dynamics.
• Kulicke & Soffa Industries Inc (NASDAQ:KLIC) expects its effective tax rate to remain above 20% per quarter through fiscal 2025.
• The company faces challenges in transitioning from aging flip-chip technology to traditional TCB or Fluxless Thermo-Compression applications.

Q & A Highlights

Q: Fusen, you mentioned that the March quarter general semiconductor should grow. Is it fair to assume that sequentially, into June and September, your bonder revenue should grow sequentially? A: Yes, we anticipate growth despite some delays in customer investment decisions due to the Chinese New Year and global political dynamics. We expect the transition to more normalized levels of ball bonding later this year, with the second half of fiscal '25 potentially being 20% to 30% higher than the first half.

Q: Can you provide more details on the customers using your thermo-compression bonding tool and which ones will be the biggest growth drivers? A: We have multiple customers, including foundries, IDMs, and OSATs. Between those using it in high-volume production and those qualifying it, we have close to 8 to 10 customers engaged with our TCB bonders.

Q: Regarding the dual-head tool for the HBM market, what are your throughput advantages versus the competition? A: Our dual-head tool provides better electrical performance and productivity compared to competitors. We aim for high reliability and slightly better throughput, which are key metrics for success in the HBM market.

Q: What is the expected market share for your vertical wire solution in the DRAM market, traditionally dominated by a Japanese competitor? A: We expect to have a strong position in the VFO market across all three leading DRAM customers. We are confident in our ability to capture significant market share in this area.

Q: How do you see the core markets' recovery affecting your margin structure? A: We aim to maintain gross margins around 50%. As we introduce new products with higher margins and focus on cost reduction, we expect margins to improve, especially with higher factory utilization as volumes increase.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.