Kulicke & Soffa Industries Inc (KLIC) Q2 2025 Earnings Call Highlights: Navigating ...

In This Article:

  • Revenue: $162 million for the March quarter.

  • Gross Margin: 24.9%, including EA-related inventory and supply chain charges of $38.6 million.

  • Operating Expenses: $125.1 million, including restructuring charges of $8.8 million and impairment charges of $39.8 million.

  • EA-related Charges: Total of $86.6 million for the wind-down, primarily related to inventory write-down, supply chain, asset impairment, and restructuring-related charges.

  • Tax Expense: $5.4 million, with an anticipated effective tax rate above 20% over the coming year.

  • Share Repurchase: Over 500,000 shares repurchased for $21.3 million during the second fiscal quarter.

  • Revenue Outlook for June Quarter: $145 million, plus or minus $10 million.

  • Gross Margin Outlook for June Quarter: 46.5%.

  • Non-GAAP Operating Expenses Outlook for June Quarter: $68 million, plus or minus 2%.

  • GAAP EPS Outlook for June Quarter: Loss of $0.09 per share.

  • Non-GAAP EPS Outlook for June Quarter: Gain of $0.05 per share.

Release Date: May 07, 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) announced the launch of their latest Wafer-Level-Packaging solution, ATPremier MEM Plus, optimized for stacked DRAM opportunities, which is generating significant interest.

  • The company is seeing improved utilization rates in China and Taiwan, indicating potential for increased capacity buys in these regions.

  • Kulicke & Soffa Industries Inc (NASDAQ:KLIC) is focusing on high-growth areas such as Vertical Wire, Advanced Dispense, and Thermo-Compression, which are expected to drive future growth.

  • The company has a strong market position in Power Semiconductor applications, with new product launches expected to contribute to revenue in 2026.

  • Kulicke & Soffa Industries Inc (NASDAQ:KLIC) remains the only Fluxless TCB supplier qualified for high-volume manufacturing with leading semiconductor companies, indicating a strong competitive position.

Negative Points

  • The decision to discontinue the Electronics Assembly (EA) equipment business will result in significant restructuring charges and a reduction in revenue.

  • The ongoing trade situation and tariff uncertainties are causing hesitation and a more defensive capacity planning approach among customers, particularly in Southeast Asia.

  • The company reported a sequential revenue decline, with a guidance of $145 million for the June quarter, down from $162 million in the March quarter.

  • Kulicke & Soffa Industries Inc (NASDAQ:KLIC) is experiencing a slowdown in the Southeast Asia automotive and industrial market, which is impacting overall performance.

  • The company is facing capacity constraints in its Thermo-Compression Bonding (TCB) operations, limiting its ability to meet demand fully.