Kulicke & Soffa Industries Inc (KLIC) Q4 2024 Earnings Call Highlights: Strong Financial ...

In This Article:

  • Revenue: $181.3 million for the fourth quarter.

  • Non-GAAP EPS: $0.34 for the fourth quarter.

  • Gross Margin: 48.3% due to an improving mix of higher performance ball and wedge systems.

  • Net Income Tax Benefit: $2 million, primarily from a $6.5 million tax benefit.

  • December Quarter Revenue Guidance: Approximately $165 million, plus or minus $10 million.

  • December Quarter Gross Margin Guidance: 47%.

  • December Quarter Non-GAAP Operating Expenses Guidance: $70.5 million, plus or minus 2%.

  • December Quarter GAAP EPS Guidance: $1.45 per share.

  • December Quarter Non-GAAP EPS Guidance: $0.28 per share.

  • Dividend Increase: Approval of the fifth consecutive dividend raise.

  • Share Repurchase Program: Authorization of a new repurchase program following the completion of the existing one.

Release Date: November 14, 2024

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

Positive Points

  • Kulicke & Soffa Industries Inc (NASDAQ:KLIC) reported a significant foundry win with their Copper First Hybrid Bonding Process, expected to reach a 3-micron pitch.

  • The company has a strong leadership position in fluxless thermo-compression bonding (FTC), with over 100 systems installed globally and approaching $200 million in cumulative sales.

  • Revenue for the fourth quarter was $181.3 million, with a non-GAAP EPS of $0.34, indicating a solid financial performance.

  • Kulicke & Soffa Industries Inc (NASDAQ:KLIC) announced an increase in their dividend and a new share repurchase program, reflecting a commitment to returning value to shareholders.

  • The company anticipates a recovery in key markets, including general semiconductor and automotive, through fiscal 2025, driven by technology transitions and increased demand.

Negative Points

  • LED demand remains very soft, impacting the company's performance in this segment.

  • The company experienced a sequential reduction in general semiconductor revenue due to shipment schedules and revenue recognition timelines.

  • Kulicke & Soffa Industries Inc (NASDAQ:KLIC) faced challenges in the automotive and industrial markets during fiscal 2024, which offset improvements in other areas.

  • Non-GAAP operating expenses were higher than expected due to foreign exchange and end-of-year accrual adjustments.

  • The company is still recovering from the Project W-related charges, with a $105 million impairment in Q2, although a significant portion is expected to be reimbursed.

Q & A Highlights

Q: Can you provide an update on the utilization rates at your OSAT customers and the threshold for adding capacity? A: Utilization rates differ by region and end market. In China, it's over 80%, while globally, it's in the mid-70s. We believe 80% is the threshold for adding capacity. (Lester Wong, CFO)

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